Iran, Islamic Rep.

Ease of Doing Business in

Iran, Islamic Rep.

This page summarizes Doing Business 2013 data for the Islamic Republic of Iran. The first table lists the overall "Ease of Doing Business" rank (out of 185 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region Middle East & North Africa
Income Category Upper middle income
Population 74,798,599
GNI Per Capita (US$) 6,360
Doing Business 2013 Rank Doing Business 2012 Rank Change in Rank
145 144 down -1

Doing Business 2013 DTF** (% points) Doing Business 2012 DTF** (% points) Improvement in DTF** (% points)
55.0 54.0 down 1.0
Topic Rankings DB 2013 Rank DB 2012 Rank Change in Rank
Starting a Business 87 50 up -37
Dealing with Construction Permits 166 166 No change
Getting Electricity 163 164 up 1
Registering Property 165 165 No change
Getting Credit 83 97 up 14
Protecting Investors 150 167 up 17
Paying Taxes 129 125 up -4
Trading Across Borders 143 139 up -4
Enforcing Contracts 53 54 up 1
Resolving Insolvency 126 125 up -1

Economy Profile

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Protecting Investors

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The indicators below describe three dimensions of investor protection: transparency of transactions (Extent of Disclosure Index), liability for self-dealing (Extent of Director Liability Index), shareholders’ ability to sue officers and directors for misconduct (Ease of Shareholder Suits Index) and Strength of Investor Protection Index. The indexes vary between 0 and 10, with higher values indicating greater disclosure, greater liability of directors, greater powers of shareholders to challenge the transaction, and better investor protection.

DB 2013 Rank 150 DB 2012 Rank 167 Change in Rank up17
DB 2013 DTF** (% points) 38.1 DB 2012 DTF** (% points) 31.5 Improvement in DTF** (% points) up6.6
Indicator Iran, Islamic Rep. Middle East & North Africa OECD

This measure of the transparency of transactions has 5 components.

View methodology
Extent of disclosure index (0-10)
7 6 6

This measure of liability for self-dealing by directors has 7 components.

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Extent of director liability index (0-10)
4 5 5

This measure of shareholders’ ability to sue officers and directors for misconduct has 6 components.

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Ease of shareholder suits index (0-10)
0 4 7

This index is an average of the Extent of Disclosure index, the Extent of Director Liability index, and the Ease of Shareholder suit index.

View methodology
Strength of investor protection index (0-10)
3.7 5.0 6.1
Score Score Description
Extent of disclosure index (0-10) 7
What corporate body provides legally sufficient approval for the transaction? 2 Board of directors and Mr. James is not allowed to vote
Whether disclosure of the conflict of interest by Mr. James to the board of directors is required? 1 Existence of a conflict without any specifics
Whether immediate disclosure of the transaction to the public and/or shareholders is required? 2 Disclosure on the transaction and Mr. James' conflict of interest
Whether disclosure of the transaction in published periodic filings (annual reports) is required? 2 Disclosure on the transaction and Mr. James' conflict of interest
Whether an external body must review the terms of the transaction before it takes place? 0 No
Extent of director liability index (0-10) 4
Whether shareholders can sue directly or derivatively for the damage that the Buyer-Seller transaction causes to the company? 1 Yes
Whether shareholders can hold Mr. James liable for the damage that the Buyer-Seller transaction causes to the company? 1 Liable for negligence or influencing the approval of the transaction
Whether shareholders can hold members of the approving body liable for the damage that the Buyer-Seller transaction causes to the company? 1 Liable for negligence
Whether a court can void the transaction upon a successful claim by a shareholder plaintiff? 0 Not possible or only in case of Seller's fraud or bad faith
Whether Mr. James pays damages for the harm caused to the company upon a successful claim by the shareholder plaintiff? 1 Yes
Whether Mr. James repays profits made from the transaction upon a successful claim by the shareholder plaintiff? 0 No
Whether fines and imprisonment can be applied against Mr. James? 0 No
Ease of shareholder suits index (0-10) 0
Whether shareholders owning 10% or less of Buyer's shares can inspect transaction documents before filing suit? 0 No
Whether shareholders owning 10% or less of Buyer's shares can request an inspector to investigate the transaction? 0 No
Whether the plaintiff can obtain any documents from the defendant and witnesses during trial? 0 No documents available
Whether the plaintiff can request categories of documents from the defendant without identifying specific ones? 0 No
Whether the plaintiff can directly question the defendant and witnesses during trial? 0 No
Whether the level of proof required for civil suits is lower than that of criminal cases? 0 No
Strength of investor protection index (0-10) 3.7

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the indicators across all economies included in Doing Business since each indicator was included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

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