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Ease of Doing Business in

Iran, Islamic Rep

Iran, Islamic Rep Download Profile (1789.7KB, pdf)
Region Middle East & North Africa
Income Category Upper middle income
Population 79,109,272
GNI Per Capita (US$) 6,019
City covered Tehran

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 120 117 down
3
57.26 57.08 down
0.18
Starting a Business 102 97 down
5
85.06 84.86 up
0.20
Dealing with Construction Permits 27 27
-
78.50 77.90 up
0.60
Getting Electricity 94 90 down
4
69.15 69.17 down
0.02
Registering Property 86 85 down
1
64.17 64.33 down
0.16
Getting Credit 101 97 down
4
45.00 45.00
-
Protecting Minority Investors 165 166 up
1
35.00 35.00
-
Paying Taxes 100 99 down
1
69.79 69.79
-
Trading across Borders 170 171 up
1
40.66 39.38 up
1.28
Enforcing Contracts 70 69 down
1
60.00 60.00
-
Resolving Insolvency 156 155 down
1
25.25 25.32 down
0.07

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

156

DB 2016 Rank:

155

Change in Rank:

down1

DB 2017 DTF (% points):

25.25

DB 2016 DTF (% points):

25.32

Change in DTF (% points):

down0.07

Indicator Iran, Islamic Rep Middle East & North Africa OECD high income
Recovery rate (cents on the dollar) info_outline 17.9 26.0 73.0
Time (years) info_outline 4.5 3.0 1.7
Cost (% of estate) info_outline 15 13.8 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 0 .. ..
Strength of insolvency framework index (0-16) info_outline 5 5.3 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 17.9
    Proceeding Because BizBank is a secured creditor, it will initiate foreclosure through the Executive Division of the Deeds and Properties Registration Organization to enforce its security interest. foreclosure
    Outcome Mirage's assets will be sold in order to satisfy BizBank's claims and the hotel will not be able to operate. piecemeal sale
    Time (in years) It can take 54 months to complete foreclosure proceedings in Iran due to dilatory tactics that are likely to be used by the debtor, as well as delays caused by external factors, such as holidays or other unexpected events. 4.5
    Cost (% of estate) Major expenses will include court and government agency fees (up to 5%) and attorneys' fees (up to 7%) and auctioneer fees (2-3%). 15.0
    Answer Score
    Strength of insolvency framework index (0-16) 5.0
    Commencement of proceedings index (0-3) 2.0
    What procedures are available to a DEBTOR when commencing insolvency proceedings? (b) Debtor may file for liquidation only 0.5
    Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (b) Yes, but a creditor may file for liquidation only 0.5
    What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a) Debtor is generally unable to pay its debts as they mature 1.0
    Management of debtor's assets index (0-6) 2.0
    Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the debtor? No 0.0
    Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? No 0.0
    Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
    Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0
    Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of insolvency proceedings? No 0.0
    Does the insolvency framework assign priority to post-commencement credit? (c) No priority is assigned to post-commencement creditors 0.0
    Reorganization proceedings index (0-3) 0.0
    Which creditors vote on the proposed reorganization plan? N/A 0.0
    Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as what they would obtain in a liquidation? No 0.0
    Are the creditors devided into classes for the purposes of voting on the reorganization plan, does each class vote separately and are creditors in the same class treated equally? No 0.0
    Creditor participation index (0-4) 1.0
    Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency representative? No 0.0
    Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? No 0.0
    Does the insolvency framework provide that a creditor has the right to request information from the insolvency representative? No 0.0
    Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting creditors' claims? Yes 1.0

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”.