Iraq

Starting a Business in

Iraq

Listed below is a detailed summary of the bureaucratic and legal hurdles an entrepreneur must overcome in order to incorporate and register a new firm, along with their associated time and set-up costs.  It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income (GNI).

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.

  • Standardized Company

  • Legal Form: Private Limited Liability Company
  • City: Baghdad

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No. Procedure Time to Complete Associated Costs
1 Search for a company name; obtain a name reservation letter from the Baghdad Chamber of Commerce

The company name should be an Arabic name. A special department at the Chamber of Commerce, Trade Names, starts by searching the suggested name through their system to see if the name is already taken or reserved by another company. Once a name is agreed upon and available, the name is reserved upon payment of a nominal fee. The Federation of the Chambers of Commerce is informed in order to ensure that the chosen name is not taken through other Iraqi chambers of commerce. This procedure likely requires more than one visit to both chambers and client coordination, ending with filing the name with the Registrar.
2 days IQD 500,000
2 Hire a lawyer to draft articles of association

Because lawyers are required to draft the articles of association, lawyers are usually also in charge of completing the registration process. The cost varies with the law firm.
1 day about IQD 1,500,000
3 Deposit initial capital at commercial bank and obtain confirmation receipt

After the company deposit the initial capital and obtains a confirmation receipt, which must be include with the application submitted to the Companies Registrar . The Capital will be recorded in the account of the company, once complete registration accure, it can be withdrawn immediately after certifcate assued by the Registrar.
2 days IQD 5,000
4 File for registration at the Commercial Registry

Fees are paid directly to the Commercial Registrar. The fee schedule adopted by the Companies Registrar at the Ministry combines different fees (Registrar’s fee, stamp duty, filing fees, certain checking process, etc.), which are cumulative, according to company capital.

The Company Registrar circulates the registration certificate to the bank, the tax authority, and other relevant agencies, including labor and so forth.

The following documents and information must be presented to the Registrar:
The following documents and information must be presented to the Registrar as attached to the application for registration submitted to the Registrar.
- Baghdad Chamber of Commerce letter ( to reserved or trade name).
- Chambers of Commerce Union letter (to ensure the consistency of the company or trade name with other registrations).
- Certified letter from the company's bank.
- Tax clearance for all Founders of the company.
- Iraqi identify cards.
- Iraqi certificated citizenship.
- Ration card (food distribution form).
- Address certificate letter from the mayor's office.
- Phone number(s), email address(es), and P.O. box number(s) of the company's founder(s).

The registration fees are calculated as follows:
- Baghdad Chamber of Commerce fees: IQD 45,000.
- Chambers of Commerce Union fees: IQD 15,000.
- Bank fees: IQD 25,000.
- Company registration fees: based on company capital.
14 days IQD 250,000 - 350,000
5 Advertise incorporation notice in the newspaper

Once the registration has been approved, the Companies Registrar issues a letter to request the two required publications, but the process must be followed up by the registration agent (lawyer), who must submit a copy of each publication to the registry.
3 days USD 70
6 Make company seal


2 days IQD 20,000
7 Obtain registration certificate

Once all related procedures, including both publications, are complete, the Companies Registrar issues the certification of registration. On the date of issuance, the company acquires its legal personality. A registration circular will be sent to all entities concerned.
1 day included in procedure 4
8 Report to tax authority to establish tax registration

The initial tax registration is important to commence company operations. On a date set by the tax authority, the company must submit its first balance sheet to the tax authority, which will then provide the company its tax identification number on the same day.
2 days IQD 450,000
9 Legalize accounting books

The General Body of Taxes must notarize or register the company accounting books and any new accounting books.
2 days USD 150
10 Register employees for social security

The cost for social security registration depends on the number of employees. Any company employing more than three employees is bound, under the Social Security Law, to enroll their employees into the social security insurance program. The employer will deduct 5% from the employee’s salary and add to it an amount equal to 12% of the employee’s salary, resulting in a total payment of 17% to the Social Security Authority.
3 days IQD 20,000
11 Apply for a trade license


30- 60 days IQD 200,000
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