Frequently Asked Questions (FAQ)

Common Investment Questions:

1. Is Foreign Investment permitted in Iran?
2. Under what legal or contractual framework, foreign investment may be admitted in Iran?
3. In what sectors foreign direct investment is permissible?
4. What legal structure do you recommend for foreign investment?
5. Is it obligatory to have local partner(s)?
6. Is there a ceiling for foreign investment in Iran?
7. If there is no restriction imposed in Iran, then what message a prospective foreign investor should get from the ratios of 25% and 35% referred to in Para (d) of Article (2) of FIPPA?
8. Is foreign investment allowed in companies quoted in the Stock Exchange Market?
9. What is meant by the terms Iranian Company and Foreign Company, from the standpoint of Iranian laws and regulations?
10. Is it possible for foreign companies to establish legal bases in the form of branches or representative offices in Iran?
11. Is the establishment of branch or representative offices considered as foreign investment?
12. Is ownership of land by foreign nationals permitted in Iran?

FIPPA Inquiry:(Foreign Investment Promotion & Protection Act)

13. What law protects foreign investment in the Islamic Republic of Iran?
14. What are those rights and privileges?
15. Are there any other facilities and privileges available to foreign investors?
16. How investments by Iranian nationals can be covered under FIPPA?
17. Is the validity of the investment license limited time wise?
18. Is it possible to extend the validity, and how?
19. What are the sectors open to foreign investment in Iran under FIPPA?
20. In what manners a foreign investor can invest in an existing Iranian company and become a shareholder?
21. Are foreign investment companies authorized to open bank accounts outside Iran?
22. Is there any requirement for reintroducing export earnings to the Country for joint venture companies and investee firms?
23. Can foreign investor insure his investment? What kind of insurance?
24. Which authority is competent to settle investment disputes between Iranian and foreign investors or between a foreign investor and the Government?

Admission System:

25. Which authority is responsible for admission and protection of foreign investments in the Islamic Republic of Iran?
26. Which services could be provided to foreign investors by OIETAI?
27. Does the Organization provide any specific services to foreign investors other than consultancy services?

Foreign Capital:

28. What are the types of foreign capital?
29. Are all kinds of foreign exchange acceptable as cash capital?
30. Is it obligatory to convert the imported foreign exchange into IRRials?
31. Is it possible for the foreign investor not to convert the imported foreign exchange into Rials but use it for foreign purchases and orders related to the investment project?
32. Is it necessary to evaluate the foreign imported capital before its registration?
33. What formalities are required for importation of machinery, equipment, parts and raw materials (i.e., non-cash capital)?
34. Does it mean that importation of non-cash capital is free from local content requirements, allocation of foreign exchange and opening letter of credit?
35. Is there any charge applicable to importation of foreign non-cash (in-kind) capital?
36. What criteria are to be considered for importation of know-how?
37. Is it permissible to pay license fee or royalty?
38. What criterion is set for payment of license fee or royalty to foreign parties?
39. Is a prior review of technical know-how necessary?

Foreign Exchange Transfer:

Spoiler title
41. Is there any restriction with regard to the volume of transferable funds?
42. Which formalities are required for transfers related to a foreign investment?

Tax & Customs Issues:

43. What is the rate of income tax for juridical persons in Iran?
44. Is an equal rate of tax applicable to all types of company including Iranian as well as foreign companies?
45. Are branches and representative offices of foreign companies which are engaged only in marketing and information collection for their parent companies abroad, subject to payment of income tax too?
46. How is the income tax of foreign airlines and shipping companies calculated in Iran?
47. Shall the income derived from transfer of technology agreements such as technical know-how, engineering and technical services and also payments of license fee and royalty be subject to taxation?
48. What is the manner of computation of salary income tax of foreign employees?
49. What is the rate of tax applicable to transfer of shares of companies listed in the Stock Exchange?
50. What is the rate of tax applicable to transfer of shares of other companies?

Tax & customs facilities & exemptions:

51. What is meant by tax exemption, and how they are realized?
52. What are the tax exemptions, and in what manner they can be applied?
53. What is the tax exemption applicable to transit goods?
54. Do the companies quoted in the Stock Exchange enjoy tax exemptions other than those applicable to industrial, mining, agricultural and tourism units?


55. Has Iran concluded any multilateral investment agreement?
56. Has Iran joined the Multilateral Investment Guarantee Agency (MIGA)?
57. Which facilities are offered by OIETAI for entry visa of foreign investors and experts?
58. Are there any facilities available for the issuance of residence and work permits?
59. Which laws and regulations are necessary for potential foreign investors?