Q &A On Foreign Investment in the Islamic Republic of Iran

Foreign Investment

Ministry of Economic Affairs and Finance Organization for Investment, Economic and Technical Assistance of Iran. Foreign Investment in the Islamic Republic of Iran. Q&A

Chapter one: General Information

Chapter Two: Foreign Capital

Chapter Three: Tax and Customs Issues

Chapter Four: Facilities for entry and residence

Chapter Five: Industry, Mining & Trade

Contact Details

Foreword:

This is a compilation of the inquiries frequently asked by potential investors willing to invest in the Islamic Republic of Iran. We hope the answers provided herein, in addition to the policy issues, would assist parties, and provide them to have access to a package of comprehensive information in respect of the legal framework for admission of investments and the manner to obtain the relevant Investment License. You may find certain questions which do not necessarily have any direct relevance with Foreign Investment as a whole, but in light of the need for preparing a multipurpose source of information, we have tried to compile a variety of likely inquiries to respond to any question relating to doing business in Iran.

Obviously, those investors who may need more detailed information on any subject, are recommended to refer to other OIETAI publications and guides; or if they wish they may communicate directly or have meetings with the OIETAI staff who are in a position to welcome them by providing answers to any other question which is not addressed in this guide as well.

Readers are kindly recommended to refer to the table of content before searching the answers to their questions in each chapter.

GUIDANCE:

Under provisions of Iran’s Foreign Investment Promotion & Protection Act (FIPPA),foreign investors investing within the framework of contractual arrangements such as buy-back shall also have the right to make transfers abroad by using the mechanism of purchasing foreign exchange from the banking system of Iran. In consideration of their specific nature of investment and as stipulated in the Note of Article (23) of the Implementing Regulations of FIPPA, these investors also have the privilege to make the transfers through export of goods, without giving up the right to purchase foreign exchange from the banking system.

Q&A

Chapter one

General information:

  1. Is Foreign Investment permitted in Iran?

Foreign investment is permitted in accordance with the prevailing laws and regulations of the Country. All foreign investors are permitted to invest, for the purpose of development and producing goods and activities, in all areas of industry, mining, agriculture and services. However, from the standpoint of the Iranian government, only those investments shall be eligible to enjoy the privileges and protections under the Foreign Investment Promotion and Protection Act (FIPPA) that have obtained the required license under the FIPPA.

 

 

  1. What objectives are to be achieved by foreign investment?

The main objectives are:

  •   Enhancing economic growth;
  •   Increasing employment opportunities;
  •   Access to and development of new technologies and managerial skills;
  •   Upgrading quality of products and boosting export capabilities.

 

 

  1. Under what legal or contractual framework, foreign investment may be admitted in Iran?

Foreign investment in Iran is admitted under all forms of legal participation (Foreign Direct Investment) and/or contractual arrangements. By contractual arrangements we mean all forms of project financing methods within the framework of civil participation, buy back arrangements, and different types of Build, Operate and Transfer (BOT) schemes.

To download full PDF file please click here

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *