open-iran
Open Iran Group/Afarin Law Firm , Services


Open Iran Group/Afarin Law Firm ( The Firm)

Services

Open Iran Group/Afarila Law Firm, The Firm, is formed to cater for the needs of international companies and their local counterparts. In conjunction with Afarin Law Firm, one of the most trusted and experienced law firms in Iran,  The firm is now concentrating on bringing international businesses to Iran, introducing investment opportunities to foreign companies, and assisting them in securing contracts.

We offer services that are essential for market entry and to facilitate successful operation. Some of our most popular services includes:

 

1-Company Registration

A wide variety of legal arrangements may be used to carry on business activity in Iran. Some of the more commonly used arrangements are corporations, limited partnerships, partnerships, co-ownerships, joint stock company and limited liability companies.

The selection of the appropriate form of business organization will depend in each case upon the circumstances of the investor, the nature of the activity to be conducted, the method of financing, income tax ramifications and the potential liabilities related to the activity.

Generally, one of the first issues faced by a foreign entity contemplating carrying on business in Iran is whether to conduct the business directly in Iran as an Iranian branch of its principal business, or to create a separate Iranian entity to carry on the bussiness

We will provide you with the necessary information to establish the most suitable type of business in Iran. Consider the following information for establishing a company Iran:

  •          100% Ownership of your company;
  •          Incentives of Free Zones of Iran;
  •          Foreign Investment Promotion & Protection Act;

Foreign investors can now establish their company with 100% ownership of the shares and control of their business. This can be an advantages to some of the companies willing to be more involved in the Iranian market providing them with more security and stability as a foreign investors. There are two most suitable types of companies for foreign entities:


Limited Liability Company

A limited liability company (sherkat ba massouliat mahdoud) is defined as a company formed by two or more persons for the purpose of trading. Liability is based upon the direct contributions of the partners to the partnership and not by share subscription. The formation of a limited liability partnership is deemed to have taken place when the capital in cash has been fully contributed and when non-cash contributions have been assessed and delivered. The name of the company must always include the phrase “limited liability” otherwise under the law the company will be considered as a general partnership.


Joint Stock Company

The Joint Stock Company is defined by law as a company whose capital is divided into shares and the liability of whose shareholders is limited to the par value of their shares.

 As mentioned in the Foreword, the Joint Stock Company may be either a public company (Sherkat Sahami Aam) or a private company (Sherkat Sahami Khass). The main difference between the two is that the public company may offer its shares and debt securities to the public while the private company may not. See Annex A for additional differences between the public and private companies. The shareholders of a joint stock company participate in the ownership, profit and losses, and distribution of assets in liquidation, in proportion to the shares held. As indicated above, the liability of each shareholder is limited to the par value of his shares and in the absence of fraud or other deceptive practices; there should be no recourse to shareholders for the liabilities of the company.


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