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In our newsletter, you will find the latest news and comments on legal and trade-related developments in various areas of Iranian commercial and financial law and practice.

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Iran, Venezuela ink four agreements Iran to unveil new capital market law First Iranian Law on Special Economic Zones

8 April. 2006

Iran, Venezuela ink four agreements

Nourlaw.com, 8 April 2006 -- The governments of Iran and Venezuela recently concluded four agreements designed to extend and simplify commercial transactions and collaboration. The Iranian parliament on 29 January 2006 ratified agreements with Caracas for increased commercial cooperation, avoidance of double taxation on revenue and capital, promoting mutual foreign investment and upgrading commercial shipping between the two states.The full Farsi language texts of the above accords were published in Iran’s Official Gazette No.17780 dated 1384/12/17 (8 March 2005). Relations between these two founding OPEC members has accelerated following Caracas’ support of Tehran’s position in the ongoing debate over Iran’s right to uranium enrichment and the extent of its nuclear energy program at the International Atomic Energy Agency and the United Nations Security Council.

8 April 2006

Iran to unveil new capital market law

Nourlaw.com, 8 April 2006 -- The Chairman of the Board of Directors and spokesman of the Iran Stock Exchange (ISE) Mr. Husseini, stated that the new Capital Market Law will come into force as of April 27, 2006. According to Note 2 of Article One of the new legislation, the market law will be enforced 15 days after notification in the Official Gazette.The grace period for companies listed on the Tehran Stock Exchange is four months. According to Husseini’s statement, the new Board of Directors of the ISE will begin work from April 27, 2006 and the new Articles of Association for the companies will be enforced from that date.The ISE spokesman also noted that foreign investors can obtain the necessary permission to invest from the Central Bank but till now none have come forward. Foreign investors are permitted 10% ownership in any ISE listed company which amounts to a potential investment of USD 4 billion.Foreign investment in Iran’s capital market was ratified by the Council of Ministers and legitimated by the Fourth Five Year Development Plan. Husseini stated that the value of shares in the Iranian capital market is pegged at USD 41.1 billion as of the end of 1384 (March 20,2005).

15 February 2006

First Iranian Law on Special Economic Zones

Nourlaw.com, 15 February 2006 -- January this year witnessed the coming into force of the first ever national law; specifically The Law on the Establishment and Administration of the Special Economic Zones in the Islamic Republic of Iran.  The five-part, 25 article piece of legislation lays out the framework for implementing the rules and regulations governing the activities in the zones.According to article one of the law, the zones have been created to "support economic activities and organize international trade relations in regional economies and producing and processing goods, transfer of technologies, non-oil exports…attracting and protecting foreign investments…in provinces which have the requisite capacity and potential…(as) Special Economic Zones".The Council of Ministers is the body responsible for assigning and changing the executive administration of the zones and this administration may be either governmental or non-governmental. The council also has oversight powers in the zones "within the framework of their (the zones) programs and objectives". On matters related to building infrastructure, the executive administration can collect monies to provide roads, engineering services, warehousing, offloading and landing facilities, communications, hygiene and a range of other services. Companies and individual investors engaged in producing goods and services are exempt from routine taxation and other customary charges assessed within the country.Article eight of the law treats questions of exchanging of goods outside the country by the zones and among the zones domestically. It specifies that such transactions are "exempt from customs duties, commercial benefit taxes and all of the import and export charges under any category…and it will not fall under the limitations and prohibitions of the Export and Import Regulations"…According to article 14 issues related to attraction of foreign investment, the percentage and modality of foreign participation allowed, is to be based on the Foreign Investment Promotion and Protection Act (FIPPA) of 2002.The State Registration of the Deeds and Properties Organization is obliged to register the companies or their agents doing business in the zones. It is also responsible for protecting intellectual property rights therein.