In which forms are foreign investment possible in the Islamic Republic of Iran?
Any foreign investment in the Islamic Republic of Iran can be materialized in
A- In accordance with the Companies Registration Act which enables the foreign
investors to buy existing Iranian companies or acquire partnership therein or to
set up a new company fully owned by them or with Iranian partnership. The
foreign investor, under the current practice of the Companies Registry, is
authorized to hold 100% of the capital of the company, though in some cases such
as banking, international transport and advertisement activities, special
permits are needed from the respective ministry or governmental organizations.
In this mode of investment the foreign investor has no special privileges or
incentives not ceded to Iranian investors.
B- In accordance with the provisions of the Foreign Investment Promotion and
Protection Act (FIPPA) and its Implementing Regulations. Under this measure, the
partnership ratio of the foreign investor can reach 100% except in the areas
wherein according to law a smaller ratio might be stipulated. In this type of
foreign investment, certain privileges and incentives are offered to the foreign
Which institution is in charge of authorizing foreign investments?
The Foreign Investment Board of the Organization for Investment, Economic and
Technical Assistance of Iran (OIETAI) is authorized by law to handle the
applications for foreign investment. The investment license shall be issued by
the Board and signed by the Minister of Economic Affairs and Finance of behalf
of the government. The investment license shall include the particulars of the
investor(s), type and method of investment, the manner for transfer of dividends
and profit gained as well as other terms and conditions relating to the approval
of every investment project.