Are foreign companies obliged to register their branch and representative
office/s initiating commercial activity in Iran?
According to Articles 3 and 4 of the Registration of Companies Act, approved in
1931, any foreign company that wants to carry out commercial, industrial or
financial activities in Iran through a branch office or a representative, must
first have already been recognized in its country of origin as a legal entity
and then it should be duly registered in Iran. According to Article 4 of the Law
of Protection of the Rights of Consumers (ratified in 2009): “all the
suppliers whether producers or importers of capital goods including heavy or
light vehicles, industrial or agricultural and road construction machinery, home
appliances, electrical and electronic products, audio and video equipment and
communication devices are bound to have registered agents and authorized repair
shops, to supply spare parts and render after sale services”.
The registration shall be done in the related department of the Ministry of
Industry, Mines and Commerce.
What are the consequences of non-registration?
In accordance with Article 5 of the Registration of Companies Act, any person
engaged in industrial, commercial or financial affairs in Iran, as a
representative or a branch manager on behalf of foreign companies who has not
applied for registration, shall be liable to payment of a fine in the first
instance. If this violation of law persists, then the government shall suspend
the activities of the representative or branch manager. It should be noted that
foreign goods offered on the Iranian market without having registered their
respective agency, are considered contraband.