What kinds of partnersh ip are anticipated
under Iran ian law?
kinds; civil and commercial partnerships. According to Article 571 of the Iranian Civil
Code, a civil partnership is the combination of the rights of several proprietors in one single
objective by way of undivided shares. The civil partnership may be
either voluntary, such as an agreement to hold a property in common for example
or compulsory such as when some heirs inherit
certain properties which are not divisible.
A civil partnership is not a corporate entity recognized
by law and has no juridical personality separate from the natural personality
of the partners, while a commercial partnership constitutes an independent corporate
entity. Therefore, in civil partnership, all the partners have joint liability before third parties.
How many types of commercial companies
can be incorporated under lranian
Seven types of companies are defined in Article
20 of the Commercial Code of Iran. They
are as follows:
1. Joint Stock Company (Sherkate Sahami)
Limited Liability Company (Sherkat ba
3. General Partnership (Sherkate Tazamoni)
Limited Partnership (Sherkate
Mokhtalet Ghair Sahami)
5. Joint Stock Partnership (Sherkate Mokhtalet
Proportional Liability Partnership
7. Production and Consumption Cooperative
(Sherkate Taavoni Towlid va Masraf).