Establishment and changes of companies with foreign partners now need the approval of the Foreign Investment Authority (OIETAI)

 

Nouraei & M. Mostafavi Law Offices – 6 July 2024- Tehran- Mr. Abolfazl Nasiri, Director General of Iran’s Companies and Non-Commercial Institutions Registry, has announced in a decree that the registration of the establishment and subsequent changes of legal entities which have foreign shareholders or partners will be subject to obtaining the approval from the Organization for Investment, Economic & Technical Assistance of Iran (OIETAI) The Organization, founded in June 1975, stands as the sole official authority for promoting and protecting foreign investments in Iran, including the recent requirement for the establishment and changes of companies with foreign partners.

Until the resolution above, OIETAI was delegated only to permit foreign investors who requested protection of their investment in line with the Foreign Investment Promotion and Protection Act, 2002 (2016 Ed.). It did not directly interfere in the registration of establishment and changes of such investments in the form of companies foreseen in the Iranian Commercial Code. The alien investors who did not seek protection for their investment in Iran could register
their establishment of the company and its subsequent changes in the company registration
offices all over Iran without referring to OIETAI.

The resolution states that: ” In order to regulate the registration of the establishment and changes of legal entities with foreign shareholders, in compliance with the laws and regulations related to the Law of the Foreign Investment Promotion and Protection Act, and with reference to Notification No.1403/26973 dated 18/02/1403 (7 May 2024),and the resolutions of the respective meeting, and also the recommendation of the regulatory and security authorities, it was decided: registration of the establishment and changes of those legal entities that have foreign shareholders or partners is subject to obtaining permission from Organization for Investment, Economic & Technical Assistance of Iran OIETAI)”.

(Re-publication and usage wholly or partially allowed upon naming the source J. Nouraei & M. Mostafavi Law Offices).

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