In which forms are foreign investment possible in the Islamic Republic of Iran?
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 investor.
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.