Iran Eases Start of Business Activities
J. Nouraei & M. Mostafavi Law Offices -19 February 2021- In an unprecedented act, Iran is now allowing the start of business activities without prior procurement of statutory permits and licenses. The move seems to have been adopted for revitalization of a domestic economy in recession and burdened by high inflation, caused primarily by US sanctions and the COVID-19 pandemic.
Previously, obtaining permits for starting a new business in Iran, was always a lengthy and complicated process riddled by the red-type of bureaucracy and stagnated, in some cases, by corruption.
The State Administrative and Recruitment Organization, in its 5-article decree No.390825 dated 20/11/1399 (8 February 2021), signed by its chief, President Hassan Rouhani, declared that the applicants for launching a business do not need to first obtain the related permits, provided that the businesspersons undertake in writing that following commencement of their activity, they would comply with the relevant laws, regulations, rules and standards. Not observing these obligations during the course of their undertaking, may bring penalties for the wrongdoers as the case may be.
Important businesses in the area of security, medical treatment, and other specialized activities are excluded from the Decree.