What kinds of partnership are anticipated under Iranian law?
Two 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 Iranian law?
Seven types of companies are defined in Article 20 of the Commercial Code of Iran. They are as follows:
- Joint Stock Company (SherkateSahami)
- Limited Liability Company (Sherkat ba Massouliat Mahdoud)
- General Partnership (SherkateTazamoni)
- LimitedPartnership (Sherkate Mokhtalet Ghair Sahami)
- Joint Stock Partnership (SherkateMokhtalet Sahami)
- Proportional LiabilityPartnership (Sherkate Nesbi)
- Production and ConsumptionCooperative
(Sherkate Taavoni Towlid va Masraf).