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Guide to Starting a Business in Iran

Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Iran. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected from World Bank: Doing Business 
No.ProcedureTime to CompleteAssociated Costs
1Search for a company name; obtain a name reservation letter from the Baghdad Chamber of Commerce2 daysIQD 500,000
2Hire a lawyer to draft articles of association1 dayabout IQD 1,500,000
3Deposit initial capital at commercial bank and obtain confirmation receipt2 daysIQD 5,000
4File for registration at the Commercial Registry14 daysIQD 250,000 - 350,000
5Make company seal2 daysIQD 20,000
6Obtain registration certificate1 dayincluded in procedure 4
7Report to tax authority to establish tax registration2 daysIQD 450,000
8Legalize accounting books2 daysUSD 150
9Register employees for social security3 daysIQD 20,000
10Apply for a trade license30- 60 daysIQD 200,000
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