DOING BUSINESS IN ISLAMIC REPUBLIC OF IRAN IN 2025
For over a decade, Healy Consultants Group has assisted our Clients with business registration in Iran. Our services include i) company setup ii) license registration iii) business bank account opening iv) employee recruitment assistance v) visa strategies and vi) office rental solutions.
| Compare different Iran entities | LLC | Fast business setup solution | Free zone LLC | Private JSC | Public JSC | Representative office | Branch office |
|---|---|---|---|---|---|---|---|
| Also known as | Sherkat ba Masouliyat Mahdoud | legally conduct business now | N/A | Sherkat Sahami Khass | Sherkat Sahami Am | N/A | N/A |
| Best use of company? | All products and services | Close a customer deal now | Manufacturing, import and export | Large projects | To secure public funding | Marketing & research | Specific projects |
| How soon can you invoice Clients/sign sales contracts? | 5 months | 2 months | 4 months | 5 months | 7 months | 5 months | 5 months |
| How soon can you hire staff? | 4 months | 2 months | 3 months | 4 months | 6 months | 4 months | 4 months |
| How soon can you sign a lease agreement? | 3 months | 2 months | 2 months | 3 months | 4 months | 3 months | 3 months |
| How long to supply corporate bank account numbers? | 5 months | 2 months | 4 months | 4 months | 7 months | 5 months | 5 months |
| Entity can be wholly foreign owned? | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Corporate tax rate on annual net profits? | 25% | 25% | 0% | 25% | 25% | 0% | 25% |
| Limited liability entity? | Yes | Yes | Yes | Yes | Yes | No | No |
| Government grants available? | Yes | Yes | Yes | Yes | Yes | No | No |
| Resident director/partner/manager/ legal representative required? | No | No | No | No | No | Yes | Yes |
| € minimum paid up share capital? | €40 | €40 | €120 | €40 | €200 | none | none |
| Can bid for Government contracts? | Yes | Yes | Yes | Yes | Yes | 0% | Yes |
| Corporate bank account location? | Bank Melli | Bank Mellat | Al Rajhi Bank | BSI Bank | Maskan Bank | Bank Melli | Bank Mellat |
| Can secure trade finance? | Yes | Yes | Yes | Yes | Yes | No | Yes |
| VAT payable on sales to local customers? | 9% | 9% | 9% | 9% | 9% | None | 9% |
| Average total business set up engagement costs? | 26,140 | 31,040 | 28,580 | 26,020 | 21,740 | 14,870 | 25,110 |
| Average total engagement period? | 6 months | 4 months | 5 months | 6 months | 8 months | 6 months | 6 months |
| Accounting and tax considerations | LLC | Fast business setup solution | Free zone LLC | Private JSC | Public JSC | Representative office | Branch office |
|---|---|---|---|---|---|---|---|
| Statutory corporate tax payable? | 25% | 25% | 0% | 25% | 25% | 0% | 25% |
| Legally tax exempt if properly structured? | No | No | Yes | No | No | Yes | No |
| Group HQ tax incentives? | Yes | Yes | Yes | Yes | Yes | No | Yes |
| Must file an annual tax return? | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Must file annual financial statements? | Yes | Yes | Yes | Yes | Yes | No | Yes |
| Must appoint an auditor/company inspector? | Yes | Yes | Yes | Yes | Yes | No | No |
| Access to double taxation treaties? | Yes | Yes | Yes | Yes | Yes | No | Yes |
| How long to supply company registration / tax numbers? | 5 months | 2 months | 4 months | 4 months | 7 months | 5 months | 5 months |
| Company Registration | LLC | Fast business setup solution | Free zone LLC | Private JSC | Public JSC | Representative office | Branch office |
| Resident director/partner/manager/ legal representative required? | No | No | No | No | No | Yes | Yes |
| Minimum number of shareholders/partners? | 2 | 2 | 2 | 3 | 5 | Parent company | Parent company |
| Shelf companies available? | Yes | Yes | Yes | Yes | No | No | No |
| Time to incorporate a new entity? | 3 months | 2 months | 3 months | 4 months | 6 months | 4 months | 4 months |
| Can easily convert to a PLC? | Yes | Yes | Yes | Yes | Yes | No | No |
| Public register of shareholders and directors? | Yes | Yes | Yes | Yes | Yes | No | No |
| Can have preference shareholders? | Yes | Yes | Yes | Yes | Yes | No | No |
| Business Considerations | LLC | Fast business setup solution | Free zone LLC | Private JSC | Public JSC | Representative office | Branch office |
| Good entity for trademark registration? | Yes | Yes | Yes | Yes | Yes | No | Yes |
| Can secure an import and export license? | Yes | Yes | Yes | Yes | Yes | No | Yes |
| Sponsorship by a local citizen required? | No |
| Our Client needs to travel to Iran for business set up? | No |
| Temporary physical office solutions available? | Yes |
| You need a local resident as bank signatory? | Yes |
| Can be wholly foreign owned? | Depending on the business activity |
| The entity will likely be regulated by? | Companies Registration General Office (CRO) |
| Quarterly VAT reporting to the Government? | Yes |
| Must sign an office lease agreement during incorporation? | No |
| Shareholders & directors documents to be attested/translated? | Yes |
| Each foreign director needs a personal income tax number? | Yes |
| Foreign director needs a residence visa? | Yes, to be appointed as bank signatory |
| Maximum number of staff allowed? | No maximum number for any entity |
| Expatriate to local staff ratio? | 3:1 |
| Can secure residence visa for business owner? | Yes |
| Other useful information | |
| What will be included in my customer sales invoice? | Click link |
| This country has signed free trade agreements? | Yes |
| This country is a member of WIPO/TRIPS? | Yes/No |
| This country is a member of the ICSID? | No |
| Average custom duties suffered? | Rate |
| Government foreign investment approval required? | Yes |
| Average monthly office rental? (US$ per sq m) | 25 |
| Minimum statutory monthly salary? | US$280 |
| Average monthly US$ salary for local skilled employees? | US$1,160 |
| US$ deposit interest rate? (1 year average) | 16.9% |
| Overseas remittance currency controls? | Yes |
| Banking considerations | |
| Multi-currency bank accounts available? | No |
| Corporate visa debit cards available? | Yes |
| Quality of e-banking platform? | Satisfactory |
| Crowd funding available in this country? | Yes |
| Government approval required for foreign owners? | Yes |
| Withholding tax on payments to foreign shareholders? | 0% |
