The process of registering an offshore company in Iran under the Sherkat-e-Sahami Khass form is quick and offers specific benefits compared to alternative organizational and legal business structures. Consequently, it is commonly favored by non-residents.

The process comprises the following steps:

Establishing a company presence in Iran necessitates the provision of charter capital, with the specific amount determined by the nature of the company's activities. On the initial day, transferring 35% of the total amount to the designated local bank account suffices. Subsequently, obtaining confirmation of the transfer is required.

Registering a business in Iran involves submitting necessary documentation to the Register of Companies. This includes providing authorized individuals with all constituent documents such as the charter, minutes of meetings, personal information of beneficial owners, and more. Company formation in Iran also entails encoding all documents, with barcodes enabling the tracking of the founder's movements within the country when necessary.

Processing the application and registration of a company in Iran typically takes around three days. Upon submission to the Commercial Registry, payment of state fees and business registration are mandatory. Additionally, specialists offer name selection services for the new business in Iran at an additional cost.

Subsequently, the announcement of the establishment of the new offshore company in Iran is published in the official state bulletin. Moreover, the same information must be submitted to one of the widely circulated local newspapers. It's worth noting that business operations in Iran can commence without awaiting publication.

Following this, the founder procures account books stamped by the state and pays a stamp duty equivalent to 0.2% of the company's share capital. The final step entails registering all employees under the social insurance program and submitting their wage information to the Labor Department.

TAXATION FOR IRANIAN BUSINESSMEN

To legally register a company in Iran, it's imperative to complete registration with the tax authorities. Following this, the Labor Department mandates payment of a social tax, amounting to 33%, with 23% of the burden falling on the employer. The overall income tax rate ranges from 15% to 57%, with the coefficient varying based on the company's income level.

Taxation is relevant to both citizens of the country and foreign businessmen; however, it is feasible to entirely evade tax payment or diminish the contribution amount by registering the physical address of the company within one of the eight free economic zones of the state.

Free economic zones in Iran provide tax exemption for a duration of 15 years starting from the company's registration date. There are four such zones, while others offer substantial value-added tax (VAT) benefits.

Updated on: Sunday,March 17th,2024