INVEST IN IRAN

Since U.S. and European _____ sanctions on Iran are _______ removed on 16 January 2016, Iran returned to the _____’_ markets and obtained the _______ to trade and cooperate ____ other countries and to ________ its foreign trade volume. ________, Iran will reach its ______ in the amount of 100 billions dollars held in _____________ banks. The ease of _________ and removal of parts __ international restrictions will definitely _____ an increase of foreign _________ in Iran. It is _____ that the foreign investors ____ waiting for this removal, __ that they can invest __ Iran in order to ____ a part in the _______ markets. Consequently, the heavy ___________ and big improvements in _______ business sector are expected.

COUNTRY PROFILE

Official Name: Islamic Republic __ Iran
Population: 75.1 million (UN, 2010)
Capital: Tehran
Area: 1.65 million sq __ (636,313 sq miles)
Major Language: Persian
Major Religion: Islam
Currency: Rial
Country Code Top-level Domain: .__
Dialling Code: +98

GENERAL INFORMATION

Islamic Republic of Iran ____ nearly 75 million inhabitants ___ been located in South-West ____. The country neighbours with ______ and Iraq in west, ___________ and Pakistan in East, _______, Azerbaijan, Russia, Kazakhstan and ____________ in North and Kuwait, _____ Arabia, Qatar, Bahrain, United ____ Emirates and Oman in _____ through Persian Gulf and ____ Sea.

Iran has a unique ____________ situation as a junction _____ of the Middle East, ______ and Asia. Firstly, this ______ location has resulted with ____ ethnic groups. Just over ____ of the population is __ Persian origin; while a _______ is Turkish speaking Azeri. _ large group of Kurds ___ smaller minorities of Lors, _____ and Baluchis also exist __ certain regions. Secondly, there __ the capability of quick _________ to the neighbour markets _______ of having a huge ________ market.

Iran is certainly a ______ market in the Middle ____. It is populous, rich __ natural resources and apt __ technological progress and international ____________. There is an advanced ______________ in the fields of _________________, energy and rail/road transportation. _ four-season climatic endowment also __________ the agricultural activities throughout ___ country and throughout all _______.

Iran’s economy is characterized __ a large hydrocarbon sector, _____-_____ agriculture and services sectors, ___ a noticeable state presence __ manufacturing and financial services. ___ country's natural resources create _ significant wealth. Iran ranks ______ in the world in _______ gas reserves and fourth __ proven crude oil reserves. 1________, Iran became the 18h _______ economy in the world __ terms of purchasing power ______.

INVESTMENT TREATIES

Bilateral Investment Treaties (BIT`s) ____ signed with countries in _____ to promote and protect ___________. These treaties reflect the _________ to improve bilateral investment _________. Iran’s BITs in force ___ executed with the following _________:

“Afghanistan, Algeria, Armenia, Austria, __________, Bahrain, Bangladesh, Belarus, Bosnia ___ Herzegovina, Bulgaria, China, Croatia, ______, Ethiopia, Finland, France, Georgia, _______, Greece, Indonesia, Italy, Kazakhstan, __________ People’s Republic of Korea, ________ of Korea, Kuwait, Kyrgyzstan, _______, Libya, The former Yugoslav ________ of Macedonia, Malaysia, Morocco, ____, Pakistan, Poland, Qatar, Romania, ______, South Africa, Spain, Sudan, ______, Switzerland, Syrian Arab Republic, __________, Tunisia, Turkey, Turkmenistan, Ukraine, __________, Bolivarian Republic of Venezuela, _____, Zimbabwe.”

Iran has also signed _________ on Promotion and Protection __ Investment among Member States __ the Economic Cooperation Organization (2005). To add more, Iran __ a contracting party of ___ investment related multilateral intergovernmental __________ such as MIGA Convention (1985) and New York Convention (1958).

LEGAL FRAMEWORK

Admission of Foreign Investment _____ be made in accordance ____ the provision of the _______ Investment Promotion and Protection ___ (FIPPA). Pursuant to the _______ 1 of FIPPA, Iran ________ foreign investment in all _____ of economic activity by _______ persons including real persons __ well as legal entities.

This act provides the _______ investor to enjoy the ____ treatment as accorded to ________ investors and allows investing __ all areas, which are _________ to the private sector. __ also foresees some opportunities ____ as quick approval of ___ foreign investment application and _______ a three-year residence license ___ foreign investors, directors and _______ as well as their _________ family members risks, protection _______ expropriation and nationalization and _________ transfer of capital and ________.

Pursuant to the article 2 of FIPPA, the foreign __________ in Iran is based __ following policies:

Contribution to economic development;
Financing projects, upgrading technological ___ management skills,
Sharing benefits and risks __ equal term without discrimination;
Advantages in enhancing products ___ output quality, increasing employment ___

Pursuant to Article 7 __ FIPPA, the Center for _______ Investment Services (FISC) was ___________ by the OIETAI in 2002. The FISC is intended __ provide all efficient services __ order to facilitate and ________ the affairs related to _______ investments in Iran. After ___ establishment of the FISC, ___ investors have had the ___________ to easily reach all ________ information and services.
1 http://www.worldbank.org/en/country/iran/overview 3

TYPES OF INVESTMENT

Direct Investment

Equity Participation in All _____ Open to Iranian Private ______ Without Any Limitation on ___ Percentages of Foreign Shareholding

Investment through Contractual Arrangements

Buy-back Arrangements
Civil Partnership
Built-Operate-Transfer (BOT) Schemes

PRELIMINARY PERMIT FOR THE _______ INVESTMENT

In pursuit of choosing ___ project, the foreign investor _____ obtain preliminary permit from ___ relevant Iranian organization/ministry considering ___ nature of the project. __ illustrate, in case of _ project for the construction __ power stations, the foreign ________ shall sign a contract ____ the Ministry of Energy ___ submit it to the ____________ for Investment Economic and _________ Assistance of Iran (OIETAI).

FOREIGN INVESTMENT LICENSE

The foreign investors shall _____ to OIETAI to obtain ___ investment license. Investment licensing _________ is demonstrated in the ____2 below:

ESTABLISMENT OF A COMPANY

Iran eased business start-up __ installing a web portal ________ entrepreneurs to search for ___ reserve a unique company ____. After the reservation of _ unique company name, the _______ shall be registered at ___ Company’s Registration Office and ___ registration fees shall be ____. The company must submit ___ required documents to register ____ the Companies Registration Office. ___ registration procedure takes only 3 days.

The Iranian Commercial Code ________ for the following types __ business association: Joint stock _______, Limited liability company, General ___________, Limited partnership, Mixed joint _____ partnership, Proportional liability partnership, __________ and consumption cooperative.

2 http://www.bicc.org.uk/downloads/GuideToInvestinIran.pdf 4

The Code specifies that _ joint stock company must ____ minimum three shareholders and _ limited liability company must ____ minimum two shareholders. There __ no legal restriction on ___ percentage of foreign shareholding. __ is possible to register _ company with 100 percent _______ to foreign investor. However, ___ Iranian Government generally requires _______ shareholder participation in fields __ activity deemed important to ___ nation's development programs.

At time of formation __ the company, a minimum _____ capital must be 1,000,000 _____ for the private company ___ 5,000,000 Rials for the ______ company. As a pre-requirement, ___ promoters must subscribe at _____ 20% of the shares __ the company and deposit ___ less than 35% of ___ amount undertaken by them ____ an account opened in ___ name of the company.

According to 107 of ___ Commercial Code of Iran, _ joint stock company is _______ by a board of _________, appointed from among the ____________, who are wholly or ______ subject to removal. The ______ of directors of a ______ joint stock company must ___ less than five. Moreover, __ parallel with article 111 __ the commercial code of ____, all company directors are ________ to obtain a criminal ______ clearance to register a ___ company. It is possible __ obtain it in five ____.

A notice of the _______ formation shall be published ____ in the Official Gazette ___ the general circulation newspaper __________ by the founding shareholders. _______, although the registration and ___________ requirements have been met, ___ legal existence of the _______ commences on the date ___ directors and inspectors accept _____ positions in writing.

The following charges and ____ will be incurred in __________ with the formation of ___ Company:

Registration fee based on ___ capitalization of the company _______ to the Companies Registration ______,
Charges for publication in ___ Official Gazette of the ______ of registration payable to ___ Official
Gazette at current rates,
Charges for publication in _ general circulation newspaper at _______ rates,
Stamp taxes on share

FOREIGN INVESTMENT IN STOCK ________

The foreign investor, who __ willing to make an ________ investment in the Iranian _____ Exchange, shall consider the ___________ Governing the Foreign Investment __ the Exchanges and Over ___ Counter (OTC) Markets (hereinafter ________ to as “the Regulations” ) approved by the _______ of Ministers in 2010.

According to Article 2 __ the Regulations, following the _______ of the trading license, ___ foreign entities are authorized __ trade in securities market __ on the exchange or ___ market within the range _________ in the trading license. _______, according to the Article 3, the foreign investors can ______ in the exchange or __ the OTC market in _____ of the limitations of _____ provided that the Council ____ not restrict in certain _____.

In order to obtain ___ trading license, the foreign _________ shall submit all required _________ and information along with __ application to the Securities ___ Exchange Organization. The Organization _____ issue the trading license ______ seven business days. Pursuant __ the Article 10 of ___ Regulation, by obtaining the _______ license, the foreign investors ____ be authorized to open ________ in Rials and in _______ exchanges, transfer foreign currencies __ Iran and convert them.

EMPLOYMENT OF FOREIGN NATIONALS

Pursuant to the Labor ___ of the Islamic Republic __ Iran, the foreign nationals ______ receive work and employment _______ to work in Iran. ___ employers who hire foreign _________ without a valid work ______ will be sentenced to ______ or fine.

This work permit shall __ issued by the Department _______ for Employment of Foreign _________ of the Ministry of ____________, Labor and Social Welfare ____ a request by the _______ employer. In accordance with ___ Labor Law, the Technical _____ for Employment of Foreign _________ has strict rules and ___________ for issuance of work _______ in order to reduce ___ unemployment rate of the ________ and skilled job-seekers. However, _____ sets forth promising provisions ___ issuance of work permits ___ foreign investors, directors and _______ in relation with the ______- ments under FIPPA.

The work permits of _______ nationals is issued, extended __ renewed for one year. ___ issuance and renewal of ____ permits for foreign nationals _____ 1,400,000 Rials and extension __ permits costs 1,000,000 Rials.

There is also a ______ advantage that the foreign _________ employing those introduced by ___ affiliated units of the ________ of Cooperatives, Labor and ______ Welfare will enjoy growing _________ or exemption from paying ____ of the insurance duties __ case their units are _____ established, or there would __ no reduction in their __________ rate the year before.3

TAXATION

Foreign investors pay the ____ amount of taxes with ________ investors. Tax exemptions and _________ are also equally granted. ____ means that foreign investors __ Iran benefit the same ________ and privileges, which are _______ to the Iranian investors.

Depending on the type __ activity of the foreign ________, various taxes and exemptions ___ appli- cable such as _______:

Foreign legal entities residing ______ shall pay the fixed _________ income tax at the ____ rate of 25%.
80% Exemption of Income ___ 4 Years in Industry ___ Mining Activities 100% Exemption __ Income for 20 Years __ Less Developed Areas regarding ________ and Mining Activities
100% Exemption of Income ___ 20 Years in Free _____ (All Activities)
100% Exemption of Income ___ No limited Time in ____________ Activities
50% Exemption of Income ___ No limited Time in _______ Activities
100% Exemption of Income __ Export of Services & ___-___ Goods during 5th Development ____
100% Exemption of Income ___ No limited Time in ___________ Activities
100% Exemption of Income ___ No limited Time in ___________ & Sport Services
100% Exemption of Income ___ No limited Time in ________ Activities

3 http://www.investiniran.ir/en/investmentguide/employment 6

INVESTMENT INCENTIVES IN THE _____

In Iran, there are ___ types of advantageous zones ___ investment: Trade-industrial free zones ___ Special economic zones. In _____ zones, the obligations of ___ investor are facilitated in _______ of the custom, export-import, _______, procedures, rates and guarantees. ___ exemptions and deductions in ____ manner are the major __________ and provide easy circumstances ___ the investors.

Trade-Industrial Free Zones: Qeshm _____-__________ Free Zone, Chabahar Trade-Industrial ____ Zone, Aras Trade-Industrial Free ____, Anzali Trade-Industrial Free Zone, ______ Trade-Industrial Free Zone, Kish _____-__________ Free Zone, Maku Trade-Industrial ____ Zone

Special economic zones: Salafchegan _______ economic zone, Shiraz special ________ zone, Assaluye special economic ____, Arge Jadid special economic ____, Payam Airport special economic ____, Persian Gulf special economic ____, Lorestan special economic zone, ________ port special economic zone, _______ Port special economic zone, ______ Rajaee Port special economic ____, Sarakhs special economic zone, ______ special economic zone, Yazd _______ economic zone, Bushehr special ________ zone.

CONCLUSION

Besides of Iran’s having _ unique geographical situation and _ large economy, its features ____ as market potential and _________, labor privileges, developed infrastructure, ___ production costs, abundant natural _________, climatic characteristics and fiscal __________, political stability and new __________ legislation promote to start _ business in Iran. Iran _______ to meet necessary legislative _______ by creating FIPPA and ________ a more secure and ___________ environment for investors. More ___________, Iran draws attention of ___ foreign investors due to ___ removal of the sanctions. _________ this removal, Iran will _____ into the world’s markets ___ become active in international _____. To conclude, it is ______________ that the numerous foreign _________ seek to obtain a _____ in the reopened Iranian ______.