Process and Documents for Branch Registration in Iran
Foreign Companies that are legally established in their country of registration, providing reciprocal action, can operate in Iran according to Iran Laws and Regulations via branch registration or commercial agency.
In this topic we explain the process and documents for branch registration in Iran.
Process and documents for setting up a commercial agency in Iran has been explained here.
General remarks in branch registration in Iran
Similar to commercial agency, Branch registration in Iran is allowed for one or more of following activities.
After sale services for the parent company.
Applying the executive phase of contracts concluded between Iranian nationals and the parent company.
Contextualizing of investment in Iran on behalf of the parent company.
Enhancing non-oil exports in Iran.
Cooperating with Iranian companies in order to work in other countries.
Technical and engineering services and the transfer of technology.
Perform any other business activities which require government’s permission such as transportation, insurance and marketing.
These conditions may seem restrictive.
Due to new approaches toward development in Iran, these conditions for agency and branch registration in Iran have been simplified.
In another words, company registration office doesn’t Scrutinize on these conditions.
In fact, the primary intention was to allow non-nationals to establish a company in Iran without any limitations.
Since there are not enough legal bases for this, they started to ease branch registration in Iran.
Two fundamental requirements for branch registration in Iran are: 1- To be a legally established company, 2- Reciprocity.
The first requirement is clear.
The second requirement for branch registration in Iran is reciprocity.
Reciprocity means that the country of registration of your company allows Iranian companies to establish a branch there.
Reciprocity is based on actual treatment. In another words, there might not be a treaty between two countries.
Iran has 43 bilateral treaties that can help to find out about reciprocity.
If your country isn’t in this list, it doesn’t mean that there is no reciprocity. As I said, reciprocity is based on actual treatment.
Documents for Branch Registration in Iran
1- Company Statute, Establishment Notice, and Notice for the Latest Changes in the Company.
2- The Latest Financial Report. 3- A report containing company activities, reasons to establish a branch, Place and authorities of the branch, evaluation of manpower, and financial resources.
Process for Branch Registration in Iran
The process starts with a written application by the parent company.
This application includes:
The above mentioned documents.
Company Statute, Establishment Notice, and Notice for the Latest Changes in the Company approved by Iran Embassy.
A translated version of the documents approves by a certified translator.
An ID code for the Branch Manager. This is a code assigned to foreigners who want to stay in Iran.
A certified copy of the passport and its certified translation, if the Branch Manager is a person (not a legal entity).
A “Power of Attorney” approved by Iran Embassy, translated by certified translator.
In any case, someone has to be assigned to follow the registration process. That’s why you need a power of attorney. This person can be the Branch Manager or your Lawyer.
If you need help, call us.