Iran - Market Entry and Legal Services

Lawyer & Law Firm in Iran

Economy of Iran majorly relies on the hydrocarbon, agricultural and services sector as well as its recent significant presence in manufacturing and financial services. It ranks second in the world for natural gas reserves and fourth for crude oil reserves. The economic activity of the country has also adjusted to the sanctions and the trade has majorly pivoted towards neighbouring countries and bilateral currency exchange & other indirect payment channels are being used to settle cross-border transactions.

Commercial Relations between India-Iran

India and Iran have a robust economic relationship, centred around India's import of Iranian crude oil. Bilateral trade between the two countries amounted to $13.4 billion, with Indian exports reaching $1.9 billion and imports totalling $11.5 billion. Both countries are involved in various projects, including gas pipelines, LNG supply, oil and gas block development, and infrastructure projects like the Chahbahar container terminal. Joint ventures and Indian company presence in Iran further solidify economic ties. Efforts are underway to finalize investment and taxation agreements, and regular joint commission meetings and business council meetings facilitate ongoing economic cooperation.

Business Advantage for Indian Companies in Iran

India and Iran offer significant opportunities for collaboration and joint ventures, especially in the energy, infrastructure, agriculture, and cultural sectors. Indian companies can benefit from Iran's rich energy resources and strategic location, gaining access to a reliable energy source and expanding their market reach. Iran's infrastructure development initiatives present avenues for Indian firms to contribute to projects in transportation, energy, and urban planning. Collaboration in agriculture and food processing can enhance productivity and explore domestic and export markets. Historical and cultural ties between the two countries foster mutual understanding and trust, facilitating long-term business relationships. Iran's skilled workforce and India's expertise in various sectors create opportunities for knowledge exchange and skill development. Ongoing efforts to strengthen bilateral trade and investment frameworks further support Indian companies in exploring and establishing a strong presence in Iran.

Incentives and Support Programs by Iran for Indian Companies

Iran offers several incentives and support programs to encourage Indian companies to invest and do business in the country.

• FIPPA: Iran's Foreign Investment Promotion and Protection Act offers incentives and protections to foreign investors, including Indian companies.
• SEZs: Special Economic Zones in Iran, such as Chabahar and Kish, provide tax exemptions and streamlined procedures to attract Indian companies.
• Tax Incentives: Iran offers tax holidays, reduced corporate tax rates, and customs duty exemptions for machinery and equipment imports.
• Financial Support: Iranian banks and financial institutions provide credit facilities and loans to support Indian companies' investments in Iran.
• Investment Guarantees: The Iranian government provides guarantees against non-commercial risks to reassure Indian investors.
• One-Stop Investment Centres: Iran's One-Stop Investment Centres offer comprehensive support and assistance to foreign investors, including Indian companies.
• Sector-Specific Incentives: Iran provides sector-specific incentives, such as subsidies and infrastructure development, to attract Indian companies to priority sectors.
• BIPPAs: Bilateral Investment Promotion and Protection Agreements with India ensure additional protections for Indian investments in Iran.
• R&D Incentives: Iran encourages R&D activities by offering tax credits, grants, and subsidized facilities to foreign companies, including Indian firms.
• Training and Skill Development: Iran supports training programs for foreign companies, allowing Indian companies to enhance their workforce's skills.
• Trade Fairs and Exhibitions: Iran organizes trade events where Indian companies can showcase their products, explore opportunities, and establish contacts.
• Export Promotion: Iran provides support and facilities for non-oil exports, benefiting Indian companies in manufacturing and export-oriented industries.
• Investment Visa Facilitation: Iran simplifies visa procedures for foreign investors, including Indian
• Intellectual Property Protection: Iran has strengthened its laws to protect intellectual property rights, ensuring the safety of Indian companies' innovations and creations.

Starting a Business in Iran

As per the Iranian regulations, foreign natural and legal entities can establish companies in Iran and hold upto 100% shares of the Company. Most common form or type of companies in Iran are - Limited Liability Company or Joint Stock Company. In order to register a company in Iran, foreign investors need to follow certain steps and provide certified copies of relevant documents, including articles of association and financial reports. It is mandatory for all documents to properly certified, translated into Persian, and then submitted to the Companies Registry.

Visa and Immigration

Following are some of the common visa types available for foreign nationals looking to set up business in Iran:

• Iran Investment Visa
• Iran Business Visa
• Work Permit Visa

Entering the Iranian market offers opportunities but requires careful planning, understanding of regulations, and adherence to cultural norms. Key sectors for investment include oil and gas, pharmaceuticals, technology, agriculture, and retail. Thorough market research, compliance with registration requirements, and obtaining necessary licenses are essential. Collaborating with local experts and staying informed about risks, such as economic sanctions and political uncertainties, is crucial. With the right approach, foreign businesses can establish a successful presence in Iran's dynamic market.

To read more about the Iran market and various business opportunities – CLICK HERE

How Do We Help?

At India Law Offices (ILO), we strive to deliver exceptional legal services to our clients not just within India, but on a global scale. Over the past two decades, we have diligently expanded our presence by establishing strong partnerships, both formal and informal, with esteemed professionals from leading law firms in key commercial hubs worldwide. These alliances have empowered us to offer efficient and seamless representation of the utmost quality in any jurisdiction. Through our extensive network, we are able to cater to the diverse needs of our clients and ensure that they receive top-notch legal assistance across borders.

With a host of global affiliations with some of the largest law firms and legal networks, India Law Offices makes business possible worldwide for its clients. We provide comprehensive support to Iranian companies seeking to enter the Indian market. Our services encompass various aspects such as establishing subsidiaries or branches, navigating commercial contracts, and addressing any legal requirements. Additionally, we extend our expertise to Indian companies aiming to expand their operations in Iran, offering corporate assistance and legal support tailored to their specific needs. In collaboration with our Iranian counterparts, we are well-equipped to provide guidance on cross-border transactions between India and Iran, including mergers and acquisitions (M&A), joint ventures, and other related activities. We are committed to helping our clients navigate the complexities of Indo-Iran business collaborations and achieve their desired outcomes. Our expertise extends to a wide range of areas, ensuring comprehensive assistance in various aspects such as:

• Corporate and M&A – Incorporation of Company, Branch Office, Merger & Acquisitions, Joint venture, Technical Collaboration, Taxation, Financial Reporting
• Commercial Contracts – Drafting & vetting of contracts like franchising, distribution, sales and marketing, licensing etc.
• Business and Civil Litigation – Representation before courts and judiciary bodies, Arbitration, Mediation
• Immigration – Obtaining Visa, Citizenship, Visa extension, Work Permit etc.
• Labour & Employment – Advice on Employment Laws, Tax implication on French nationals working in India, Drafting Employment Contracts & HR Policy
• Real Estate – Buying & Selling of Property, Development of real estate projects.
• Intellectual Property Rights – Trademark, Copyright & Patents registration
• Family Law and Inheritance – Cross border Divorce, Marriage Registration, Child Custody, Adoption, Drafting Will, Setting up Trust or Estate