Iran Unveils New Regulations on Foreign Investment
Promoting Foreign Investment in Iran’s Economy
The Iranian government has introduced a new set of regulations aimed at promoting foreign investment in the country’s economy. The law, which came into effect yesterday, outlines the procedures and requirements for foreign investors to bring capital into Iran.
Procedures and Requirements
According to Article 10 of the law, any transfer of foreign capital to another investor must be approved by the Board or confirmed by the Minister of Finance and Economic Affairs. Foreign capital can be brought into the country through various methods, including:
- Cash conversion to rial (Iran’s local currency)
- Non-cash items after undergoing assessment stages by relevant authorities
- Direct use for purchases and orders associated with foreign investment (Article 11)
Transfer of Foreign Capital
The law also outlines the rules governing the transfer of foreign capital out of the country. According to Article 13, foreign investors can transfer their principal or interest abroad after giving a three-month advance notification to the Board and fulfilling all obligations and paying legal duties.
Dispute Resolution and Visa Requirements
In addition, the law provides for the settlement of disputes between foreign investors and the government through domestic courts, unless otherwise agreed upon in a contract (Article 19). Relevant executive apparatuses must also take necessary measures to issue:
- Visas
- Residence permits
- Working permits
- Employment of foreign experts associated with foreign investments (Article 20)
Public Information and Oversight
The Organization responsible for overseeing foreign investment is obligated to make all information on foreign investments available to the public (Article 21).
Replacing the Existing Law
The new regulations replace the existing law on attraction and protection of foreign capitals, which was enacted in 1955. The aim of the new regulations is to promote foreign investment and attract more capital into Iran’s economy.
Key Points:
- Foreign investors must obtain approval from the Board or confirmation from the Minister of Finance and Economic Affairs before transferring capital.
- Foreign capital can be brought into the country through various methods, including cash conversion, non-cash items, and direct use for purchases and orders associated with foreign investment.
- Foreign investors can transfer their principal or interest abroad after giving a three-month advance notification to the Board and fulfilling all obligations and paying legal duties.
- Disputes between foreign investors and the government will be settled through domestic courts unless otherwise agreed upon in a contract.
- Relevant executive apparatuses must issue visas, residence permits, working permits, and employment of foreign experts associated with foreign investments.
- The Organization responsible for overseeing foreign investment is obligated to make all information on foreign investments available to the public.