Starting a Business · Iran
Starting a business in Iran: foreigner's guide (2026)
Iran shaded by its starting a business status
Iran's domestic law permits 100% foreign ownership of locally incorporated companies under FIPPA (2002), with company formation theoretically completable in approximately 30 days via the Company Registration Office. However, comprehensive multilateral sanctions — including the US OFAC Iran Sanctions Program and the Trump administration's 'maximum pressure' campaign reimposed in February 2025 — effectively sever Iranian banks from the international financial system, making it practically impossible for most foreign nationals and entities to open accounts, transfer capital, or repatriate profits, creating a near-prohibitive operational environment despite the permissive formal legal framework.
Key points
Under FIPPA, foreign investors may own 100% of an Iranian-registered company. Any company incorporated in Iran with its principal headquarters there is treated as an Iranian legal entity regardless of shareholder nationality.
Foreign investors seeking FIPPA protections — including guaranteed profit repatriation, expropriation compensation, and access to international arbitration — must obtain an investment permit from OIETAI. The law mandates a maximum 45-day processing period for individual applications.
Formation requires: reserving a Farsi company name; depositing at least 35% of stated share capital in an Iranian bank; submitting notarised and Persian-translated documents to the Company Registration Office (irsherkat.ssaa.ir); publication in an official gazette; and registration with the State Tax Organisation. The final World Bank Doing Business assessment (2020) recorded 10.5 procedures and 72.5 days on average, ranking Iran 178th of 190 economies for starting a business.
Shareholders must document payment of at least 35% of the company's registered share capital into an Iranian bank account as a condition of filing. There is no single universal statutory minimum capital figure, but the deposit proof is a mandatory element of the registration dossier.
The US OFAC Iran Sanctions Program, combined with the 'maximum pressure' executive order reimposed in February 2025 and designation of over 1,000 Iran-related persons and entities, effectively cuts Iranian banks from SWIFT and the international financial system. Foreign entities transacting with Iran face exposure to US secondary sanctions, making banking access, capital transfers, and profit repatriation operationally impossible for most Western and many other investors.
FIPPA bars foreign investment in sectors closed to the Iranian private sector generally, including certain defence industries, specific upstream oil and gas activities, and strategic utilities. Additional sector-specific caps apply to foreign participation in financial institutions and the Tehran Stock Exchange.
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Last verified 5/24/2026 · Orientation, not legal advice - verify against the primary sources linked above. Explore the full world map →