Establishment of Foreign Representatives and Branch Offices in Iran
By: Jahanbaksh Nouraei
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January 2016–The Registration of Companies Act, the Law for Allowing the Registration of a Branch or Representative of Foreign Companies and its By-law, the Law of Protection of the Rights of Consumers and certain other legislation lay down rules for foreign companies acting in Iran through representatives and branch offices. Today, all foreign enterprises are in principle allowed to register and open branch and representative offices in the Islamic Republic of Iran in pursuit of their economic interests.
BRANCHES AND REPRESENTATIVE OFFICES IN THE LAW OF IRAN
Dr. Behrooz Akhlaghi, Mr. Farhad Emam
Since 1931 when Article 4 of the Corporate Registry Act of Iran recognized two distinct legal forms for activities of foreign companies in Iran, namely establishing a branch office or appointing a representative, all of the Iranian laws and regulations have remained loyal to this dichotomy as if no other option exists. Even the new Commercial Code of Iran (2014) could not succeed in creating a modern business law for regulating the activities of foreign companies in Iran.
If a foreign company intends to establish a legal presence for itself in Iran, it needs to consider the following issues:
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The Director General of the Office of Loans and International Organizations of OIETAI announced the signing of MOU on cooperation between Iran and Denmark in the field of project financing. According to the Public Relations Department, after three rounds of negotiations between representatives of the EKF of Denmark and this Organization a Memorandum of Understanding for cooperation was signed by the Managing Director of the Danish Export Credit Fund (EKF) and the President of the Organization. Dr. Khazaee, the president of Organization, expressed satisfaction with the expansion of mutual economic relations between the two countries and expressed hope that the MOU signing would lead to increase economic interactions between the both countries.
According to the Public Relations of OIETAI, the Parliamentary Deputy of the Ministry of Economy and Energy of Germany met with the Vice president of this Organization.
At the meeting, attended by the Head of the Economic Section of the Germany Embassy in Tehran, important issues such as; the resumption of economic ties, enhancing trade and investment cooperation and also holding the Fifth session of the Iran and Germany Joint Commission of Economic Cooperation in the early of May 2016, were discussed.
The Vice President of the organization, referring to the history of economic and commercial relations between the two countries, welcomed the expansion of economic cooperation with Germany. In addition he pointed out that in the current situation, Iran is the safest and the most stable country in the region and reiterated that German investors and economic authorities should not only look at the Iran’s capacity, economic and investment opportunities but also the access to a market of 400 million people in the surrounding region.
At the meeting, the parties indicated that the Joint Commission of Economic Cooperation could develop a roadmap of economic cooperation and a framework for business model between the private sectors of both countries.