Arvand Free Zone
Arvand pairs Iran's oldest refining complex with a land border into Iraq — the zone for downstream petrochemicals and for anyone selling into the Iraqi market.
Abadan & Khorramshahr, Shatt al-Arab · established 2004 · ≈152 km²
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Arvand Free Zone
Zone at a glance
- Established
- 2004
- Area
- ≈152 km²
- Border
- Direct land crossing into Iraq
- Cluster
- Refining, petrochemicals, plastics
- Corporate tax
- 0% for 20 years
- Typical registration time
- 5–8 weeks
Arvand Free Zone covers Abadan, Khorramshahr and Minoo Island in Khuzestan, along the Shatt al-Arab waterway. It sits directly on the Iraqi border and inside Iran's oldest hydrocarbon-processing cluster.
Feedstock proximity is the defining advantage: downstream petrochemical converters, plastics processors and industrial-services firms operate next to the refineries and export by river, road and land border.
What Arvand actually gives you
- Twenty-year corporate income tax exemption
- Feedstock access from the Abadan refining and petrochemical cluster
- Duty-free import of plant, equipment and process inputs
- Land border and river access for exports to Iraq and the Gulf
- 100% foreign ownership and free profit repatriation
- Established industrial labour pool in Khuzestan
Sectors & fit
Best for
Downstream converters, industrial-service providers and exporters targeting Iraq, where the border crossing removes a long sea leg.
Watch out
Summer heat and humidity in Khuzestan drive up cooling, maintenance and staffing costs. Budget operating expenditure on Khuzestan assumptions, not on Tehran ones.
What it costs to set up in Arvand
Indicative ranges for a first-year foreign-owned entity. Actual figures depend on activity, space and headcount — we quote against your specific plan.
| Item | Indicative cost (USD) | Notes |
|---|---|---|
| Zone registration & licence (first year) | 2,500 – 4,500 | Industrial licences at the upper end |
| Annual licence renewal | 1,200 – 2,200 | Payable to the Arvand Free Zone Organization |
| Industrial land lease (per m², per year) | 1 – 4 | Long renewable lease |
| Office space (small, per year) | 2,000 – 5,000 | Abadan or Khorramshahr |
| Legal, translation & notarisation | 1,500 – 3,000 | Consular legalisation included |
| Feedstock supply agreement support | 2,000 – 5,000 | Negotiation and technical review |
How to register a company in Arvand
Feedstock and offtake check
Confirm feedstock availability and pricing terms with the local complex before selecting a plot.
2–4 weeks
Name clearance
Reserve the Farsi company name with the Arvand registrar.
3–7 days
Licence application
File the activity licence with the process description, utilities load and environmental data.
3–6 weeks
Land lease
Execute the industrial land or premises lease and register the address.
2–4 weeks
Company registration
Register the entity and collect the certificate, national ID and gazette entry.
1–2 weeks
Customs, tax and banking
Obtain the free-zone customs code, open the tax file and set up bank accounts.
2–4 weeks
Documents you will need
- Passport copies of every shareholder and director (notarised, translated into Farsi)
- Parent-company certificate of incorporation and articles of association, legalised by the Iranian consulate
- Board resolution approving the subsidiary or branch and appointing the local signatory
- Three proposed company names, in Farsi, for zone-authority name clearance
- Business plan covering activity, projected turnover, headcount and space requirement
- Proof of address for the leased office, warehouse or plot inside the zone
Arvand Free Zone FAQ
Why choose Arvand Free Zone for petrochemicals?
Because feedstock sits next door. Abadan is Iran's oldest refining centre, and downstream converters inside Arvand buy locally instead of paying inland freight from the southern complexes.
Can I export from Arvand into Iraq?
Yes. Arvand has a direct land crossing into Iraq alongside river and road routes, which is the shortest path to Basra and southern Iraqi demand.
What are the main operating risks in Arvand?
Climate-driven operating costs, utilities load during peak summer demand, and feedstock allocation terms. All three are diligence items rather than deal-breakers.