Chabahar Free Zone
Chabahar is Iran's only oceanic port and the anchor of the India–Central Asia corridor — the zone to choose when transit logistics, not domestic sales, drive the business case.
Gulf of Oman, open ocean · established 1992 · ≈14,000 km²
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Chabahar Free Zone
Zone at a glance
- Established
- 1992
- Area
- ≈14,000 km²
- Port access
- Open ocean, outside the Strait of Hormuz
- Corridor
- India – Iran – Afghanistan – Central Asia
- Corporate tax
- 0% for 20 years
- Typical registration time
- 5–8 weeks
Chabahar Free Zone sits on the Gulf of Oman, outside the Strait of Hormuz, giving it direct deep-ocean access no other Iranian port has. It is by far the largest Iranian free zone by area and the focal point of corridor traffic between India, Afghanistan and Central Asia.
Investment cases here are built on transit, transhipment, bulk handling and processing for onward export rather than on the domestic Iranian consumer market, which is a long haul away.
What Chabahar actually gives you
- Twenty-year corporate income tax exemption
- Deep-water berths and container terminal capacity at Shahid Beheshti port
- Duty-free transit and transhipment of goods bound for landlocked markets
- Large, low-cost land allocations for logistics and processing
- 100% foreign ownership with free repatriation of profits
- Targeted policy support for corridor-linked infrastructure projects
Sectors & fit
Best for
Logistics operators, shipping lines, commodity traders and processors whose value comes from moving goods between India, the Gulf and Central Asia.
Watch out
Distance from Tehran and from the main industrial belt is real: inland trucking, staff rotation and supplier depth all cost more here than in the northern zones. Do the logistics maths before committing.
What it costs to set up in Chabahar
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 | Logistics licences at the lower end |
| Annual licence renewal | 1,200 – 2,200 | Payable to the Chabahar Free Zone Organization |
| Land lease (per m², per year) | 0.5 – 3 | Lowest of the Iranian free zones |
| Warehouse (per m², per year) | 25 – 60 | Depending on distance from the berths |
| Legal, translation & notarisation | 1,500 – 3,000 | Consular legalisation included |
| Expatriate accommodation allowance (per person, per year) | 6,000 – 12,000 | Housing stock is limited |
How to register a company in Chabahar
Corridor feasibility
Model the route economics: origin, berth, inland leg and destination market, before selecting a plot.
2–4 weeks
Name clearance
Reserve the Farsi company name with the Chabahar registrar.
3–7 days
Licence application
File the activity licence with the zone organization, including cargo volumes and handling plan.
3–5 weeks
Land or berth-side lease
Secure the plot, warehouse or berth-side allocation 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 and banking
Obtain the transit 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
Chabahar Free Zone FAQ
Why is Chabahar strategically important?
It is Iran's only port with direct open-ocean access, bypassing the Strait of Hormuz, and the shortest sea-to-land route from India to Afghanistan and Central Asia. That transit role, not domestic demand, is the investment case.
What does land cost in Chabahar Free Zone?
Land is the cheapest of the Iranian free zones, typically well under a few dollars per square metre per year on a long lease, reflecting the zone's scale and its distance from the industrial heartland.
Can goods transit Chabahar without entering Iranian customs territory?
Yes. Goods handled under transit and transhipment procedures move through the zone without becoming Iranian imports, provided the customs regime is applied correctly from the outset.
Who registers a company in Chabahar Free Zone?
The Chabahar Free Zone Organization operates its own registrar. Foreign investors may hold 100% of the shares and repatriate profits freely.