Can foreigners own 100% of a company in Iran?

Yes. Under the Foreign Investment Promotion and Protection Act (FIPPA, 2002), 100% foreign ownership is permitted in most sectors on the mainland and across all seven Iranian free zones; no local partner is required.

What is the corporate tax rate in Iran?

The standard corporate income tax rate in Iran is 25% (flat) and VAT is 9%. Free zones grant a 20-year corporate tax exemption, and priority sectors qualify for 3–10 year tax holidays.

How long does it take to register a company in Iran?

A mainland Private Joint Stock company or LLC typically registers in 4–6 weeks. A FIPPA-licensed foreign investment adds 45–60 working days for the licence itself. Free-zone entities can be set up in 2–3 weeks.

Can profits be repatriated from Iran?

Yes. FIPPA guarantees the transfer of profits, dividends and capital in the original investment currency through Central Bank of Iran channels, typically 4–8 weeks after tax clearance.

Which sectors are most open to foreign investment in Iran?

Petrochemicals, renewable energy (solar, wind, hydro), mining, pharmaceuticals, food processing, tourism, ICT, transport and logistics, and the Tehran Stock Exchange.

What are Iran's free zones?

Iran has seven Free Trade-Industrial Zones: Kish, Qeshm, Chabahar, Aras, Anzali, Arvand and Maku. All offer a 20-year tax exemption, 100% foreign ownership, no entry visa, simplified customs and free transfer of capital and profits.

Reference

Iran Investment
Glossary

44+ working definitions of the legal, regulatory, capital-markets, banking and free-zone terminology foreign investors encounter when operating in Iran. Bookmark-able and citation-ready.

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Reference desk · curated for institutional investors

BOT: Common Iranian infrastructure concession model: investor builds, operates for a concession period (15–25 yrs), then transfers asset to the state.
CBI: Sets monetary policy, supervises the banking sector, and approves cross-border payment routes and FX conversions for foreign investors.
CFT/AML: Iran tightened its CFT/AML regime through 2023–25 reforms. Counterparty KYC remains a critical workstream for foreign investors.
CSDI: Operates the trading-code register, clearing, and settlement for TSE and IFB trades. Foreign investors apply here for an investor identification code.
DTT: Iran has DTTs with 50+ jurisdictions (incl. Germany, France, Russia, China, Turkey, UAE, Korea) reducing WHT and clarifying permanent-establishment rules.
ECA: State-backed financiers / insurers (e.g. Hermes, SACE, EXIM) that historically supported Iran-bound capital goods exports under specific carve-outs.
EPC: Standard turnkey delivery contract used for energy, petrochem and infrastructure builds.
EU Blocking Regulation: EU statute prohibiting compliance with certain US extraterritorial sanctions. Often referenced in EU-Iran trade structuring.
FIPPA: Iran's primary foreign-investment statute (2002). Grants licensed foreign capital equal treatment with domestic capital, full profit and capital repatriation, and protection against expropriation without compensation.
FZ / FTZ: One of 8 designated zones (Kish, Qeshm, Chabahar, Aras, Anzali, Arvand, Maku, Tyas) offering 20-year tax holiday, 100% foreign ownership, and simplified customs.
ICCIMA: Issues commercial cards required for import/export, and hosts the Iran International Arbitration Centre.
IFB: The over-the-counter exchange covering SMEs, debt instruments, ETFs, and pre-IPO listings. Operates alongside the TSE.
IME: Commodity exchange covering metals, petrochemicals, agricultural products, and futures. Major price-discovery venue for industrial buyers.
IMIDRO: State holding company over copper, steel, iron ore, aluminium and rare-earth concessions; principal counterparty for large mining JVs.
INSTEX: EU special-purpose vehicle (in run-off) designed for humanitarian and food trade with Iran outside USD.
INTA: Tax authority. Administers 25% corporate tax, VAT (currently 10%), and FZ tax exemptions.
IPC: Post-2014 upstream contract model replacing the older buy-back structure. Cost-recovery + per-barrel fee linked to performance.
IRENEX: Specialised exchange for crude oil, refined products, electricity, and gas-related instruments.
IRICA: Customs authority. Manages tariffs, free-zone customs treatment, temporary admission and ATA carnets.
IRR: Official currency. Quoted on three reference rates: NIMA, ETS (interbank) and the parallel/free-market rate. Investors should plan around NIMA convertibility.
KYC: Counterparty identification, beneficial-ownership mapping, sanctions screening. We pre-screen every Iranian counterparty before introduction.
LLC: Partnership-style entity with two or more partners. Used for smaller ventures; conversion to PrJSC common before scaling.
Mashin Hesab: Local GAAP-aligned bookkeeping framework. Most large groups also keep IFRS-converted books for foreign reporting.
NIMA: The Central Bank of Iran platform for non-oil export-proceeds FX transactions. Foreign investors routinely use NIMA for inbound capital settlement and dividend repatriation.
NIOC: State-owned upstream oil & gas operator and the counterparty for most upstream service contracts.
OFAC: Administers US sanctions. Many foreign investors structure outside USD and avoid US-nexus touchpoints; see our Sanctions Briefing.
OIETAI: The Ministry of Economic Affairs & Finance body that reviews and licences FIPPA applications and acts as the foreign investor’s primary government counterparty.
PJSC: Iranian company form whose shares can be publicly offered. Required for TSE listing. Min. 5 shareholders, min. capital IRR 5M.
PPA: Long-term electricity off-take contract. In Iran typically signed with SATBA (renewables) or Tavanir (conventional).
PrJSC: Closed equivalent of PJSC. Most common vehicle for FDI-controlled subsidiaries. Min. 3 shareholders, min. capital IRR 1M.
PSEEZ: Asaluyeh-based SEZ hosting the bulk of Iran’s downstream petrochemicals and LNG-adjacent infrastructure.
Repatriation: Under FIPPA, foreign investors may repatriate registered capital, profits and capital gains in the original currency, subject to FX availability through NIMA.
SATBA: Ministry of Energy body that signs feed-in tariff PPAs with renewable-power developers. Standard PPA tenor 20 years.
SEO: Iran's capital-markets regulator. Licenses brokers, listed issuers, and foreign-investor trading codes for the Tehran Stock Exchange.
SEZ: 30+ specialised industrial enclaves with customs benefits but less generous tax treatment than FTZs. Common for downstream petrochemicals (PSEEZ) and ports.
SHAPARK: Subsidiary network handling card-present and card-not-present transactions; relevant for fintech and e-commerce investors.
SHETAB: Domestic real-time interbank settlement system connecting all Iranian banks; backbone for IRR-denominated B2B payments.
Sukuk: Shariah-compliant fixed-income instruments listed on IFB. Common types include Murabaha and Ijarah sukuk.
Taarof: A culturally important set of offer-and-decline rituals in business meetings. Important to recognise but not misinterpret as final position.
Toman: 1 toman = 10 rials. Quoted in everyday commerce and increasingly in legislation; investors should confirm whether contracts quote IRR or tomans.
TPO: Ministry of Industry, Mines & Trade body promoting exports, hosting trade missions and exhibitions.
TSE: The principal Iranian equity exchange with ~340 listed companies. TEDPIX is its headline index. Foreign investors require a trading code from SEO/CSDI.
VAT: Currently levied at 10%. FTZ activities are generally exempt; SEZs are not.
Withholding Tax: Dividends paid to foreign shareholders of FIPPA-licensed entities are generally exempt; royalties / service fees taxed at 5–25% depending on treaty.

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Reading the Iran rulebook

Why a small set of acronyms decides most foreign-investment outcomes

Iran's investment framework is built around a compact stack of institutions and instruments — FIPPA, OIETAI, NIMA, the Central Bank, and the free-zone authorities. Most failed entries are not strategic mistakes; they are vocabulary mistakes made at the structuring stage.

60+

Core regulatory terms

Free trade-industrial zones

Special economic zones

50+

Bilateral investment treaties

Licences vs. permissions

A FIPPA licence is a status (granting investor protection); operational permits (industry licences, environment, customs) are a separate stack. Confusing the two is the most common scoping error.

FX channels

NIMA, SANA, and the interbank market each have different eligibility, settlement, and reporting rules. Picking the wrong one delays dividends by quarters.

Zones vs. mainland

Free zones offer tax holidays and 100% ownership without FIPPA; mainland investment uses FIPPA. The right answer depends on customs flows and where the customer is, not on the headline tax rate.

FAQ

Frequently asked questions

Do I need a FIPPA licence in a free zone?+

No. Free zones operate under their own statute. FIPPA applies to mainland investment. The choice should be driven by your operating model, not by which one sounds easier.

Why does NIMA matter for foreign investors?+

Because legitimate dividend and capital repatriation is most often executed through NIMA-registered flows. Without NIMA documentation, even fully-licensed investors have struggled to exit cash.

What is the difference between OIETAI and the Ministry of Economy?+

OIETAI is the Ministry of Economy body that owns the FIPPA process and is your single government counterparty. The Ministry sets policy; OIETAI executes.

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