Protections, Permits, Bilateral / Multilateral Treaties, Regional Conventions
Although foreign investment has negatively been affected by political going ups and downs, the legal environment of this field has meaningfully been progressing during these years. After cancellation of a long-standing limitation that prohibited foreigners to participate in more than forty-nine percent of the share capital of an Iranian company, several other adjustments have been introduced here and there with an aim to attract foreign investors. According to part of said developments, foreign banks can now establish their branches in the mainland; equity market and stock market is open for foreign investment; and direct foreign investments in existing companies would make certain tax incentives.
Beside the above and as a classic approach, the Foreign Investment Promotion and Protection Act (FIPPA) suggests kind of protections to the foreign investors that specifically include guaranteeing accessibility and transferability of foreign currency for repatriation occasions. FIPPA recognizes various kinds of contributions identified thereunder (including project financing, royalties, management services, know-how, etc.) as investment capable to be protected thereby if the relevant foreign investor applies for obtaining a FIPPA License (for which certain formalities should be taken). Equally, bilateral treaties like international agreements for Non-Double Taxation and or Reciprocal Protection of Investment as well as regional conventions for promotion of economic collaborations like ECO introduce their own protections, also.
We will be happy to supply all legal service that foreign investors would need either in the process of obtaining FIPPA License from the Organisation for Investment and Economic and Technical Assistance (OIETAI) and acting on their behalf for any FIPPA matter and in the core of the specific field of business activity that they might be interested to invest in.