Issuance of Investment License under FIPPA; Competent Authorities
Investment License: The license issued for each Foreign Investment in accordance with Article 6 of FIPPA
Documents Required by the OIETAl for the Issuance of Foreign Investment License:
1. Application Form
2. Establishment License / Primary agreement / Preliminary agreement of the pertinent Iranian organization.
3. Official letter of the foreign investor to submit to the OIETAl.
4. The foreign investors background including a brief history of the company, the year of establishment area of activities in case of foreign investor is a natural person, a photocopy of passport and resume will be provided.
5. A list of machinery, equipment and CKD part which may be imported into the country as a part of the foreign investors capital (if available).
6. In case that part of the foreign investor’s share is in the form of technical know –how, a draft of the contract outlining the conditions of the transfer of technology.
7. Any further useful information.
Organization: The Organization for Investment, Economic and Technical Assistance of Iran (OIETAl), referred to in Article (5) of the law establishing the Ministry of Economic Affairs and Finance, enacted on July 15, 1974
Board: The Foreign Investment Board, referred to in Article (6) of FIPPA
“The Foreign Investment Board”
- In accordance with the Article 6 : “For the purpose of investigation and making decision on applications referred to in Article (5), a board under the name of the “Foreign Investment Board” shall be established under the chairmanship of the Vice Minister of Economic Affairs and Finance who is ex-officio the President of the Organization, comprising of Vice Minister of Foreign Affairs, Vice President of the State Management and Planning Organization, Vice Governor of the Central Bank of the Islamic Republic of Iran and vice ministers of relevant ministries, as the case requires”.
- In relation to applications for admission, the Investment License shall, after the approval of the Board, be issued upon confirmation and signature by the Minister of Economic Affairs and Finance.
Article 5. The Organization is the sole official authority for the promotion of Foreign Investments in the Country, and for investigation of all issues pertaining to Foreign Investments. Applications of Foreign Investors in respect of issues such as admission, importation, utilization and repatriation of capital shall be submitted to the Organization.
Article 6. For the purpose of investigation and making decision on applications referred to in Article (5), a board under the name of the “Foreign Investment Board” shall be established under the chairmanship of the Vice Minister of Economic Affairs and Finance who is ex-officio the President of the Organization, comprising of Vice Minister of Foreign Affairs, Vice President of the State Management and Planning Organization, Vice Governor of the Central Bank of the Islamic Republic of Iran and vice ministers of relevant ministries, as the case requires.
In relation to applications for admission, the Investment License shall, after the approval of the Board, be issued upon confirmation and signature by the Minister of Economic Affairs and Finance. At the time of admission of Foreign Investments, the Board is required to observe the criteria referred to in Article (2) of FIPPA.
Note: The Organization, after preliminary review, shall submit the investment applications along with its own recommendation, to the Board within a maximum period of 15 days as from the date of the receipt of the applications. The Board must review the applications within a maximum period of one month from the date of submission, and notify its final decision in writing
The “Organization for Investment Economic and Technical Assistance of Iran” is the only governmental institution which is in charge for capital registration and supporting foreign capital and Foreign Investment License is also issued by this organization within the framework of FIPPA
Getting “FIPPA License” for those foreign investments which are made according to FIPPA is required, such investment licenses are issued by permission of Minister or Economic Affairs and Finance.
Briefly speaking, in accordance with the FIPPA and its By-Law, the process of issuing a foreign investment license is as follows:
Apply for acceptance of investment to the Organization;
Reviewing the investment application and documents and then obtaining the opinion of related Ministry by the Organization;
Reviewing the request by the Foreign Investment Board;
Submitting decision of the Board to the foreign investor to ensure that the foreign investor is satisfied with the decision of the Board. This will give him an opportunity to express his/her consent or opposition about the investment license after reviewing the details of content of the decision.
Issuance of investment license, which only takes place after obtaining approval of the foreign investor.
Article 7. In order to facilitate and expedite issues related to the admission and activity of Foreign Investments in the Country, all relevant agencies including the Ministry of Economic Affairs and Finance, the Ministry of Foreign Affairs, the Ministry of Commerce, the Ministry of Labor and Social Affairs, the Central Bank of the Islamic Republic of Iran, the Customs of the Islamic Republic of Iran, the General Directorate for Registration of Companies and Industrial Property, and the Organization for Protection of the Organization by the highest authority of the agency. These representatives shall act as the liaison and coordinator Environment are required to designate a fully authorized representative to all issues related to their respective agency vis-à-vis the Organization.
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