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Issuance of Foreign Investment License
Required documents for getting this License are
- Application Form;
- Establishment License / Primary agreement / Preliminary agreement of the pertinent Iranian organization;
- Official letter of the foreign investor to submit to the OIETAI;
- 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;
- 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);
- 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;
- Any further useful information;
The primary objective in this process is to find a suitable and “acceptable” local partner. If the contemplated foreign investment project complies with the plan already sanctioned, the Ministry of Economic Affairs and Finance may introduce to the potentially interested foreign investor, the local partners already holding an “agreement in principle” for taking part in such a project.
A ministerial “agreement in principle” must be applied for jointly by both the foreign and the local potential investors.
Details of the project are to be submitted to the Ministry of Economic Affairs and Finance as per a standard questionnaire, together with a feasibility study. Once the agreement in principle is issued, the parties should take the preliminary steps along with implementation of the project, such as importation of the machinery, equipment and setting up the required infrastructure.
An “application for participation” is required to be filed by the foreign investor with OIETAI to the effect of participation in implementation of the sanctioned project.
Then, the process is followed by a review of the application by the Supervisory Board for Attraction and Protection of Foreign Investment.
The Foreign Department of Ministry of Economic Affairs and Finance, upon preliminary coordination with the Ministries concerned, shall prepare a comprehensive report for submission to the Supervisory Board to adopt the decision. If the project is deemed to be in the country’s overall interest, the Board conveys its favored decision through MEAF for approval and issues an Investment Decree. The Decree, once issued, is the formal permission for the investor to begin operation and to import the necessary capital which will be protected under the law.