FIPPA Protection and Incentives

Features and Advantages of Foreign Investment Promotion and Protection Act (FIPPA)

• There is no restriction on the percentage of foreign shareholding.
• The possibility of registering an Iranian company with 100% foreign capital.
• Transfer of principal capital, dividend and the profits gained through the utilization of capital in the form of foreign currency or goods.
• Enjoyment of same and equal treatment as accorded to domestic investors by foreign investors.
• The possibility of investment by foreign natural and juridical persons and Iranians living abroad.
• Allowing investment in all areas which are permitted to the private sector.
• Granting protection coverage to different foreign investment schemes.
• Quick approval of the Foreign Investment Application
• Issuing five-years multiple entry visa and residence Permit for Foreign Investors, directors, experts as well as their immediate family members.

Risks covered under FIPPA:

• Expropriation and Nationalization
• Unlimited transfer of capital and dividend
• Guarantee of the Purchase of the goods and services resulting from investment projects in BOT investment schemes where the government acts as the sole purchaser

Investment Facilities and Incentives in Free and Industrial Zones

• 20 years’ tax exemption for all economic activities
• No visa requirement for the entrance of foreigners
• No limitation on the transferring foreign currency
• Flexible monetary and banking services
• Exemption of raw materials and industrial machineries of producing units from customs duty.
• Easy registration of companies, industrial and cultural institutions and intellectual property ownership.
• Easy circumstances for re-export and transit of commodities.
• Easy regulations for the import commodities allowed by law.
• The possibility of exporting products to the mainland within the framework of the added value regime.
• Sale/lease of the land for the Iranian and long-term lease for the foreigners.
• Suitable rates for the energy consumption.

Other Incentives and Benefits of Investment in Iran

• Unique geographical situation as the junction of the Middle East, Europe and Asia.
• Huge domestic market with more than 80 million population and quick access to the markets of the neighboring countries with more than 600 million populations.
• Massive resource of efficient, trained and economic-friendly workforce.
• Advanced infrastructure across the country in the fields of telecommunication, energy and rail/road transportation.
• Huge energy resources and low cost of production and public services.
• Suitable climate conditions which allow agricultural activities in all parts of the country and in all seasons.