General information on legal matters

Hello everyone. My name is Emran. Based on questions have been asked about Iran, in this topic I try to present a short introduction in order to have a concise perspective about legal matters.

1- Working and Visa

A- Iran Labor Code, Sec. 120: Foreign citizens shall not be employed to work in Iran unless they have an entry visa specifically entitling them to work and have obtained a work permit in accordance with the relevant statutory regulations.

Note. The following foreign citizens are not subject to the provisions of section 120:

a) Foreign citizens exclusively employed by diplomatic and consular missions, subject to confirmation by the Ministry of Foreign Affairs;

b) The personnel and experts of the United Nations and its specialized agencies, subject to confirmation by the Ministry of Foreign Affairs;

c) The correspondents of foreign news agencies and press, subject to reciprocity and confirmation by the Ministry of Culture and Islamic Guidance.

B- Iran Labor Code, Sec. 121. The Ministry of Labor and Social Affairs shall issue a visa authorizing the bearer to work, together with a work permit, provided that:

a) According to the information available to the Ministry of Labor and Social Affairs, there are no qualified Iranian citizens with similar specialization who are ready to perform the work in question;

b) The foreign citizen possesses sufficient skills and specialization for the job in question;

c) The expertise of the foreign citizen is used to train Iranians with a view to the eventual substitution of the foreign citizen by a trained Iranian. 

C- Iran Labor Code, Sec. 124. In accordance with the provisions of this Code, a work permit shall be issued or extended or renewed for a maximum period of one year.

D- Iran Labor Code, Sec. 128. Prior to signing any contract likely to entail the employment of foreign experts, an employer shall apply to the Ministry of Labor and Social Affairs for authorization to employ foreign citizens.

2- Companies

A- Companies with Iranian partner: Any company registered in Iran shall have Iranian partners owning 51 percent of company's capital.

B- Companies without Iranian partner: only if there is an investment contract between a foreigner or a foreign company and a governmental organization, the foreigner of foreign company can establish a company in Iran without Iranian partner. (i.e. 100 percent of company's capital belongs to foreign nationals)

C- Foreign companies can establish branch in Iran for one or more of following activities:
1.    After sale services for principal company
2.    Applying the executive phase of contracts concluded between Iran nationals and principal company
3.    Enhancing non-oil exports in Iran
4.    Technical and engineering services and transfer of technology

D- Foreign companies can establish a representative office in Iran. A representative is an Iranian individual or a legal entity which has a “Representation contract”. The representative is responsible for activities according to the contract.

If you need any further information don’t hesitate to contact me.

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