Isfahan investment services center
General office of economic affairs and finance of Isfahan province
After nearly 48 years, the new law on foreign investment in Iran under the name of “Foreign Investment Promotion and Protection Act” (FIPPA) was ratified by the Parliament in 2002. FIPPA replaced the Law for the “Attraction and Protection of Foreign Investment” which was in effect since 1955. FIPPA’s replacement of LAPFI has further enhanced the legal framework and operational environment for foreign investors in Iran.
Some specific enhancements introduced by FIPPA for foreign investments in Iran can be outlined as follows:
- Broader fields for involvement by foreign investors including in major infrastructure;
- Broader definition given to foreign investment, covering all types of investments from “Foreign Direct Investment” (FDI) to different types of project financing methods including “Civil Participation”, “Buy-Back” arrangements, “Counter trade”, and various “Build-Operate- Transfer” (BOT) schemes;
- Streamlined and fast-track investment licensing application and approval process;
- More flexibility and facilitated regulatory practices for the access of foreign investors to foreign exchange for capital transfer purposes;
- Introduction of new legal options governing the government investor(s) relations.
- Creation of a one-stop shop called the “Center for Foreign Investment Services” at the Organization for Investment, Economic and Technical Assistance of Iran (OIETAI) for focused and efficient support for foreign investment undertakings in Iran;
- It is worthy to note that according to the article 7 of the" Foreign Investment Promotion and Protection Act” (FIPPA), articles 16 -20 of Implementing Regulations of FIPPA and Approval letter No.: 44458/26986 of Council of Ministers titled regulations of establishment of the Investment Services Center of the province, these centers were established and they are reference point for applicants of foreign investment in the province; and by carrying out the delegated affairs from the Organization and acting according to its authorities; it is the coordinator of the province with the organization.
The main Activities of the Center for Investment Services of Isfahan Province
- Offering consulting services and information about the attractions, priorities and opportunities of investment in Isfahan province.
- Making the coordination and providing the needed support on the issues related to obtaining the necessary permits from the relevant provincial departments (prior to & after the issuance of foreign investment license).
- Making the coordination needed on the issues related to the issuance of visa, residence and work permits for individuals related to foreign investment.
- Following up on the problems that the investment applicants face in dealing with other provincial executive departments and making the coordination needed among these departments for removing the barriers and impediments.
- Supporting and spreading the idea of investment, creating the culture and streamlining the environment for investment among different classes of society.
- Receiving the application of foreign investors along with other required documents and coordinating with the organization to issue the permission for investors.
Incentives and Benefits of Foreign Investment in IRAN
Foreign Investment Promotion and Protection Act (FIPPA)
Features and Advantages of 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 investing in all areas which are permitted to the private sector.
- Granting protection coverage to all foreign investment schemes.
- Quick approval of the foreign investment application
- Issuing a three-year 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.