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LAW 

REGULATIONS

LAW CONCERNING THE ATTRACTION AND PROTECTION OF FOREIGN INVESTMENTS IN IRAN

 Article 1.

            Persons, companies, and private firms of foreign nationality, investing in Iran in accordance with the provisions of Article II of this Law and by permission of factories, machinery and parts, equipment, patent rights expert services and the like, for development, rehabilitation, and productive activities in industry, mining, agriculture, and transport, shall enjoy the facilities provided in this Law.

*Article II.

For the purpose of investigation and making a decision regarding the merits of the proposals submitted concerning the import of foreign capitals, a Board shall be formed in Bank Melli Iran under the chairmanship of the Governor of the said Bank, consisting of the Undersecretaries of Finance, Foreign Affairs, Commerce, and Industries and Mines, the General Manager of the Plan Organization or one of his assistants,  the President of the President of the Chamber of the Chamber of Commerce of Tehran or one of the vice – presidents, and the head of the Exchange Committee. Decisions of the Board shall be submitted, through the Minister of Commerce[1], to the Council of Ministers for approval and issuance of a Decree.

            Proposals for investment of foreign capital in Provinces shall be given priority over those for investments in Tehran as regards investigation and issue of a Decree.

 Article III .

            Capital imported into lran in accordance with Article 1 of this Law, as well as profits accrued therefrom, shall be subject to the legal protection of the Government; and all the rights, exemptions, and facilities accorded to the domestic capital and private productive enterises shall also apply to foreign capital and firms. The Government guarantees fair compensation where the promulgation of a special legislation deprives the owner of capital from ownership ; provided that within three months after the date of expropriation application for compensation is submitted to the Board inentioned in Art. II.

            In case of disputes, investigation of claims for fair compensation guaranteed by the Government shall be undertaken by competent Iranian courts. In such cases the Government can grant permission for the transfer abroad of the capital irrespective of the conditions set forth in Article 5 of this law.

            Note 1: The law concerning ownership of real – estate by foreign nationals of Khordad 16, 1310 shall remain valid and in force.

            Note 2: Persons, companies, and private firms mentioned in Article I above are not entitled to transfer their shares, profits, and rights to their own or other governments.

 Article IV .

            The owner of capital is Permitted to export every year the net profit derived from the investment of his capital in Iran in the same currency as that originally imported and up to a limit to be determined in the regulations implementing this Law.

 Article V .

            Transfer adroad of the original capital and accrued profits, or the dalance of such capital and profits remaining in Iran, shall be permitted, subject to 3 month prior notice to the Board mentioned in Article 2, upon fulfillment of all obligations and with due regard to provisions of Agreement of the International Monetary Fund of July 1944. However, the owner of capital is required to retain in Iran, for 6 months, at least 10 per cent of his original capital to meet his contingent obligations.

Article VI .

            The Provisions of this Law shall apply to firms and nationals of such countries where economic activities and reciprocal facilities for Iranian firms and nationals are made possible.

Article VII .