RECANTLY CHANGED REGULATION

  IRAN Foreign investment regulations have been recently relaxed to encourage more capital inflow. Some Of The Most Noteworthy  Changes Are Presented Here

    1. Foreign Investors, at any time, can transfer out their money from the Iranian capital market and the country without any restrictions( Based on the previous regulation,  the foreign investors were forced to keep their assets in the country for the minimum of three years. This restriction does not exist anymore).
    2. The maximum percentage ownership in the Iranian company has been increased to %20. Previously, each foreign investor was restricted to own %10 or less of each Iranian firm( This limitation has been relaxed to %20).
    3. Based on the new regulation, the Central Bank of Iran (CBI) is obliged to provide the necessary foreign exchange for the foreign investors to transfer their assets based on daily rates.
    4. Foreign investors are able to invest in both the Tehran Stock Exchange (TSE) and also the Iranian OTC Market as well as Futures Market of Iran Mercantile Exchange (IME)(Based on the old regulation, the foreign investor was able to only to invest in TSE).
    5. Foreign investors can become responsible for the management of the Iranian companies they invest in.
    6. Foreign investors do not require any licenses for their operation in Iran. However, provision of such licenses would cover their activities in Iran based on the existing regulation. Based on the new regulation, the process to get such licenses has been streamlined.
    7. Foreign financial institutions such as brokerage firms, mutual funds, rating agencies, and other can also operate in the country. However, like an Iranian entity they are required to obtain related licenses from the Securities and Exchange Organization (SEO) based on the type of activity they have planned to perform in the country.
    8. Based on the new regulation, the foreign investors can invest in other types of instruments that are not necessarily traded in an official exchange. Government bonds and shares of unlisted companies are an example of financial instruments that can be invested in.
    9. The taxing scheme of foreign investors would be similar to the Iranian counterparts(There Are No Tax Neither On Capital Gain Or Cash Dividend)
    10. If you have any questions related to the above items and in general rules and regulation related to foreign investors, please feel free to email us.