Iran, one of the most attractive market for investment, but be careful!
This is a fact that Iran is one the most attractive market for international investment. Iran is full of different opportunities, not only in old-fashioned industries like mining, oil and gas and petrochemical but also in the modern and up-to-the-minute industries such as IT and the other types of technology-based businesses. Thanks to its very educated and dedicated workforce, Iran is able to adopt itself with the latest changes in the world of new technology.
Iran is a very cheap country for investment
Besides that, Iran is a very cheap country for investment, the minimum mandatory salary of an employee is around $ 150 per months and you can hire an expert with the monthly salary of $ 600-1000.
The service fee is also very cheap in comparison to the other countries with the same level of business attractiveness.
In contradiction to the public opinion, the government of Iran is very welcome to the foreign investor, you, as a foreigner, can incorporate an Iranian company with 100% capital share belongs to you without necessity of having an Iranian partner. You can easily apply for FIPPA License, which is designed to facilitate the foreign investment in Iran. In another article, we already discussed by details the great opportunities that you can obtain by having FIPPA License.
Despite all of the above advantages (which are just few positive elements), the business market of Iran has some characteristics that could be considered as the potential risks of the market.
What are the main potential risks for a foreign investor in Iran?
Lack of clarity
According to my personal experience, lack of clarity is the first significant challenge that you will encounter in Iran.
In Iran, we are not suffering from lack of law but from inflation of law. Every simple business matter could be regulated under different types of laws and regulations which are sometimes in contradiction together. It is not always easy to find an appropriate legislation concerning your exact business issue.
Moreover, it is not always easy to understand that which governmental organization is in charge of your request. Sometimes, the scope of authorities of the governmental organizations in Iran has overlapped in certain criteria which cause inappropriate delay in your project’s schedule.
It is not even always easy for an Iranian lawyer to go through these different laws and regulations to find the correct one for their international clients. Indeed, it is very often in Iran that one law, ratified by the parliament, has somehow restricted or modified by a simple governmental or municipal by-law. The Iranian lawyer who wants to assist the international businesses in Iran, should have a great experience in terms of laws and regulations applicable for foreign investment in Iran.
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Iran, one of the most attractive market for investment, but be careful!
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