Knowledge Based Companies in Iran
Knowledge based companies have been put at the center of attention since early 2010s. legalities of this brand-new R&D units are mainly supportive and a spectrum of different laws and regulations has been deployed to boost the facilities in this area.
Policy Perspective to Knowledge Based Companies in Iran
Since early 2010s, Iranian authorities has determined to invest in the cutting-edge science technologies, especially by the means of knowledge-based companies. this investment was supposed to be carried out not directly by fund and loans, but also by providing legal facilities like tax deductions. There is a thread of legal instruments ratified during the last decade, thanks to them we face a rich repertoire and are able to draw a clear road map for those who are interested in this newly born galaxy.
Today, we have more than 5000 knowledge based companies in Iran. A knowledge-based company is known as a high-ranking R&D institution, aimed to commercialize the results. Considering the high risk of investment in this ground, governments usually provide incentives to stimulate private investors to engage, or guarantee to cover the risks on the part of company. So, without further ado, let’s dive in.
Main Laws and Regulations Concerning Knowledge Based Corporations in Iran
The first Category of laws governing this area is the “Law of Supporting Knowledge Based Institutions and Companies and Commercialization of Innovations and Inventions”, which has been passed on late 2010. This law has an executive regulation too that has been issued two years later. The first article of the law underscores the necessity of delivering a high value-added output for companies to be supported thereby. Further, the note under the article excludes companies controlled by public sector. Article 3 provides a list of supports to be given to the companies, including:
- Exemption from paying taxes and customs
- Special bank advances and providing for costs up to a certain amount
- Providing business premises
- Insurance services to cover projects’ risks
The executive regulation is partly repetition and clarification of the law articles, but mainly contains some important indications. According to note 2 under article 2, corporate branches of foreign companies are excluded from the scope of the law. Article 3 establishes a working group to evaluate and confirm the competence of corporations enlisted the support of this law. The deadline for the evaluation process is in two months. Article 5 frames the conditions of government grants. The knowledge based company has to has recruited more than 50 specialists with an experience beyond 5 years.
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