Who is qualified to invest in Iran?
All foreign natural and juridical persons, international organizations, institutions and companies as well as Iranian natural and juridical persons are qualified to invest in the Country in accordance with the provisions of FIPPA.
Is it possible to participate in the Iranian public markets as a foreign portfolio investor?
If you’re a foreigner, it is possible for you to participate in the Iranian public markets as a portfolio investor. Foreign portfolio investors have three choices of platforms:
- Tehran Stock Exchange (TSE) : the equity market and main exchange in Iran
- Farabourse : an over-the-counter (OTC) market allowing investors to trade in smaller companies
- Iran Mercantile Exchange: commodities and commodity derivatives can be traded on IME
How to invest in Iran's stock market?
- The investment process for foreigners is quite simple under Iranian law, subject to the following parameters:
Trades must be made through a broker licensed in Iran. Iran’s government restricts direct market access to regulated brokerages. Seavolex Kala Co. with over 18 years of experience in stock market, and as a leaser brokerage in IME will give you accompany. (Contac Us)
- Foreign investors must obtain a license for investment. To apply for the license, please send your request through Contact Us. We will send the forms to you as your candidate brokerage, and a team of Seavolex Kala’s expert will accompany you to the final stages.
How long does it take to obtain a license for investment?
The license application process takes a week on average, with a maximum approval time of 10 days.
When a foreigner can open a bank account?
Once in possession of a trading license, Article 10 of the Regulations Governing Foreign Investment authorizes foreigners to open accounts in local currency with your broker. Investors fund these accounts by converting their foreign currency into Rials to support their investing and banking operations. The same article also authorizes the repatriation of capital gains and dividends earned through this foreign portfolio investment without the need for Central Bank approval.
Has Iran concluded any multilateral investment agreement?
Yes, the Government of the Islamic Republic of Iran has joined the Agreement on Promotion, Guarantee and Protection of Investment among OIC member countries as well as the agreement among ECO member countries. Foreign investors can enjoy the guarantee mechanisms of this agency as well. Although FIPPA along with bilateral and multilateral investment agreements signed by Iran provides sufficient protections against non-commercial risks, membership to MIGA gives a double guarantee.
What rights and privileges which are extended to investors under FIPPA?
The term protection refers to a series of certain rights and privileges which are extended to investors under FIPPA. In other words, investments carried out under any law other than FIPPA shall not be eligible to enjoy such rights.
Fundamental rights recognized under FIPPA in favor of foreign investors are as follows:
- The right to transfer profits (dividends) as well as capital and gains on capital in foreign exchange
- The right to receive compensation resulting from expropriation (deprivation of ownership) and nationalization of foreign capital
- The right to receive compensation resulting from the passing of laws or Cabinet Decrees causing prohibition or interruption in the implementation of financial contracts of foreign investors
- The right to enjoy equitable treatment accorded to domestic investors
With which countries has Iran signed the Agreement on the Avoidance of Double Taxation?
19 agreements have been signed worldwide
Is foreign investment allowed in companies quoted in the Stock Exchange Market?
There is no restriction for investment in companies quoted in the Stock Market. Foreign investments in these companies are eligible to enjoy the protections available under FIPPA, in the same manner as is available to foreign investment outside the Stock Market.
Is it obligatory to have local partner(s)?
It is not obligatory to have local partner, but in most cases foreign investors themselves are willing to take advantage from their local partners for the reason that they are more familiar with the business environment, regulatory and administrative requirements and opportunities locally available.