Business
The Commercial Code 1932, and sanctions as the dominant practical constraint
Companies are formed under the Commercial Code 1932 and its 1969 amendment. The binding practical constraint on business with Iran is not company law but the international sanctions regime.
Key rules
- Jurisdiction — National. Free trade zones operate under separate regulations.
Governing law
- Commercial Code 1311/1932
- Amendment to the Commercial Code concerning joint stock companies 1347/1969
- Foreign Investment Promotion and Protection Act 1381/2002
In practice
The 1969 amendment governs joint stock companies and remains the principal corporate statute; private and public joint stock companies and limited liability companies are the usual forms. FIPPA 2002 provides a route for foreign investment with guarantees against expropriation and rights of capital transfer, subject to licensing. Any accurate account has to foreground sanctions: US primary and secondary sanctions and, to a varying degree, EU and UN measures restrict banking, insurance, shipping and specified sectors. The company law question is usually answerable; the sanctions question determines whether the transaction can proceed at all, and it requires specialist advice.