The most prevalent type of firms in Iraq are private companies (LLCs), and there are several foreign companies with offices in Iraq. A commercial entity handled by two or more parties jointly, known as a joint venture, can be established in the country but does not have legal standing.

Nonetheless, it is still advisable for joint ventures to seek legal assistance for various reasons. If a foreign firm wishes to register in Iraq, it must have 51 percent Iraqi ownership, according to Company Law 21/1997. Here are three reasons joint venture companies need legal services in Iraq.

Advice on Types of Joint Ventures

Joint ventures are not expressly governed by any laws in Iraq, although Iraqi law’s general rules still apply. While certain types of joint ventures are not prohibited by law, there are broad restrictions on registering a corporate presence, paying taxes, and receiving approval from banks and other agencies. A legal team can help navigate all these restrictions and requirements.

Local Registries

Under Iraqi legislation, there is no mandatory requirement to register a contracted joint venture. But since a contractual joint venture is not recognized, there are some limitations in practice. For example, banks and governmental entities will always tend to rely on the local joint venture partner.

A corporate must be established through the Registrar of Companies as a limited liability company (LLC) in the country to gain legal identity. They also need to register with the relevant tax and social security agencies. Various other legal intricacies come into play when dealing with corporate joint ventures, which can be better handled with the help of an attorney.

Governance on Directors

Although the participants in contractual joint ventures are constrained by the relevant laws and norms of public order, Iraqi law recognizes the notion of contract freedom.

In the case of corporate joint ventures, the parties are required to abide by the specific requirements of Iraq’s Companies Law relevant to the particular corporate structure selected for the joint venture.

Hire a Lawyer

Contact Muayad & Associates if your business is considering investment opportunities or conducting business in Iraq and needs assistance with legal services, establishing a presence, compliance requirements, foreign judgment enforcement, or taxation advisory for joint ventures. With more than 40 years of corporate experience, secure your joint venture operation in Iraq and book your first consultation.