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Company Registration Benefits in Iraq

Post By: Mustafa Muayad - Founder & Managing Partner mustafa.muayad@muayadandassociates.com Print Post

Company Registration Benefits in Iraq

The surge in economic growth and access to natural resources like oil have made Iraq a good place to invest. Nonetheless, the country’s history often makes foreign investors dubious and skeptical about whether or not to invest in Iraq.

Suppose you happen to be an investor still on the fence about investing in Iraq and registering a company here. In that case, you might want to know the amazing benefits of company registration in Iraq.

It’s said that Iraq is a land of opportunities, and we couldn’t agree more. Here’s why:

Enjoy Plenty of Exemptions

Once you register in Iraq, you can enjoy tons of business incentives starting from plenty of exemptions. All Iraq based companies are exempted from paying:

  • VAT ( Value Added Tax) on goods and services
  • Withholding tax on the payments of dividends
  • Withholding tax on Royalty payments
  • Dividends that Iraqi companies receive from other companies in Iraq will be exempt from corporate tax.

Free Zone Additional Benefits

These benefits are exclusively for registered companies in Iraq that plan to invest in Free zones of Iraq. The benefits include:

  • 100 percent exemption from corporate duties (imports and exports), corporate tax, and capital gains tax
  • No restrictions on foreign exchange
  • Permission to sell or buy foreign currency in the free zone

Multiparty Agreement Benefits

One of Iraq’s biggest achievements in recent times that will benefit companies registered in Iraq is the multiparty agreements. Iraq signed multiparty agreements with nine countries across the Arab league and bi-lateral agreements with 32 countries, including Germany, Japan, South Korea, the US, and the UK. These agreements offer the following benefits for investors who plan to create their footprints in the Arab world or other countries:

  • Reduced withholding tax on repatriated profits
  • Profits for fair treatment of investors
  • Smooth business dispute settlement

Moreover, Iraq has also signed FTA (Free Trade Area) agreements with eleven countries. These include the UAE, Lebanon, Oman, Egypt, and Qatar.

Benefits for NIC licensed Projects in Iraq

If your international project has a capital investment of at least 250,000 US dollars in Iraq, it will be licensed by NIC (National Investment Commission) quickly. Once licensed, you can enjoy the following benefits:

10 Year Exemption

Your project will be exempted from all fees and taxes for ten years starting from the operation commencement date. You can also renew it for another 15 years if there is 50 percent Iraqi participation.

Zero Restriction

Your company can enjoy zero restrictions on current and capital account transactions if you provide proper supporting documentation with them. Hence, you can easily transfer capital in and out of Iraq when needed and remit your annual profits to your own country (if required).

Exemption on Imported Assets

If you import assets in Iraq for project development, then custom duties shall be exempted on all these assets. However, it should be done within three years of the license date. Likewise, if more assets are needed for expansion, they shall enjoy the same exemption, provided that they are also made within three years.

Businesses that engage in educational, hospitality, healthcare, or research projects and need to import assets can do so custom-free but once every four years.

Lease Land Benefits

Another amazing benefit of the NIC licensed project is that you can lease land anywhere in Iraq for up to fifty years as a registered company. Also, businesses that want to invest in residential property development can buy or sell land easily.

Insurance Flexibility

Once registered and licensed with NIC, you will get the flexibility and benefit to ensure your investment with the company of your choice. You can insure your investment through an Iraqi insurance company or a non-Iraqi Institution of your choice.

Contact Us For Legal Assistance and Registration Guidance

Now that we have shared with you a detailed description of all the possible benefits of registering a company in Iraq and establishing your operations here, the next step is to contact us. At Muayad & Associates, we can provide you with all the information, knowledge, and guidance you need to register and operate in Iraq.

Serving foreign business owners in Iraq for more than thirty years, our lawyers understand the Iraqi market and dynamics better than no other company. When you hire us, you can rest assured that you are working with the best in the industry and will get the right advice every step of the way. In addition, our multifaceted team of corporate, legal, and tax lawyers will provide you with complete information and insights into how to register your company in Iraq and ways to benefit from the exemptions listed above.

Our goal is to help foreign clients invest in Iraq confidently and enjoy a stress-free company registration process without experiencing any legal complications. We make sure everything is carried out the right way so that there are no disputes later. So, what are you waiting for? Schedule a free consultation with our seasoned lawyer today to discuss your questions, queries, and the following steps to take for company registration in Iraq. Register a company in Iraq and take advantage of all the benefits to grow business and profits.

Article written by :

Mustafa Muayad

Founder & Managing Partner
Muayad & Associates