Iraq’s Prime Minister Issues New Directives to Streamline Business Registration and Enhance Digital Transactions

Date of Issuance: March 6, 2025

In line with the Iraqi government’s commitment to administrative and financial reform, Prime Minister Mohammed Shia’ Al-Sudani issued a new directive on March 6, 2025, aimed at enhancing business registration processes and promoting digital transactions. These measures are designed to improve the business environment, particularly for small and medium-sized enterprises (SMEs), and to bolster the national economy.

Key Directives (Issued on March 6, 2025)

• Automation and Digital Transformation
  • The Baghdad Chamber of Commerce, the Federation of Iraqi Chambers of Commerce, and the Federation of Iraqi Industries are tasked with simplifying procedures in collaboration with relevant authorities.
  • They have a six-month timeframe from March 6, 2025, to implement business automation and digital transformation projects, expediting company registration processes and strengthening electronic payment systems.
• Simplified Contract Authentication
  • To facilitate the authentication of contracts, especially for small and medium-sized businesses, notaries will issue confirmation letters to validate these contracts without unnecessary delays.
• Notary Services Within the Chamber of Commerce
  • A study will be conducted to assess the feasibility of establishing notary offices within the Baghdad Chamber of Commerce.
  • This initiative aims to streamline the authentication of company incorporation contracts and simplify necessary procedures.
• Mandatory Bank Accounts for Companies
  • Company owners are required to open bank accounts in licensed Iraqi banks.
  • An official endorsement from the Baghdad Chamber of Commerce will be a prerequisite for completing registration procedures and obtaining company identification and certificates of incorporation.
• Promotion of Digital Transactions
  • In coordination with the Central Bank of Iraq (CBI), efforts will be made to enhance the use of electronic transactions and digital payment systems in the new business environment.
  • All banks will be directed to facilitate account opening procedures for SMEs starting from March 6, 2025.
• Banking Facilities and Incentives
  • The CBI will coordinate with banks to provide financial facilities and incentives to companies.
  • These incentives include loans, banking services, electronic transfers, and the promotion of digital payments and financial technology solutions.
• Public Awareness Campaign
  • An information campaign will be launched to educate citizens and investors about the new procedures.
  • This will involve producing content that explains the company registration process, benefits of digital transformation, and available banking opportunities.
• Monitoring and Reporting
  • A specialized committee comprising relevant stakeholders will be formed to oversee the implementation of these directives and to prepare periodic reports on the progress of the recommendations, starting from March 6, 2025.

• What is the purpose of these directives?
  These directives aim to simplify company registration procedures, promote digital transactions, and improve the overall business environment in Iraq.
• Who is responsible for implementing these changes?
  The Baghdad Chamber of Commerce, the Federation of Iraqi Chambers of Commerce, the Federation of Iraqi Industries, the Central Bank of Iraq, and licensed Iraqi banks are among the key entities responsible for implementing these directives.
• How will these changes benefit SMEs?
  SMEs will experience streamlined registration processes, easier access to banking services, financial incentives, and a more efficient business environment through digital transformation.
• What role does the Central Bank of Iraq play in this initiative?
  The Central Bank of Iraq will coordinate with banks to facilitate account openings for SMEs and provide financial incentives, including loans and digital payment solutions, starting from March 6, 2025.
• How can companies stay informed about these new procedures?
  Companies can stay informed through the public awareness campaign, which will provide detailed information on the new procedures, benefits of digital transformation, and available banking opportunities.

Implications for Businesses in Iraq

These government-led initiatives, issued on March 6, 2025, mark a significant step toward reducing bureaucracy, accelerating company formation, and modernizing Iraq’s business environment. The integration of digital financial solutions is expected to:

• Encourage foreign and local investment
• Enhance transparency and efficiency
• Support SMEs through easier access to financial resources
• Streamline company registration processes

Businesses planning to establish operations in Iraq should closely follow these developments and ensure compliance with the new regulations. For legal guidance on company registration, corporate banking, or digital payment compliance in Iraq, it is advisable to consult with experienced legal advisors who can navigate the evolving regulatory landscape effectively.