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Understanding Iraq Company Registration Issues

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

Understanding Iraq Company Registration Issues

How you maximize your returns and minimize risk depends on your analytical skills and hands-on experience. Being an experienced law firm in Iraq and serving clients for more than three decades, we know that present Iraq is completely different from Iraq a few years or decades ago.

But as the country has gone through an era of war, it will take time to gain stability as expected by global investors and foreign entrepreneurs. However, the good news is that Iraq is on the road to economic stability.

The country is experiencing growth across sectors and now presents plenty of business owners to invest and register companies in Iraq. As we said earlier, the country is still struggling with issues that must be addressed.

In today’s post, we’ll highlight Iraq’s company registration issues and how to navigate through them to make sure you establish your operations smoothly here without experiencing any problems.

Under Developed Banking System

Iraq’s banking sector is underdeveloped. Most of the local private banks are undercapitalized. This discourages locals and foreign investors from depositing their money and funds in the bank. Moreover, private banks like TC Ziraat Bank and Standard Chartered Iraq offer limited banking services like debit and credit card issuance, and internet banking facilities are also insufficient. All this often makes foreign investors rethink their decision to operate in Iraq.

Country’s Economy is Dependent on the Oil and Gas Sector

It is believed that 90 percent of the government revenues are generated from the oil and gas sector. This makes it one of the most oil-dependent countries in the MENA region. The issue with this is that many people think that the Iraqi economy is perceptible to global shocks to the oil industry, impacting their registered companies in Iraq negatively.

Storage of Qualified Labor

Another problem with Iraq company registration is the severe storage of skilled and qualified labor. During the two decades of civil strife and war, many people lost their lives. As a result, the country now experiences a massive shortage of skilled and qualified labor force. Hence, when foreign companies register in Iraq, they are likely to suffer from the storage of local skilled workforce.

50 Percent Labor Force Should be Iraqi Nationals

Another challenging issue for foreign entrepreneurs is that, according to the laws, you need to give preference to Iraqi locals (citizens and nationals) for employment if you register your company outside the free zones. In addition, you must have at least 50 percent of the local labor force in your company.

Weak English Skills

The majority of the workforce has poor English language skills. In addition, there is a lack of training in English across all education levels—school and university. And you know what does this means? It means that the language barrier will make foreign-registered companies in Iraq extremely difficult to communicate with employees, local suppliers, and customers.

Ways to Overcome—Transforming Challenges into Opportunities

Challenges are everywhere, even when you operate in your own country. Success, however, lies in how you deal with them. At Muayad & Associates, we aspire to help foreign investors and entrepreneurs take on the company registration issues in Iraq with confidence. Our trusted banking lawyers have unmatched experience and knowledge.

Therefore, we advise prominent financial institutions, borrowers, and sponsors across our regional network on a full spectrum of banking and company incorporation matters successfully. We can help you too. Our approach to challenging situations is to find solutions that transform limitations into opportunities to grow and flourish.

For example, some solutions that we have for the problems discussed above are:

  • To bring your skilled workforce to Iraq. Give them the perks and benefits of working in Iraq so that you can smoothly operate and tap new business opportunities that the country has to offer. If English and 50 percent mark is a problem, then adapt to the situation.
  • Hire the best people in Iraq and give them in-house language training. Develop their English language skills for professional and company growth.
  • As for the banking system, our team of banking lawyers can provide commercially tuned and specialized advice to clients related to diverse national and international banking transactions. We can help your company adapt to the current banking system and work with local and private banks that offer the best benefits and have a good financial standing to operate seamlessly and engage in transactions without any limitation or risk.

At Muayad & Associates, we can discuss your business concerns, limitations, and challenges you worry about when investing in and starting your operations in Iraq. We can provide you with relevant solutions and ensure that you register your company in Iraq confidently, focusing on enjoying the amazing benefits that the country offers and without just limiting yourself to minor issues.

From exemptions to taxation flexibilities, Iraq offers numerous benefits for foreign investors to start their operations across sectors. Schedule a free consultation to discuss your venture today. We are here to help.


Article written by :

Mustafa Muayad
mustafa.muayad@muayadandassociates.com

Founder & Managing Partner
Muayad & Associates