Source-cited draft: company formation & entity choice for Iraq (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Every figure is drawn from this Tax Guide and cited to its source.
Limited Liability Company (LLC)
Most common entity; maximum 25 shareholders; may be formed by a single shareholderCompanies Law No. 21 of 1997 (https://bridgewest.eu/company-formation-iraq/)
Joint Stock Company (JSC)
Capital divided into transferable shares; suitable for larger venturesCompanies Law No. 21 of 1997 (https://bridgewest.eu/company-formation-iraq/)
Sole Owner Enterprise
Single-owner business entityCompanies Law No. 21 of 1997 (https://bridgewest.eu/company-formation-iraq/)
Branch / representative / agency office
Registration option for foreign companies operating in IraqCompanies Law No. 21 of 1997 (https://bridgewest.eu/company-formation-iraq/)
Minimum share capital — LLC
1,000,000Companies Law No. 21 of 1997 (https://bridgewest.eu/company-formation-iraq/)
Minimum share capital — oil & gas sector LLC
2,000,000,000Ministry of Oil capital requirements (https://bridgewest.eu/company-formation-iraq/)
LLC management
Managed by a General Manager (an LLC cannot be run by a board of directors)Companies Law No. 21 of 1997 (https://bridgewest.eu/company-formation-iraq/)
Step 1 — name reservation
Reserve the company name (in Arabic) at the Chamber of CommerceCompanies Law No. 21 of 1997 (https://bridgewest.eu/company-formation-iraq/)
Step — deposit capital
Deposit the initial capital in an authorised Iraqi bank and obtain confirmation; funds are frozen until registration completesCompanies Law No. 21 of 1997 (https://bridgewest.eu/company-formation-iraq/)
Registration authority
Companies Registry (Ministry of Trade)Companies Law No. 21 of 1997 (https://bridgewest.eu/company-formation-iraq/)
Step — tax registration
Obtain tax clearance from the General Commission for Taxes and register with the tax authorityIncome Tax Law No. 113 of 1982 (https://bridgewest.eu/company-formation-iraq/)
Incorporation timeline
Approximately 12 weeks (approx — confirm)Companies Law No. 21 of 1997 (https://bridgewest.eu/company-formation-iraq/)
Annual compliance — accounting books
Legalize accounting books at the Accountants Union and maintain records under the Iraqi unified accounting systemCompanies Law No. 21 of 1997 (https://bridgewest.eu/company-formation-iraq/)
Annual compliance — tax return
File the annual corporate income tax return by 31 May and undergo the mandatory tax inspectionIncome Tax Law No. 113 of 1982 (https://taxsummaries.pwc.com/iraq/corporate/tax-administration)
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
Companies are formed under Companies Law No. 21 of 1997 (as amended), with the Limited Liability Company the most common vehicle. Registration runs through the Companies Registry under the Ministry of Trade, with name reservation via the Chamber of Commerce.
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