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.
General reference only
This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for your personal facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.
Source-cited draft. This skill is source-cited but has not been reviewed by a licensed practitioner. It may be incomplete, outdated, or wrong.
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| Entity types and incorporation | 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. | |
| Limited Liability Company (LLC) | Most common entity; maximum 25 shareholders; may be formed by a single shareholderCompanies Law No. 21 of 1997 | |
| Joint Stock Company (JSC) | Capital divided into transferable shares; suitable for larger venturesCompanies Law No. 21 of 1997 | |
| Sole Owner Enterprise | Single-owner business entityCompanies Law No. 21 of 1997 | |
| Branch / representative / agency office | Registration option for foreign companies operating in IraqCompanies Law No. 21 of 1997 | |
| Minimum share capital — LLC | IQD 1,000,000Companies Law No. 21 of 1997 | |
| Minimum share capital — oil & gas sector LLC | IQD 2,000,000,000 (2 billion)Ministry of Oil capital requirements |
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.
Other Iraq computations in the OpenAccountants library.
| LLC management | Managed by a General Manager (an LLC cannot be run by a board of directors)Companies Law No. 21 of 1997 |
| Step 1 — name reservation | Reserve the company name (in Arabic) at the Chamber of CommerceCompanies Law No. 21 of 1997 |
| 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 |
| Registration authority | Companies Registry (Ministry of Trade)Companies Law No. 21 of 1997 |
| Step — tax registration | Obtain tax clearance from the General Commission for Taxes and register with the tax authorityIncome Tax Law No. 113 of 1982 |
| Incorporation timeline | Approximately 12 weeksCompanies Law No. 21 of 1997 |
| 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 |
| 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 |
Rendered from the facts database. General reference only — confirm with a qualified professional before acting.
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