OpenAccountants/Iran/Iran Company Formation & Entity Choice

Iran Company Formation & Entity Choice

Name: OpenAccountants MCP Server
Author: OpenAccountants

Source-cited draft: company formation & entity choice for Iran (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.

Applicable period 2025Built by Michael Cutajar and the OpenAccountants team· Last updated Jun 25, 2026

Setting up a company?

Ask OpenAccountants about company registration, filings and ongoing compliance. Start with a free 30-minute call. We confirm availability, the accountant responsible and the price before you commit.

Book a free call

Built by Michael Cutajar and the OpenAccountants team. Written from the official sources it cites.

Use Iran Company Formation & Entity Choice in your AI agent

Add OpenAccountants so your AI can retrieve this Guide during a conversation. Any output remains a draft unless a qualified professional separately reviews your specific facts.

View source on GitHub Add to your AI

Use this with your AI

Use OpenAccountants for Company Formation & Entity Choice in Iran.

Paste it into ChatGPT, Claude, or any AI that has OpenAccountants added. Add it to your AI first if you haven't.

Key figures — Iran, 2025

Every figure is drawn from this Guide and cited to its source.

Private Joint-Stock Company (Sahami Khass)

Most common vehicle for active businesses; minimum 3 shareholders and 2 statutory inspectors (auditors)Commercial Code of Iran (1932, amended 1969)

Limited Liability Company (LLC)

Formed by 2 or more partners; capital is in participation interests (not shares); each partner liable only up to their contributionCommercial Code of Iran (1932, amended 1969)

Public Joint-Stock Company (Sahami Aam)

Company whose shares may be offered to the public; minimum capital IRR 5,000,000; founders subscribe at least 20% of sharesCommercial Code of Iran (1932, amended 1969)

Minimum capital — private joint-stock

IRR 1,000,000 statutory minimum; at least 35% of declared cash capital must be deposited in a bank before registrationCommercial Code of Iran (1932, amended 1969)

Minimum capital — LLC

No statutory minimum in the Commercial Code; in practice IRR 1,000,000 is commonly used, with no pre-registration bank deposit requiredCommercial Code of Iran (1932, amended 1969)

Registration authority

Companies and Industrial Property Registration Organization (under the State Organization for Registration of Deeds and Properties)Companies Registration Act / Commercial Code of Iran

Incorporation steps

Reserve company name → draft articles of association and statement of incorporation → deposit required capital → file with the Companies Registration Office → publish formation notice in the Official GazetteCompanies Registration Act / Commercial Code of Iran

Typical timeline

Registration generally takes a few weeks (commonly 2–4 weeks) once documents are completeCompanies Registration Act / Commercial Code of Iran

Foreign investment approval

Foreign investors may seek a licence under the Foreign Investment Promotion and Protection Act (FIPPA) for legal protections and capital/profit repatriation rightsForeign Investment Promotion and Protection Act (FIPPA)

Core annual compliance

Hold an annual general meeting, prepare financial statements, file the annual tax return within 4 months of year-end, file quarterly VAT returns, and file monthly SSO payroll listsCommercial Code of Iran; Direct Taxes Act (DTA); Value Added Tax Act

Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.

The full Guide

Entity types and incorporation

Private Joint-Stock Company (Sahami Khass) — Most common vehicle for active businesses; minimum 3 shareholders and 2 statutory inspectors (auditors) (Commercial Code of Iran (1932, amended 1969))
Limited Liability Company (LLC) — Formed by 2 or more partners; capital is in participation interests (not shares); each partner liable only up to their contribution (Commercial Code of Iran (1932, amended 1969))
Public Joint-Stock Company (Sahami Aam) — Company whose shares may be offered to the public; minimum capital IRR 5,000,000; founders subscribe at least 20% of shares IRR (Commercial Code of Iran (1932, amended 1969))
Minimum capital — private joint-stock — IRR 1,000,000 statutory minimum; at least 35% of declared cash capital must be deposited in a bank before registration IRR (approx — statutory floor is nominal; practical capital is much higher) (Commercial Code of Iran (1932, amended 1969))
Minimum capital — LLC — No statutory minimum in the Commercial Code; in practice IRR 1,000,000 is commonly used, with no pre-registration bank deposit required IRR (Commercial Code of Iran (1932, amended 1969))
Registration authority — Companies and Industrial Property Registration Organization (under the State Organization for Registration of Deeds and Properties) (Companies Registration Act / Commercial Code of Iran)
Incorporation steps — Reserve company name → draft articles of association and statement of incorporation → deposit required capital → file with the Companies Registration Office → publish formation notice in the Official Gazette (Companies Registration Act / Commercial Code of Iran)
Typical timeline — Registration generally takes a few weeks (commonly 2–4 weeks) once documents are complete (approx — varies by case and foreign-investment approvals) (Companies Registration Act / Commercial Code of Iran)
Foreign investment approval — Foreign investors may seek a licence under the Foreign Investment Promotion and Protection Act (FIPPA) for legal protections and capital/profit repatriation rights (Foreign Investment Promotion and Protection Act (FIPPA))
Core annual compliance — Hold an annual general meeting, prepare financial statements, file the annual tax return within 4 months of year-end, file quarterly VAT returns, and file monthly SSO payroll lists (Commercial Code of Iran; Direct Taxes Act (DTA); Value Added Tax Act)

Setting up a company?

Ask OpenAccountants about company registration, filings and ongoing compliance. Start with a free 30-minute call. We confirm availability, the accountant responsible and the price before you commit.

Book a free call

Pasting this into your AI section by section is slow and easy to get wrong. Add to your AI and it loads the whole Guide automatically — with dependency resolution and conservative defaults, every figure cited to its source.

All Iran Guides

More Iran Guides

Other Iran computations in the OpenAccountants Tax Library.

Iran Tax Overview Iran Personal Income Tax Iran Payroll & Social Contributions Iran Corporate Income Tax iran-vat

See all Iran Guides →

Need your accounts or tax done? Our team works with businesses in Iran.

Book a free call

Entity types and incorporation

Private Joint-Stock Company (Sahami Khass) — Most common vehicle for active businesses; minimum 3 shareholders and 2 statutory inspectors (auditors) (Commercial Code of Iran (1932, amended 1969))

Limited Liability Company (LLC) — Formed by 2 or more partners; capital is in participation interests (not shares); each partner liable only up to their contribution (Commercial Code of Iran (1932, amended 1969))

Public Joint-Stock Company (Sahami Aam) — Company whose shares may be offered to the public; minimum capital IRR 5,000,000; founders subscribe at least 20% of shares IRR (Commercial Code of Iran (1932, amended 1969))

Minimum capital — private joint-stock — IRR 1,000,000 statutory minimum; at least 35% of declared cash capital must be deposited in a bank before registration IRR (approx — statutory floor is nominal; practical capital is much higher) (Commercial Code of Iran (1932, amended 1969))

Minimum capital — LLC — No statutory minimum in the Commercial Code; in practice IRR 1,000,000 is commonly used, with no pre-registration bank deposit required IRR (Commercial Code of Iran (1932, amended 1969))

Registration authority — Companies and Industrial Property Registration Organization (under the State Organization for Registration of Deeds and Properties) (Companies Registration Act / Commercial Code of Iran)

Incorporation steps — Reserve company name → draft articles of association and statement of incorporation → deposit required capital → file with the Companies Registration Office → publish formation notice in the Official Gazette (Companies Registration Act / Commercial Code of Iran)

Typical timeline — Registration generally takes a few weeks (commonly 2–4 weeks) once documents are complete (approx — varies by case and foreign-investment approvals) (Companies Registration Act / Commercial Code of Iran)

Foreign investment approval — Foreign investors may seek a licence under the Foreign Investment Promotion and Protection Act (FIPPA) for legal protections and capital/profit repatriation rights (Foreign Investment Promotion and Protection Act (FIPPA))

Core annual compliance — Hold an annual general meeting, prepare financial statements, file the annual tax return within 4 months of year-end, file quarterly VAT returns, and file monthly SSO payroll lists (Commercial Code of Iran; Direct Taxes Act (DTA); Value Added Tax Act)