Establishing a company in Iraq is a strategic step toward entering the local market in a legal and organized manner, whether for individuals or for local and foreign investors. To officially found a company, a series of legal procedures must be followed, as regulated by the Ministry of Trade – Companies Registration Department. Below is a comprehensive overview of the key steps involved in establishing an Iraqi company in accordance with applicable regulations.
The journey begins with choosing the legal form of the company, in accordance with Companies Law No. 21 of 1997 (as amended). The most common types include limited liability companies, joint-stock companies, general partnerships, or branches of foreign companies.
Next comes the selection of the company name. A request must be submitted to reserve the name with the Companies Registration Department. The name must be unique, not previously used, and must not include prohibited or politically or religiously sensitive terms.
The founders then prepare the company’s articles of association, which include detailed information such as the company’s objectives, capital, number of shares or quotas, names of founders and directors, and the internal decision-making structure. This document must be signed by the founders and certified by a notary.
A temporary bank account must then be opened in the name of the company to deposit the required capital, and a confirmation receipt must be obtained from the bank as proof of the deposit.
Afterward, an official company registration application is submitted to the Companies Registration Department, along with the articles of association, name reservation, bank deposit confirmation, copies of founders’ IDs, and the receipt for payment of registration fees.
Once the application is reviewed and all requirements are met, the department issues a formal certificate of incorporation. This certificate grants the company legal personality and establishes it as a separate legal entity.
The company must then be registered with the General Commission for Taxes to obtain a Tax Identification Number (TIN) and open an official tax file to manage its financial obligations.
Depending on the type of activity, the company must also register with the Chamber of Commerce or the Federation of Iraqi Industries, which is a prerequisite for conducting commercial or industrial operations.
Certain commercial and industrial activities may require additional licenses or approvals from relevant ministries, such as the Ministry of Health, Ministry of Environment, or Ministry of Oil, depending on the nature of the business.
Once all legal steps have been completed, the company can begin its operations and carry out its business activities within the legal framework of Iraq.
Important Note:
It is advisable to work with a lawyer or a legal service office during this process to ensure accuracy in procedures and avoid administrative delays, especially in cases involving foreign partners or specialized activities.
Establishing an Iraqi company is a pivotal step toward contributing to the local economy and expanding investment activities. Adhering to legal procedures is essential to ensure the sustainability and long-term success of the business.
