Establishing a factory in Iraq requires following several governmental procedures to ensure compliance with legal, environmental, and community standards, as well as protecting the investor’s rights. These procedures may slightly differ depending on the type of industry (food, chemical, construction, pharmaceutical, etc.), but they follow a common legal framework.
Here are the main steps to obtain the necessary approvals and establish a factory officially:
1. Registering the Legal Entity (Company)
The first step is to establish a company at the companies’ registration office – Ministry of Trade.
You must choose the type of company (limited, joint-stock, partnership, etc.) and register it officially.
The investor will be issued a certificate of incorporation, which is the first legal document for operating the business.
2. Obtaining a Tax Identification Number
Register with the General Authority for Taxes to obtain a tax number and open a tax file.
This number is essential for conducting any business activity and is used for invoices and official financial transactions.
3. Selecting the Factory Location and Obtaining Land Allocation
You must select land within an approved industrial zone.
Submit an application to the General Authority for Industrial Zones or the Directorate General for Industrial Development to request land allocation.
A preliminary project study and the required land area will need to be provided.
4. Obtaining Industrial Project Establishment License
Submit the application to the Directorate General for Industrial Development at the Ministry of Industry and Minerals.
Required documents include:
- Company registration certificate
- Preliminary technical and economic study
- Site map
- Proof of ownership or lease contract for the land
- No objection certificate from the local administrative unit (governorate or district)
5. Environmental Approval
Submit to the Ministry of Environment or its directorates in the provinces.
An Environmental Impact Assessment (EIA) must be conducted, especially for factories dealing with chemicals or impacting natural resources.
The ministry may request reports on water discharge, emissions, noise, and industrial waste.
6. Civil Defense Approval (Safety and Fire Prevention)
Obtain approval from the Civil Defense Directorate regarding safety and fire prevention measures.
This requires having emergency exits, alarm systems, firefighting equipment, and safety plans.
7. Additional Sectoral Licenses (Depending on the Type of Activity)
Some factories require additional approvals from other ministries, such as:
- Ministry of Health: for food and pharmaceutical factories
- Ministry of Agriculture: for feed factories or animal products
- Ministry of Oil: for activities involving fuel or industrial oils
- Ministry of Electricity: for high-energy requirements or special power plants
8. Building and Urban Planning License
This is obtained from the municipality or the urban planning directorate in the governorate.
It includes approval of building plans, height restrictions, and public utilities.
9. Project Implementation and Operating License
After constructing and equipping the factory, a committee from the Ministry of Industry or the relevant authorities will inspect the project.
Once it complies with the specifications, the factory will be granted an operating license.
Conclusion:
Establishing a factory in Iraq requires coordination with multiple government entities to ensure legal, technical, and environmental compliance. While the procedures may seem lengthy, they are designed to protect both the investor and the community. It is always advisable to work with legal consultants or specialized industrial service offices to expedite the process and avoid administrative errors.
