Many Iraqi or foreign investors resort to searching for a law firm to facilitate the procedures for registering their companies in Iraq. According to Iraqi law, the company incorporation process begins with a series of long and semi-complicated procedures for individuals and owners of foreign companies.
Therefore, to ensure the best service for establishing companies, Aswar Aswar Law Firm and Legal Services provides its expertise to every Iraqi or foreign investor who wishes to establish a company. New or opening a branch of a foreign company in Iraq.
However, there are many procedures that are supposed to be taken when establishing companies of all kinds. So let's get acquainted with the procedures for registering companies in Iraq in this article.
What are the procedures for registering companies in Iraq?
The procedures for registering companies in Iraq go through several steps, the most important of which are:
- Choose a trade name.
- Obtaining the initial reservation letter for the trade name.
- Obtaining a letter for the trade name from the Federation of Chambers of Commerce.
- Confirmation of documents and obtaining the margin of the trade name manager.
- Pay the cost of registering the trade name as well as stamping the letter.
- Also print and sign the trade name letter.
- Bring the trade name letter.
- Preparing a letter of the company's capital.
- Fill out the form and deposit the company's capital.
- Obtain a company registration signature.
- Ensure that the application is received from the website.
- Receive the initial approval.
- Approval of an entry permit.
- Verify the trade name and bring a list of fees and charges.
- Payment instrument processing.
- Check the payroll stamp.
- Possession of receipt.
- A license to register a local company.
- Finally get registration leave.
Learn about the documents and papers required for the joint stock company
- Trade name certificate.
- A receipt containing the approval of the capital deposit.
- ID card copy.
- Bring the company's Memorandum of Association.
- Obtaining the initial approval from the Companies Registration Department at the Ministry of Foreign Affairs, on the company owner's website.
- An entry permit is obtained electronically from the Companies Registration Department at the Ministry of Economy. Here, the following documents are supposed to be brought:
- Initial approval for company registration.
- A copy of the national card.
- It is necessary to verify the trade name and to receive a list of fees and charges.
What are the documents required to register a new company in Iraq?
Submitting an application to the Chamber of Commerce that includes the name of the company, its activity and information about the partners.
Bring the company's contract.
Prepare a subscription document for the company's founders.
Put the capital in the bank and get the document.
Preparing the technical and economic feasibility study.
Finally, register the company in the Commercial Register.
What are the documents required to register a new company in Iraq?
There are many types of companies in Iraq, we mention the most important ones
First, the joint stock company
A joint-stock company consists of at least two persons or a maximum of twenty-five persons. The partners join hands in the debts of the company. This type of company is not charged with a minimum capital. The owner of the company is not allowed to participate in any activity similar to the company, except after obtaining the approval of all the partners.
Secondly, the Limited Partnership Company
The number of partners ranges from two to five people. A limited partnership company consists of two types of partners:
Solidarity partners:
Who are seeking partners in the management of this company and taking responsibility for paying its debts.
Recommended Partners:
Those who do not undertake the tasks of managing the company, but contribute their capital, and are committed to paying the debts of the company according to the amount of their share in the company only. The silent partner is not allowed to pursue any action towards others, even if he obtains a power of attorney. This type of company is not required to have a minimum capital as well.
Thirdly, the partnership limited by shares
It consists of general partners and limited partners. It does not have a minimum capital, and it is classified into shares. The partners incur losses only to the extent of their shares in the company.
Fourth, the limited liability company
A limited liability company consists of two or more persons. The number of partners may not exceed twenty-five partners. A joint-stock company whose capital is divided into shares of equal value. Each shareholder becomes liable according to the amount of his contribution to its capital. The number of partners shall not be less than five persons.
The most important fees to be paid to complete the company registration procedures in Iraq
The founders are charged with paying the necessary fees for the business registration department. The founders are required to pay the following fees in case of reviewing the company registration service, according to the type of company:
If it is a joint-stock company, the value is estimated at (200,000) two hundred thousand dinars, as a registration fee. (0.002) Two per thousand of the company's capital shall be for stamps. Where the amount is estimated at (650) six hundred and fifty dinars as stamp fees. While the contract and request for the establishment of the company is about (25,000) twenty-five thousand dinars, the costs of documenting information from the founders.
In the end, the registration fee is estimated at about: 650 Iraqi dinars.
Learn about the Law of Branches of Foreign Companies in Iraq No. 2 of 2017
A case cannot be instituted against a registered branch on behalf of a foreign company in Iraq, in order to conduct its commercial activity. According to what was stated in Articles (1, 2) of the Foreign Companies Branches Regulation No. (2) of 2017. This is because he does not have the legal personality that enables him to litigate the lawsuit. And the company becomes the only one that has the legal personality that enables it to litigate.
Learn the details of the amendment to the Iraqi Companies Law 2019
It is worth noting that the holding company, prior to the issuance of Law No. (17) of 2019, did not harmonize its provisions in the Iraqi Companies Law No. (22) of 1997. However, the issuance of this coordinating law represents these types of companies, and the need for it became clear. In order to help this company achieve the goal for which it was established. It is based on supporting the national economy. As this legal regulation has a special character, and it has clear importance at the global level. This is because it is a method that seeks economic focus. By setting up huge entities that control large-scale business segments in the market.
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