Foreign Direct Investment and M&A in Iran

In 1380 the Islamic Parliament approved the foreign investment promotion and protection act (FIPPA). According to this act, foreign investors would benefit from the protection of their investment in Iran after obtaining the license from the Organization for Investment, Economic, and Technical Assistance of Iran. According to this act, foreign investment can be done by two methods: 1. Direct foreign investment in areas in which the private sector’s activities are allowed. 2. Foreign investment in all sections in the form of “ partnership”, “buyback” and “build, operate, transfer” contracts in which investment return and related interests would solely result from economic performance of the project and not dependent on a guarantee by the government, banks or public companies.

In 1380 the Islamic Parliament approved the foreign investment promotion and protection act (FIPPA). According to this act, foreign investors would benefit from the protection of their investment in Iran after obtaining the license from the Organization for Investment, Economic, and Technical Assistance of Iran.

According to this act, foreign investment can be done by two methods:

1. Direct foreign investment in areas in which the private sector’s activities are allowed.

2. Foreign investment in all sections in the form of “ partnership”, “buyback” and “build, operate, transfer” contracts in which investment return and related interests would solely result from economic performance of the project and not dependent on a guarantee by the government, banks or public companies.

Foreign investors can establish a company in Iran with 100 percent ownership. In the end, this company would be Iranian and would benefit all the rights and privileges of Iranian citizens. These companies also can own properties and real estate in the name of the company.

In the current situation, investment in unfinished projects and going concern companies with high profitability potential through providing working capital or corporate M&A is more appealing than establishing a new company.

Raman Team using its comprehensive databanks and vast network can offer wonderful and promising investment opportunities to investors. We will accompany them from the initiation of a deal to the exit stage.

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