Question 1

What types of companies can be established in Iraq?

Accepted Answer

According to Companies Law No. 21 of 1997, as amended, companies may be established as: Joint Stock Company Limited Liability Company General Partnership Company Simple Company Sole Proprietorship

Question 2

Can foreigners establish companies in Iraq?

Accepted Answer

Yes, foreigners, whether natural or legal persons, have the right to establish or participate in companies, provided that this is in partnership with an Iraqi partner, and that the percentage of shares owned by the foreign person does not exceed 49% unless there is a legal impediment.

Question 3

What are the capital requirements for establishing a company in Iraq?

Accepted Answer

The minimum capital is 2,000,000 dinars for joint-stock companies, while for limited companies the minimum is 1,000,000 dinars and 500,000 dinars for the rest of the types.

Question 4

What are the procedures followed if the Registrar of Companies rejects the application to establish the company?

Accepted Answer

If the application for establishment is rejected, the registrar must provide a written reason for the rejection. The founders may submit an objection to the Minister of Commerce within 30 days of the date of notification. If the objection is not accepted, they have the right to appeal the decision before the competent court.

Question 5

How long does it take to obtain a company incorporation certificate in Iraq?

Accepted Answer

The registrar issues a decision within 10 days of the application being submitted, and the certificate of incorporation is granted upon approval.

Question 6

How long must a foreign parent company have been established before opening a branch in Iraq?

Accepted Answer

According to Article 2 No. 4 of 2023 regarding the first amendment to the system of branches of foreign companies, the foreign parent company must have been established for a period of no less than one year before it can open a branch and conduct its business activity in Iraq.

Question 7

How long does the company registration process usually take in Iraq?

Accepted Answer

The time required to register companies varies depending on the type of company. Usually, the registration process for national and foreign companies takes between one month and approximately 45 days.

Question 8

When does a company acquire legal personality?

Accepted Answer

The company acquires legal personality from the date of issuance of the certificate of incorporation, and this certificate is considered proof of its legal personality.

Question 9

Can companies open bank accounts in multiple currencies in Iraq?

Accepted Answer

Yes, companies can open current accounts and deposits in national and foreign currencies in accordance with applicable regulations and instructions.

Question 10

What are the tax obligations of companies?

Accepted Answer

Taxes levied on businesses include: Income tax on profits. Value-added tax (VAT) on goods and services. Payroll tax on employees.

Question 11

Does AJC provide legal follow-up after company formation or termination of service?

Accepted Answer

Yes, AJC ensures continuous monitoring through its legal updates department of all developments in company laws and Iraqi laws, in addition to direct communication with the client to inform them of every update regarding their company.

Question 12

How does AJC maintain the confidentiality of customer data?

Accepted Answer

AJC ensures the confidentiality of customer data by having all employees and those dealing with it sign a Non-Disclosure Agreement (NDA). Otherwise, any leakage of information will subject the violator to legal accountability.

Question 13

Is it possible to get legal advice online or by phone?

Accepted Answer

The customer can contact us directly by phone or email, where the type of request is specified and the appropriate offer is presented to the customer, after which he will be transferred to the relevant department to provide him with the appropriate advice.

Question 14

Does AJC offer legal translation services for contracts and official documents?

Accepted Answer

Yes, AJC offers certified legal translation services from the Iraqi Translators Association, provided by a specialized team that ensures the highest levels of accuracy and confidentiality.

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