Foreign investment promotion and support law

Law of encouragement and support

Chapter I - Definitions of matter
   1- All the terms and expressions defined in Article (1) of the Law on the Promotion and Support of Foreign Investments have the same meaning in this Regulation. Other terms and expressions used in these rules have the following meanings:
A- Regulations: The implementing regulations of the law on the promotion and support of foreign investments.
B- The economic enterprise of a new or existing Iranian company in which foreign capital has been used in any of the ways listed in the law.
C - Non-governmental sector: private sectors, cooperatives, non-governmental public organizations and institutions d- Center: foreign investment service center which is formed in the headquarters of the organization pursuant to article (7) of the law .
E - Official monetary network: banking system (central bank and banking network, both governmental and non-governmental) and institutions of the country: non-bank credit institutions that carry out monetary and foreign exchange activities with the authorization of the central bank.
F- Audit institution: the selected audit institution which is selected by the organization from among the member audit institutions of the Society of Chartered Accountants of Iran, the subject of the law on the use of services specialist and professional accountants competent as certified chartered accountants in 1372(Iranian solar calendar) and auditing body.

Chapter Two - Terms and Criteria for Acceptance
Article 2- Foreign investments which are accepted in the territory of the Islamic Republic of Iran on the basis of the law benefit from the facilities and protections provided by the law. The acceptance of such investments is subject to the general conditions of acceptance of foreign capital and is based on the presentation of a written request by the foreign investor and compliance with the rules stipulated in this regulation.
Article 3- The acceptance of foreign investments is possible on the basis of the laws and regulations contained in this regulation within the framework of the following modalities. The table of foreign investment methods, features and facilities that can be provided under the law is prepared and announced by the Ministry of Economic Affairs and Finance.
   A - Foreign direct investment
B- Foreign investment under contractual arrangements, including various modes of construction, operation and transfer, mutual sale and civil partnership.
Article 4- The terms of article (3) of these regulations, in terms of the mode of investment and the protective coverage of the law and the regulations, have common or particular characteristics and facilities, are as follows:
   A - Common features and equipment:
   1- Foreign investors benefit from the same treatment as national investors.
   2- The entry of foreign capital in cash and non-cash is done only on the basis of the investment license and no other license is necessary.
3- The amount of foreign investment in each case is not subject to any restriction.
4- Foreign capital is guaranteed against nationalization and expropriation, and the foreign investor has the right to receive compensation in these cases.
5- It is possible to transfer the principal of the capital, the capital gains and the profits from the use of the capital in the form of currencies and, if necessary, in the form of goods in the order specified in the license of 'investment.
   6- The freedom to export the manufactured products of the investing economic enterprise is guaranteed and in the event of an export ban, the manufactured products are sold on the domestic market and the result can be transferred abroad in the form of foreign currency through the country's official monetary network.
   B - Features and facilities:
   1- Foreign direct investment:
1-1- It is possible to invest in all areas authorized for private sector activity.
1-2- There is no limit to the percentage of participation of foreign investments
2- Investment under contractual arrangements:
2-1- Compensation for foreign investment losses caused by the prohibition or suspension of the financial agreement due to the promulgation of the law or government decisions is guaranteed up to the maximum deadlines due by the government.
2-2- In the modes of construction, operation and transfer and civil society, purchase of goods and production services of the project invested by the public administration of the contractor, in cases where the public administration is the exclusive purchaser or supplier of production goods and services at a subsidized price, guaranteed within the framework of legal regulations.
Article 5- Iranian natural and legal persons who apply to invest in the country, in order to benefit from the facilities and protections of the law, must also provide documents proving their economic and commercial activities abroad.
Article 6- A foreign investor who has previously invested in Iran without having the protection of the law, can benefit from the protection of the law for the principle of the investment by passing through the procedures of acceptance. After issuing the investment license, the investor will enjoy all the benefits of the law, including the possibility of profit transfer. These types of investments are generally considered existing investments and follow the general rules for accepting foreign capital.
Article 7- Foreign investment in existing economic enterprises through the purchase of shares or capital increase or their consolidation through the stages of acceptance shall benefit from the advantages of this law, provided that said investment creates added value. The new added value can be obtained by increasing the capital of the economic enterprise or by achieving objectives such as improving management, developing exports or improving the technological level of the existing economic enterprise.
   Article 8- When evaluating and issuing a license for each foreign investment proposal, the board reviews and verifies the ratios determined in paragraph (d) of article (2) of the law in the next order. A- The specifications of the proposed project, including the type and quantity of production of goods and services, the schedule for the implementation and operation of the project, and forecasts of domestic sales or export abroad, are included in the investment request samples.

B- The official statistics of the competent authorities concerning the value of the goods and services offered on the domestic market at the time of the issuance of the license, in the department and the field concerned, are obtained by the Deputy Minister of Economic Affairs of the Ministry of economic affairs and finance. Board decisions are based on statistics provided to the organization at the end of the first quarter of each year.
C - The separation of economic sectors and disciplines is made on the basis of the list attached to this regulation.
   D - The amount of investment in each of the sectors and disciplines, in accordance with the items listed in clauses A, B and C of this article, according to the value of the goods and services offered on the domestic market and in accordance with the investment Exemption from limitation for The export of goods and services resulting from overseas foreign investment is determined by the council and if the plan is approved, the investment license is issued.
Note - Changes in the share of the value of goods and services produced by foreign investment or changes in the value of goods and services offered domestically, which were the board's decision criteria at the time of issuance of the investment permit, affect the validity of the permit after the issuance of the permit. There will be no investment.
Article 9- The transfer of property rights to the Iranian party determined in the construction, operation and transfer contracts is carried out according to the agreement of the contracting parties, by the progressive transfer of the property rights during the duration of the contract. or the lump-sum assignment of acquired rights at the end of the term of the contract.
Article 10- In the construction, operation and transfer contracts, and the transfer of the property rights of the foreign investor to the institution providing the financial resources of the investment project can be done with the approval of the board of directors. 'Administration.

Article 11- In the case of investment projects where a government agency is the exclusive buyer of the production goods and services, as well as in cases where the production goods and services of the investment project are offered at a subsidized price , the government agency may purchase Guarantee the production of goods and services in the amount and price determined in the corresponding contract within the framework of legal regulations.
   The third chapter - admission system
   Article 12- In addition to performing functions related to the acceptance and support of foreign investments within the framework of the law, the organization is responsible for carrying out and directing the activities of promoting foreign investments within and outside the country, as well as introducing legal platforms and investment opportunities, carrying out studies and He is responsible for applied research, holding conferences and seminars, joint cooperation with relevant international institutions and organizations and establishing communication and coordination with other institutions in the collection, organization and presentation of information relating to foreign investment.
Article 13- The board is responsible for reviewing and ruling on all investment applications, including applications relating to the acceptance, entry and use of foreign capital and the outflow of capital and the benefits that result.
Article 14- The permanent members of the council are the four alternates specified in article (6) of the law, and the meetings of the council are formalized with the presence of at least three of the permanent members and the decisions are taken with at least three votes for. Deputies from other relevant ministries will attend meetings with the right to vote at the invitation of the Chairman of the Board. In these cases, decisions are taken by majority vote.
Article 15- The investor submits his written request to the organization accompanied by the documents specified in the corresponding model. After carrying out the necessary investigations and obtaining the opinion of the supervisory ministry, the organization submits the investment request to the board of directors within a maximum period of fifteen working days, under the supervision of the organization's expert. . The absence of communication of the opinion of the competent ministry within ten days from the date of receipt of the request is worth approval of said ministry to said investment. On the basis of the decision taken, the favorable opinion of the foreign investor has already been obtained. The investment license is prepared and issued with the approval and signature of the Minister of Economy and Finance. Note - The investment license will contain the specifications of the investors, the type and mode of foreign investment, the manner of transferring the profits and advantages and other conditions related to the approval of each investment plan.
Chapter 4 - Foreign Investment Service Center
Article 16- In order to facilitate and expedite the fulfillment of the legal obligations of the organization in the areas of encouragement, acceptance and support of foreign investors in the country, a foreign investment service center will be established at the headquarters of the organization and representatives of the institutions concerned will be established there. This center will be the referral center for all candidates for foreign investment towards the organizations concerned.
Article 17- Ministry of Economic Affairs and Finance (Organization of Fiscal Affairs, Customs of the Islamic Republic of Iran), Ministry of Foreign Affairs, Ministry of Commerce, Ministry of Labor and Social Affairs, Ministry of Industries and Mines, Ministry of Agricultural Jihad, The Central Bank of the Islamic Republic of Iran, General Administration of Company Registration and Industrial Property, Environmental Protection Organization and other executive bodies determined by the minister of economic affairs and finance present their plenipotentiary representative to the organization with the signature of the highest leader of this body. According to the employment regulations, the above-mentioned representatives are considered among the employees of the relevant organization and according to the needs and according to the volume of foreign investment applications and investor references, they appear in the center with the announcement of the organization in such a way that they can respond to inquiries in accordance with the tasks assigned to them in this article.
Article 18- The representatives who are presented by the competent institutions are the executors of all the affairs and executive services related to this institution in relation to foreign investment. In order to properly fulfill the functions assigned to the representative in the implementation of the law and these regulations, the competent executive body is required to communicate the functions, responsibilities and powers of the representative to all its subordinate units and at the same time to process The executive affairs related to foreign investments Review your responsibility in the field so as to facilitate the exercise of the functions of representative in the center.

Article 19- In order to maintain the continuity of its execution and service activities in the center, the competent executive body shall make arrangements to appoint another person with the same characteristics as its replacement in addition to the representative designated to perform functions. in the absence of the representative of this organization. . If necessary, the executive body may deploy a maximum of two persons at expert level to carry out the executive affairs related to this body at the center.
   Article 20.- The attributions of the foreign investment service center are determined as follows:
   1- Inform and advise foreign investors.
   2- Carry out the necessary coordination in obtaining the necessary permits, including declaration of establishment, environmental protection organization permit, connection permits related to water, electricity, gas, telephone, exploration and mining permits, etc. with the competent authorities. Upon issuance of investment permits.