In 2002 Iran took a significant step toward attracting foreign investment by ratifying the Foreign Investment Promotion and Protection Act (FIPPA) through its parliament. This legislation along with its comprehensive utive by-laws has considerably strengthened the legal framework and operational environment for foreign investors in the country.
Key Features of FIPPA
FIPPA permits foreign investors to invest in all sectors of Iran's economy, including industry, mining, agriculture, and services. This inclusive approach allows for a wide range of investment opportunities, contributing to the diversification and growth of the Iranian economy.
Under FIPPA, the following entities are eligible to invest in Iran:
- Foreign Natural and Judicial Persons: This includes individual foreign investors and companies.
- International Organizations and Institutions: Entities such as international development banks and multinational corporations.
- Foreign State-Owned Companies: Government-owned enterprises from other countries.
Moreover, FIPPA extends its benefits to Iranian nationals under certain conditions. Specifically, investments by Iranian nationals can enjoy the privileges of FIPPA if the capital originates from foreign sources. To qualify, the investor must provide documentary evidence demonstrating their commercial and economic activities outside of Iran.
Advantages for Investors
FIPPA offers several incentives and protections for foreign investors, aiming to create a stable and attractive investment environment in Iran. These benefits include legal assurances, the right to transfer capital and profits, and protection against nationalization or expropriation, among others.
Access to the Full Text of FIPPA
For those interested in delving deeper into the legal specifics, the actual text of the law is attached to this post. This document provides comprehensive details on the provisions, rights, and obligations outlined in FIPPA, ensuring transparency and clarity for potential investors.
FIPPA
Foreign Investment in Iran