FRANCHISING (Foreign Branch Company)

There are companies that are incorporated outside Iran and have subsidiaries in the Islamic Republic of Iran.

In 1997, a law was enacted to permit registration of foreign companies in Iran, titled as “The Law Permitting Registration of Branch and Representatives Offices of Foreign Companies Approved on November 11, 1997.”

The aforementioned law provided for the field of activities permitted to be carried out by foreign companies which are as follows:

• Supply of after sales services of foreign companies
• Carrying out the executive works of the contracts concluded between Iran and foreign companies
• To investigate and provide the means for investment by foreign companies for the purpose of carrying out projects in a third country
• Increase of Iranian non-oil exports and transfer of technical know-how and technology
• Carrying out activities that require permission from the relevant government organizations such as offering services in the sundresses fields of transportation, insurance, surveillance, banking, marketing, etc.