DOING BUSINESS IN IRAN€¦ · 30 MARCH 2016 - HAMBURG HZA DOING BUSINESS IN IRAN BAYAN EMROOZ LAW FIRM . 1. General Information about Iran 2. Nuclear Deal (JCPOA) 3. Investment Opportunities

ENCYEH SEYED SADR 30 MARCH 2016 - HAMBURG HZA

DOING BUSINESS IN IRAN BAYAN EMROOZ LAW FIRM

1. General Information about Iran 2. Nuclear Deal (JCPOA) 3. Investment Opportunities in Iran 4. Protective Laws and Regulations for Foreign Investment in Iran

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Overview on the topics to be discussed in this Presentation

30 MARCH 16 - HAMBURG

A NEW LOOK TO IRAN

Location: Cross-road connecting the Middle East, Asia and Europe Distance from Germany - 4,069 km (5 hours flight). Population: + 80 million population about 30 percent of the population are between 25 and 40 years old - Persian is the official language. Climate: A four-season climatic endowment as a privilege to agricultural activities throughout the country and all seasons. Infrastructure: Developed infrastructure in transportation, telecommunication and energy supplies.

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THE JOINT COMPREHENSIVE PLAN OF ACTION (JCPOA)

The Joint Comprehensive Plan of Action (JCPOA) known commonly as the Iran deal, is an international agreement on the nuclear program of Iran reached in Vienna on 14 July 2015 between Iran, the P5+1 (the five permanent members of the United Nations Security C o u n c i l — C h i n a , F r a n c e , Russia, United Kingdom, United States—plus Germany) and the European Union. On 16 January 2016 the JCPOA came into force (Implementation Day).


JOINING THE INTERNATIONAL TRADE AFTER JCPOA

•  JCPOA provides a temporary sanction relief for Iran that were imposed by US, UN and EU started from 1980;

•  US secondary sanctions exposing non-citizen persons in case of any engagement in nuclear-related activities exposed to the United States sanctions.

•  EU sanctions addressing financial sectors including fund transfer to/from Iranian banks, cooperation between Iranian and European banks, specialised financial messaging services (such as SWIFT), insurance and reinsurance, and Iranian government bonds.

•  EU sanctions against oil, gas and petrochemical sectors, including purchases of Iranian petro products, prohibitions against technology and equipment associated with the industry, and sanctions against providers of financial services to the oil and gas industry.


•  EU sanctions against transportation and shipping sectors are mostly lifted, although certain measures of restriction for prohibited goods stay effective until the Transition Day.

•  EU restrictions against sales, supplies, transport and export of precious and base metals including gold and coinage, raw and semi-finished products, banknotes and currency deliveries, as well as software for integrating industrial processes.

•  Import/export and sale of dual use and controlled goods are possible only by obtaining required licenses which may be refused in certain circumstances.

•  In case of asset freezes, some entities and persons will be delisted including some commercial banks, the Central Bank of Iran, and those related to oil, gas, petrochemical, shipping, shipbuilding and transport sectors. Some entities and persons will continue to be listed until the Transition Day.

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Joining the international trade after JCPOA


INVESTMENT OPPORTUNITIES IN IRAN


•  Oil, Gas & Petrochemical (4th largest Oil producer and 2nd largest Gas reserve holder in the World)

•  High potentials of investment along with transfer of technology; •  Introduction of IPC as new model for energy contracts by the Iranian government; •  Low price of oil and fewer economic return.

•  Power & Renewable Energy •  Regulated by Ministry of Energy - Renewable Energy Organisation of Iran (SUNA); •  Tax incentives for investment in this sector; •  Financial support of the Science - Based Companies; •  Protection of RD & D.

•  Infrastructure & Transportation •  Ministry of Roads & Urban Development; •  Concluding contracts for renewal of the aviation and rail industry of Iran; •  Holding bids for doing various projects in this sector.

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Interesting sectors for doing business in Iran


•  Mining & Industry •  Ministry of Industry, Mine & Trade; •  Requirement for elevation of standards of car manufacturing; •  Major investors are Public Joint Stock Companies offering shares in the Stock Exchange; •  Reliance on industries promoting export and transfer of know-how.

•  Tourism (10th country on potential Tourism) •  Tourism is considered the 3rd income generator after oil and automobile industries; •  4 seasons country; •  Enjoying rich historical and cultural heritage; •  Decrease of political, social and cultural impediments; •  Hotel constructions and management; •  Transportation, logistics and entertainment facilities.

•  Telecommunications & Internet •  Only 3 telecom operators; •  Cooperation between international consortiums and government; •  Requirements for expansion of high speed internet and mobile networks in urban

areas.

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•  Agriculture & Fisheries (4th rank on diversity of agricultural products)

•  Modernisation and mechanisation of agriculture and fisheries industry; •  Development of fish farming and aquaculture; •  General trade on livestock and agricultural products; •  Freezing, packaging and distribution of products;

•  Other Sectors •  Banking & Finance; •  Insurance; •  E-Commerce and online service providers and start-ups.

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PROTECTIVE LAWS AND

REGULATIONS

FOR

DOING BUSINESS AND INVESTMENT

IN IRAN


PROMOTION OF FOREIGN INVESTMENT IN IRAN

•  Principal 144 of the Iranian Constitution •  Investor and government (state owned companies); •  Investor and private sectors.

•  Foreign Investment in Iran •  Foreign Direct Investment (FDI); •  Portfolio investment (separation of management and

ownership); •  Investment under contractual agreement (Build Operate

Transfer, Buy Back and Partnership);


•  FIPPA (Foreign Investment Promotion and Protection Act)

•  FIPPA ratified in 2002 and is implemented by the Organisation for Investment, Economic and Technical Assistance of Iran (OIETAI);

•  Broader fields for involvement by foreign investors including in major infrastructure;

•  Broader definition given to foreign investment, covering all types of investments from FDI to different types of project financing methods including: Civil Participation, Buy –Back arrangements, Counter trade and various BOT schemes;

•  Streamlined and fast track investment licensing application and approval process;

•  Creation of a one stop shop called the “Center for foreign investment Services” at the organisation for investment (OIETAI) for focused and efficient support for foreign investment undertaking in Iran;

•  More flexibility and facilitated regulatory practices for the access of foreign investors to foreign exchange for capital transfer purpose.


Promotion of foreign investment in Iran

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•  The Regulations of Investment in Iran’s Free Trade-Industrial Zones •  7 FTZ in Iran; •  Tax exemption for 20 years; •  Free entrance of foreign nationals; •  Free entrance and exit of capital; •  Exemption of custom duties for import of goods to the FTZ; •  Better facilities for guarantee and insurance of capital; •  Better facilities for employment of foreigners.

•  Company Registration Act •  Possibility for incorporation of a company with 100% foreign ownership; •  Registration of foreign representative and branch offices of foreign companies; •  Having a joint partnership company (JV) with local partner(s).

•  International Commercial Arbitration Act (based on UNCITRAL Model Law) •  Ratified in 1997; •  Can be referred when one of the contracting parties is non-Iranian; •  Choice of applicable law on substance of contract; •  Choice of arbitration regulations.

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•  New York Convention on Enforcement of Foreign Arbitral Awards •  Ratified in March 2001; •  Possibility for enforcement of foreign awards through courts of Iran.

•  IP and IT Regulations •  The Law on Registration of Invention, Industrial Designs and Trade Mark, 2007; •  The Law Protecting Geographical Designs, 2004; •  Member of Paris Convention for the Protection of Industrial Property; •  Member of Madrid Agreement of 1891 and Madrid Protocol of 1981 on Registration of TM; •  Joining Patent Cooperation Treaty (PCT), October 2013; •  E-Commerce Law, 2003 based on UNCITRAL Model Law.

•  More than 52 Bilateral Investment Treaties •  BIT between Iran and Germany (2002); •  Avoidance of Double Taxation Treaty with Germany (1969);

•  Banking & Finance Regulations •  Usury Free Banking Act 1983; •  Iranian banks reconnect to SWIFT ; •  Representative and Branch Office of foreign banks in Iran; •  Representative and Branch Office of Iranian banks in abroad.

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IRAN AND WTO

•  The application of Iran for accession to the WTO was received by the WTO on July 19, 1996.

•  Accepted as Supervising Member in May 2005.

•  Compliance of regulations with WTO regulations and agreement of all members of WTO for join of Iran are still required.


Encyeh Seyed Sadr

“VIELEN DANK FÜR IHRE BERÜCKSICHTIGUNG”

[email protected]


DOING BUSINESS IN IRAN€¦ · 30 MARCH 2016 - HAMBURG HZA DOING BUSINESS IN IRAN BAYAN EMROOZ LAW FIRM . 1. General Information about Iran 2. Nuclear Deal (JCPOA) 3. Investment Opportunities

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