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Production Fee Requirements for Manufacturing Companies in Iraq

Illustration showing production fee requirements for manufacturing companies operating in Iraq

Production Fee Requirements for Manufacturing Companies in Iraq The General Commission of Customs, under the Ministry of Finance, has issued an official notice concerning the collection of production fees applicable to certain manufacturing and production activities in Iraq. According to the referenced correspondence issued by the Customs Affairs Department and the Production Fees Division of the Middle Region Customs Directorate, companies whose licensed activities include the production of specific goods are required to review the competent customs authority for the purpose of completing production fee assessment and payment procedures. Affected Activities: The requirement applies to companies engaged in the production of, including but not limited to: Petroleum products Vegetable oils Pharmaceutical manufacturing Ready-made garments Automotive manufacturing Cigarettes and tobacco products Electronic industries Local sugar production Alcoholic beverages Food industries Cement Light industries Products of the General Company for Industrial Gases Compliance Requirement: Companies operating in the above sectors must coordinate with the relevant customs authority to ensure proper assessment and settlement of production fees in accordance with applicable customs and fiscal regulations. Failure to complete the required procedures may expose companies to administrative measures, penalties, or delays in customs clearance and regulatory approvals. How Etihad Can Assist Etihad provides legal and regulatory advisory services to banks, financial institutions, and businesses, supporting compliance with applicable laws, regulations, and regulatory guidance issued by any competent authorities.

Parent Company Continuity Requirements for Foreign Company Branches in Iraq

Legal update on parent company continuity requirements for foreign branches operating in Iraq

Parent Company Continuity Requirements Foreign companies operating in Iraq through registered branches are required to maintain updated records confirming the continuity and legal standing of the parent company, in line with the requirements of the Iraqi Companies Registrar and the Regulation of Branches of Foreign Companies No. (2) of 2017 (as amended). To facilitate compliance procedures, branches of foreign companies must submit official documentation evidencing that the parent company remains active and continues to conduct its business operations. This requirement aims to ensure regulatory transparency and the ongoing legal validity of foreign company branches operating in Iraq. Accepted Documentation: For compliance purposes, one of the following documents must be provided: A duly issued and legally authenticated document from the parent company confirming its continuity; or An official confirmation letter issued by a competent governmental authority in the country of incorporation, duly authenticated, confirming that the parent company remains active and operational. All documents must be authenticated in accordance with applicable legal procedures and submitted within the timelines specified by the competent Iraqi authorities. Regulatory Importance: Failure to submit the required documentation may result in regulatory measures, administrative penalties, or restrictions on the branch’s legal status in Iraq. Foreign companies are therefore advised to proactively review their compliance position and address any outstanding requirements without delay. How Etihad Law Firm Can Assist? Etihad Law Firm provides comprehensive legal support to foreign companies operating in Iraq, including: Assessment of branch compliance status Preparation and legalization of corporate documents Liaison with the Iraqi Companies Registrar Ongoing corporate and regulatory advisory services

Foreign Companies Required to Update Legal Status in Iraq – Official 60-Day Compliance Notice

Legal update on the 60-day compliance notice requiring foreign companies to update their legal status in Iraq

Foreign Companies Required to Update Legal Status in Iraq – Official 60-Day Compliance Notice Etihad Law Firm would like to draw attention to a recent announcement issued by the Iraqi Companies Registrar, identifying a number of foreign companies operating in Iraq that are required to update their legal status in accordance with the Regulation of Branches of Foreign Companies No. (2) of 2017 (as amended). According to the Registrar’s notice, foreign companies included in the announcement must complete the required compliance procedures within sixty (60) days from the date of publication. Under the notice, affected companies are required to take one or more of the following actions within the specified timeframe: Submit updated legal and corporate information confirming the company’s status and activities in Iraq; Settle any accumulated fines or penalties, where applicable; or File an official application for branch liquidation if operations in Iraq have ceased. Non-compliance within the statutory period may result in further regulatory action, financial penalties, or restrictions imposed by the competent Iraqi authorities. How Etihad Can Assist Etihad provides legal and regulatory advisory services to banks, financial institutions, and businesses, supporting compliance with applicable laws, regulations, and regulatory guidance issued by any competent authorities.

Pre-Qualification Requirements for Second-Party Inspection Companies in the Oil Sector

Inspection and certification professionals reviewing oil sector compliance documents for pre-qualification in Iraq

Pre-Qualification Requirements for Second-Party Inspection Companies in the Oil Sector First: The second-party inspection companies shall provide one of the sector companies for the purpose of technical accreditation with the following: The scope of its work supported by the documents and technical requirements that must be available for its accreditation (its previous experience in its field of specialization and similar work completed in the previous 3 years and documents certified by the beneficiary parties proving its good performance towards the inspection services implemented by it) to survey its efficiency. List of its offices inside Iraq (and outside it, if any) through which its services will be provided directly to the oil sector companies without the intervention of an intermediary company. All documents and information related to its headquarters and operating branches, including its managing director, executive directors, branch managers and their contact information, and documents and information related to its merger or participation with other secondary inspection companies (attach the partnership and coalition contract stating the shares of each company). Proof that it meets the accreditation requirements according to the latest version of the specifications below and from one of the accredited granting bodies or authorities exclusively (valid): ISO 9001-2015 ISO 17020 / type C ISO 17025 (if it has laboratories) Health, Safety and Environment Systems ISO 14001 ISO 45001 Information that ensures that the activities assigned to it are performed in the required manner, including: Human resources and their organizational structure (flow chart. A list of the following: Its accredited inspectors and their CVs The devices and equipment it owns All necessary documents in the event that any new inspection activity or activity is added to its previous activities on the basis of which it was qualified. Samples of the documentation procedures that were previously implemented for the benefit of the beneficiary companies (method statement / written procedures) including risk assessment (Risk based assessment). After the second inspection company fulfills all the technical requirements (the technical aspect thereof) mentioned in paragraphs (1-7) above, the final qualification (especially the engineering and technical aspect) is carried out by conducting a field visit to the parent company and its operating branches by the oil company that received the accreditation request for the purpose of verifying the validity of the documents submitted by it, accompanied by a number of members of the ministerial team responsible for auditing and technical certification of accreditation. Second: After the second party company is accredited, it is required (upon contracting) to provide the oil sector companies with paragraphs (1-7) of the first above in addition to the two requirements: Documentary procedures that will be implemented to accomplish the assigned task to it for the benefit of the oil companies (method statement/written procedures) including risk assessment (Risk based assessment). Prepare the following: Its accredited inspectors and their CVs (executing the work) in line with the size and type of work to be accomplished (and taking into account the delegation of Iraqi inspectors if possible) with the necessity of verifying their scientific and practical capabilities towards the scope of work (where required) and based on the vision of the oil company. The devices and equipment its own with their calibration certificates (in force and from the accredited authorities). Third: Financial and legal requirements (submitted to sector companies upon contracting) The company’s financial statement for the last 2 years as a minimum to show the good standing of the financial position. Its establishment certificate certified by the Ministry of Trade / Companies Registrar Department for Iraqi companies, and by Iraqi embassies for foreign companies in their countries in addition to the articles of association for its internal bylaws. Submitting a pledge that there are no claims: Unresolved financial Judicial, administrative or debt against the institutions of the Iraqi side and vice versa (based on the paragraphs of the Council of Ministers Law No. 48 of 2018) The financial efficiency of the company by determining the capital and cash liquidity approved for it with the confirmation of the competent authority. Ensuring the good standing of the legal position of the company in terms of the blacklist and the list of defaulting companies. Its pledge not to carry out engineering inspection activities at the various sites of oil sector companies in the event that it is one of the third adopted inspection companies or owned by it at the same site. Its pledge that its operating branches and the companies merged with it will complete the assigned task to or that will be assigned to ad in accordance with the technical and contractual conditions and requirements and for all related contracts. How Etihad Can Assist Etihad provides legal and regulatory advisory services to banks, financial institutions, and businesses, supporting compliance with applicable laws, regulations, and regulatory guidance issued by any competent authorities.

Registration – Basra Oil Company

Company representatives submitting registration documents for approval with Basra Oil Company in Iraq

Registration Requirements with Basra Oil Company Companies documents certified 2025 from Companies Registration Department. Financial statement for the last 3 years certified. Company profile, including the field of specialization, a list of similar works, and contracts executed for the last 3 years, along with copies of those contracts, along with the amount of each contract, and completion certificates. International ISO quality certificates (valid) or other. Certificates of competence and good performance from companies you have dealt with. Company personnel and their CVs. Valid classification ID. Clearance Letter from the General Tax Department for the last 3 years or a tax ID. Clearance Letter from the Ministry of Labor and Social Affairs, Retirement and Social Security Department. Confirmation from Municipality Council addressed to Basra Oil Company confirm the residency address of general manager along with copy of IDs and passport. Complete the attached security form, signed and stamped. Pledge stating that you will not work on contracts or projects related to the oil and gas sector in the Kurdistan Region of Iraq. If such contracts or projects exist, your company pledges to terminate them within 3 months of notifying us. 2 flash drives in PDF format containing all the above documents, in addition to the paper documents, in a unified file. How Etihad Can Assist Etihad provides legal and regulatory advisory services to banks, financial institutions, and businesses, supporting compliance with applicable laws, regulations, and regulatory guidance issued by any competent authorities.

How to File a Trademark Opposition in Iraq

How to Establish a Digital Bank in Iraq Investor & Regulatory Overview Establishing a digital bank in Iraq is subject to the Iraqi Banking Law and the regulatory authority of the Central Bank of Iraq (CBI). Digital banking activities are regulated as banking services, meaning that any entity seeking to operate a digital or branch-light banking model must obtain a full banking license and comply with all applicable prudential, governance, and compliance requirements imposed by the CBI. Although there is currently no standalone “digital-only” banking license, digital banks are permitted to operate within the existing banking framework, subject to enhanced regulatory scrutiny in areas such as technology, cybersecurity, consumer protection, and AML/CFT compliance. Investor Perspective A digital bank structure allows investors to enter the Iraqi financial market with a technology-driven model, supporting digital onboarding, electronic payments, and online banking services. Given Iraq’s ongoing transition toward financial inclusion and cashless payments, digital banking presents a long-term strategic investment opportunity, provided that regulatory, capital, and governance expectations are fully met. Key Regulatory Considerations: Applicants seeking to establish a digital bank in Iraq are expected to demonstrate: Compliance with Central Bank of Iraq licensing requirements Adequate capitalization in line with banking regulations Transparent ownership and shareholder structure Qualified board members and senior management Effective corporate governance and risk management Robust AML/CFT, KYC, and sanctions controls Secure IT systems, cybersecurity, and data protection A sustainable digital banking business model Foreign investors are subject to additional regulatory review and must satisfy enhanced due diligence requirements. Digital Bank vs Electronic Payment Company in Iraq Aspect Digital Bank Electronic Payment Company Regulator Central Bank of Iraq Central Bank of Iraq Legal Status Licensed bank Licensed non-bank financial institution License Scope Full banking license Electronic payment services license Capital Level Bank-level requirements Lower than banks Core Services Deposits, accounts, lending, digital banking Wallets, POS, payment processing Customer Deposits Permitted Limited / transactional Lending Activities Permitted Not permitted Regulatory Burden High Moderate Market Entry Complex Relatively faster Investor Profile Institutional / long-term Fintech / payment-focused Strategic insight: A digital bank is suitable for investors seeking full financial intermediation and long-term market presence, while an electronic payment company may be more appropriate for payments-focused or fintech-driven strategies. Regulatory Compliance & Ongoing Obligations: Once licensed, a digital bank in Iraq remains subject to continuous supervision by the Central Bank of Iraq, including reporting obligations, inspections, capital adequacy requirements, and compliance with AML/CFT and consumer protection rules. Failure to comply may result in regulatory sanctions or corrective measures. How Etihad Can Assist Etihad provides legal and regulatory advisory services to banks, financial institutions, and businesses, supporting compliance with applicable laws, regulations, and regulatory guidance issued by any competent authorities.

Investor Digital Banking in Iraq

How to Establish a Digital Bank in Iraq: Regulatory & Investor Guide

Establishing a Digital Bank in Iraq Establishing a digital bank in Iraq is subject to the Iraqi Banking Law and the regulatory authority of the Central Bank of Iraq (CBI). Digital banking activities are treated as banking services, meaning that any entity seeking to operate a fully digital or branch-light bank must obtain a banking license from the CBI and comply with all applicable prudential, governance, and compliance requirements. While Iraq does not currently have a standalone “digital-only bank license,” digital banks are licensed within the existing banking framework, with additional scrutiny on technology, cybersecurity, and consumer protection. What Is Considered a Digital Bank in Iraq? A digital bank typically operates through: Digital onboarding and account opening Online and mobile banking platforms Electronic payments and digital wallets Limited or no physical branches Technology-driven service delivery Regardless of delivery model, digital banks are regulated as full banks under CBI supervision. Key Regulatory Requirements: Applicants seeking to establish a digital bank must demonstrate: Minimum capital as prescribed by the Central Bank of Iraq Transparent ownership and shareholder structure Fit and proper shareholders, board members, and senior management Robust corporate governance framework Strong AML/CFT, KYC, and sanctions compliance systems Secure IT infrastructure and cybersecurity controls Data protection and consumer protection mechanisms Viable digital banking business model Foreign investors are subject to enhanced due diligence and additional regulatory review. Step-by-Step Licensing Process Initial Application to the Central Bank of Iraq: Submit a formal request describing the proposed digital banking model, ownership structure, and scope of services. Submission of Business & Technology Plan: Applicants must provide detailed documentation covering: Digital banking strategy and services Financial projections Governance and management structure AML/CFT and compliance framework IT architecture, cybersecurity, and data protection Regulatory Due Diligence: The CBI conducts in-depth review of: Shareholders and source of funds Board and management suitability Compliance readiness Technology and operational resilience Capital Deposit: Upon preliminary approval, the required capital must be deposited with a CBI-designated bank. Company Incorporation: The bank is incorporated under the Iraqi Companies Law and registered with the Companies Registration Department. Final Banking License: After satisfying all regulatory conditions, the CBI issues the final banking license, authorizing digital banking operations. Operational Readiness & Launch: Before launch, the digital bank must: Complete system testing and security audits Appoint compliance and risk officers Finalize internal policies and reporting systems Obtain any additional approvals required by the CBI Ongoing Compliance Obligations: Digital banks in Iraq are subject to continuous supervision and must comply with: Capital adequacy and liquidity requirements CBI reporting and inspections AML/CFT and transaction monitoring rules Cybersecurity and data protection standards Consumer protection and transparency requirements Failure to comply may result in regulatory sanctions or license suspension. Indicative Timeline: The licensing and establishment process typically takes several months, depending on regulatory review, completeness of documentation, and technical readiness. How Etihad Can Assist Etihad provides legal and regulatory advisory services to banks, financial institutions, and businesses, supporting compliance with applicable laws, regulations, and regulatory guidance issued by any competent authorities.

How to Establish an Electronic Payment Company in Iraq

How to Establish a Bank in Iraq: Investor & Regulatory Guide Establishing an Electronic Payment Service Provider (EPSP) in Iraq is regulated by the Central Bank of Iraq (CBI) under the Electronic Payment Services Regulation and related CBI instructions. Any entity wishing to provide electronic wallets, POS services, payment processing, or digital payment solutions must obtain prior licensing and approval from the Central Bank of Iraq. Electronic payment activities are considered regulated financial services, and strict compliance with licensing, capital, governance, and AML/CFT requirements is mandatory. Types of Electronic Payment Activities: CBI licenses may cover one or more of the following activities, subject to approval: Electronic wallet services POS and merchant acquiring services Payment processing and switching Prepaid card issuance Mobile and digital payment platforms Each activity may be subject to specific operational and technical requirements. Key Regulatory Requirements: Applicants must demonstrate: Minimum capital as determined by the CBI Clear ownership and shareholder structure Fit and proper shareholders and management Robust governance and internal control frameworks AML/CFT and KYC compliance systems Secure technical infrastructure and data protection measures Viable business plan aligned with Iraqi market needs Foreign investors are subject to enhanced regulatory scrutiny and must appoint a local Iraqi legal representative. Step-by-Step Licensing Process Initial Application to the Central Bank of Iraq: Submit a formal request outlining the proposed electronic payment services, ownership structure, and business objectives. Submission of Business Plan & Documentation: Provide detailed documents including: Business and operational model Financial projections Governance and management structure AML/CFT, KYC, and risk management policies IT systems and cybersecurity framework Regulatory Review & Due Diligence: The CBI conducts a comprehensive assessment of: Shareholders and source of funds Management suitability Compliance readiness and system security Capital Deposit: Upon preliminary approval, the required capital must be deposited with a bank approved by the CBI. Company Incorporation: Register the company under the Iraqi Companies Law with the Companies Registration Department (Ministry of Trade). Final Licensing Approval: Once all regulatory conditions are satisfied, the CBI issues the electronic payment service license. Operational Readiness: Before launching operations, the company must: Finalize internal policies and SOPs Complete system testing and security validation Train staff and appoint compliance officers Obtain any additional approvals required Ongoing Compliance Obligations: Licensed electronic payment companies must comply with: CBI supervision and reporting requirements AML/CFT and sanctions regulations Transaction limits and wallet controls Consumer protection and data security rules Periodic audits and inspections Non-compliance may result in penalties, suspension, or license revocation. Investment Timeline (Indicative): The licensing process typically takes several months, depending on the scope of services, regulatory review, and readiness of the applicant. How Etihad Can Assist Etihad provides legal and regulatory advisory services to banks, financial institutions, and businesses, supporting compliance with applicable laws, regulations, and regulatory guidance issued by any competent authorities.

How to Establish a Bank in Iraq: Investor & Regulatory Guide

How to Establish a Bank in Iraq: Investor & Regulatory Guide Establishing a bank in Iraq is a highly regulated investment activity governed by the Iraqi Banking Law and supervised exclusively by the Central Bank of Iraq (CBI). Any entity seeking to establish a local bank, Islamic bank, or foreign bank presence must obtain prior licensing approval from the CBI and demonstrate financial strength, transparent ownership, sound governance, and long-term operational viability. The licensing framework is designed to protect financial stability, depositors’ interests, and the integrity of the Iraqi banking system, making regulatory compliance a central requirement for investors. Types of Banks Permitted in Iraq: Investors may apply to establish or operate the following types of banks, subject to CBI approval: Commercial Banks Islamic Banks Foreign Bank Subsidiaries Foreign Bank Branches (subject to additional conditions) Each category is subject to specific licensing, capital, and operational requirements determined by the Central Bank of Iraq. Key Regulatory Requirements: To qualify for a banking license, applicants must demonstrate compliance with the following core requirements: Minimum capital in accordance with CBI regulations Clear and transparent ownership structure Fit and proper shareholders, free from regulatory or criminal concerns Qualified Board of Directors and senior management Robust governance framework, including risk management and internal controls Comprehensive AML/CFT compliance systems Viable business plan aligned with Iraqi market conditions Foreign investors are subject to enhanced due diligence and additional disclosure requirements. Step-by-Step Licensing Process Initial Application to the Central Bank of Iraq: Investors submit a formal application outlining the proposed bank type, shareholders, capital structure, and strategic objectives. Submission of Business Plan & Supporting Documents: Applicants must provide detailed documentation covering: Proposed banking activities Financial projections Governance and organizational structure Risk management and compliance frameworks Regulatory Due Diligence: The CBI conducts a thorough assessment of: Shareholders and sources of funds Board members and executive management Compliance readiness and internal controls Capital Deposit: Following preliminary approval, the required capital must be deposited with a bank designated by the CBI. Company Incorporation: The bank is incorporated under the Iraqi Companies Law and registered with the Companies Registration Department. Final Licensing Approval: Upon satisfaction of all conditions, the CBI issues the final banking license, authorizing operations. Operational Readiness: Before commencing business, the bank must finalize systems, staffing, internal policies, reporting mechanisms, and any branch approvals. Ongoing Regulatory Obligations: Licensed banks in Iraq are subject to continuous supervision and must comply with: Capital adequacy and liquidity requirements CBI reporting and inspection regimes AML/CFT and sanctions compliance Corporate governance and board oversight Audit and disclosure obligations Failure to comply may result in regulatory sanctions, fines, or license suspension. Investment Timeline (Indicative): While timelines vary depending on complexity and regulatory review, the licensing process typically takes several months from initial application to final approval, subject to CBI discretion. Why Regulatory Preparation Matters: Banking license applications are assessed on a substance-over-form basis. Strong legal structuring, governance design, and compliance readiness significantly increase the likelihood of regulatory approval and long-term operational stability. How Etihad Can Assist Etihad provides legal and regulatory advisory services to banks, financial institutions, and businesses, supporting compliance with applicable laws, regulations, and regulatory guidance issued by any competent authorities.