Labor Compliance Iraq

Labor Compliance Iraq Etihad Law Firm, together with Anli Law Firm, contributed to the Labor Compliance Keys in Iraq by jointly preparing the Iraq chapter of the publication. The Iraq chapter provides an updated overview of the legal framework governing labor and employment compliance in Iraq. It covers key areas relevant to both national and international employers operating in the jurisdiction, including: employment contracts and classifications social security and statutory contributions workplace regulations and standards foreign workforce and work permit requirements termination procedures and severance dispute resolution mechanisms cross-border compliance considerations This publication serves as a practical reference for organizations managing workforce operations in Iraq and the wider region, offering structured guidance on regulatory obligations and compliance practices across the full employment lifecycle. Full version of guide can be found here  For further information or inquiries, please feel free to contact our team.

ISP Licensing Requirements in Iraq

ISP Licensing Requirements in Iraq – CMC The Communications and Media Commission (CMC) of Iraq has issued the official ISP Licensing Requirements governing the provision of internet services in Iraq. These requirements were issued pursuant to CMC Decision No. (175/Q/2023) dated 12 September 2023, and form the primary regulatory framework for licensing Internet Service Providers (ISPs) operating in the Iraqi market. 🧾 Licensing Scope and Classification The CMC classifies ISP licenses into three categories (A, B, and C), depending on the scope of operations, geographic coverage, and infrastructure ownership. Category A licenses apply to nationwide operators with full infrastructure capabilities, while Category B licenses apply to regional or governorate-level operators. Category C licenses are granted to service providers that deliver internet services to end users through licensed primary or regional operators.   ⚙️ Technical Requirements Applicants are required to submit detailed technical documentation describing the nature of their internet services, operational coverage, network infrastructure, and distribution mechanisms. This includes providing information on service delivery areas, branch offices across governorates, technical management personnel, tower locations, repeaters, and distribution agents. Applicants must also maintain an official website and specify the requested license duration and classification.   ⚖️ Legal Requirements The licensing framework requires applicants to submit a complete set of legal documents, including a valid company incorporation contract, certificate of incorporation, shareholders’ resolutions, confirmation from the Companies Registrar, and tax and social security clearance certificates. Foreign companies must provide evidence of branch registration in Iraq. Applicants must also submit declarations confirming compliance with CMC regulations and Iraqi laws, including the obligation to conduct transactions in Iraqi dinars.   💰 Financial Requirements The CMC has set specific licensing fees and financial guarantees based on license classification. Category A licenses require a comprehensive nationwide license fee of IQD 2 billion annually, in addition to a performance guarantee of the same amount. Category B and C licenses are subject to annual licensing fees determined per governorate, with fees varying by location. Applicants must also submit a performance bond, the value of which increases based on the duration of the license.   🏗️ Operational Capacity and Experience License holders are required to demonstrate minimum capital thresholds, technical expertise, and operational capacity. Category A licensees must have a minimum capital of IQD 2 billion and proven experience of no less than five years in the telecommunications or ICT sector. Category B and C licensees are subject to proportionate capital and experience requirements based on their license classification and service scope.   ⚠️ Compliance and Enforcement ISP licensees are subject to ongoing regulatory oversight by the CMC. Failure to comply with licensing conditions, technical standards, or financial obligations may result in regulatory action, including suspension or revocation of the license. The CMC reserves the right to monitor operations and enforce compliance throughout the license term. 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.  

Iraq E-Commerce Update: New Instructions Issued Under the Electronic Commerce Regulation

Iraq E-Commerce Update: New Regulatory Instructions Issued Under the Electronic Commerce Framework Recent official correspondence confirms the issuance of new regulatory instructions governing electronic commerce activities in Iraq, impacting digital businesses and online platforms.   Key Regulatory Updates Issuance of official instructions related to the Electronic Commerce Regulation Instructions issued pursuant to Regulation No. (3) of 2025 Circulation of an English-language version of the regulation Clarification of: Regulatory requirements for electronic commerce Required documentation Application procedures for electronic merchant platforms   Scope of Application E-commerce platforms operating in Iraq Digital and online businesses offering goods or services FinTech companies engaging in digital trade activities Foreign companies providing online services to the Iraqi market   What Businesses Should Do Review the Electronic Commerce Regulation and related instructions Assess whether their activities fall within the scope of electronic commerce Prepare required documents and compliance information Align internal operations with digital business regulatory requirements   Alignment with Banking & FinTech / Digital Business Services This update is directly relevant to FinTech operators, digital platforms, and online businesses. Our Banking & FinTech / Digital Business advisory services support clients with: Regulatory assessment of digital business models Compliance with electronic commerce and digital trade regulations Documentation preparation and regulatory filings Ongoing regulatory risk management for digital operations   As Iraq continues to strengthen its digital economy regulatory framework, proactive compliance with electronic commerce regulations is essential to ensure operational continuity and regulatory certainty.   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.  

Production Fee Requirements for Manufacturing Companies 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

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

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

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

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 Avoid Business Disputes and Legal Violations in Iraq

How to Avoid Business Disputes and Legal Violations in Iraq Ensure proper company registration with the relevant Iraqi authorities and maintain valid commercial records. Obtain all required licenses and permits specific to your business activity and location. Comply with tax and social security obligations, including timely filings and payments. Use clear, well-drafted contracts governed by Iraqi law for partners, suppliers, clients, and employees. Define roles, responsibilities, and payment terms to prevent misunderstandings and disputes. Maintain internal policies and governance controls, including compliance, HR, and financial procedures. Monitor regulatory updates issued by Iraqi ministries and regulatory authorities. Document business activities and transactions to support compliance and dispute resolution. Address disputes early through negotiation or legal advice before escalation. Seek ongoing legal and regulatory guidance to manage risks and ensure compliance with Iraqi laws. 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 Joint Stock Company in Iraq

How to Establish a Joint Stock Company in Iraq Establishing a Joint Stock Company (JSC) in Iraq is governed by the Iraqi Companies Law and supervised by the Companies Registration Department at the Ministry of Trade. A JSC is suitable for larger investments and projects, as its capital is divided into shares that may be transferred in accordance with the law. Key Requirements Minimum number of shareholders: as prescribed by Iraqi law Board of Directors: appointed in accordance with statutory requirements Capital: subject to minimum capital rules and deposit requirements Company objectives: must be lawful and clearly defined   Step-by-Step Process Reserve the company nameObtain name approval from the Companies Registration Department. Prepare incorporation documentsDraft the Articles of Association, shareholder details, board structure, capital allocation, and company objectives. Capital depositDeposit the required capital into a local Iraqi bank and obtain confirmation. File the incorporation applicationSubmit the application and supporting documents to the Companies Registration Department. Regulatory review and approvalAuthorities review the application for legal and regulatory compliance. Company registrationUpon approval, the JSC is officially registered and issued a certificate of incorporation. Post-registration steps Open permanent bank accounts Register with tax and social security authorities Obtain sector-specific licenses, if required   Legal Status & Compliance A Joint Stock Company acquires separate legal personality upon registration. Ongoing obligations include corporate governance compliance, board reporting, shareholder meetings, and regulatory filings. 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.