How to Start a Business and Establish a Company in Iraq
Step-by-step: How to Establish a Company in Iraq Choose the legal form: Most common is Limited Liability Company (LLC), Joint Stock Company, or Foreign Company Branch/Representative Office. Reserve the company name: Submit proposed names and obtain name approval from the Companies Registration Department (Ministry of Trade). Prepare incorporation documents: Articles/contract, shareholder/owner IDs, addresses, management details, company objectives, and (for foreign owners) legalized corporate documents and Power of Attorney. Register the company: File the application with the Companies Registration Department and complete required forms and approvals until the registration certificate is issued. Open a bank account: Open a corporate account and complete any capital deposit requirements (if applicable to your company type). Tax registration: Register with the General Commission for Taxes and obtain a tax file number (and withholding/VAT-style obligations if applicable to your activity). Social security / labor registration: Register employees and the company with the relevant Social Security / Labor authorities once hiring begins. Municipality & premises requirements: Secure a lease/title and obtain local municipality approvals and signage permissions if required. Sector licenses: Obtain any necessary permits from the competent regulator (e.g., oil & gas, telecom, health, education, transport, finance, trade). Post-registration compliance: Maintain company records, renew licenses where needed, and comply with reporting, payroll, and tax filings, legal advisor, social security, visa and work permit for foreigners, mail box & IQ domain, security approval etc.. 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.
AML/CFT Compliance Update – Central Bank of Iraq
AML/CFT Compliance Update – Central Bank of Iraq The Central Bank of Iraq (CBI) has issued updated supervisory controls on Anti-Money Laundering, Counter-Terrorist Financing, and Proliferation Financing, applicable to all licensed banks. Banks are required to review and comply with the attached regulatory controls in accordance with CBI instructions and applicable supervisory standards. 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.
Central Bank of Iraq Directs Banks to Establish Financial Inclusion Departments
Central Bank of Iraq Directs Banks to Establish Financial Inclusion Departments The Central Bank of Iraq (CBI) has issued an official circular addressed to all licensed banks, instructing them to establish a dedicated Financial Inclusion Department within their organizational structures. The instruction supports the national financial inclusion strategy, aims to expand access to financial services, enhance public confidence in the banking sector, and promote financial awareness among various segments of society. Under the CBI instruction, banks are required to: Establish a Financial Inclusion Department within the bank’s approved organizational structure Integrate existing units related to banking awareness and consumer protection into the new department Assign the department to senior management supervision to ensure effective coordination Develop and implement financial inclusion strategies and programs Submit required reports and data to the Central Bank of Iraq in accordance with prescribed formats and timelines Ensure that department leadership possesses appropriate banking, administrative, and financial expertise The circular emphasizes that financial inclusion activities must align with CBI policies, governance standards, and supervisory requirements. This directive reflects the CBI’s continued efforts to: Strengthen the role of banks in financial inclusion initiatives Increase access to banking and financial services Enhance financial literacy and consumer protection Improve coordination between banks and regulatory authorities Support sustainable development of the Iraqi banking sector Banks are required to review their internal structures and take the necessary steps to comply within the specified timeframe. 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 Ministry of Planning – Regulation No. (23) on Work Withdrawal
Iraq Ministry of Planning – Regulation No. (23) on Work Withdrawal The Ministry of Planning issued Regulation No. (23) concerning the withdrawal of work, supplementing the Instructions for Implementing Government Contracts No. (2) of 2014, with the aim of regulating work withdrawal procedures and ensuring the protection of public funds and the proper execution of projects. The regulations clarify the circumstances under which work may be withdrawn from a contractor or subcontractor, and the legal procedures to be followed, including warnings, processing periods, the responsibilities of the parties, and the effects of work withdrawal on guarantees and contractual obligations. The regulations also address the status of consultancy and non-consultancy contracts, and the mechanisms for completing or re-tendering work within the applicable legal frameworks. These regulations represent an important step towards strengthening governance, contractual discipline, and reducing risks in the implementation of government projects, thereby achieving efficiency and transparency in contract management. Aim to organize work withdrawal procedures within the framework of the Instructions for Implementing Government Contracts No. (2) of 2014. Specify the circumstances under which work may be withdrawn from a contractor or subcontractor in the event of a breach of contractual obligations. Formal warnings and timeframes for addressing shortcomings must be granted before a decision is made to withdraw the work, except in serious cases. Technical and legal committees are formed to assess the reasons for and consequences of work withdrawal. Clarify the responsibilities of the contracting authority and the contractor in the event of work withdrawal. A mechanism is established for confiscating or liquidating guarantees based on the type of violation and the percentage of completion. Define Procedures and outlined for completing the work, either at the expense of the defaulting contractor or by assigning it to another contractor. Define procedures for handling and evaluating completed and uncompleted work, both financially and technically. Consultancy and non-consultancy contracts are included under the provisions for work withdrawal. Regulate the legal implications of work withdrawal on claims, fines, and compensation Enhance governance and transparency and reduce the risk of project delays in government projects. Protect public funds and ensure the proper execution of contracts within the applicable legal frameworks. 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.
Electronic Due Diligence Procedures for Foreign Companies
Electronic Due Diligence Procedures for Foreign Companies Pursuant to the Prime Minister’s Office letter No. (24456/3/63) dated 17 December 2024, Iraq has formalized an electronic correspondence mechanism for conducting due diligence on Arab and foreign companies through Iraqi embassies, commercial attachés, and diplomatic missions abroad. Key points include: Due diligence requests must be completed within a maximum of seven (7) days. Requests are to be submitted by government contracting entities to the Ministry of Planning via the official email: inv.contracts@mop.gov.iq. The request must be supported by an official signed letter from the Head of the Contracting Authority (or an authorized representative). Submissions must include the company name and full address in Arabic and English, along with trade name (if applicable). The prescribed due diligence form must be fully completed and supported by all required documents. The request must clearly specify the type and scope of information required, in line with the due diligence controls set out in Paragraph (Second). This development enhances transparency, accelerates verification procedures, and strengthens governance in government contracting processes in Iraq. 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.
Amend Government Contracts Instructions
Amend Government Contracts Instructions Ministry of Planning issued the amendments of the instructions of Government Contracts No. (2) of 2014 by adding a new provision to Clause (4) which is as follows: Under this amendment, the final acceptance certificate issued by the Head of the Contracting Authority is considered conclusive evidence that the contractor or company has properly completed the contract in full compliance with contractual terms and applicable laws. This update reinforces legal certainty in government contracting and aligns contract execution with Article 870(1) of the Iraqi Civil Code No. (40) of 1951 (as amended). Such developments play an important role in strengthening governance, compliance, and dispute prevention in public sector projects. 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.
Companies Registration
Companies Registration Companies Registration Department #Iraq has announced its circulation to accepting the financial statements of 2024 prepared by the accountant and signed by the company’s general manager (in their draft form) to cut the timeframe required for its submission by 7 Oct 2025 due to the momentum within the Accountants and Auditors Syndicate regarding the procedures for attesting financial statements. The final certified version must be submitted before the end of 2025.
Contractual Procedures
Contractual Procedures Etihad Law Firm represented by Ahmed Hankawi had the honor to represent KEEPT Investment Group in my capacity as Legal Advisor, finalizing the contractual procedures with the Ministry of Agriculture / State Company for Agricultural Supplies, for the establishment of a fully integrated plant for the production of blue ammonia and urea fertilizer, with an annual production capacity of 1,150,000 tons, in partnership with Toyo (Japan) and KBR (USA). This project is a strategic milestone in Iraq and the region, adopting cutting-edge, eco-friendly technologies in fertilizer production that align with the goals of the green economy and sustainable development. The project will contribute to:🔹 Reducing dependence on imports🔹 Supporting national production🔹 Creating direct and indirect job opportunities🔹 Enhancing food security by empowering the agricultural sector Sincere thanks to H.E. the Minister of Agriculture and to the Director General of the State Company for Agricultural Supplies for their trust and partnership.
Commercial Agency Law
Commercial Agency Law The Iraq State Council has issued an official interpretation of #Commercial_Agency Law No. 79 of 2017 regarding the 100% Iraqi capital ownership requirement for companies operating as commercial agencies. • #Foreign_investors may own Iraqi companies in the commercial agency sector, but only through an Iraqi shareholding company. • The 100% Iraqi capital rule applies only to direct owners of the company requesting the license. • This requirement does not extend to shareholders of parent companies that own the applicant company. The law also recognizes an Iraqi company as a separate legal entity, independent from its shareholders, and does not trace ownership beyond the direct owner. ✅ This clarification opens opportunities for foreign investment in #Iraq’s commercial agency sector, provided the legal structure follows these requirements.
Certified Company Documents
Certified Company Documents One of the prevalent challenges we encounter in Iraq pertains to the recurrent demand from governmental departments for the most recent copies of certified company documents annually. This process, while crucial, imposes a significant burden on the Registrar of Companies due to the sheer volume of requests received. In response to this issue, the Registrar has issued a directive addressed to key governmental institutions including the Cabinet, the Central Bank of Iraq, and all other ministries. The aim of this directive is to streamline procedures for companies and alleviate the congestion experienced at the Company Registration Department. Hence, the Registrar propose that companies are to be exempt from the requirement to renew certification of the company’s documents issued within one year from its issuance certification. This adjustment seeks to mitigate the annual surge in workload, benefiting both companies and governmental entities alike.