Online Auction Platforms in Iraq

Online auction platforms support price discovery and transactions through competitive bidding among multiple buyers, with applications across consumer and business contexts. Iraqi online auction adoption is developing across both consumer marketplaces with auction features and dedicated auction platforms for specific categories. The framework engages general Iraqi commercial and contract law, auction-specific considerations, regulatory engagement for certain auction categories, and broader operational structure. Auction Platform Models Online auction platform models include consumer-to-consumer auctions where individual sellers and buyers engage through platform infrastructure, business-to-consumer auctions with merchants offering products through auction mechanics, business-to-business auctions for commercial procurement, specialised auctions for specific categories including art, collectibles, vehicles, and real estate, and reverse auctions where buyers solicit competitive offers. The model affects regulatory and operational considerations. Iraqi Regulatory Framework The Iraqi regulatory framework for online auctions engages general commercial and contract law applied to auction transactions, specific provisions affecting auction-specific considerations including auction conduct and bidder protections, sectoral regulation for auctions in regulated categories, and broader operational framework. The framework does not specifically address online auctions in comprehensive form, with operations within general frameworks alongside auction-specific considerations. Auction Mechanics Auction mechanics engage the specific auction format including English auctions with ascending bids, Dutch auctions with descending offers, sealed-bid auctions with private bid submission, second-price auctions, and broader format variants. Each format engages specific operational and disclosure considerations supporting bidder understanding and fair operation. Bidder Protection Bidder protection considerations include accurate description of auction items, transparent conduct of auctions, treatment of bidders without favoured access, fraud prevention including shill bidding, protection against manipulation, and broader bidder-facing fairness. Substantive auction operations support reliable bidder participation rather than rely on framework gaps to permit aggressive practices. Seller Obligations Seller obligations on auction platforms include accurate description of auctioned items, performance on accepted bids, treatment of bidder communications, payment and delivery obligations following auction completion, and broader seller-facing operational discipline. Auction platforms should enforce seller obligations substantively rather than treat them as seller-facing matters without platform engagement. Payment and Settlement Payment and settlement following auction completion engage payment timing and methods, security against non-payment by winning bidders, settlement to sellers, treatment of failed transactions, and broader payment framework. Auction-specific payment considerations may differ from standard e-commerce payment. Regulated Auction Categories Specific auction categories engage regulatory considerations including art and antiquities auctions engaging cultural property considerations, vehicle auctions engaging registration and roadworthiness considerations, real estate auctions engaging property registration framework, and broader regulated categories. Regulated category auction operations should engage applicable framework substantively. Cross-Border Auction Considerations Cross-border online auctions engage considerations including customs and import for cross-border auction items, payment arrangements across borders, applicable law and jurisdiction, and broader cross-border framework. Cross-border auction operations should structure their engagement substantively rather than rely on platform framing. How We Can Help Etihad advises on Iraqi online auction platforms, including platform structuring, regulatory positioning, bidder and seller agreement preparation, response to auction-related disputes, and broader strategic positioning for auction operations.

Privacy Policy Requirements for E-Commerce Websites in Iraq

Privacy policies establish the framework for handling customer personal data, addressing the substantive practices alongside disclosure to customers. Iraqi e-commerce operations engage customer personal data across substantial categories with corresponding privacy considerations. The framework engages developing Iraqi data protection considerations, international expectations from customer-facing operations, and broader operational discipline. Iraqi Data Protection Context The Iraqi data protection framework continues to develop, with comprehensive data protection legislation in various stages of consideration. The current Iraqi framework engages constitutional privacy considerations, sectoral data protection in specific contexts, general civil law protections, and broader privacy considerations. Operators should anticipate evolving requirements alongside current practice rather than rely on current framework gaps. Privacy Policy Function Privacy policies serve dual functions of disclosure to customers about data practices and operational framework guiding the operator’s data handling. Effective privacy policies provide substantive disclosure rather than minimal documentation, with content matching actual practices. Privacy policy gaps relative to actual practice create both customer relationship issues and broader exposure. Personal Data Categories E-commerce operations engage substantial personal data including identification data, contact information, transaction history, payment information, device and browsing data, location data, and broader behavioural data. Privacy policies should address the categories collected rather than provide generic disclosures that may not match actual collection practices. Collection and Use Collection and use disclosures address the purposes for data collection, the legal basis for collection where applicable, the use cases for collected data, retention periods, and the relationship between collected data and operational delivery. Disclosure should be substantive rather than rely on broad permissions that may not satisfy substantive privacy considerations. Third-Party Sharing Third-party sharing disclosures address the categories of third parties receiving customer data, the purposes of sharing, the safeguards applicable to shared data, and customer choices regarding sharing. E-commerce operations typically share data with payment processors, delivery providers, marketing platforms, and broader operational partners, with disclosure matching the actual sharing pattern. Security and Data Protection Security disclosures address the operational measures supporting data security, the relationship between disclosed measures and actual practices, response to security incidents, and the broader security framework. Security disclosure should match operational reality rather than aspirational language. Customer Rights Customer rights provisions address the rights customers have regarding their data including access, correction, deletion where applicable, and broader rights. Iraqi data protection rights continue to develop, with operators benefiting from anticipating evolving expectations rather than minimal current obligations. International Considerations International privacy considerations affect Iraqi e-commerce engaging international customers or operating across borders, including GDPR applicability for EU-resident customers, broader international framework engagement, and customer expectations shaped by international standards. International considerations may exceed current Iraqi requirements substantively. How We Can Help Etihad advises on Iraqi privacy policies for e-commerce, including policy drafting and review, alignment with operational practices, international privacy considerations, response to data-related issues, and broader strategic positioning for data governance.

Anti-Trafficking Policy for All Labor Recruitment Companies

Anti-Trafficking Policy for All Labor Recruitment Companies The Registrar of Companies has announced, as part of Iraq’s 2026 Annual Anti-Human Trafficking Plan, that all licensed manpower and labor recruitment companies must file a formal corporate social responsibility statement containing explicit anti-trafficking commitments. All recruitment companies must submit an annual anti-trafficking policy to the Companies Registry. Failure to comply risks suspension of the recruitment license. WHAT COMPANIES MUST DO Policies must address worker rights guarantees, supply chain monitoring, and non-involvement in exploitative practices. Submissions are mandatory and must be renewed annually with the Directorate. The requirement follows the Directorate’s circular dated 9 April 2025. Non-compliant companies face license suspension.

Iraq Mandates Certified Accountants for All Private Companies

Iraq Mandates Certified Accountants for All Private Companies The Registrar of Companies in Iraq has announced new mandatory requirements compelling all limited and private companies to appoint a certified accountant registered with the Association of Accountants and Auditors, effective for fiscal year 2026. KEY IMPACT Companies must appoint a certified accountant to prepare annual financial statements. Accounts prepared by unregistered accountants will be rejected by the Companies Registry Directorate. WHAT COMPANIES MUST DO Accountant appointment must be linked to the company’s founding document or an official appointment minutes. Any change of accountant requires prior approval from the Association of Accountants and Auditors. The appointment must align with Retirement and Social Security Law No. 18 of 2023. Non-compliant accounts will not be processed by the registry. HOW ETIHAD LAW FIRM ASSISTS Etihad Law Firm guides businesses through the accountant appointment process, drafts compliant appointment minutes, and liaises with the Association of Accountants and Auditors on behalf of clients.

New Anti-Corruption Measure for Company Transactions

New Anti-Corruption Measure for Company Transactions The Iraqi Ministry of Trade’s Companies Registration Department today announced a significant new integrity measure aimed at increasing transparency and combating corruption. Effective 15 Mar 2026, all companies and their legal representatives must submit a formal pledge confirming the authenticity and accuracy of all invoices related to their transactions. This new directive requires that any transaction submitted for registration must include a declaration from the applicant, confirming that the associated invoices are correct, fully paid, and contain information that matches the company’s official records, including the name of the authorized director, shareholders, and headquarters. Under this new policy, the authorized director will be held legally responsible for the validity of all submitted information. The Companies Registration Department will conduct service-level checks to verify the authenticity of the information provided in the invoices. Any discrepancies or false information discovered will result in legal accountability for the company and its representatives. Impact on Iraq’s Business Environment This initiative is a critical step in the Ministry’s ongoing efforts to enhance the integrity of the business environment in Iraq. By holding company leadership directly accountable, the Ministry aims to create a more transparent and trustworthy market.

Change in Security Check Period

Change in Security Check Period The Iraqi Companies Registration Department announced a significant update to the mandatory security audit period for all companies operating in Iraq. This change follows a directive from the Office of the Prime Minister. Effective immediately, the period for security audits for all companies will be thirty (30) days. Impact on Businesses: This new measure is designed to streamline administrative processes and facilitate a more efficient business environment while upholding necessary security protocols. The shortened timeframe is expected to expedite company registration and operational approvals, allowing businesses to become fully compliant and operational more quickly. This change aims to reduce the delays and encourage investment by making the process more predictable and timely. How We 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. All companies registered in Iraq are instructed to take note of this official change and ensure their compliance with the updated 30-day security audit period.

Bankruptcy Procedures in Iraq

Bankruptcy in Iraq Bankruptcy is a court-supervised legal process initiated when a company or individual is no longer able to meet financial obligations. Under Iraqi law, bankruptcy leads to the liquidation of assets and structured distribution to creditors based on statutory priority. Bankruptcy is typically pursued when restructuring, settlement, or negotiated workouts are no longer viable. Mechanisms Court declaration of bankruptcy Appointment of trustee or liquidator Asset inventory and valuation Liquidation and sale of assets Verification and ranking of creditor claims Priority distribution to secured and unsecured creditors Closure and dissolution of the entity Reasons Persistent inability to pay debts as they fall due Accumulated liabilities exceeding asset value Final cessation of business operations Creditor petitions demanding liquidation Failed restructuring, settlements, or renegotiations Impact on Creditors and Stakeholders Bankruptcy procedures protect creditor interests by ensuring transparent liquidation, equitable distribution, and compliance with statutory priority rules. Secured creditors benefit from collateral rights, while unsecured creditors receive distributions according to available proceeds. 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.  

Free Zone Iraq

Free Zone & Investment Vehicle Establishment Iraq’s Free Zones offer foreign and domestic investors a favorable business environment with customs, tax, and regulatory incentives to support trade, industrial activities, and service operations. Companies established in Free Zones may operate with increased flexibility in import/export activities, and can serve both regional and international markets. Legal Framework Free Zones in Iraq are regulated by the Free Zones Law No. 3 of 1998 and its implementing regulations, under the supervision of the General Commission for Free Zones. The law permits full foreign ownership, profit repatriation, and simplified procedures for licensing and project registration. Permitted Activities Trade and commercial activities Import and export operations Warehousing and logistics Industrial and manufacturing projects Maintenance and repair operations Service and consulting activities Establishment Requirements Submit an application for project approval Provide business plan or activity description Register the company or branch entity Obtain zone-specific operating license Open local bank account (when required) Comply with security and customs regulations Customs & Trade Treatment Goods entering the Free Zone are not subject to customs duties unless released into Iraq’s local market, in which case standard customs tariffs apply. Goods exported outside Iraq may leave without customs duties. Investor Considerations Type of activity (industrial, commercial, service) Licensing requirements Customs interaction for dual-market operations Payroll and staffing needs (local vs foreign) Zone infrastructure and logistics capabilities 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.  

Establishing Companies – Oil & Gas

Establishing Companies for Oil & Gas The establishment of companies operating in the oil and gas sector in Iraq is governed by the Iraqi Companies Law No. 21 of 1997 (as amended) and subject to additional sector-specific regulations issued by the Ministry of Oil and its affiliated national oil companies. Oil and gas activities are treated as strategic activities and therefore require special approvals, technical qualifications, and compliance with Iraqi licensing procedures. Legal Basis & Regulatory Authorities Company Establishment (Corporate Law) Foreign companies may register a branch or incorporate an LLC Local companies may operate as LLC or JSC Registration occurs with the Registrar of Companies Social Security and Tax Authority registrations are mandatory post-establishment   Sector Licensing & Approvals (Oil & Gas Law & Ministry Regulations) Ministry of Oil Basra Oil Company (BOC) North Oil Company (NOC) Oil Projects Company (SCOP) Iraqi Drilling Company (IDC)   Companies performing technical or operational activities must obtain approval to perform work with these national oil companies (NOCs) and may need to be listed in their Approved Vendor Lists. Sector-Specific Regulatory Requirements ✔ Licensing & Qualification Technical capability and experience evidence HSE certifications (ISO, IADC, OSHA when applicable) Iraqi staff employment commitments Space & logistical capability in Iraq   ✔ Commercial Registration Obligations General Commission for Taxes General Social Security Department Chamber of Commerce Ministry of Oil (for technical approvals) when applicable   ✔ Local Content Requirements Companies must employ Iraqi nationals in certain roles Training & capability programs may be requested Certain subcontracting may require Iraqi participation   Common Activities Authorized Under Iraqi Regulation EPC contracting Well drilling & services Oilfield services & maintenance Field logistics & chemical supply Engineering & technical consultancy HSE & training services 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.  

Ongoing Corporate Compliance

Ongoing Corporate Compliance & Reporting Requirements Companies in Iraq must maintain ongoing compliance with reporting, tax, employment, and corporate governance requirements. Proper compliance reduces legal and financial risk, supports credibility, and ensures readiness for audits or inspections. Compliance Areas Annual shareholders’ and board meetings Financial statements and audit reports Tax filings and declarations Social security and payroll reporting Contractual and sector-specific reporting Renewal of licenses or registrations Benefits of Compliance Management Avoids penalties and operational disruption Supports business continuity and tender eligibility Enhances investor and customer confidence Facilitates market expansion and financing 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.