Free Trade-Industrial Zones in Iran
October 24, 2015
FTIZs in Iran are excluded from the domain of the customs authorities and enjoy the full freedom for inflow and outflow of goods and commodities. The Iranian Parliament approved the Law on the Administration of Free Trade-Industrial Zones of the Islamic Republic of Iran in September 1993. The Council of Minister approved the by-laws of the free zones in May 29, 1994. These by-laws have defined and set out all regulations pertaining to import, export, investment, insurance, banking, labor and employment of these zones. The incentives and advantages for investment in FTIZs of Iran are as follow:
- Tax exemption for the period of 20 years from the date of the commencement of the operation mentioned in the licenses for all economic activities
- 100% foreign ownership
- Legal guarantees and protection for foreign investment
- No limitations on transfer of foreign currency to other Iranian Free Zones or to other countries
- Freedom of inflow and outflow of capital and expatriation of profits generated by economic activities in FTIZs
- No requirement for entry visa for foreign nationals and easy procedures for issuance of residence permits
- Facilitated regulation on labor relations, employment and social security
- Transfer of part manufactured goods to the mainland without paying customs duties
- No requirement for payment of customs duties on imports from abroad and vice versa
- Legal guarantees and protection for foreign investment
- Utilization of raw materials, oil and gas as feedstock and fuel for all industrial activities
The list of the FTIZs of the Islamic Republic of Iran is as follows:
- Qeshm Free Trade-Industrial Zone
- Chabahar Free Trade-Industrial Zone
- Aras Free Trade-Industrial Zone
- Anzali Free Trade-Industrial Zone
- Arvand Free Trade-Industrial Zone
- Kish Free Trade-Industrial Zone
- Maku Free Trade-Industrial Zone