Iraq is undergoing significant economic transformations, making the investment law and the regulations of opening of foreign company branches vital tools for attracting investments and enhancing economic growth. The Iraqi Investment Law and the Branch Opening Regulation reflect a clear vision to build a suitable investment environment, enhancing investor confidence and the role of the private sector in achieving sustainable economic development.
Here, we clarify some of the legal provisions related to the opening of foreign company branches and the benefits granted to them:
- Article 215 / Second of the Companies Law No. 21 of 1997: States that "Anyone who engages in activities in the name of a foreign company branch without obtaining a registration license shall be punished with the penalty stipulated in Paragraph (First) of this article."
- Article 1 / Fourth of the Foreign Companies Branches System No. 2 of 2017, as amended: Defines the registration license as "the document issued by the Registrar of Companies announcing the registration of the foreign company branch in Iraq."
- Article 14 / First of the same system: States that "A foreign company is prohibited from engaging in any commercial activity or opening an office in Iraq if it has not been granted a registration license in accordance with the provisions of this system."
- Article 6 / Second of the aforementioned system: Permits the branch to engage in commercial activity upon signing an investment contract in accordance with the applicable investment laws in Iraq.
- Article 11 / Second / C of the Investment Law No. 3 of 2006, as amended: States that "The foreign investor has the right to open a branch of his foreign company in Iraq according to the law."
It is important to note that the status of an investor is only achieved after obtaining an investment license, and the opening of a foreign company branch in Iraq based on the Investment Law does not negate the regulatory conditions and requirements necessary for conducting business.
A foreign company branch may only conduct its activities in Iraq after obtaining a registration license. The amendment to the above Investment Law added the obtaining of an investment license as a reason for opening a branch of a foreign company in Iraq, indicating that the legislature has allowed the investor to open a branch of his company according to the law in its broadest sense.
From this perspective, it is clear that the Investment Law allows the foreign investor to open a branch of his company upon obtaining an investment license, considering it among the privileges and guarantees provided to him.
Law firms play a crucial role in providing the necessary legal support to foreign companies. These firms offer legal consultations, registration procedures, legal protection, and help companies understand local regulations and ensure compliance.
As a law firm, we at Osama Tuma for Legal Services and Advisory
can facilitate the entry process of foreign companies into the Iraqi market and provide the necessary support to ensure their success and continuity. By offering specialized legal services, we help our clients achieve their business goals efficiently and in compliance with legal and ethical standards.
In conclusion, establishing branches of foreign companies in Iraq represents a significant opportunity for growth and expansion. Our role as a law firm is to provide the necessary support to realize these opportunities and ensure that foreign companies benefit from the privileges granted to them under Iraqi investment laws.
At Osama Tuma for Legal Services and Advisory, we strive to provide comprehensive legal support to foreign companies, enabling them to fully capitalize on the available investment opportunities in Iraq and promote sustainable economic growth.
