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International firms – starting business in Iraq

General information

· Foreign investment – CPA Order 39 opened Iraq to foreign investors. The new law allows for 100% foreign ownership in all sectors in Iraq except oil and mineral extraction.

· Doing business in Iraq

o CPA – For an overview of the investment and legal climate in Iraq along with information on visiting Iraq, including lists of security firms, hotels, and transportation options, download the CPA Private Sector Development Iraq business guide here. The CPA also maintains a site with information about doing business in Iraq, which can be found here.

o US Department of Commerce Iraq Reconstruction Task Force – This group maintains a business guide with general information and overviews of key sectors as well as a list of frequently asked questions about doing business in Iraq.

· Traveling to Iraq – In addition to the general information provided in the guides above, governments of several countries maintain up-to-date travel advisories for Iraq. Click here for a list.

Registering your business

· The first step to starting your business is to register it with the government so that you can personally protect yourself and so you can have access to financing and other privileges as a business entity. The documents in the links below are very straight-forward and thorough in terms of outlining the steps needed to register. If you are starting a complex or large business, you may want to use a lawyer to help register your business.

o Contractors – Pursuant to CPA Order 17, Coalition contractors and sub-contractors that are not normally resident in Iraq are not subject to Iraqi laws or regulations with respect to licensing and registration of employees, businesses, and corporations in relation to contracting activity

o NGOs – Non-governmental organizations founded explicitly for humanitarian purposes must register with the Ministry of Planning pursuant to CPA Orders 45 and 61.

o All other businesses – All other businesses must be registered with the Registrar of Companies of the Ministry of Trade

§ Branch offices of foreign companies: Branch offices of foreign companies must be registered with the Ministry of Trade pursuant to Ministerial Instruction 149. The application form to be submitted to the registrar can be found here.

§ Foreign owned Iraqi companies: Iraqi companies must register with the Ministry of Trade pursuant to the Company Law (as amended by CPA Order 64) and Ministerial Instruction 196 from the Ministry of Trade. Copies of both of these documents as well as a summary of other recent changes affecting the legal environment for business in Iraq can be found here. The new regulations are stream-lined compared to those under the previous law, with the a single application form with references to all necessary information, the removal of barriers against foreign ownership, and the introduction of the Registrar of Companies of the Ministry of Trade as the one-stop shop for legally establishing your business.

Other resources

· Business centers – there are business centers being set up around Iraq. There are currently operational centers in Baghdad, Kirkuk, Basra, and Umm Qasr. Business centers can help you in assessing the business environment in Iraq and partnering with Iraqi firms.

· Security – A list of security firms can be found here.

· Professional assistance – lists of lawyers, real estate agents, and accountants, as well as other helpful links can be found here.

· Employees – The most important part of any medium sized or large business is its employees. The Ministry of Labor and Social Affairs has employment centers around the country where companies, both private and public, can go to recruit potential employees. Click here for a list of centers around Iraq along with contact information.

· Ministry of Trade Private Sector Development Group – if you have other questions related to the business environment in Iraq, please direct your questions to foreigninvestment@orha.centcom.mil. [this will eventually transition to the MOT]