According to Iraqi law, it is not permitted to establish a limited liability company with only foreign partners. There must be an Iraqi partner, born to Iraqi parents, who holds the majority of the shares (March 2025).
Capital and bank deposit
- In order for a limited liability company to be permitted to engage in import and export activities, the law requires a minimum capital (March 2025).
- The capital must be deposited in an Iraqi bank, together with a declaration of the source of the funds, to allow an account to be opened in the name of the new company. The full amount or part of it can be withdrawn after the company establishment process is completed.
- The official cost of establishing the company is calculated on the company’s capital, and may increase depending on government requirements.
People and premises
- To complete the company registration procedures, the company must appoint a legal advisor (lawyer) and a certified accountant. Each of them must obtain a letter from their respective syndicate confirming their registration and the syndicate’s no-objection to their employment, addressed to the Companies Registration Department.
- A lease agreement for specific premises to serve as the company’s headquarters is also required.
Management of the company
- In Iraq, the partner authorised to sign on behalf of the company is referred to as the ‘Authorized Manager’. The powers of this position are absolute: the holder has the right to open bank accounts on behalf of the company, to deposit into and withdraw from such accounts, to conclude agreements with other companies, and to establish branches of the company in other countries (March 2026).
After the company is established
- In October 2024 we advised of a Companies Registrar decision that no tax settlement shall be finalised for any Iraqi company unless it proves ownership of a website ending with the domain “.iq” and pays yearly fees to the Iraqi Government for that website.
Your brand and your company
- A trademark must be registered either in the name of an individual person or of a local or foreign company. It cannot be registered in the name of a restaurant, an exhibition, a store, a shop, or other considerations that are not legal entities like companies (November 2024).
- The Court of Cassation has a judicial decision to nullify trademark registrations in the name of a store or restaurant; the trademark should be registered in the name of the owner of the store or restaurant (October 2024).
Frequently asked questions
Can foreign partners establish a limited liability company in Iraq on their own?
According to Iraqi law, it is not permitted to establish a limited liability company with only foreign partners. There must be an Iraqi partner, born to Iraqi parents, who holds the majority of the shares (March 2025).
What is the Authorized Manager of an Iraqi company?
In Iraq, the partner authorised to sign on behalf of the company is referred to as the ‘Authorized Manager’. The powers of this position are absolute: the holder has the right to open bank accounts on behalf of the company, to deposit into and withdraw from such accounts, to conclude agreements with other companies, and to establish branches of the company in other countries (March 2026).