This article applies only to Iran.
A business license is required for any business that is related to customers’ rights or requires skills and obtaining a special license from relevant authorities according to the law. Businesses such as hairdressing, bakery, fast foods and restaurants, sewing shops, and etc… are examples of businesses which require a license.
Some businesses are in a way that they require learning special skills. People can acquire the relevant certification from authorized educational institutions and present them to the appropriate trade union. However, some businesses do not require acquisition of special skills but rather the ability to provide and perform certain services such as having sufficient funds to provide adequate location and facilities. Regarding this issue and regarding skilled people, duty requires that an adequate and standard place be provided in order to start the business.
These standards are set in place after taking into account the possible risks of the job, safety of people, staff and customers as well as properties, equipment and even sometimes privacy, area, and auxiliary facilities. Respective trade unions and the office of locations (Persian: Edare Amaken) provides the basis for issuing the business license, after determining and confirming the existence of these situations. Although, in personal businesses reassuring documents must be provided confirming the existence of these qualifications and facilities. Identification documents and the right to use including valid rental agreement or ownership documents are also obligatory.
Business license issuing procedures
Issuing a business license follows the subsequent procedure:
First step of issuing a business license
- Written request of applicant for issuing a business license
- Request registration and providing the applicant with the receipt
- Visiting the trade unit by the union’s designated inspection commission and presenting a report
- Review of the applicant’s request during the board meeting and giving them a written response.
Second step of issuing a business license
- At this level, one of the following documents must be presented in order to check the trade unit’s real estate status:
- Proof of ownership in the name of the license applicant
- Official rental lease in the name of the license applicant
- Normal rental lease (with a notarized commitment note) in the name of the license applicant
- Letter of credit in the name of the license applicant
- Definitive court order requiring the settlement of the rental lease
- Receipt of valid rent payment
- Rental contract of place of business with government organizations, institutions, municipality, housing cooperatives, special companies, and government-supported organizations and institutions
Male applicants must also provide one of the following documents:
- Certificate of end of military service
- Certificate of permanent exemption
- Certificate of education
- Valid certificate of medical exemption from department of military services
- Military service notebook with no leaving stamp in its validity period
Providing public business or workshop or administrative records of the requested trade unit.
In addition to the above mentioned documents, the following official papers must also be presented:
- Copy of all pages of the birth certificate
- Copy of national ID card
- Copy of educational degree or at least reading and writing literacy (except for applicants over 50 years old)
- 12 pieces of recent 3×4 personal pictures
- Receipt of deposit of up to 5 times the right to join the union (entrance fee) not exceeding 3.000.000 Rials
- Receipt of payment of 30.000 Rials to the account number 21733008 State Treasury
Third step of issuing a business license
Inquiry from relevant departments and providing the following documents:
- Certificate from the department of health of the city and presenting the medical examination cards for selected trades (food and beverages and cosmetics)
- Non-addiction certificate
- Criminal record clearance certificate
- Police inspectorate agreement
- Certificate of education (minimum 10 hours) from a valid educational institute (approved by the respective city’s inspection commission)
- Any documents showing creation of tax case or payments
- Certificate of technical skills for businesses mentioned under the amendments of Article number 13 of the law
- Assignment of a 10-digit ID code (Mellat Card) and addition of it to the business license
- Assignment of a trade ID sticker according to the 10-digit code
Fourth step of issuing a business license
Evaluation of the case by the chairman or in their absence the vice-chairman of the respective trade union.
Fifth step of issuing a business license
Issuance of the business license following the four previously mentioned steps and delivering it to the applicant.
For more information on how to obtain a business license, please contact our experts at Sarasa Law Office.