Foreign investment laws are among the complicated branches of international laws which has not developed as much as other branches despite its long history. This branch of law consists of various subjects such as foreign investments laws, foreign investment guarantee, necessary legal formalities for foreign investments, bilateral or multilateral treaties of foreign investments, international arbitration procedure, and doctrine.
Investment in Iran dates back more than a century ago. At the time, even though the profit of such investments were one-sided and merely for the investors, yet this unilateral system of concessions created a significant change in the recognition of the sovereignty of states on their natural resources by international law. The first step for governments in order to assert their sovereignty was to create regulations that would regulate the host government and foreign investors’ relations in the direction of mutual benefits so as to benefit from foreign investment as an effective instrument for sustainable development.
In expressing the benefits of direct foreign investment, it is enough to say that in terms of objective experience, the main focus is on economic progress, production growth, employment generation, technology acquisition, improvement of management quality, marketing and export development, and that it plays a key role in the sustainable development of the investment-oriented country.
To imagine that foreign investments from multinational companies mostly occur in developing countries is a wrong belief. In practice, it has been proven that investing companies always work against these commonly-held beliefs in their decisions; and that developed countries have always had the most foreign investment attraction in comparison to developing countries due to structural reasons. It is no secret to anyone that developing countries also need to attract foreign capital in order to meet their macroeconomic goals but also to cover financial impasses and increase their economic growth. Accordingly, foreign investment in order to overcome economic problems and the prosperity of employment and the transfer of modern technology, the use of foreign investment and resources is considered as the most appropriate option in all respects.
Considering the mentioned points, what needs to be addressed seriously is the creation of the necessary premises for the realization of foreign investment. Hence, a companion and expert guide to illustrate the best legal ways and support from the starting of an investment project to its very end becomes crucial.
It seems that the existence of an empowered private sector in an investment-oriented country would be a suitable incentive for the realization of foreign investment. Moreover, the strengthening of the private sector requires the creation of a framework and structure appropriate to the conditions of the activity of this sector and the conditions governing the capitalist countries.
The government of Iran welcomes foreign investments of any kind (real and legal entities). Iran has provided special facilities for those who want to invest in country, whether they are citizens, people who have come to Iran from abroad, those who want to present machines and facilities and raw materials and special services in cash or non-cash form, or take a step in the mining industry or agriculture or services. In general, foreign investment for foreigners is allowed in Iran, but the mentioned facilities and advantages are only given to those investors who ask for support from the government and support foreign investment. For this purpose, they must present their investment request to the investment organization in Iran which is responsible for receiving investment requests, issuing investment licenses, supporting foreign investors’ profits during the time of their activity disregarding the type of their investments and so on.
In a country like Iran, in which the role of the country is bold and extensive in different sections of commerce and economics, commercial liberalization and the reduction of government volume and the transfer of non-governmental activities to the private sector are among the key indicators of the growth of direct foreign investment.
Since Iran has vast natural resources and energy, and numerous mines and agricultural and animal husbandry areas, it strongly attracts foreign investors. The important point that should be mentioned here is that in terms of area, Iran consist of 1% of the earth’s surface but contains 5% of the earth’s natural resources which by itself increases the power of investment in the country. Sarasa Law Office is proud to have a great deal of experience in this field and a glorious experience in investment laws in Iran, as well as cooperation with major foreign investors such as China.
Given that investment laws are very extensive and complicated and consists of big commercial contracts, it is eventually crucial to consult with experts in this field, which is why we also advise you to consult expert attorneys in order to conclude reliable and profitable contracts.