On 16 January 2016, Iran received extensive economic and financial sanctions relief following confirmation from the International Atomic Energy Agency (IAEA) that Iran had met its obligations under the nuclear deal agreed on 14 July 2015, meaning the country is now able to trade more freely globally. Oil Market is Unchanging Currently. If you are staying in Iran for more than 6 months, your application must include your academic or professional certification approved by the Embassy of the Islamic Republic of Iran in the UK. To work in Iran you need an entry visa that includes the right to engage in specific work and a valid work permit under Article 120 of the Iran Labour Law. The Company shares one third of Iranian oil export, operating in Iranian side of the Persian Gulf and Oman Sea . Imports of items such as construction materials, production equipment, spare parts and tools are duty free provided they are used for production or construction within the FTZ. The dominance of the state in Iran’s economy means that it has complex regulations, often giving consumer and employee protection precedence over ease of doing business. More for IRANIAN OIL COMPANY (U.K.) LIMITED (01019769) Officers; Persons with significant control; Filter officers Filter officers Current officers 32 officers / 30 resignations DAMANPAK, Jafar Correspondence address 7 Queens Gardens, Aberdeen, Scotland, AB15 4YD . There is a positive outlook for UK-Iran trade relations. Iranian energy companies have agreed deals worth $1.2 billion to raise the nation’s crude output, state-run National Iranian Oil Co. said. Despite the lifting of many sanctions, Iran can be a difficult place to do business. UK businesses looking to trade or invest in Iran should be aware of: Breaching sanctions is illegal. Iran’s economic performance is expected to improve following the recent lifting of some sanctions. OPEC+ Come to an agreement to Keep 18 Members’ Oil Output Unaffected for April. This means the effective tax rate is 2.5% to 10%). Industry analysts have predicted that Iran will achieve sizeable increases in both oil and gas production, but that its targets will be easier to reach in a timely and efficient manner with foreign investment and the latest technology. Biggest Oil and Gas Opportunity in Iran. All Iranian entities and branches of foreign companies must file an annual corporate income tax return and submit their balance sheet and ‘profit and loss’ account within 4 months of the end of the fiscal year. The Iranian state acts as both the regulator of, and an important player in, the country’s economy. Companies must register with the State Tax Organisation and Social Insurance Organisation for: You must have an economic code (similar to a tax identification code) to operate in Iran. OPEC+ Come to an agreement to Keep 18 Members’ Oil Output Unaffected for April. Codified areas of business law in Iran include: Employment in Iran is governed by the Labour Code of 1990 which applies to both Iranian and foreign employees. The functions of the two operating companies would terminate and the Consortium Members would cause a Service Company to be formed in Iran as a non-profit private joint stock company named the Oil Service Company of Iran (OSCO) to carry out services as assigned to it by NIOC in accordance with a Service Contract to be entered into with NIOC. In the event of a significant non-performance and after having exhausted all recourse possibilities under the dispute resolution mechanism, the snapback will be considered by the other JCPoA participants. Iran is ranked low in both the Corruption Perceptions Index and the Ease of Doing Business Ranking. Interest paid to a non-resident is subject to a 3% withholding tax. Any payment made to a supplier without an economic code will be added back to the profit and loss account of the Iranian entity and no tax deduction will be allowed for the expense. Your search. The length of patents is decided by the inventor who pays an annual fee. While this may not be binding on an international arbitration tribunal, an arbitration award may be unenforceable in Iran. Any documents that need to be filed with an Iranian court also need to be translated by an official translator and certified by the judiciary, or notarised by the Iranian Embassy in London. Thanks for subscribing to our free newsletter! These political and economic links could be of concern to investors. CBI policy is trying to unify the exchange rates by allowing the official rate to depreciate gradually until it meets the market rate. Around 90% of the population of Iran is covered by government insurance schemes. Iran is a highly centralised country and the government regulates nearly all activities. Non-Iranian estimates forecast growth of around 5% a year. UKEF will also consider applications for direct lending to purchasers of British exports to Iran. On 7 August 2018 the existing EU Blocking Regulation was updated to include re-introduced US sanctions on Iran following their withdrawal from the JCPoA. All official company documents must be in Farsi. 2021-03-08. Role Active Secretary Appointed on 27 June 2018 DAMANPAK, Jafar Correspondence address 7 Queens Gardens, Aberdeen, … Iran is an Islamic Republic and its legal system is based on Sharia principles. To get a 3-year residence permit, you will need to submit the OIETAI’s official confirmation of the coverage of the investment under FIPPA. The government creates regular economic plans and these have a significant impact on the direction of the country. with over a half century of experience. If you are not an investor, a residence permit will only be issued or renewed if you have a valid work permit. It’s estimated nominal GDP was USD 397 billion in 2015. With the easing of economic sanctions, interest in the Iran market has developed from UK retailers. Established by highly experienced oil & gas professionals in 2000, IranOilGas Network is the leading independent Iranian oil, gas & petrochemical information network providing a variety of consultancy & information services. Iran is interested in investments by Russian oil companies, Russia's TASS news agency quoted Iranian Oil Minister Bijan Zanganeh as saying on Monday. Iran is a wealthy market and with many sanctions now lifted, there is an expected appetite for western brands. Iran’s oil and gas sector is the largest sector in the Iranian economy, comprising 23% of GDP in 2014. Iranian visas: Business trips can be made to Iran using: To get a business visitor visa for Iran, an Iranian-registered business must sponsor your application. Before you engage in business in Iran ensure you’ve carried out due diligence measures. Some goods, software and technology require a licence for export outside the EU. On 2 November 2018, the Foreign and Finance Ministers of France, Germany and the UK issued a statement reiterating their support for the JCPoA. A UK business wishing to supply these goods or services to Iran, or to accept an investment by an Iranian person, must seek a licence from the Export Control Organisation (ECO) in DIT. This includes the Iranian Revolutionary Guard Corps (IRGC). 16 companies Filter your search. Under Iranian law, an arbitration clause can be agreed as part of a commercial contract. The sector is mature but with huge potential for expansion. Search for export opportunities. On the whole, banks in the UK remain cautious of facilitating Iran-related transactions, due to remaining sanctions on Iran and the cost of fulfilling compliance requirements. Iran has the world’s fourth largest oil reserves (158 billion barrels), equivalent to more than 150 years of production at 2014 extraction rates according to the 2015 BP Statistical Review of World Energy. London The Iranian government is providing around USD 15 billion of funding to increase manufactured metal production. Reuters News - 05-Apr-2020 oil and gas Iran says platform caught fire at South Pars gas field, no fatalities - SHANA Most financial and economic sanctions against Iran were lifted following the International Atomic Energy Agency’s verification that Iran had completed all necessary steps to reach Implementation Day (16 January 2016). Under the Iranian constitution, the Council of Ministers and the Parliament has to approve the referral of disputes concerning public and governmental parties to arbitration. There are also EU and international controls. Cover is now available on a case-by-case basis in Pounds Sterling and Euros for exports in all sectors, including early priority areas such as aerospace, financial and professional advisory services, infrastructure, technology and oil and gas sectors. There is no withholding tax on dividends paid by Iranian companies. The Iranian government has committed USD 7 billion of annual spending to develop its water infrastructure, including desalination plants in the Persian Gulf region and water distribution pipelines. The division between public and private sectors in Iran is often blurred by the presence of a number of semi-autonomous organisations closely aligned to the state. SW1A 2HQ, Email More: Latest News. This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. The pharmaceutical industry in Iran was worth £1.86 billion in 2015, including £1.24 billion of locally manufactured, mostly low-value, high-volume products. Foreign investors in Iran need to register with the relevant government authorities. Loading Operations of Platform A14 of South Pars Gas Field. The UK fully implements UN, EU and UK domestic sanctions law. When a UK business exports certain goods, services and technology to Iran, strict controls remain in place throughout the entire process. Non-Iranian nationals need immigration permission and work permits to be able to work in Iran. Read ECO’s detailed guidance on the procurement channel. Transfer of profits and dividends out of the country are subject to the approval of the Minister of Finance, and only allowed after outstanding fees or taxes are deducted. 1 Horse Guards Road 2021-03-08. The government plays a significant role in the sector, which is regulated by the Central Bank of Iran. Iran’s economy is relatively diversified. Iran’s retail sector is very traditional for the region, with wholesalers generally supplying independent outlets from central ‘bazaars’ in the major cities. This means that if you travel to Iran as a dual national and you encounter difficulties or are detained, the British Embassy will be unable to offer consular assistance or get access to you. Items on the UK Military List are covered by the EU Arms Embargo, and none of these listed items can be exported. Applications for a licence with respect to financial sanctions should be made to the Office of Financial Sanctions Implementation: Office of Financial Sanction Implementation Iran is aiming for 8% annual GDP growth up to 2020. When large sums of foreign capital are transferred in and out of the country, it is conducted by the CBI at the official exchange rate. Foreign entities are taxed on income derived from sources in Iran or from activities performed in Iran. Texas forced to have rolling brown outs. Work permits are only granted to foreign nationals if: If you’re planning on staying in Iran for more than 3 months you must obtain a residence permit from Iran’s Central Police Administration. It should be noted that snapback is a measure of last resort. oil - Iran Results. It must provide a letter of invitation, or submit the application directly to the Iranian Ministry of Foreign Affairs on your behalf. It will take only 2 minutes to fill in. Items on the dual use list require an export licence. To get an investment licensing permit under FIPPA you must submit a formal application with supporting documentation to the OIETAI. Iran’s petrochemicals sector production is mostly in private or semi-private hands. Iran’s aviation infrastructure is in significant need of investment, both in terms of its airports and air fleet (as 300 may be needed in the next 5 years). The investor residence permit means that you will not need entry and exit visas for traveling to or from Iran. However, Iran’s oil and gas sector will remain largely in the hands of the state, with constitutional limits on levels of foreign participation in the upstream sector. The sanctions remaining in force also prevent Iran-related transactions from passing through the US financial system. Guidance issued by the US Office of Foreign Assets Control (OFAC) with further information on US sanctions can be found on the US Department of the Treasury website. Trading and investing carries a high risk of losing money rapidly due to leverage. Iranian energy companies have agreed deals worth $1.2 billion to raise the nation’s crude output, state-run National Iranian Oil Co. said. The rates for the fiscal year to 20 March 2016 were: Income tax is levied on salaries, allowances and all types of remuneration. Duty rates in Iran can be as high as 75%. This situation has been described as a ‘snapback’, where some or all sanctions could potentially be re-imposed in the event of significant non-performance by Iran of its JCPOA commitments. Tries To Kill Nord Stream 2, China Issues Higher Oil Import Quotas For 2021, Toyota’s New Fuel Cell Module Could Be A Gamechanger For Hydrogen, U.S. Sells 10 Million Barrels Of Oil From Strategic Petroleum Reserve, Biden Shocks Environmentalists, Supports Gas Pipeline In Supreme Court Case, Shell Shuts Down 310,000 Bpd Deer Park Refinery, Saudi Arabia And Russia Are Headed For Another Clash On OPEC+ Oil Cuts, Texas Winter Storm Highlights The Importance Of Fossil Fuels, Morgan Stanley: Gasoline Industry Is About to Become Totally Worthless, What The Media Isn’t Telling You About Texas Blackouts, Biden’s Energy Secretary To Oil Industry: Adapt Or Die. US primary sanctions on Iran remain in place. A work permit is available for a maximum period of 1 year, but is extendable every year. You will be sent a draft licence to review, and if agreeable, the investment will be licence issued. It is likely that this will largely be through increased gas-powered generation capacity and the development of renewable sources. 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This presents a challenge for UK business seeking banking services to facilitate trade with Iran. 74-89% of retail investor accounts lose money. Rejected applications for registration of trademarks and patents can be appealed in the Iranian courts. Contact UK Export Finance (UKEF) about trade finance and insurance cover for UK companies. The Iranian government wants to develop its domestic pharmaceutical capability and is looking for business partners that are able and willing to transfer technology to Iranian organisations. Budget Airlines: European Clean Fuel Quotas Are Unfair, Three Reuters sources said Monday that Beijing…. Government enforcement can be ineffective, allowing companies to take advantage of informal networks to win business. They may also want to seek legal or business advice where they aren’t confident of their understanding of any relevant legal or market-related issues. Foreign investment is subject to limitations in 3 sectors: FIPPA protects non-Iranian investors and incentivises foreign investment by: Under FIPPA, foreign capital is defined broadly and can be in cash, in kind, or shareholder loans. President Trump has warned Iran that any military response will bring about further US attacks. Iran - 155 billion barrels. https://finance.yahoo.com/news/oil-stocks-buy-iran-plots-181006878.html The government plans to add more than 5GW of generation capacity a year to reach a total capacity of 96 GW by 2020. Some sanctions remain in place, however, including sanctions related to human rights, proliferation of restricted goods and technology and Iran’s support for terrorism. The UK government supports expanding our trade relationship with Iran and we encourage UK businesses to take advantage of the commercial opportunities arising from the lifting of sanctions. By Company type . Scientists Warn That Filling The Sahara With Solar Panels Is A Bad Idea, United States LNG Exports Reach Third Place, Tesla Is Plugging a Secret Mega-Battery Into the Texas Grid, Texas forced to have rolling black outs, primarily because of large declines in output from fossil fuel power plants, ‘We Have More Leverage in the Free World Than We Think’ Against Chinese Regime, U.S. Presidential Elections Status - Electoral Votes, America Makes Plans to Produce Needed Rare Earth Minerals Domestically, TX Flaring: Texas Oil Regulator Signals Flaring Crackdown After Backlash, Abandoned Wind Farm in the Oklahoma Panhandle: Revisited 2021, IS SAUDI ARABIA SENDING A MESSAGE TO BIDEN, Good Marriage And Bad Divorce: Germany's Merkel Wants Britain and EU To Divorce On Good Terms. You can also check the current UKEF cover position for Iran. You are not allowed to make funds and economic resources available to sanctioned entities, directly or indirectly, without a licence. However, employees are permitted to change their mind about the resignation within 15 days. Iran imposes an environmental tax amounting to 1% of the sales on contaminating production units, including refineries and petrochemical factories. UK businesses need to carefully determine what risks they might want to take on the less clear-cut issues of political or reputational risk, and ensure that they undertake appropriate and adequate levels of due diligence. If recruitment of a non-Iranian national is deemed urgent, an emergency provisional work permit can be issued for up to 3 months. South Pars, which Qatar calls North Field, is the world’s largest gas field and is shared between Iran and Qatar. In a joint statement, the leaders of the UK, France and Germany emphasised their continued commitment to the JCPoA. This comprehensive commercial code is needed for these companies to let Iranian customers pay them. You must ensure that any proposed agreements do not deal, either directly or indirectly, with a designated entity either in the supply of material or services or in the payment route used. However, the oil and gas sector still dominates. Imports of pharmaceuticals comprised just 5% of sales volume but 38% of the value. Not from downed power line , but because the wind energy turbines are frozen. For example, oil shipments could be at risk in the Strait of Hormuz, which, linking the Persian Gulf with the Arabian Sea, is bounded to the north by Iran and to the south by Oman and the United Arab Emirates. The EU Commission has issued online guidance relating this regulation. Russia Cries War As U.S. Find more export advice and explore opportunities overseas on great.gov.uk. China Dramatically Increases Ethanol Purchases From The U.S. India: OPEC+ Decision Could Derail Oil Demand Recovery, Mexico Is Quietly Pushing Out Foreign Oil Investors, Goldman Turns Bullish On Oil: Sees $65 Brent In 2021. These include: You are advised to take legal advice to ensure you’ve identified all requirements relevant to your business operation and location. If you are travelling to Iran for business, check the Foreign, Commonwealth & Development Office (FCDO) travel advice first. In 2015, European companies, including Total SA of France, ENI of Italy, Royal Dutch Shell, and British Petroleum (BP), indicated their interest in resuming oil investments in Iran. To do business in Iran, UK businesses first need to be aware of: Businesses preparing to do business in Iran should familiarise themselves with the relevant sections of this guidance. Iran’s oil exports doubled in the period between January 2016 when sanctions were lifted and May 2016 (Source: Opec). Many European car makers have also announced an interest in Iran. A lack of modern technology means Iran can’t produce the most advanced medicines. As of 5 November 2018, US nuclear-related sanctions have been re-imposed on Iran. As such, the UK government continues to fully support expanding our trade relationship with Iran and encourages UK businesses to take advantage of the commercial opportunities that arise. China and Iran are essentially the last development firms that remain in Iran. Iran has the second largest economy in the Middle East after Saudi Arabia. Enquiries relating to asset freezing or other financial sanctions should be submitted to the Office of Financial Sanctions Implementation. On 16 January 2016, Iran received extensive economic and financial sanctions relief following confirmation from the International Atomic Energy Agency (IAEA) that Iran had met its obligations under the nuclear deal agreed on 14 July 2015, meaning the country is now able to trade more freely globally. It differs in that resignation requires a month’s notice. The rate of depreciation is showing signs of slowing down, however. The best approach to starting business in Iran will depend on a company’s circumstances and activity. The rial (IRR) has been volatile in recent years and has seen marked depreciation due to high inflation and international sanctions. Published 23 July 2019. If the contract between an Iranian and a foreign national includes an arbitration clause, the law chosen by the contracting parties will be recognised. Representatives from major European oil companies … However, this is an area that the government of Iran is trying to address. You need a visa to visit Iran. Re-opening of the British Embassy in Tehran in 2015, the upgrade in diplomatic relations and the appointment of Nicholas Hopton as British Ambassador to Iran on 5 September 2016, marked an important step forward in diplomatic relations between the two countries. There are 8 state-owned banks active in the market. Arbitration clause should reference internationally accepted arbitration rules such as those of the (International Chamber of Commerce International Court of Arbitration, the Swiss Chambers Arbitration Institute or the German Institute of Arbitration. The law for protection of the rights of authors, composers and artists can be invoked if it has been determined that someone’s work has been published without their permission. Oil Market is Unchanging Currently. Since the end of the 2000s, Tehran has increasingly looked East to attract national oil companies into the Iranian upstream industry. Iran has: Iran’s labour market is characterised by: Investors may need to commit significant resources to training local staff. They are likely to be looking for international partners in the future. Benefits of trading in Iran for UK businesses include: EU trade with Iran in 2016 stands at around USD 8 billion and is expected to quadruple by 2018. This means that British businesses must consider their US connections, including the presence of employees holding US citizenship or green cards, before undertaking Iran-related activity. BP, Schlumberger and Pioneer Natural Resources are the three oil stocks to buy as tensions between the U.S. and Iran escalate, CNBC's Jim Cramer said. Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group. You should ensure you take the necessary steps to comply with the requirements of the UK Bribery Act. Read the full statement issued by the US government. Iran has gotten the short end of the stick when it comes to energy deals with Russia before, most notably when Iran was facing the threat of U.S. sanctions in May 2018. Tadbir Energy Development Group -An oil & energy company based in Iran and involved in construction of the Iran-Pakistan gas pipeline. Iranian customs regulations distinguish 3 categories of goods in terms of import procedures: Restrictions and conditions can also apply to imports that are similar to locally manufactured goods. Foreign businesses operating in Iran may also find their actions opposed by vested political and economic interests. You can find more about import tariffs in the Market Access Database. Iran also levies a car transfer tax and excise on intra-city transport services and motor vehicles. Biggest Oil and Gas Opportunity in Iran. An information note on EU sanctions to be lifted under the JCPoA can be found on the Europa website. Regulations To get a work permit for Iran your employer must submit an application to the local Iranian Ministry of Cooperatives, Labour and Social Welfare branch up to a month of the date of your arrival in Iran. Goods imports from outside Iran into its FTZs are not subject to import duties provided they’re sold within the FTZ or re-exported from Iran. more: This complicates payments into and out of Iran. All controls apply to ‘intangible’ transfers such as technology and software or technical assistance. Iran is the biggest new market to enter the global economy in over a decade, offering significant opportunities in most sectors, with potential to grow as the market in Iran expands. Income tax is levied at progressive rates up to 20%. This was the first commercially significant find in the Middle East. Patents in Iran are valid from 5 to 20 years. Iran grew by 4.3% in 2014 according to the World Bank. To deal with an entity subject to financial sanctions you must contact HM Treasury with information about the proposed dealings and the relevant grounds for licensing. Most prominent among these are charitable foundations known as bonyads or setads, many of which are now equivalent to large business conglomerates. a private joint stock company, limited liability company, branch office, or a representative office in Iran. Bitumen, Vaseline, Petroleum Jelly, White Oil, Liquid Paraffin, Soft Paraffin, Paraffin Wax, Cable Jelly Pak … All content is available under the Open Government Licence v3.0, except where otherwise stated, The Iranian economy and doing business in Iran, Challenges and risks of doing business in Iran, Entry requirements for doing business in Iran, Office of Financial Sanction Implementation, nationalarchives.gov.uk/doc/open-government-licence/version/3, export advice and explore opportunities overseas on great.gov.uk, As of 5 November 2018, US nuclear-related sanctions have been re-imposed on Iran following the US withdrawal from the Joint Comprehensive Plan of Action (otherwise known as the Iran Nuclear Deal) on 8 May 2018, upgrade in diplomatic relations and the appointment of Nicholas Hopton as British Ambassador to Iran, full statement issued by the US government, leaders of the UK, France and Germany emphasised their continued commitment to the, Foreign and Finance Ministers of France, Germany and the UK issued a statement reiterating their support for the, US nuclear-related sanctions have been re-imposed on Iran, Read the full text of the agreement and annexes, Society for Worldwide Interbank Financial Telecommunication, Iran Chamber of Commerce, Industries, Mines and Agriculture, Ministry of Cooperatives, Labour and Social Welfare, Organisation for Investment, Economic and Technical Assistance of Iran, International Chamber of Commerce International Court of Arbitration, Berne convention for the protection of literary and artistic works, Coronavirus (COVID-19): guidance and support, Transparency and freedom of information releases, the Iranian government’s encouragement for foreign investment, a population of around 80 million (the second largest in the Middle East after Egypt), a young population (60% are estimated to be under 30 years old), information specific to the sectors they want to invest or operate in, relevant sanctions and possible political risk, practical and legal considerations specific to Iran, the need to ensure that a bank has been identified willing to facilitate payments and that British businesses wishing to conduct business with Iran have access to adequate financial channels in place, make sure they don’t violate sanctions or other legal prohibitions on business, Iranian Mining Industries Development and Renovation Organisation, Industrial Development and Renovation Organisation, the world’s seventh largest mineral reserves, significant agricultural and service sectors, a young, growing, highly educated workforce, high unemployment, at 11.7% in April 2016 (Source: World Bank), low female labour force participation, with 12% of women active, low minimum wages by international standards (USD 216 per month in 2014), construction of liquefied natural gas (LNG) export facilities, technology to upgrade Iran’s manufacturing plant, an increase in long-term and lifestyle-related diseases and disabilities as opposed to infectious diseases, building new hospitals, adding 115,000 extra beds by 2021, developing up to 50 new medical laboratories, investing USD 280 million in new imaging centres, investing USD 130 million in new dialysis centres, political exposure, via connections with current or former government organisations or individuals that remain sanctioned, terrorist financing or financial crime, such as money-laundering, bribery or fraud, risk to a company’s reputation through work with people or organisations allegedly involved in human rights violations, corruption or litigation, EU sanctions against a small number of Iranian banks and as well as individuals and other organisations, arms embargo restricting export of goods, software or technology on the UK military lists, more than 30 Iranian banks are reconnected to, more than 200 international banks have started correspondent relations with Iranian banks, Iranian banks have opened more than 400 accounts with non-Iranian banks, some banks are seeking to either open foreign branches or start relationships with international banks, some Asian and Middle Eastern banks are beginning operations within Iran, non-performing loans, which are estimated to make up 15% to 40% of total lending, low levels of liquidity means banks and businesses find it hard to get credit, the presence of a large “shadow” banking sector, accounting for as much as 25% of all banking activity, banking systems, processes and skills do not meet international standards for anti-money laundering and counter terrorist finance nor for “know your customer” standards.