Company Registration Rules & Details in the Kurdistan Region
Company Registration Rules & Details in the Kurdistan Region
The Kurdistan Region of Iraq (KRI) offers a business-friendly environment for local and foreign investors. Registering a company in KRI requires compliance with specific legal and regulatory procedures. Below are the key details and requirements for company registration.
1. Types of Companies
Businesses can be registered under different legal structures, including:
- Limited Liability Company (LLC) – The most common type of company in Kurdistan.
- Joint Stock Company – Suitable for larger enterprises.
- Branch of a Foreign Company – For international businesses expanding into Kurdistan.
- Sole Proprietorship – For individuals conducting business under their own name.
2. Requirements for National Company Registration
A. General Conditions
✔️ Business Name Reservation: A unique trade name must be reserved and registered.
✔️ Minimum Capital Requirement: The company must have a minimum capital of 1,000,000 IQD (One million Iraqi dinars).
✔️ Registered Office: The company must have a physical office with a valid address in Kurdistan.
✔️ Legal Status of the Owner: The company owner must have full legal rights and must not be a government employee.
B. Required Documents
📌 For Local (National) Companies:
- National ID (Jinsiya) and Civil Status Card.
- Electronic business name registration.
- Unique Personal Number (UPN) for the authorized manager.
- Company formation contract generated from the official registration system.
📌 For Foreign Companies:
- A notarized power of attorney (if the applicant is outside Kurdistan).
- A copy of the founder’s passport.
- If the founder is in Kurdistan, a valid residency permit is also required.
- A written proof of the company’s capital deposit in a registered bank.
- A legal authorization letter if the registration is completed by a representative.
3. Registration Fees
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Company Registration Costs
💰 4,500 IQD per million IQD of company capital (total capital-based fee).
💰 25,000 IQD – Business name inspection fee.
💰 50,000 IQD – Company registration fee.
💰 25,000 IQD – Printing fee for registration documents.
💰 50,000 IQD – Authentication of documents fee.
💰 50,000 IQD – Business name certification fee.
💰 25,000 IQD – Business name approval fee.📌 Total registration costs vary based on company capital.
CEO Appointment Fees
💰 50,000 IQD – Document authentication.
💰 25,000 IQD – CEO appointment fee.
💰 25,000 IQD – Printing costs.
4. Steps to Register a Local Company
- Submit Required Documents Online: Upload all necessary documents via the official government registration system.
- Await Confirmation Email: Receive an email from the company registration office with further instructions.
- Verification & Payment: Visit the relevant registration office to verify original documents and pay the registration fees.
- Receive Company Certificate: Once approved, you will receive an official company registration certificate.
5. Post-Registration Obligations
After registering a company, the following steps must be completed:
✔️ Hiring a Legal Representative: Must register with the Lawyers Syndicate.
✔️ Appointing an Accountant: Must be registered with the Accountants Syndicate.
✔️ Tax Registration: Obtain a tax ID from the Corporate Income Tax Department.
✔️ Social Security Registration: Register employees with the Social Security Department.
✔️ Obtain Necessary Business Licenses: Depending on the sector, additional approvals from relevant ministries or local authorities may be required.
6. Additional Notes for Foreign Investors
- Foreign investors can fully own a company without the need for a local partner.
- Businesses in sensitive industries (e.g., oil, security, media) may require additional approvals.
- Foreign companies operating in Kurdistan must obtain approval from the Ministry of Trade and Industry.