At least 184 foreign companies have entered agency agreements with Iranian agents. Foreign companies need to know more about the agency law of Iran before entering into an agreement with the Iranian companies.
The number of international companies that are either negotiating, or planning, or at least considering a return to the Iranian market is increasing. Sooner or later, foreign companies need to initiate the process of negotiating an agreement with their Iranian counterparts. In that case they have to respond to few difficult questions: What are the crucial issues of concern during the negotiation process? Later, when the parties start the process of drafting their agreement(s), what are the key issues that the foreign party must take into consideration? What are the legal sources of international commercial contracts in the Iranian legal system? Is there any specific law that determines the limits of the contract law of Iran? How the laws of Iran interact with its jurisprudence? Would it be necessary for a foreign party to learn about Sharia rules, as far as international commercial contracts are concerned?
Where two or more persons, whether natural or juridical, put together their assets to start a business activity in order to reap the benefits and to avoid the losses, they form a joint venture. Due to complexity of joint ventures, on the one hand, and strong desire of the partners to a joint venture to agree on every aspect of their venture, on the other, it is necessary that the partners found their relationship on a well-drafted and sufficiently detailed joint venture agreement.
The term “foreign corporation” is composed of two parts: corporation, and foreign. To understand the real and actual sense of these two terms in the law of Iran, we need to explain how, why and when these two concepts came to existence, lived their life, and finally took their current shape in the legal environment of Iran. After getting to know about their history, we need to look at what they actually are. This requires that we explain their legal functions in the socio-economic context of Iran. These functions, in their turn, are subject to the laws and regulations of Iran
The number of economic laws of Iran is very limited. A major reason for this shortcoming is that the general principles of the civil and commercial law of Iran are believed to respond to all possible questions in the field of international trade and economic law. In other words, the Civil Code and the Commercial Code of Iran are considered by majority of the Iranian lawyers as jus communes of the Iranian legal system. This understanding in its turn is based on a basic rule of Islamic law that fiqh (teachings of Sharia) shall respond to all legal queries forever.
Message of a ‘New Start’
After more than thirty years of working as an international law office, our hope for a paradigm shift in the economic environment of Iran encourages and entices us to experience a new start by providing the public and our selected clients with bi-weekly, bi-monthly and yearly News & Analysis about the legal developments that are taking place in Iran. Our objective is to help our readers to keep themselves abreast of these developments and to remain aware of all the opportunities that are and will become available to them in the Iranian market.