PART 1
Definitions
The terms and expressions used in this Act shall have the following meanings:
Act: The Foreign Investment Promotion and Protection Act.
Foreign Investor: Non-Iranian natural and/or juridical persons or Iranians using capital with foreign origin, who have obtained the Investment
Foreign Capital: Various types of capital, whether in cash and/or in-kind, imported into the country by Foreign Investor, and
comprising the following:
a) Cash funds in the form of convertible currency, imported into the country tl1fough the banking system or other methods of
transfer acceptable to the Central Bank of the Islamic Republic of Iran;
b) Machinery and equipment;
c) Tools and spares, CKD parts and raw, addable and auxiliary materials;
d) Patent rights, technical know-how, trademarks and names, and specialized services;
e) Transferable dividends of foreign investors;
f) Other permissible items approved by the Council of Ministers.
General Conditions for Admission of Foreign Investments
Admission of Foreign Investment shall be made, in accordance with the provisions of this Act and with due
observance of other prevailing laws and regulations of the country, for the purpose of development and
promotion of producing activities in industry, mining, agriculture and services, and based on the following
criteria:
a) Bring about economic growth, upgrade technology, and technology transfer, and enhance the quality of products, increase employment opportunities
and exports;
b) Does not pose any threat to the national security and public interests, and cause damage to the environment; does not disrupt
the country’s economy and jeopardize the production by local investments;
c) It does not entail the grant of concessions by the Government to Foreign Investors. Concession means special rights, which
place the Foreign Investors in a monopolistic position.
d) The ratio of the value of the goods and services produced by the Foreign Investments, contemplated in this Act, to the
value of the goods and services supplied to the local market, at the time of issuance of the Investment License, shall not
exceed 25 percent in each economic sector and 35 percent in each field (sub-sector). The fields and extent of investment in
each field shall be determined in the by-law to be approved by the Council of Ministers. Foreign Investment for the
production of goods and services for export purposes, other than crude oil, shall be exempted from the aforementioned ratios.
