The Iraqi Ministry of Trade – Registrar of Companies announced that, in accordance with the Council of Ministers’ directive No. (16180) dated 1 April 2024, and based on Article (18) of the Federal Budget Law for the fiscal years 2023–2024-2025, the Registrar of Companies will not proceed any request for any company in Iraq unless specific clearance documents are submitted.
New Requirements
In addition to the required submission of a PO Box and a local domain name, companies must now submit the following clearance documentation:
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- Good standing letter from the General Commission of Taxes
- Good standing letter from the Social Security Department
- Latest paid electricity bill for the company’s headquarters
- Latest paid water bill for the company’s headquarters
- Latest paid electricity and water bills for Iraqi shareholders and managers in companies owned fully or partially by Iraqi nationals (specifically for Iraqi LLCs)
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How will the announcement be implemented?
Starting from the week following the announcement, the Registrar of Companies will not proceed any request unless the company submits proof of clearance from electricity and water dues, including payment of the latest utility bills. This requirement applies to all companies operating in Iraq, including all branches.
The clearance must be evidenced by submitting the latest paid utility collection bill for both water and electricity dues owed to government entities. Any request not accompanied by this proof will be automatically rejected.
Effects on the Company’s File
Companies operating in Iraq should immediately ensure they are in good standing with all relevant government departments, particularly with the tax authority, social security, and utility providers. Corporate representatives should also coordinate with Iraqi shareholders and managers to obtain their personal utility clearances. Delays in gathering these documents may result in delays or administrative holds on company files.
Upcoming Labor Compliance Requirement
The Ministry of Labor is also expected to begin enforcement of the 80% Iraqi vs 20% foreign laborratio for companies operating in Iraq, either this month or the next. We will provide further updates once the decree is officially issued.
If you require a copy of the official decree or wish to discuss how this announcement may affect your business operations in Iraq, please do not hesitate to contact us.
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PARTNER
BAGHDAD | MENA Associates in association with Amereller | Princess Street 7 (Near German Embassy) District 609, Villa 3A| Baghdad | Iraq | T +964 780 000 3232
BASRA | MENA Associates in association with Amereller | Sayid Ameen Street | Bradeya | Basra | Iraq | T +964 780 000 8383
ERBIL | MENA Associates in association with Amereller | Golan Street, World Trade Center, 10 th Floor | Erbil | Kurdistan Region of Iraq | T +964 750 346 0444
