Doing business in Iran - Dayarayan.net

DOING BUSINESS IN IRAN
16 Who and how is the
empowerment for
representation
regulated
17 Regulations for the
business
management
18 How has the
participation on
profit/loss to be
handled
Branch & agent Limited Liability Company
l Unless the Articles-of-Association
provide otherwise, the directors of
the company will have all the
necessary powers to represent and
manage the company. Any
arrangement limiting the powers of
directors which is not expressly
mentioned in the Articles-of-
Association is null and void so far
as third parties are concerned.
According to branch manager authority Iran commercial code it is similar
European law
Participation on profit/loss depends on the
parent company decision.
Generally the way of profit
distribution should be determined
by the article association of the
company. At the same time in
accordance with the general
principle provided by the Iran
commerce code and tax act ,
distribution of net (after-tax) profits
of a company among its
shareholders is normally made on a
pro rata basis to the company’s
Private Joint-Stock
Company
The directors and the
managing director of a
company are responsible
either individually or jointly,
as the case may be, vis-à-vis
the company and third
parties in respect of any
infringement of legal
regulations or the provisions
stipulated in the Articles of
Association or the minutes of
general meetings. The court
shall determine the scope of
responsibility of each
individual for indemnity
purposes.
Iran commercial code it is
similar European law
Generally the way of profit
distribution should be
determined by the article
association of the company.
At the same time in
accordance with the general
principle provided by the Iran
commerce code and tax act ,
distribution of net (after-tax)
profits of a company among
its shareholders is normally
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