Limited Liability Company (LLC)
شركة ذات مسؤولية محدودة
Company formation in Iraq
The LLC is best suited for: Oil and gas service companies operating in Iraq, Construction and infrastructure contractors with Iraqi government projects, Telecoms and IT companies serving the Iraqi market, Healthcare investors and service providers. Standard corporate income tax in Iraq is 15% on taxable profits. Companies operating under the National Investment Commission (NIC) investment licence qualify for a 10-year tax exemption from the date the project becomes operational. Oil and gas companies operating under production sharing agreements are subject to 35% CT. There is no VAT in Iraq. Withholding tax of 15% applies on payments to non-resident contractors. The Kurdistan Region has its own tax administration but applies the same federal rates.
- Oil and gas service companies operating in Iraq
- Construction and infrastructure contractors with Iraqi government projects
- Telecoms and IT companies serving the Iraqi market
- Healthcare investors and service providers
Key Facts
Step-by-Step Formation Process
Obtain approval from the Companies Registrar
Apply to the Companies Registrar at the Ministry of Trade for initial approval. Submit the proposed company name, business activities, and shareholder details. For investment law projects, also apply to the National Investment Commission (NIC) for an investment licence.
Draft and notarise the Memorandum of Association
Prepare the Memorandum of Association specifying shareholders, capital contributions, management structure, and business activities. The document must be notarised by an Iraqi notary public. All documents must be in Arabic.
Deposit minimum share capital
Open a bank account with an Iraqi bank (Rafidain Bank, Rashid Bank, or a private bank) and deposit the minimum capital. The bank issues a deposit confirmation letter.
Register with the Companies Registrar and obtain licences
Submit the notarised MOA, capital deposit certificate, and all supporting documents to the Companies Registrar. Once approved, register with the General Commission for Taxes for corporate income tax. Obtain any sector-specific licences from relevant ministries.
Obtain operational permits and security clearances
Depending on location and sector, obtain operational permits from local authorities. In certain areas, security clearances or government liaison approvals may be required. Register with the social security authorities if hiring employees.
Required Documents
- Passport copies of all shareholders and directors (with Arabic translations)
- Proof of residential address for each shareholder
- Notarised Memorandum of Association (Arabic)
- Capital deposit certificate from an Iraqi bank
- Registered office lease agreement in Iraq
- Power of Attorney for local representative (notarised and legalised)
- NIC investment licence (if applying under the Investment Law)
- Security clearance documentation (location-dependent)
Cost Overview
Tax Treatment
Standard corporate income tax in Iraq is 15% on taxable profits. Companies operating under the National Investment Commission (NIC) investment licence qualify for a 10-year tax exemption from the date the project becomes operational. Oil and gas companies operating under production sharing agreements are subject to 35% CT. There is no VAT in Iraq. Withholding tax of 15% applies on payments to non-resident contractors. The Kurdistan Region has its own tax administration but applies the same federal rates.
Pros & Cons
- Massive reconstruction spending creates significant contract opportunities in construction, infrastructure, and services
- Oil wealth funds government procurement — Iraq has the world's fifth-largest proven oil reserves
- National Investment Commission offers 10-year tax exemption for qualifying investment projects
- Kurdistan Region of Iraq (KRI) offers a more business-friendly and secure environment
- Large population of 42 million with growing consumer demand and underserved markets
- Security risk varies significantly by region — central and southern Iraq carry higher operational risk
- Bureaucratic processes are slow, opaque, and often require extensive local relationships
- Corruption and regulatory unpredictability add real costs to operations
- International banking relationships are limited — correspondent banking is difficult
- Infrastructure deficiencies (electricity, transport, telecommunications) increase operating costs
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Get StartedThis content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.