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Spg Shakhes Pajouh Group Investment Consulting SPG SHAKHES PAJOUH GROUP INVESTMENT CONSULTING CONSULTATIONS f Trade, Market & Legal consultations NETWORK ^ Connection with local and national Authorties PARTNERSHIP % Find your best partner among national or local companies. CERTIFICATION ) Obtain necessary Certifications PHYSICAL INFRASTRUCTURE p Providing physical infrastructure and buildings SPG, Your Bridge of Investment to IRAN Amir MAHMOUDZADEH Director Shakhes Pajouh Group We thought of all your needs in SPG Recently world bank has published a report about Iran’s situation after lifting sanction in the title of “"Economic Implications of Lifting Sanctions on Iran" which estimated with the removal of sanctions, the Iranian economy is expected to expand significantly in the following years, through increased oil production and exports, auto production, and expansion of trade. This shows why many fo- reign companies seeking Iran’s investment opportunities. Iran has many oppor- tunities for investment and can be considered as one of the best destination of Investment but because of many years’ isolation, now the foreign companies don’t know how to enter to Iran’s market. They need something like a bridge which can accelerate their present to Iran's market and that's the reason of SPG creation. SPG is a group of companies and institutes which work under a central unit management with different filed of specialties. As an investor you need re- search about Iran market, you need physical infrastructure for your office and WELCOME WELCOME store, you need someone who knows well Iran’s law and regulation, You need someone who can deal with administrative procedures for obtaining required certification and most important you need a network of other companies in Iran and an excellent relations with local and national authorities, all SPG can provi- de for you. IRAN’S NEW AGE OF INVESTMENT'S OPPORTUNITIES After lifting sanctions, there are foreign companies seizing the opportunity ahead of their competitors Even the existing challenges about million people. Given Iran’s top 10 ran- Iran, after lifting sanctions, there are king in the number of UNESCO world foreign companies seizing the oppor- heritage cultural sites in the world, tunity ahead of their competitors. Whi- this is poised to change. Looking fur- le the oil and gas sector gets the most ther into the future, Iran is a potential attention, Iran’s diversified economy global trade hub. Already nearly 20% is attracting companies across indus- of oil trade passes through the Strait tries. In particular, consumer-oriented of Hormuz, the narrow waterway off sectors are counting on Iran’s large Iran’s southern coast, which is the only (nearly 80 million), young (more than sea route out of the Persian Gulf and 60% under 30 years old), and urba- one of the world’s most strategic tran- nized (more than 70%) population to sit points. Furthermore, the Interna- be loyal customers in the future. The tional North-South Transport Corridor country’s tourism sector attracted will make Iran a key link in connecting fewer than five million visitors in 2014 India, Central Asia, and Russia. while neighboring Turkey attracted 39 With the removal of sanctions following a nuclear deal, the Iranian economy is expected to expand significantly in 2016 and the following year, through increased oil production and exports, auto “ production, and expansion of trade" WORLD BANK REPORT: "Economic Implications of Lifting Sanctions on Iran" Why IRAN Iran’s Economic Advan- knowledge –based economy. tages Unique geographical situation as the junction of the Middle East, Europe The 18h largest economy in the world and Asia by purchasing power parity (PPP) Huge domestic market with 70 million Consumption and the government population and quick access to the plans billions of dollars worth of fur- markets of the neighboring countries ther investment to increase this share. with 300 million population The diversified economy and broad in- A massive resource of efficient, trai- dustrial base with over 40 industries ned and economic-friendly workforce directly involved in the Tehran stock Exchange is the industrial base in the Advanced infrastructure across the MENA region. country in the fields of telecommuni- cation, energy and rail/road transpor- Resource-rich economy tation The Middle East market is a prime Huge energy resources and low costs market opportunity for Iran’s non-oil of production and public services exports Suitable climate conditions which An increasingly sophisticated infras- allow agricultural activities in all parts tructure and human capital base pro- of the country and in all seasons. viding the foundation for an emerging IRAN'S FOREIGN INVESTMENT PROMOTION AND PROTECTION ACT (FIPPA) The Law on foreign investment in Iran Some specific enhancements introdu- under the name of “Foreign Investment ced by FIPPA for foreign investment in Promotionand their shares and and addresses Protection to the tax departmentAct” (FIPPA) within the Iran can be outlined as follows: wasarea ratifiedof the activity ofby the the legal parliamententity (Article 110). in If these2002. legal entities do not submit the documents within the stipulated time span, the tax exemption will be null and void (Article 193) Highlights of Tax Holidays Level of Duration of Activity Exemption Exemption Agriculture 100% Perpetual Industry and Mining 80% 4 Years Industry and Mining in Less- 100% 20 Years Developed Areas Tourism 50% Perpetual During 5th Export of services & non-oil goods 100% development Plan Handicraft 100% Perpetual Educational & sport services 100% Perpetual Cultural activities 100% Perpetual Salary in Less-Developed Areas 50% Perpetual All Economic Activities in Free Zones 100% 20 Years Tax Exemptions Stipulated in the Law on Fifth Five-Year Development Plan In order to: • FacilitateThere andis no promote restriction industrial andon mineralthe percentage investment in the • Granting protection coverage to all foreign countryof foreign shareholding investment schemes. Develop non-oil exports • The possibility of registering an Iranian • Quick approval of the foreign investment The Law on Fifth Five-Year Development Plan has stipulated the followingcompany tax exemptions: with 100% foreign capital. application • Transfer of principal capital, dividend and • Issuing a three-year residence license for 1. Articlethe profits159 – A: 15 gainedpercent increasethrough in tax the exemption utilization relevant to foreign investors, directors, experts as Article 138 of Direct Taxation Law of capi-tal in the form of foreign currency well as their immediate family members 2. Article 159 – B: Increasing tax exemption period of industrial and mineralor goods. units in the less developed regions to the same level as the risks covered under FIPPA • exemptionEnjoyment of free of trade-industrial same and zones equal (from 10 treatment years to 20 years) • Expropriation and nationalization 3. Articleas accorded 104: Levying to any domestic tax and tolls investors on non-oil byexports fo- and • Unlimited transfer of capital and dividend servicesreign duringinves-tors. the Fifth Development Plan (except raw materials or • Guarantee of the purchase of the goods commodities with low value-added) • The possibility of investment by foreign and services resulting from investment natural and juridical persons and Iranians projects in BOT investment schemes whe- living abroad. re the government acts as the sole pur- • Allowing investing in all areas which are chaser. permitted to the private sector. TAKE ADVANTAGES OF IRAN'S FREE ZONES Incentives and advantages for investment in Trade-Industrial Free Zones of Iran Iran has 7 free zones such as Gheshm, Chabahar, Aras, ment and social security. Anzali, Arvand, Kish, Maku, which have Incentives 7- Transfer of part manufactured goods to the main- and advantages for investment, some of them are as land without paying customs duties. follows: 8- Elimination of pay customs duties on imports from 1-20 years from the date of operation for all economic outside to the region and vice versa. activities 9- Employing trained and skilled manpower in all dif- 2-Foreign investment and nearly a hundred percent of ferent skill levels and professions. the amount invested. 10- Utilization of raw materials, oil and gas as feed- 3- Freedom of entry and exit of capital and profits stock and fuel for all industrial activities. 4- Protection and guarantees for foreign investments. 11- Easy registration of companies, industrial and cul- 5- Abolition of entry visas and easily issue of resi- tural institutions and intellectual property ownership dence permits for foreigners. 12- Easy circumstances for re-export and transit of 6- Facilitated regulation on labor relations, employ- commodities SPG PROFILE Shakhes Pajouh Consulting Group is committed to excellence in providing services to its clients. Whether in site selection, business attraction, free zone advisory or economic development policy, we bring a client-focused approach to building strategies to create long-term, mutually beneficial partnerships between businesses, communities and country. We do this both through our own team, with affiliated professionals, and through partnerships with other like- minded organizations. In this way, we are able to meet the needs of clients with a variety of industry, functional, and geographic needs. Shakhes Pajouh Consulting Group (SPCG) is training & seminars. an Iranian management advisory, facilitator SPCG offers customized, effective solutions group of firms and
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