Iran's Free Zones are supervised by a council consisting of 14 ministers and high ranking officials under the chairmanship of the President - The Council has a Secretariat which coordinates the affairs of the zones.
The Secretary of the Council is appointed by the President - Each Zone is administered by an Organization which is formed in accordance with the Iran's Commercial Code, having an independent juridical personality.
6 Free Trade-Industrial Zones
19 Special Economic Zones
v Unique Geographical Locations
v Sufficiently Developed Infrastructure
v Foreign Investment Incentives
Kish Free Zone
v Unique Climatic Conditions in the Persian Gulf
v Great Tourist Attractions (1,000,000 Incoming Passengers Annually)
v Good Potential for Electronic City and as a Home Base for Information Technology
v Strategic Location & Physical Distance from the United Arab Emirates
Qeshm Free Zone
v Rich Mineral Reserves
v Deep Coasts
v Position of the Island in the routes of shipping lines convenient for Ships Maintenance, Fuel Installations and Logistics
v Great Tourist Attractions and Potentials for Bio-Technology Development
Chabahar Free Zone
v Moderate Climatic Conditions
v Best Point for Transit of South East Asia to CIS, Afghanistan, Turkey and Iraq
v Good Access to Land Roads
v Good Infrastructure
Comparison Table
Comparison table indicating legal status on economic activities in Iran's Free Trade-Industrial Zones and Special Economic Zones.
No. | Descriptions | Free Trade-Industrial Zone | Special Economic Zones |
1 | Import of goods from abroad | Free from all kinds of taxes and duties, but local levies and fees are collected according to the services rendered by the executive departments | Free from all kinds of taxes and duties, but local levies and fees are collected according to the services rendered by the executive departments |
2 | Re-export abroad of imported goods to the zone | Free from all kinds of taxes and duties | Free from all kinds of taxes and duties |
3 | Goods, semi finished parts, raw materials from mainland to the Zone | If exported, subject to General Exports –imports regulations in the mainland | If exported, subject to General Exports –imports regulations in the mainland |
4 | Import of goods from abroad to mainland | Subject to the General Exports-Imports regulations in the mainland | Subject to the General Exports-Imports regulations in the mainland |
5 | Goods made in the Zones, but permissible to the mainland | To the extent of value added caused by utilization of domestic production factors | To the extent of value added caused by utilization of domestic production factors |
6 | Unloading, loading , transit and Transshipment of merchandises abroad | Free from all kinds of taxes and duties, only warehousing and local charges shall be collected | Free from all kinds of taxes and duties, only warehousing and local charges shall be collected |
7 | Registration of company, intellectual ownership, trademarks brands, patents, etc. | Governed by the relevant regulations enforced in the Free Zone | Governed by the relevant regulations enforced in the mainland |
8 | Utilization of land | Sold and/or leased to the Iranian nationals, but only leased to the foreigners | Sold and/or leased to the Iranian nationals, but only leased to the foreigners |
9 | Exchange rates | Free market exchange rates | Domestic Banking exchange rates |
10 | Certificate of Origin | Issued by the Zone Authority | Issued by the Zone Authority |
11 | Retail sell | Allowed | Not allowed |
12 | Offshore banking operation by private sector | Recently approved and permitted by law | Only domestic banking operation by the state banks |
13 | Insurance activities by private sector | Recently approved and permitted by law | State insurance companies render their services |
14 | Foreign capital investment | Accepted and protected | Accepted and protected |
15 | Guaranteeing of foreign investments against nationalization and confiscation | A) shall be guaranteed by the Zone Authority, if up to millions US$ | Governed by the “Law on the attraction and protection of foreign investments” |
16 | Ratio of foreign capital investments | Up to 100% of shareholding | Up to 100% of shareholding |
17 | Recruitment of foreign workforce | Up to 10% of the manpower engaged in the undertaking | Governed by alien’s employment regulations enforced in the mainland |
18 | Entry to the Zones | No entry visa needed to entry into the Zone. visa shall be issued at entrance | Prior entry visa required. Applications shall be accepted, confirmed, and passed to the Foreign Ministry. |
19 | Social security, social insurance | Fund to be set up in future. Now the mainland social security regulations is enforced | The mainland social security regulations enforced |
20 | Labor law, labor conditions, industrial relations | Governed by the regulations of employment of manpower, insurance and social security enforced in the Zones | Governed by labor law and regulations enforce in the mainland |
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