A practical guide for foreign founders
The Kurdistan Region of Iraq (KRI)—home to Erbil, Sulaymaniyah, and Duhok—offers a business-friendly environment and strategic access to regional markets. If you’re new to the KRI, the registration steps and document formalities can feel complex. This guide walks you through the essentials to help you plan with confidence.
1) Choose a legal structure
- Limited Liability Company (LLC): Common for foreign investors (1–25 shareholders). Foreign ownership is generally permitted without a local partner. Minimum paid-in capital is commonly IQD 1,000,000, subject to change by regulation.
- Branch Office: For existing foreign companies entering the KRI. Practice in the KRI can differ from federal Iraq; confirm current branch prerequisites and documentation with the Registrar.
- Representative Office: Suitable for market presence and liaison activities (promotion, information gathering). Not permitted to conduct direct commercial operations.
2) Reserve your company name
Reserve an English, Kurdish, or Arabic company name via the KRG Companies Registrar online portal. Availability is checked across relevant registries. Prepare two or three alternatives in case your first choice is taken.
3) Prepare the required documents
- Individuals (foreign nationals)
- Passport and valid KRI residency permit.
- Power of Attorney appointing a licensed Kurdistan lawyer to act on your behalf during registration.
- Foreign companies (opening a branch)
- Certificate of Incorporation and Articles/Charter of the parent company.
- Most recent financial statements of the parent company.
- Board resolution authorizing a KRI branch and naming the branch manager.
- All corporate documents translated into Kurdish or Arabic and duly legalized (home jurisdiction → Iraqi Embassy/KRG mission → submission in the KRI).
4) Deposit share capital (LLC)
Open a corporate bank account in the KRI and deposit the required capital. Obtain the bank’s deposit certificate; it will be included with your registration file.
5) Appoint local counsel and an accountant
KRI practice requires appointing a licensed lawyer and a licensed accountant, typically via annual retainers. Their details accompany your application, and they will support filings and compliance.
6) Submit the application
File your application through the online portal. After initial review, be prepared to present original documents at the Companies Registration Directorate for verification.
7) After registration: tax and social security
Post-registration, enroll with the tax authorities and social security. Your accountant will coordinate registrations, filings, and payroll setup as needed.
How our firm helps
- End-to-end support: name reservation, document legalization/translation, filings, and bank introductions.
- Post-registration onboarding: tax and social security registrations and compliance calendars.
- Clear pricing: fixed-fee packages available for standard LLCs and branches.
Ready to launch your business in the Kurdistan Region? Contact our team to book an initial consultation.
Disclaimer: This guide provides general information and does not constitute legal advice. Laws, procedures, fees, and timelines can change. Engage qualified counsel for advice tailored to your specific circumstances.