Iran: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labour | Social Partners

Setting Up a Company

Limited Liability Company: Number of partners: 2 shareholders minimum
Capital (max/min): No minimum capital required
Shareholders and liability: Partners' liability is limited to the amount contributed
Private Joint Stock Company: Number of partners: 3 shareholders minimum
Capital (max/min): IRR 1 million
Shareholders and liability: Partners' liability is limited to the amount contributed in shares
Public Joint Stock Company: Number of partners: 2 directors and at least 5 shareholders
Capital (max/min): IRR 5 million
Shareholders and liability: Partners' liability is limited to the amount contributed in shares
Sherkat tazamoni is a company (partnership) where liability is collective. Such a company must be indicated by the name of at least one of the partners. "Partnership" must appear in the name.: Number of partners: 2 shareholders minimum.
Capital (max/min): No minimum
Shareholders and liability: Partners' liability is limited to the amount contributed.
Sherkat-e mokhtalet-e-ghair-e sahami is a limited partnership company. It is a company established for trading.: Number of partners: 2 shareholders minimum: 1 or more "general partner" and 1 or more dormant partner.
Capital (max/min): No minimum
Shareholders and liability: A general partner will be responsible for any debt higher than the assets (jointly and severally liable).

a dormant partner is responsible only to the extent of its contribution to the partnership

The Competent Organisation: If registering a branch or a representation, the Office of registration of companies and industrial property must be contacted: If an overseas investment, it is necessary to contact the OIETAI or the Ministry of Foreign Affairs.

Setting Up a Company	Iran	Middle East & North Africa
Procedures (number)	10.0	6.3
Time (days)	72.5	19.5

Source: Doing Business.

Business Setup Procedures: Consult Doing Business Website, to know about procedures to start a Business in Iran.

The Active Population in Figures

	2018	2019	2020
Labour Force	27,769,359	28,212,245	26,813,322

Source: International Labour Organization, ILOSTAT database

	2017	2018	2019
Total activity rate	47.64%	47.79%	48.00%
Men activity rate	75.92%	76.37%	76.88%
Women activity rate	19.17%	19.02%	18.94%

Source: International Labour Organization, ILOSTAT database

Working Conditions

Legal Weekly Duration: 39 hours
Retirement Age: 62 for men and 55 for women.
Working Contracts: Employment contract requires a rather flexible formality. Dismissal procedures are very rigid.
Labour Laws: Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

Cost of Labour

Minimum Wage: The base monthly minimum wage remains subject to high inflation and frequent adjustments, but as of early 2026, it is approximately 71.66 million Rials (roughly $90–$110 including benefits), according to data cited by Iran International and the Ministry of Cooperatives, Labour, and Social Welfare.
Average Wage: The average salary is about USD 400–500 dollars per month.
Social Contributions: Social Security Contributions Paid By Employers: 23%.
Social Security Contributions Paid By Employees: 7%

Social Partners

Social Dialogue and Involvement of Social Partners: Independent trade unions are prohibited. Iranian trade unions are represented by an organization called "Worker's house", whose leaders are subject to selection criteria imposed by the State.
Labour Unions
Unionisation Rate: Independent trade unions being prohibited, the rate of unionization does not have any meaning.
Labour Regulation Bodies: Ministry of Labor and Social Policy (in Arabic)

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