Iraq: Operating a Business

Setting Up a Company

Sole Owner Company: Number of partners: One person
Capital (max/min): IQD 500.000
Shareholders and liability: Personal and unlimited liability
Simple Company: Number of partners: Minimum 2, maximum 5
Capital (max/min): IQD 500.000
Shareholders and liability: Liability is limited to the amount contributed, if not otherwise agreed between the partners
Limited Liability Company: Number of partners: Minimum 1, maximum 25
Capital (max/min): IQD 1 million (IQD 2 billion for the oil sector)
Shareholders and liability: Limited to the capital contribution
Joint Liability Company: Number of partners: Minimum 2, maximum 25
Capital (max/min): IQD 500.000
Shareholders and liability: Personal and unlimited liability in respect of the obligations of the company
Joint Stock Company: Number of partners: Minimum 5 members (no-cap) who participate by owning shares through a public subscription, maximum 100
Capital (max/min): IQD 2 million
Shareholders and liability: The liability of the shareholders is limited to the nominal value of the shares to which they have subscribed

Setting Up a Company	Iraq	Middle East & North Africa
Procedures (number)	8.0	6.3
Time (days)	26.5	19.5

Source: Doing Business.

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

	2018	2019	2020
Labour Force	10,163,569	10,469,143	10,356,947

Source: International Labour Organization, ILOSTAT database

Source: International Labour Organization, ILOSTAT database

Legal Weekly Duration: Private sector: 8 hours of work per day, 6 days per week.
Public sector: set by the head of each ministry.
During Ramadan working hours are generally reduced to 6 per day.
Retirement Age: Age 60 (men) or age 55 (women) with at least 20 years of contributions; at any age with at least 30 years (men) or 25 years (women) of contributions.
Working Contracts: Working contracts are regulated by Labor Law No. 71 of 1987. Contracts can be for a limited or unlimited period. They are integrated by collective agreements. Employment contracts must be written, and must specify in them the type of work to be performed, and the wages to be paid.
Labour Laws: Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

Minimum Wage: Around USD 210 per month (U.S. Department of State).
Average Wage: According to data released by the Iraqi Ministry of Planning and Development Cooperation, the average salary of public employees is USD 400.
Social Contributions: Social Security Contributions Paid By Employers: 12%
Social Security Contributions Paid By Employees: The employer's contribution is 12% and the employee's contribution is 5% of net salaries.
The contribution of employers classified as prime is at 25%.

Social Dialogue and Involvement of Social Partners: Workers’ unions and federations may conclude collective agreements on behalf of its members if authorised to do so by the workers.
Labour Unions: Iraqi Federation of Trade Unions
Unionisation Rate: N/A
Labour Regulation Bodies: Iraqi Ministry of Labour and Social Affairs

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