Operating a Business

flag Iraq Iraq: 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

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
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
The Competent Organisation
Iraqi Ministry of Trade
Company Directories
Erbil Chamber of Commerce and Industry
 
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.

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The Active Population in Figures

201820192020
Labour Force 10,163,56910,469,14310,356,947

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 44.25%44.56%44.67%
Men activity rate 76.28%76.70%76.72%
Women activity rate 11.78%11.92%12.06%

Source: International Labour Organization, ILOSTAT database

 

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Working Conditions

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.

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Cost of Labour

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%.

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Social Partners

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.
Unions
Iraqi Federation of Trade Unions
Unionisation Rate
N/A
Labour Regulation Bodies
Iraqi Ministry of Labour and Social Affairs

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Latest Update: April 2022