Doing Business in Iraq: Foreign Company Guide

Guide Contents

Structures and Registration Routes · Employment, Payroll and Social Security · Tax and Accounting Responsibilities · Banking and Payment Preparation · Imports and Supply-Chain Responsibilities · Build a Compliance Calendar · Coordinate Commercial and Regulatory Work · Discuss Market Entry with ASHUR · Related services and reading

IRAQ INSIGHT · Updated October 2026

A practical guide for foreign companies

Before entering Iraq, connect the proposed contract and activity with company or branch establishment, regulatory registration, tax, accounting, payroll and supply-chain responsibilities. Federal Iraq, the Kurdistan Region, Companies Law and Investment Law routes require separate review. This guide organizes the questions and documentary file; it is general information, not legal or tax advice, and does not assume one route fits every business.

Structures and Registration Routes

Foreign companies may need to assess a branch, Iraqi company, representation office or other eligible route. Commercial rights, ownership conditions, registration requirements and permitted activities vary. A representation office should not be assumed to have the same rights as a trading branch or company.

Confirm the applicable companies-law amendments, jurisdiction, contract eligibility, licensing and local obligations before choosing the structure. Do not rely on a blanket claim that every Iraqi LLC can be 100% foreign-owned.

Explore Corporate Structuring & Licensing

Employment, Payroll and Social Security

Review employment contracts, working conditions, remuneration, leave, payroll withholding and employee records under the applicable labour and social-security rules. Foreign-worker permissions and coverage require their own review. Ordinary contribution rates differ from qualifying hydrocarbon employer rates; a single combined rate is not appropriate for every employer.

Explore Social Security & Payroll

Tax and Accounting Responsibilities

The standard corporate income-tax rate is generally 15%. A 35% rate applies to specified activities within Law No. 19 of 2010, rather than automatically to every oilfield supplier. Contract withholding and retention treatment depends on the applicable rules and payment arrangements. Maintain statutory records, reconcile deposits and track annual returns and assessments. Read our Iraq Tax guide for the core framework.

Explore Iraq Tax & Tax Controversy

Banking and Payment Preparation

Confirm the bank’s current onboarding and transaction requirements for the proposed entity and contracts. Prepare registration, authorized-signatory, accounting and payment evidence. Review currency, cross-border remittance and any tax-clearance requirements against the actual transaction rather than assuming a single procedure for all payments.

Imports and Supply-Chain Responsibilities

Identify the importer of record, product classification, destination, shipping terms and required technical and origin documentation. Conformity, inspection, customs and sector approvals depend on the goods and route. Confirm the current requirements with the relevant parties before committing to delivery timing or landed cost.

Build a Compliance Calendar

Assign responsibilities for statutory records, financial statements, tax returns, payroll withholding, social-security reporting, corporate renewals and authority correspondence. Track deadlines, submissions, payments and outstanding evidence. Registration, filing, assessment and clearance are separate stages that should be recorded clearly.

Coordinate Commercial and Regulatory Work

Project requirements often combine advisory and commercial tasks. Confirm the tax and registration position alongside procurement, technical specifications, employment needs and delivery responsibilities. A published market opportunity does not establish an award or guarantee demand; evaluate each project from its underlying documentation.

Discuss Market Entry with ASHUR

ASHUR supports structure and registration planning, Iraq tax compliance, accounting, payroll and social security, oilfield materials and procurement coordination. Scope and responsibilities are agreed around your proposed activity and contracts.

General guidance reviewed October 2026. Current laws, amendments and authority procedures require verification for the selected jurisdiction and route.

info@ashuriraq.com | +964 782 532 1017

Doing Business in Iraq