Employer Of Record in Iran

Iran Country Facts

Visitors to Iran say it’s one of the most welcoming countries you could experience. Historically, it was very hard for foreign businesses to make inroads in Iran. That is changing and as such they have an improved ranking on the ease of doing business scale, according to the World Bank.Research shows most Iranians hold a positive attitude about the American people but not about the U.S. government. Many Iranians move to Europe, Canada and the U.S. to pursue higher education and good career opportunities, so there are personal connections between these peoples.

The Economy

Iran’s economy is mixed. The oil and gas industry remain key drivers of the economy and many such enterprises are state owned. Followed by agriculture and services sectors. There’s a noticeable state presence in manufacturing and financial services in Iran. Wages remain very low for Iranian workers. Social Security insurance is required for most employees and it generally falls to the employer to pay.It is also very difficult to fire or otherwise terminate an employee in Iran. Breaking any portion of the labor code is punishable with a fine or even imprisonment.

The Importance of Small and Medium-sized Companies

SMEs in the Islamic Republic of Iran outnumber large companies by a wide margin and also employ more people than the big corporations. Ali Yazdani, CEO of Iran Small Industries and Industrial Parks Organization (ISIPO) says small businesses’ contribution to the industry sector stands at 94%, but amounts of investment dedicated to the sector are not proportionate to the sector’s share of the economy in general.

Population Characteristics

Iranians speak Persian (or Farsi) originally related to Sanskrit and ancient Greek.About 53% of Iranians speak English with some proficiency. Many signs in the country are bilingual – including the English translation. Literacy rates stay around the 85% mark.The infrastructure in Iran runs smoothly, and people are well educated.

Economic Opportunities

The World Bank ranks Iran as an upper-middle income economy. The country is business friendly, but many know that foreign investors must be ready to meet the very strict rules and regulations of the country. The Islamic Republic of Iran’s government is unusual because they base it on religious guidelines. Other governments in the same region adhere to Islam and Sharia Law, but are not completely controlled by it.

Key Sectors of the National EconomyThe key sectors are:

• Oil- and gas sector
• Financial services
• Agriculture•Services sectors
• Manufacturing

Human Talent
Iran is growing in population, and many people are flocking to urban areas. The United Nations predicts that by 2030 80% of Iranians will live in urban areas. Iran also has many of its citizens living in the US, Canada, and Europe. Relationships continue between the people living in and out of Iran, so a cultural link remains. Like the economy, Iranian business culture is a mix, markedly there are both traditional Islamic inspired values and western norms and customs.

Prominent Cities for Business

Following the 1979 revolution, the Islamic Republic of Iran tried to block out western values and ideas from its population. However, relationships with people outside of Iran, both business and cultural, meant western influences continued to impact Iran’s society.

• Tehran
  Is the capital of Iran and its largest city. It’s the economic and cultural center of the country. It’s also the anchor for the country’s communication and transport network.
• Isfahan
  This is home to many historical sites and home to the world’s seventh largest shopping mall, Isfahan city Center.
• Ahvaz
  Ahvaz has some of Iran’s most important companies located within, they include The National Company for Southern Oilfields which is the largest oil producer in the country, The National Iranian Drilling Company, plus one of the largest producers of crude steel in the country, The Khuzestan Steel Company.
• Qom
  Qom’s proximity to Tehran has allowed the clerical establishment easy access to monitor the affairs and decisions of the state. Many Grand Ayatollahs possess offices in both Tehran and Qom; many people simply commute between the two cities

Technological Ecosystem

Iran’s oil sector is tying in with technology moving forward.Tehran’s Oil Tech Park, which is affiliated with the Oil Ministry, has signed four collaboration agreements with domestic technology entities to use their smart solutions in the oil sector. Iran’s knowledge-based and creative ecosystem has a high capacity to make inroads in export markets.Export interactions should shift from government to government, to business with business.

Facilities for Foreign Investment

The Foreign Investment Promotion and Protection Act (FIPPA) aims to encourage foreign investors to bring their capital to Iran’s business market. FIPPA offers incentives and vehicles for foreign investors. Those investors must apply for the FIPPA license. A FIPPA license is the most valuable permit that the Iranian law grants to the foreign investors in Iran.

Business Culture in Iran

The Iranians are a proud people

• English Speakers
  Business meetings and discussions are increasingly conducted in English, but for some negotiations, it is necessary to hire an interpreter.
• Sincerely Polite
  Iranian culture is characterized by politeness, which from the outside might seem superficial. Politeness is, however, imperative for creating a good dialogue and building trust.

Iran Gastronomy: regional and traditional cuisines

Chelow kebab comprises fragrant, saffron-spiced rice, grilled tomatoes, and kebab, which one can prepare with minced or sliced meat. The serving of chelow kebab is a unique experience: they serve rice and tomatoes first, followed by meat, while the final touch is a dollop of butter that is placed on the top of saffron rice.

Khoresh is a universal term which refers to a huge group of flavorful and versatile Iranian stews. Meat versions often incorporate poultry, lamb, or beef, but many use fish, vegetables, and lentils as the key ingredients.

Kuku ingredients may vary, but it’s basically a thick egg omelet. Typically pan-fried, these dishes are predominantly vegetarian, although some varieties occasionally include meat. 

Naan berenji are light and crunchy Iranian cookies made with rice flour. Rose water or cardamom are used to flavor the cookies, then they’re decorated with poppy seeds, pistachios, or barberries.

General Highlights

What you need to know about employing personal in Iran

Laws and Agencies that regulate labor relationships

Key Tax and Labor Authorities

Labor Contracts

Payroll

Employers Contribution or Labor Cost

Annual Taxable Income

Corporate Tax Rates

Disability 

For a disabled employee, the employer must pay 30 days salary for every year that they served the company. If the disability of the worker is due to work conditions, then the employer owes 60 days of salary for every year of the employee’s service to the company.

Public Holidays

Termination

Rules for termination of an employment contract

When a worker’s contract ends, they can ask the employer to provide a work certificate. This spells out how long employment lasted, start and end dates and the type of work the employee did for the employer.