How to Register a Company in Iraq (2026), Step‑by‑step Process, Documents, Timeline & Foreign Ownership

The company registration process in Iraq 2026 follows a defined sequence of filings with the Companies Registration Directorate under the Ministry of Trade, or, for entities operating in the Kurdistan Region, with the KRG Business Registration System. Whether you are an Iraqi entrepreneur forming a private limited company, a multinational opening a branch office, or a foreign investor establishing a subsidiary, understanding the correct order of steps, the documents each authority requires, and the realistic timelines involved is essential to avoiding costly delays. Iraq’s April 2026 digital‑platform rollout has shortened several filing stages, but core requirements around notarisation, legalisation, and capital verification remain unchanged.

This guide walks through each stage of the procedure from entity selection to post‑incorporation compliance, with verified tables covering documents, fees, and deadlines.

Overview of the Company Registration Process and Who It Applies To

Registering a company in Iraq involves seven principal stages: choosing an entity type, reserving a company name, filing the incorporation pack with the registrar, opening a bank account and verifying paid‑in capital, obtaining tax registration, securing a trade licence (and any sector‑specific permits), and completing post‑incorporation filings such as social‑security registration and employment notifications. The primary regulator for Federal Iraq is the Companies Registration Directorate within the Ministry of Trade. In the Kurdistan Region of Iraq (KRG), filings are handled through the KRG Business Registration System, which operates its own digital portal and fee schedule.

Any Iraqi national or legal person wishing to carry on commercial activity must register. A non‑Iraqi company that intends to “carry on business”, as opposed to executing a single, isolated transaction, is generally required to register a branch or establish a local subsidiary. The 2026 digitalisation reforms, detailed in the dedicated section below, now allow name reservations and certain initial filings to be submitted electronically, reducing the timeline for straightforward domestic incorporations to as few as five business days.

Quick‑reference checklist: Jump to the sections you need, required documents, timeline and key deadlines, or costs and fees.

Eligibility and Company Registration Requirements in Iraq

Entity types available

Iraqi law provides several corporate vehicles. The choice of entity determines the minimum capital, governance structure, and filing pathway:

• Limited Liability Company (LLC). The most common structure for small‑to‑medium enterprises and foreign investors entering the market. An LLC requires a minimum of two and a maximum of twenty‑five shareholders. Liability is limited to each shareholder’s capital contribution.
• Joint Stock Company (JSC). Suitable for larger ventures or projects requiring public share offerings. A JSC requires a higher minimum capital threshold and at least five founding shareholders.
• Branch office. A foreign company that wishes to operate directly in Iraq without creating a separate legal entity may register a branch. The branch has no separate legal personality; the parent company bears full liability.
• Representative office. Permitted for liaison, market research, and promotional activities only, a representative office cannot engage in revenue‑generating commercial operations.
• Joint venture / consortium. Project‑specific structures, common in oil and gas and infrastructure sectors, typically governed by a joint‑venture agreement and registered alongside the primary entity filings.

Foreign ownership rules in Iraq

Under Iraq’s Investment Law, foreign investors may hold up to 100 per cent ownership in companies operating in many sectors, including manufacturing, services, tourism, and information technology. However, significant sectoral restrictions apply. Banking and insurance companies are subject to separate licensing regimes with foreign‑ownership caps imposed by the Central Bank of Iraq and the Insurance Diwan. Oil and gas extraction is governed by production‑sharing contracts and service contracts with the Ministry of Oil, and direct foreign ownership of hydrocarbon resources is constitutionally restricted. Real‑estate ownership by non‑Iraqis is generally prohibited outside designated investment zones. Defence and media sectors may also carry additional limitations.

In the Kurdistan Region, the KRG Investment Law provides broadly similar foreign‑ownership provisions but with its own investment‑licence requirements administered by the KRG Board of Investment. Applicants should confirm current sector‑specific restrictions directly with the relevant regulator before committing to a structure, as secondary regulations and ministerial orders can change at short notice.

Step‑by‑Step Company Registration Procedure in Iraq (2026)

The following numbered steps apply to the standard incorporation of a locally formed company (LLC or JSC) in Federal Iraq. Variations for branch offices and KRG filings are noted within each step. The timeline table at the end of this section summarises durations and responsible parties.

Step 1, Choose entity type and prepare founding documents

Begin by selecting the appropriate entity type based on ownership structure, capital requirements, and operational scope. Once the entity type is confirmed, prepare the following founding documents:

• Memorandum of Association (MOA) and Articles of Association (AOA), drafted in Arabic (bilingual Arabic/English versions are permissible but the Arabic text prevails). The MOA/AOA must specify the company name, registered address, objects, share capital, shareholder details, and management structure.
• Board resolution (for corporate founders or a foreign parent establishing a subsidiary or branch), authorising the incorporation and appointing signatories.
• Power of Attorney (PoA), if an agent or lawyer will file on behalf of the founders.

All founding documents signed outside Iraq must be notarised in the country of execution, legalised by the Iraqi embassy or consulate in that country (consular legalisation), and officially translated into Arabic by a certified translator. Iraq is not a party to the Hague Apostille Convention, so apostille stamps are not accepted, full consular legalisation is required in every case. This legalisation stage is often the longest pre‑filing task and should be started as early as possible.

Branch office variation: Instead of an MOA/AOA for a new entity, the foreign parent submits a certified copy of its own constitutional documents, a corporate resolution to open the branch, and appointment documentation for the branch manager. All documents follow the same legalisation pathway.

Step 2, Reserve a company name with the Companies Registrar

The proposed company name must be reserved with the Companies Registration Directorate (Federal Iraq) or through the KRG Business Registration System portal (Kurdistan Region). The name must be unique, must not conflict with an existing registered entity, and must comply with naming conventions, it should include an indication of the entity type (e.g., “Limited” or its Arabic equivalent) and must not contain terms that could mislead the public or imply government affiliation.

Since the April 2026 digital‑platform launch, name reservations in Federal Iraq can be initiated electronically. The KRG digital portal has offered online name checks for several years and typically returns a decision on the same business day. In Federal Iraq, expect a response within 1–3 business days. Once approved, the name reservation is valid for a limited period, founders must file the incorporation pack before the reservation lapses.

Step 3, File the incorporation pack with the Companies Registration Directorate

With the name reserved, the applicant (or authorised agent) submits the full incorporation pack to the registrar. The pack includes:

• The completed registration application form (available from the Companies Registration Directorate or downloaded from the digital portal).
• The name‑reservation certificate.
• Notarised and legalised MOA/AOA (original plus certified copies).
• Founders’ identification documents (passports for foreign nationals; national IDs for Iraqi citizens).
• Proof of registered office address (commercial lease agreement or ownership deed).
• Evidence of paid‑in capital (bank deposit certificate), where required for the chosen entity type.
• Board resolution, PoA, and certificate of good standing (for corporate or foreign founders).

The registrar reviews the pack for completeness and legal compliance. If queries arise, the applicant is typically given 15 business days to respond before the application is shelved. Processing times depend on the filing method and entity complexity: electronic filings submitted through the 2026 digital platform are being processed in 3–7 business days for straightforward domestic LLCs, while paper filings and more complex structures (foreign subsidiary, JSC) may take 7–15 business days.

Branch office variation: Branch‑registration applications are filed with the same directorate but require the additional parent‑company documents noted in Step 1. The registrar may request proof that the parent company is validly existing and in good standing in its home jurisdiction.

KRG variation: In the Kurdistan Region, the full incorporation pack is filed through the KRG Business Registration System. The KRG eRegulations portal publishes a step‑by‑step procedure specifying the exact documents, forms, and fee amounts for each entity type.

Step 4, Open a bank account and verify paid‑in capital

Once the registrar accepts the incorporation filing, the founders open a corporate bank account in the company’s name at a licensed Iraqi bank. Where the entity type requires a minimum paid‑in capital (as is the case for JSCs and certain regulated activities), the founders deposit the required amount and obtain a bank deposit certificate. This certificate is submitted to the registrar to complete the capital‑verification step. Bank account opening typically takes 1–7 business days, depending on the bank’s internal compliance (KYC/AML) procedures. Foreign‑national founders should expect more extensive documentation requests from the bank.

Step 5, Register for tax, obtain a trade licence, and secure sector permits

Following incorporation, the company must register with the General Commission for Taxes (Federal Tax Authority) to obtain a tax‑identification card. Value‑added tax (sales tax) registration is triggered once revenue exceeds the applicable threshold. Tax registration typically takes 3–10 business days.

A trade licence is issued by the relevant municipal or governorate commerce office and authorises the company to conduct the commercial activities specified in its MOA. Sector‑specific permits, for example, from the Central Bank of Iraq (banking/financial services), the Communications and Media Commission (telecoms), or the Ministry of Health (pharmaceuticals/healthcare), must be obtained before commencing regulated activities. Timelines for sector permits vary widely, from one week to several months.

Step 6, Complete post‑incorporation compliance filings

With the company registered and licensed, remaining compliance tasks include:

• Obtaining a company seal (still customary for official documents and bank operations in Iraq).
• Registering with the social‑security and pension authorities for employee contributions.
• Filing statistical registration with the Central Statistical Office (where required).
• Arranging work permits and residency visas for foreign employees through the Ministry of Labour and Social Affairs and the Residency Directorate.
• Recording the first board minutes and shareholder register in the company’s statutory books.

These filings typically take 1–7 business days each and can often be handled concurrently.

Process summary table

Documents Needed to Register a Company in Iraq

The table below lists the core documents required for a standard LLC incorporation and notes the additional items needed for branch‑office registrations. All documents originating outside Iraq must be notarised, consularly legalised, and translated into Arabic by a certified translator.

Notarisation, legalisation, and translation requirements

Iraq is not a signatory to the Hague Apostille Convention. Every document executed abroad must pass through a three‑stage authentication chain: (1) notarisation by a public notary in the country of origin, (2) legalisation by the Iraqi embassy or consulate in that country (consular legalisation), and (3) official translation into Arabic by a certified translator recognised by the Iraqi authorities. Some bilateral agreements between Iraq and certain countries may simplify authentication, but applicants should confirm the applicable procedure with the nearest Iraqi consulate before relying on any shortcut. Failure to complete any stage of the legalisation chain is one of the most frequent causes of rejection or delay at the registrar.

Preparing your document pack

Organise documents in the order listed above. Label electronic files descriptively (for example, MOA_AOA_signed_notarised_English_and_Arabic.pdf). Prepare at least two certified copies of every document, the registrar retains originals, and the bank and tax authority will each request their own certified sets. Start the legalisation process at least two to four weeks before you plan to file, particularly if documents must travel between consulates in different countries.

Company Registration Timeline in Iraq

The total time from name reservation to receipt of the trade licence varies significantly depending on whether the founders are Iraqi or foreign, whether sector permits are required, and whether filings are submitted digitally or on paper.

Key deadlines and filing windows

Once the registrar issues a query or deficiency notice, the applicant typically has 15 business days to respond with corrected or supplementary documents. Failure to respond within this window may result in the application being shelved, requiring a fresh filing and a new name reservation. Industry observers expect the 2026 digital platform to introduce automated deadline reminders, but until that feature is confirmed, applicants should maintain a weekly follow‑up cadence with the registrar’s office. After incorporation, annual compliance filings, including audited accounts and any changes to the shareholder register, must be submitted to the Companies Registration Directorate within the deadlines prescribed by the Iraqi Companies Law.

Cost to Register a Company in Iraq

Tax considerations

• Corporate income tax. Companies operating in Iraq are subject to corporate income tax administered by the General Commission for Taxes. Rates and thresholds should be confirmed directly with the tax authority or a qualified Iraqi tax adviser.
• VAT / sales tax. Registration is required once revenue exceeds the applicable threshold. Confirm the current threshold with the General Commission for Taxes.
• Withholding tax. Payments to non‑residents (dividends, interest, royalties, service fees) may be subject to withholding‑tax obligations. Verify rates under relevant double‑taxation agreements.
• Recommendation. Engage a specialist tax adviser before incorporation to optimise the capital and profit‑distribution structure.

What Changes in the Company Registration Process in Iraq in 2026

How digital filing changes steps and timelines

In April 2026, the Companies Registration Directorate launched a new digital platform for company registration in Iraq. The platform allows applicants to submit name‑reservation requests and initial registration forms electronically, eliminating the need to attend the registrar’s offices in person for those stages. Early indications suggest that straightforward domestic LLC incorporations filed through the platform are being processed in approximately half the time of equivalent paper filings. The KRG Business Registration System, which has operated an online portal for several years, has also upgraded its interface in 2026, expanding the range of post‑registration amendments that can be filed digitally.

Transitional arrangements for paper filings

Applications that were submitted on paper before the digital platform went live continue to be processed under the pre‑existing manual workflow. Applicants with pending paper filings are not required to resubmit electronically, but any supplementary documents requested by the registrar may now be uploaded through the portal. The likely practical effect is a gradual migration to fully digital workflows over the course of 2026, though notarised originals and consularly legalised documents will still need to be presented in physical form for verification.

Common Pitfalls and How to Avoid Them

• Failing to legalise foreign documents. Iraq does not accept apostille stamps. Begin consular legalisation at least two to four weeks before your target filing date, and use a specialist consular‑services agent if documents must be processed in multiple countries.
• Confusing KRG and Federal requirements. The Kurdistan Region has its own registrar, fee schedule, and digital portal. Filing with the wrong registry invalidates the application. Confirm the physical location of your registered office before choosing a registry.
• Underestimating sector‑permit timelines. Regulated activities (banking, insurance, telecoms, oil and gas) require separate licences that can add weeks or months to the overall timeline. Identify sector‑permit requirements at the entity‑selection stage and begin applications in parallel with incorporation.
• Incomplete MOA/AOA or missing signatory powers. Registrars routinely reject filings where the MOA/AOA lacks required clauses or where the PoA does not clearly authorise the agent to sign on the founders’ behalf. Use lawyer‑drafted templates and verify that every signatory authority is documented.
• Not verifying foreign‑ownership restrictions. Ownership limits vary by sector and can change through ministerial orders. Confirm current restrictions with the relevant investment board or sector regulator before finalising the shareholder structure.

Sources

1. Iraq Business News, “New Digital Platform for Company Registration in Iraq”
2. KRG Business Registration System
3. Al‑Nesoor Law Firm, “Foreign Companies Registration in Iraq”
4. HHL Iraq, Business Setup & Market Entry Guide
5. KRG eRegulations, “Registering a Local Company”
6. PwC, Doing Business in Iraq
7. Iraq Commercial Attaché (ICODC), Business Registration in Iraq