Explore Iran, the best potential land for investment
 
 
9-Social security
One of the principal insurance costs of an employer is that of social insurance for his employees. Under social insurance regulation employers are required to insure their employees with the Social Insurance Organization (S.I.O.). Firms operating under the Law are required to insure all employees whether laborers or officers. However, coverage has not yet been expanded to include all officers working in the private sector.
The insurance provides benefits for retirement, illness, industrial accidents, marriage, pregnancy and child birth.
a-Insurance premium:
The insurance premium is levied on the total of base salary or wages of the employee, but dedication of premium from family allowances, travel allowances and bonuses are not allowed. The total contribution is 30% of monthly salary as computed above; the employer deducts 7% from the employee's pay and adds 20% himself and the government contributes the remaining 3%. An additional premium of 3% is also payable by the employer for unemployment insurance which has recently been introduced by government for employees. Foreign nationals employed by Iranian firms subject to social insurance must be insured in the same manner as their Iranian counterparts
b-General provision:
Within 20 days after the close of the month, the employer must submit to the Ministry of Labor and Social Insurance Organization, Tehran, the following documents:
1- Lists of employees, their respective wages or salaries and amounts deducted
2- Payment of deducted amounts together with his own contribution.
IV-Business Organization
1-Trade
Business and trade in Iran are achievable in two ways:
i-In the form of real people, in this case, the person is called a merchant. According to the trade law ratified in 1932, merchant is a person that trade transactions are as his general career.
ii-In the form of legal people and trade company:
These companies are divided into the following categories according to the trade law ratified in 1932:
-Joint Stock Company:
a-Private Joint stock
b-Public Joint stock
-Limited Liability Company
-General (ordinary) Partnership
-Producers' and Consumers' Cooperative
-Mixed Stocks Company
-Mixed non-stocks Company
-Proportional Liability Partnership
-Foreign company Branch
 
-Joint stock Company
According to the law , joint stock company, is a company that its investment is divided into different shares and the responsibility of shareholders is limited to their shares. This company is considered as a trade company even if the subject of activities would not be commercial. The number of shareholders should not be less than 3.
joint stock Company is divided in two categories:
a-Private Joint Stocks Company:
In this company all the capitals are supplied by the founders of the company. The minimum required capital for the establishment is 1,000,000 rials. In "Limited Company" the expression of "Limited Company" should be necessarily mentioned .
b-Public Joint Stocks Company:
It is like PLC, except that stocks are, entirely or partially sold to the public and the total capital provided cannot be below 5,000,000 rials. To establish such a company the founders must make commitments to guarantee 20% of the total capital, 35% of which must be paid in cash. The word "public joint stock" must be a part of the company's name.
 

- Limited Liability Company (Ltd)
It can be launched by a minimum of 2 people for commercial affairs. The capital will not be broken up into shares. Each shareholder is responsible against company debts and commitments only in proportion to the amount of her/his own share. The firm is founded only after the entire capital (in cash or non-cash) is submitted. The word LTD must be a part of the company's name.

-General Partnership Company (GPC)
It can be launched by a minimum of 2 people for commercial affairs with General Partnership responsibility. In such a firm, in case the company assets fail to be adequate each partner will be responsible to pay the entire debts. The profits will be divided in proportion to the amount of shares. The firm is founded only after the entire capital (in cash or non-cash) is submitted. The name of at least one of the partners and the phrase GPC must be included in the company name.