It is always crucial for investors to understand the business environment they are intending to enter for addressing the factors that best serve the growth of their investment further maintain a secure operation circumstances. With respect to the Iraqi market and besides the economic aspect; the legal environment may be the most significant concern for foreign investors.

Serving the objective of encouraging foreign investment in Iraq and considering the above understanding, our firm (Al Muhamoon Al Mutahidoon) in direct coordination with The German Liaison Office for Industry and Commerce in Iraq, a member of the Global Network of German Chambers Abroad “AHK”, has a productive participation, besides other high level experts in variant fields and sectors, in the preparation of a Guidebook for Doing Business in Iraq covering the best practices and FAQ’s for doing business in the country under the laws and regulations of Federal Iraq & Kurdistan Government of Iraq.

Al Muhamoon Al Mutahidoon contribution consisting of (36 pages) in English Language out of the Guidebook total pages (322), is focused on corporate sector, tax system and social security and employment under the Iraqi laws, prepared by a qualified and dedicated team of the firm, they are:

1. Ms.Hiba Basim Khaza’al
2. Attorney Othman Ayad
3. Attorney Mohammed Hasan Hashim

In terms of corporate sector, our firm has presented an inclusive detailing on the forms of legal entities in Iraq available for foreigners and related requirements including share capital, shareholders and ownership limitation (where applicable), management and reporting, together with the involved estimated costs for incorporating the most popular forms of legal entities. It

While the report has presented an overview on applicable taxes in Iraq, both corporates and individuals, together with the allowances and exemptions addressing the most popular FAQ’s on this topic.

The labor law in Iraq is another topic that was covered by our firm under the Guidebook, in terms of the rights and obligations stipulated for the employee and the employer under the Iraqi law, the terms governing the relation between the two parties, in addition stating the taxes (social security subscriptions and income tax) implied to each party depending on the paid-up salary and the allowances applicable for employees under the Iraqi law.

Al Muhamoon Al Mutahidoon strongly adopts the Guidebook initiative that combines wide range of contributions providing a comprehensive and practical overview of the economic situation and legal system in Iraq highlighting the opportunities and challenges facing business representatives in Iraq at the same time, it provides assistance in developing solutions for the complex day-to-day operations on the ground, and our firm is willing to continue its usual legal support serving healthy business environment.

A copy of the guidebook could be downloaded via below link of AHK official website:

BEST PRACTICES AND FAQ FOR DOING BUSINESS IN IRAQ (ahk.de)

Al Muhamoon Al Mutahidoon firm has recently and with the cooperation and coordination with its partner (The Station Foundation) organized a workshop intended to spread the legal knowledge and provide guidance and mentorship to Startups and entrepreneurs through WINVESTOR program funded by the Embassy of Netherland in Iraq.

The workshop was preceded by conducting a questionnaire by our firm that was shared with the attendees by email serving the initial evaluation of the attendees’ knowledge with legal requirements needed for the establishment and operation of their projects and maintaining the same in accordance with each project circumstances and needs, as the workshop has covered below three main topics:

1. Company incorporation including related requirements, procedures and fees, as well as providing the professional advice in arranging the company Articles of Association in a professional manner the covers the company activities and goes in line with the perspectives and capabilities of its shareholders.
2. Taxes and significance of having a Tax No. for companies to operate and develop its operations notwithstanding the obligations arising to it towards the General Commission of Taxes and means to fulfill those within the time periods specified by law.
3. Social security registration of the company and its employees as a legal requirement together with the obligations required by projects towards the Social Security and Pension Directorate for Workers, as well as the mutual obligations between the company and its employees and the rights entitled to each party.

The workshop has also addressed the attendees’ questions in relation to the above listed topics as an open discussion panel and providing the needed advice and mentorship under the applicable laws and regulations.

The workshop was followed by single and group free discussion panels established between the trainers from Al Muhamoon Al Mutahidoon and entrepreneurs & startups attending the workshop where they have presented the existing challenges facing their projects as the trainers, form their side, have presented the suggested means to resolve/overcome these challenges in compliance with each project unique circumstances always affirming our firm (Al Muhamoon Al Mutahidoon) full support for Startups operating in Iraq as well as their shareholders serving the development of entrepreneurial ecosystem in Iraq.

Pictures of the workshop are below:

Our firm (Al Muhamoon Al Mutahidoon Firm for Legal Consultancies, Advocacy and Accounts Management, ltd.) is proud to announce it ranking officially as a Leading Firm in Iraq/2021 by the Legal 500, a research, ranking and publishing firm based in UK. Legal 500 rankings are merit-based, relying on the outcomes of studying and analyzing the services rendered by firms for their clients as well as studying and analyzing the clients’ feedback regarding these services and their compliance with international standards, lawyers’ expertise, standards and policies adopted by the firm whether in providing the firm services or as related to administrative, management and accounting systems adopted by the firm, the reliability and integrity of the firm services towards its clients in addition to other criteria that regulates the firm practice.

The ranking came as a result of unremitting efforts made by the firm staff at all levels to leverage the firm services to unprecedented level of integrity and excellence, as well as a reflection of proven success achieved whether with local or international entities.

In this occasion; our firm would like to extend its thanks and appreciation to its staff for their distinctive efforts and dedication leading to this remarkable achievement ranking Al Muhamoon Al Mutahidoon as a leading firm besides other well-known international firms, as well as the firm precious clients for being a significant part of this success and maintaining it.

For more information about Al Muhamoon Al Mutahidoon ranking; you may visit below link:

https://www.legal500.com/c/iraq/leading-firms/

The Iraqi Bar Association has issued the administrative order no. (3021) on 11 April 2021 stating approximately 100% raise to the minimum fees for appointing a lawyer as a legal adviser for local companies, industrial projects and foreign companies branches, the order has specified the lawyer minimum fees for being appointed as the legal adviser for local companies and industrial projects to (300,000 IQD) Three Hundred Thousand Iraqi Dinars per month, while it has specified the minimum fees for the lawyer being appointed as the legal adviser for the foreign companies branches to (600,000 IQD) Six Hundred Thousand Iraqi Dinars per month.

On the same level; the mentioned order has stated the duplication of fines imposed to the companies for not appointing a legal adviser, as it has specified the monthly fines due to the local companies and industrial projects to an amount of (750,000 IQD) Seven Hundred and Fifty Thousand Iraqi Dinar, and an amount of (1,500,00 IQD) One Million and Five Hundred Thousand Iraqi Dinar monthly fines to foreign companies branches.

While it has obliged all local companies, industrial projects and foreign companies branches to deduct an amount equaling to (5%) of the appointed legal adviser monthly fees to be paid with the Bar fund in cash.

The decision comes as part of the Bar endeavors to leverage the lawyers’ standard of living and adding more reliability with regard the necessity of appointing a legal adviser by the companies operating in Iraq and to achieve balance between the interests of the lawyers and those of the companies and industrial projects. Principally that this decision was issued following considerable facilities provided by the Bar for the local companies, industrial projects and foreign companies branches during the past couple of years via applying different allowances and discounts to encourage updating their status with the Bar in appointing a legal adviser. While the Bar has obliged all its departments to strictly implement the decision contents while explicitly assuring that the Bar shall not allow any allowances or discounts after the decision effective date 01 May 2021.

A copy of the Bar order together with its English translation is enclosed.

Iraqi bar association_administrative order_11 04 2021

Iraqi bar association_administrative order_11 04 2021_English

As one of the most significant steps Iraq has witnessed towards encouraging foreign investments in the country, the Iraqi Parliament Council has recently, at the 4^th of March 2021, endorsed the law of Iraq accession to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 1958 “Convention”.

The accession, however, was endorsed with few reservations as follows:

• The Convention’s provisions are inapplicable in Iraq in respect of awards rendered prior to Iraq’s accession to the Convention.
• The Convention is inapplicable in respect of recognition and enforceability of awards rendered in other Member States to the Convention unless According to the principle of reciprocity.
• The Convention is inapplicable in the Republic of Iraq except in respect of disputes arising from contractual relations that are considered ‘commercial’ under Iraqi law.

Despite of the reservations stated in the accession law, promulgating this law shall effectively contribute the legal protection foreign investment is looking for in each jurisdiction. The accession law shall enter into force as of its publishing date with the Iraqi Gazette.

It is worth to know that pursuant to Article no. 12 of the New York Convention, each state ratifying or accessing to this Convention, the Convention shall enter into force on the ninetieth day after depositing the third instrument of ratification or accession by that state.