Company Formation in Iraq: The 49% Rule, Capital & the NIC Route
By HAQQ Research · · 7 min read · mena
Setting up in federal Iraq: the 2019 reversal to a 49% foreign cap, 100% via an NIC license / branch / Kurdistan, IQD 1m minimum, and the Companies Registrar.
Important: while CPA Order 64/2004 once allowed 100% foreign ownership, Amendment No. 17 of 2019 reintroduced a 51% Iraqi-ownership requirement on the standard Companies-Law route (so foreign ownership is generally capped at 49%). 100%/majority foreign is available via a National Investment Commission (NIC) licensed project, a foreign-company branch, or in the Kurdistan Region. The LLC minimum capital is IQD 1,000,000; registration runs through the Companies Registrar (Ministry of Trade).
FAQ
Can a foreigner own 100% of a company in Iraq?
Not on the standard route since the 2019 amendment (capped at 49%, with 51% Iraqi), but yes via a National Investment Commission licensed project, a foreign branch, or in the Kurdistan Region.
What is the minimum capital for an LLC in Iraq?
IQD 1,000,000, which may be higher for certain sectors.
Does the Kurdistan Region differ from federal Iraq?
Yes — it did not adopt the 2019 amendment, so 100% foreign ownership remains possible, and it registers under its own investment framework.
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