Company formation is one of Almadar’s core practice areas — to date we have guided more than 2,400 Iraqi companies and 130 foreign companies through incorporation and ongoing compliance. This article outlines the overall shape of the process in Iraq.
First: choosing the legal form
Iraqi company law allows several legal forms, the most common being:
- Sole proprietorship — owned by one person, with unlimited liability.
- Limited liability company — the most widely used form for commercial business.
- General partnership — a partnership between two or more persons.
- Joint stock company — best suited to large projects and raising capital.
The right choice depends on the nature of your activity, the number of partners, the size of your capital, and your plans for growth.
Second: reserving the trade name and drafting the contract
The practical steps begin with reserving the trade name and confirming it does not conflict with a registered one, then drafting the memorandum and articles of association in line with company law, setting out the activity, objectives, capital and partners’ shares.
Third: registration with the Companies Registrar
The incorporation file is submitted to the Companies Registrar at the Iraqi Ministry of Trade, and typically includes:
- The incorporation application and signed contract.
- Official identification documents for the partners.
- Evidence of capital deposit.
- Documents relating to the company’s premises.
Once the certificate of incorporation is issued, the post-registration stage begins: sector licences, tax registration, social security for employees, and opening bank accounts.
Fourth: classification and approvals
Some activities — contracting in particular — require grade classification with the Ministry of Planning and the Contractors Union, a service we provide as part of our end-to-end formation package.
In short: getting the setup right from day one saves considerable complication later — from drafting the contract through to classification and tax compliance.
This article is for general information only and does not substitute for specialised legal advice on your situation. Get in touch and the Almadar team will guide you step by step.