Current business situation
Exporters should be aware that Australia maintains United
Nations Security Council sanctions in respect to Iraq. These sanctions require
Australian organisations and individuals to comply with a range of measures and
in general, also apply extraterritorially to Australian nationals overseas.
Before the ongoing security turmoil, the business
environment, lacking transparency and efficiency, had improved only marginally.
The labour market, which had already suffered from state interference and
control, has been severely affected by the devastating conflicts. The
government uses oil revenues to subsidise basic goods and services and
maintains tight price controls on food and medicine.
If you are proposing to meet with Iraqi businessmen it is
normal for discussions to occur over lunch or dinner. You should initiate the
invitation as an indication of your interest in developing business relations.
It is helpful to know a few simple Arabic words and phrases
- Marhaba salam alekom - hello
- Shukran - thank you
- Men fadlak - please
- Keif Halac - how are you.
Setting up in Market
Setting up a
business in Iraq involves several steps and needs to be undertaken by an authorised
lawyer. The following steps provide a guide to establishing a Private Limited
Liability Company. Please ensure you consult a lawyer as requirements can
- Search for a company name; obtain a name reservation letter from the Baghdad Chamber of Commerce.
- Hire a lawyer to draft articles of
- Deposit the initial capital at a commercial bank and obtain a confirmation receipt.
- File registration at the Commercial Registry.
- Advertise an incorporation notice in the newspaper.
- Make a company seal.
- Obtain a registration certificate.
- Report to the tax authority to establish a tax registration.
- Legalise the accounting books.
- Register employees for social security.
- Apply for a trade license.
Austrade can help by
providing market analysis and research:
- strategic advice and realistic market intelligence
- market risk analysis
- coaching on the process of supply to the World Bank, UN agencies and the US contracting office.
- excellent links with key Iraqi stakeholders, government and ministries
advisory with key local contacts
the right potential partner/agent
you updated with leads and opportunities
you with active regional players in Iraq
any local contact
secure method of payments and commercial conditions.
Banking and finance
The Iraq Ministry
of Finance approves budgets, manages debt and establishes economic policy. It
pays Iraq's 1.8 million pensioners and 1.4 million state employees and collects
taxes and customs revenues. The banking system in Iraq has three different
structures: central, state-owned and private.
Links and resources
Government, business and trade
Baghdad Business Centre
Central Bank of Iraq
Ministry of Oil
Trade Bank of Iraq
Please note: This list of websites and resources is not definitive. Inclusion in this list does not imply endorsement by Austrade. The information provided is a guide only. The content is for information and carries no warranty; as such, the addressee must exercise their own discretion in its use. Australia’s anti-bribery laws apply overseas and Austrade will not provide business related services to any party who breaches the law and will report credible evidence of any breach. For further information, please see foreign bribery information and awareness pack.