Companies Law (No. 21 of 1997, as amended by CPA Order No. 64 of 2004)
The Iraqi Companies Law governs the formation, operation, and dissolution of companies in Iraq. It applies to private companies, mixed-ownership companies, and foreign investors, subject to specific regulatory carve-outs for sectors such as banking and insurance.
Objectives of the law include:
Regulating company formation and conduct
Protecting shareholders from abuse of control and conflicts of interest
Ensuring creditor protection and financial transparency
Promoting good governance and accountability
Types of companies under the law:
Joint Stock Companies (private or mixed)
Limited Liability Companies
General Partnerships
Sole Proprietorships (Single-Person Entities)
Simple Companies
The law sets minimum capital requirements and outlines detailed procedures for incorporation, including:
Articles of association
Share capital contributions
Disclosure obligations
Governance structure (General Assembly, Board of Directors, Executive Director)
The law also stipulates rules for:
Capital increase and reduction
Public offerings and private placements
Transfer of shares and inheritance procedures
Dissolution, merger, and transformation of companies
This legal framework provides a structured, transparent environment for business formation and operation, aligning with international standards while adapting to local regulatory needs.