The Iraqi Securities Commission has launched an ambitious strategic plan aimed at enhancing the attractiveness of the domestic capital market, particularly for foreign investors. The plan is built on three core pillars: simplifying operational and legal procedures to accelerate and increase the flexibility of the investment process; strengthening the protection of investors’ rights through the application of international best practices; and providing advanced electronic platforms that ensure a secure and transparent investment environment. These initiatives, which form part of a broader effort to deepen the market and diversify investment instruments, seek to position Iraq on the map of attractive financial hubs in the region, thereby opening new investment horizons that support the momentum of the national economy. The success of this strategy depends on translating the announced directions into clear, enforceable regulatory mechanisms that reinforce confidence and achieve sustainable growth.
The article addresses the legal framework and practical steps for company formation in Iraq, clarifying that the process is not a mere formality but a precise legal path that begins with the founders' agreement, subscription to capital, and its deposit with a licensed bank. It highlights the role of the Founders' Committee in joint-stock companies and their extended responsibilities until the first board of directors is elected. The article reviews the official application stage, where the application is decided upon within ten days, and a certificate of incorporation is granted, which confers legal personality upon the company. It also details the guarantees afforded to founders in the event of application rejection, ranging from a reasoned refusal decision to the right to object before the Minister of Commerce and then before the judiciary, with the possibility of submitting a new application after remedying the grounds for rejection. This guide constitutes a clear roadmap for investors to build business entities grounded in legal certainty.