Foreign companies, which desire to be incorporated in Iraq, face some difficulties in the process of incorporation inside the Republic of Iraq. Many obstacles are imposed on incorporating foreign companies inside Iraq to the fact that two genuine conditions must be abided by the companies. Otherwise, the incorporation process of a foreign company is not performed in Iraq.
One of the conditions imposed on foreign companies is that they must have two years of incorporation in the country of origin.
The second condition in the Iraqi law states the company that desires to incorporate inside the Republic of Iraq must be profitable and have profits in the financial statements.
Based on these two aspects, the foreign companies are suffering from these two unfair conditions because the foreign company desiring to be incorporated in Iraq endeavours to expand in the Iraqi market and achieve marketing success for both, whether the company or the Iraqi market. Moreover, the incorporation of a foreign company can contribute to expanding the wheel of growth and encourage other foreign companies to involve in the Iraqi market to enhance the business and expand the scope of foreign investment. This aspect can enhance a competitive environment among the companies that motivates them to develop the local companies.
Passing two years to the incorporation of the company in the country of origin and its desire to corporate a new company inside Iraq, as we think, has no impact because the economy of Iraq has competitive. Most foreign companies, whether startup or pioneering, are endeavouring to open branches or incorporate companies outside the country of origin. Moreover, the Middle East polarizes this hectic competition among companies.
As for the condition of the company profitability, the incorporation of a foreign company inside Iraq, as we think, is more successful and feasible than in the country of origin. This aspect will be profitable to the Iraqi market and encourage foreign companies to involve in the Iraqi market.