Welcoming the approval of the recently introduced law on protecting foreign investments by countries planing to invest in Iran, TEHRAN TIMES decided to publish the full text for the benefit of those foreign individuals and companies who wish to carry out further studies.

Part Two: Article 4: The investments made by the Iranian and foreign governments in the Islamic Republic of Iran shall depend on the approval of the Islamic Consultative Assembly. Investments by foreign state-owned companies are regarded as private investments.

Chapter III: Authorized References Article 5: The organization (Investment and Economic/Technical Organization of Iran) is the sole official organ in charge of encouraging foreign investments in the country and handling all affairs related to foreign investments. The requests made by foreign investors concerning admission, inflow, use and outflow of capital must be submitted to the organization.

Article 6: In order to examine and make decision on the requests mentioned in article 5, a board called "Foreign Investment Board" consisting of the deputy minister of economic affairs and finance as the chief of the organization, and deputy minister of foreign affairs, deputy chief of the Management and Planning Organization, deputy governor of the Central Bank of Iran and if necessary deputies to other relevant ministries as members shall be established. As for admission requests, the investment permit shall be issued after it is approved by the board and confirmed and inked by the minister of economic affairs and finance.

Upon accepting foreign investment, the Board is obliged to observe the principles mentioned in Article 2 of this law.

Note: The organization is obliged to set forth investment applications along with its own views in the board within at most 15 days of the date of their receipt, after making preliminary examinations. The board is duty-bound to see to the issue and announce its final decision on the said investment applications within a maximum of one month.

Article 7: In order to facilitate and speed up the affairs pertaining to acceptance of foreign investments in the country, all relevant apparatuses including the Ministry of Economic Affairs and Finance, Ministry of Foreign Affairs, Commerce Ministry, Ministry of Labor and Social Affairs, the Central Bank of Iran, the Customs Administration of the Islamic Republic of Iran, the General Office for Registration of Companies and Industrial Ownership and the Department of the Environment are obliged to introduce a plenipotentiary representative each to the organization upon the approval of the highest ranking officials of those apparatuses. The introduced representatives are recognized as coordinator liaisons between the organization and their respective apparatuses or organizations.

Chapter IV: Guaranteeing and Transfer of Foreign Capital Article 8: Foreign investment subject to this law shall enjoy all rights, support and facilities provided for domestic investors on an equal footing.

Article 9: Foreign investment shall not be exposed to dispossession of property or nationalization except for cases involving national interests and according to legal process and through non-discriminatory methods in return for paying compensations in proportion to the real value of the investment immediately before dispossession of property.

Note 1: Any application for compensation must be submitted to the board within at least one year of the date of dispossession or nationalization.

Note 2: Any dispute resulting from dispossession of property of nationalization shall be settled based on Article 19 of this law.

Article 10: Transfer of the whole or parts of foreign capital to a domestic investor or to another foreign investor shall be possible only through the approval of the board or the confirmation of the minister of economic affairs and finance. In case foreign capital is transferred to another foreign investor, the latter must have the least qualifications of the former and according to the provisions of this law shall be considered a substitute or partner of the former investor.

Chapter V: Regulations on Acceptance, Inflow and Outflow of Foreign Capital Article 11: Foreign capital can be brought into the country and be protected by this law through one or a combination of the following methods: A: Cash that is converted to rial (local currency).

B: Cash that is not converted to rial and used directly for purchases and orders associated with foreign investment in the country.

C: Non-cash items after undergoing assessment stages by relevant authorities.

Note: Arrangements relevant to registration of foreign capital shall be determined by the bylaws of this law. (To Be Contd.)