mollasadra prospectus for linkedin

31
MOLLASADRA INTERNATIONAL HOLDING We are your companion in the road of trust and loyalty By Rajinder Singh Sapura International Sales Manager

Upload: arash-derakhshan

Post on 17-Jan-2017

69 views

Category:

Documents


1 download

TRANSCRIPT

Page 1: Mollasadra Prospectus for linkedin

Mollasadra International holding

We are your companion in the road of trust and loyalty

By Rajinder Singh SapuraInternational Sales Manager

Page 2: Mollasadra Prospectus for linkedin

Introduction

Mollasadra International Holding

Business Outlook

International Business and presence

Investment in Free Trade Zone

Business Organization

Strategic Marketing

Financial and Market Analyst

Accounting and Auditing services

Seminars and conferences

Trade Law in Iran

Taxation and Tax planning

Taxation system for the foreign investors

Avoidance of Double Taxation Agreement

Legal Services by Mollasadra International Holding

Table of content

Introduction

Page 3: Mollasadra Prospectus for linkedin

In the era of globalization, a phenomenon of borderless and integrated presence, the challenges that the investor faces are mostly common like the lights

of socio-cultural indicators, ways to enter which matches with the legal environment of the target country, political risk, what are the best global strategy to enter a market, the industrial analysis, turnover, Return on Investment (ROI), how to reach to the economies of scale and faster obtaining the breakeven point and creating a value chain. The above mentioned are the concerns that our holding has several customized and comprehensive solutions.

You have opted a great opportunity to have your presence in Iran and have certain questions in order to analyze your need and abilities. So that the concern firms could get familiar with our way, which is Mollasadra International holding for obtaining a great strategy and to have a safe investment and rapid business growth.

Today, you want to seek out the opportunities and our holding will provide you the information which is funneled through our best practices.

First step is considering your long term and Short term objectives.

The major obstacles for the investors are the return of their investments and even it creates a roadblock for your sales. It is pretty logical and our holding has great sense of understanding over this concern of the investors, this is the basic practice by our holding which with our great position domestically and in abroad to generate a great deal of problem solving methods to remove the concerns.

For all sorts of investment portfolios we have simple but specialized solutions, to solve those problems and issues we need to merge together to form those solutions.

Mollasadra International Holding with its most advanced management system will provide professional problem solving approaches for the investor’s concerns. In cultural aspect our advisor with years of experience will direct the investors in a way where we will have clear decisions in the product development stages. All of the companies whether domestic or abroad must have understanding of cultural code. The advisors of our holding will give the foreign investor the Islamic coding inculcated with modern lifestyle, taste and preferences which matches with the values and norms of our national identity, based on this phenomenon our expert opinion groups will deliver their best.

Our holding has years of illustrious and outstanding experiences in providing specialized services, we have diverse problem solving methods.

It really doesn’t matter for your past presence in the Iranian market and here we will provide you a new vision in Iran.

For inception you need to register your firm which doesn’t matter whether you are a small or big player. The big and International Brands of our era are using Mollasadra ways or methodology to solve their problems.

Page 4: Mollasadra Prospectus for linkedin

The Foreign investment is a great mode of entry but one must have good understanding and accurate knowledge.

What is your information about the flow of the foreign companies here in Iran? Did you try to contact with the Iranian companies or did you allow them to know you? Do you know that they want to identify you? How much desire do you have to sell your products of your brand? Do you want to have franchising and licensing here in Iran? How can you utilize the opportunities to etch your position in the market?

Express your objectives for us, we definitely will be your companion on that road. You need to have proper market segmentation in our region, we do have access not only to Iranian market but also Iraq, Armenia, Azerbaijan, Turkmenistan, Afghanistan and Pakistan. So Iran is at a crossroad and has good infrastructure with highly educated workforce.

Certain cultural consideration must take place to have more objective ways so you need our consultation, arbitration and setting legal contracts.

Attract the capable partners which have great stronghold in the Iranian Market, to have good synergy and supportive combination to facilitate for better performance in domestic and foreign markets.

Mollasadra International Holding will provide comprehensive market research so that the investor could take rational decisions after analyzing the regional and particularly in Iranian market. Our attorney has great legal and Administrative experiences, they have great knowledge about the International Law who can analyze the regional. In Iran our attorney will seek out the best and the shortest methods to solve the problems. Experts in our business consultation wing will give you multiple alternatives solutions to reduce cost and have good turnover. Our Holding will prioritize and create criteria for the domestic partners and based on those elements Mollasadra will opt the best one.

We have several professional and rational decision making processes for the investors

1. Identifying the needs to be Made

You as an investor need a good knowledge of the market and based on those information you must measure the vision and mission of your company. At the highest level the investor want to obtain some common objectives i.e. to have Stronghold, Good market share, profits and Growth also what we basically want to do. To support your decisions you need to have access to the information related to your field and Industry, this is exactly what Mollasadra does. We have great Industrial analyst which generate the easiest ways to enter the market.

2. Generate and weight the Criteria’s

Our holding will generate elements and key requirement that you need which is basically to have a domestic partner. In case of Greenfield our experience is the only renowned

Page 5: Mollasadra Prospectus for linkedin

experience in Iran which can help you to obtain and handle all of your business, from Strategic to the Functional activities. Questions like which place is cost lesser? Which market is the potential one? Who are our buyers and suppliers? How to enter the market? Is the only subject that we are dealing with on daily basis?

3. Develop and analyze the alternative

Alternative must be formulated and analyzed accordingly, so that we could select the best alternative for partnership. Based on your requirement of investment Mollasadra will provide you those services. The process of developing and analyzing your option is will do by our experts, basically this stage says what we have on the table. Cost benefit analysis and have trade off over the alternatives.

4. Evaluation and selection of the alternative

Mollasadra will evaluate the alternate and suggest you the healthiest partner to obtain long term bonding. Here is the most critical stage where our holding comes into play to assist, the most comprehensive way to select a partner. Our duty is to be the arbitrator and to take corrective actions for you. Our customer base is like a showcase, but just showcasing and introducing is not enough so you need a consultant who can give a professional options.

5. Implementation

In your trading matters and issues we will not interfere what we do is to arbitrate between you and your partners. During execution process the guideline of your partnership will be well considered. Now the decision is been made, so you need an observer to checkout closely. In all business related activities. In the implementation stage you must receive your answers from those questions and concerned mention, at this time you have clear idea about the market and matured outlooks.

6. Review

The more and more we get to the end of the process while you are busy in your activities which are related to trading and commercial objective, our role in this stage becomes greater. If the Iranian partner is deviant somehow due to lack of implementation of the party’s obligation, our holding will secure and protect your interest legally. Administrative, legal and functional activities will be obtained by our holding.

Page 6: Mollasadra Prospectus for linkedin

Mollasadra International Holding

Our Holding is an International Holding as the name signifies we have certain role in the international arena in administrative and legal activities. To have the international persona Mollasadra has to acquire and adjust its activities in line with International Law. Our lawyers and experts are completely aware about the European, Australian, American, Eurasian and Middle Eastern. With respect to the globalization Phenomenon we have presence in over 23 countries. The professional program managers and lawyers are been incorporated to smoothen your legal business process.

Mollasadra’s attorneys in Europe have great understanding of European commercial and trade law, about the policies of different countries regarding tariff and tax codes. Law of the mainland and advantages of special economic zones to use the facilities for your business. Mollasadra provides bonding with the international and regional investors. Advantages of Europe is in a such a way that businesses could use a single platform and have access to several other market with least possible cost.

Our holding has presence in several foreign and domestic conferences and seminars. With this it shows that we procures investors, companies and customers relationship. Creating Comprehensive networking with our stakeholders, our lawyers are present in the conferences to protect the interest of the business entities. In conferences the opportunities are presented and our lawyers who are attending regularly will suggest the business hubs with detailed and comprehensive research to see the feasibility of the business projects.

Foreign companies who want to outsource certain products in Iran, come into contract with the Iranian companies. Outsourcing will reduce your cost and time, increases your efficiency. Costs will get reduced in terms of energy, In Iran the raw materials related to petrochemicals and fuels are very low, so here it signifies the absolute advantage in terms of fuels and comparatively Iran has lower labor cost with its European counterparts. Our region is at crossroad which connects the central Asia, Europe and MENA which indicates the transportation capabilities. Business must obtain capacity building to have factor mobility and use the opportunities.

Mollasadra International Holding has over 14 working teams dealing with legal issues of company registration the companies who want to have certain authenticity and protection it is the necessary step in Iranian Commercial Law. In 2013, Iran has deregulated and eased the restriction to allow the foreigners to obtain any strategy and directions for investments. The flow of the companies are inevitable, due to the flexible environment and provisions by the support of the government. The team will has outstanding research center to provide the investors such as the knowledge about the industry. The analyzers will create dashboard and infograph presentations to have clear Idea. Strategic Marketing is to obtain the goals our holding has department of advertising agency with enormous customer base.

Our holding basically integrates the domestic and International partners for better functionality, to have better reach with international clients, linking the clients with each other to meet the

Page 7: Mollasadra Prospectus for linkedin

commercial objectives. Mollasadra proclaims the only Customer Relation Management with organized classification of customers from Small and Medium Size business to large corporations. The foreign investors has one stop shop in the holding and showcases for inclining the presence in the lucrative Market in Iran. Collaboration and communications are the desirable methods of integration to have swift appearances.

The largest and only International Holding has 33 years of experiences in legal domains. Apart from legal Mollasadra has experts in Managerial system. Mollasadra has access to most advance management system and tools for the clients. Modern management requires the ERP system where the clients could integrate their Stakeholders, corporate units and functional department like manufacturing, operation, financial, marketing and human resource. As an Arbitrator, our holding can assist you in making strategic decisions to accomplish the goals.

Page 8: Mollasadra Prospectus for linkedin

Business Outlook

Economic performance has stalled in recent months with key sectors—manufacturing and construction—contracting significantly. Possible in opportunities and follow of investment in specially mining sector, drop in oil prices will increase the possibility of investment in process of oil related products and petrochemical product, and the postponement of investment and consumption decisions ahead of the expected lifting of sanctions.

The recent lifting of economic sanctions is expected to help increase oil production and exports, and lower costs for trade and financial transactions. Access to foreign assets is also anticipated to be restored. Under these assumptions, real GDP growth is projected to accelerate to 4–5½ percent in 2016/17 and to average 4 percent throughout the medium term.

According to the five-year plan prospect of Iran, the objectives is to enhance the progress in science and technology. The prospect of the plan is to reach to the annual growth rate of 8% and privatizing several sectors, reforms in the financial and banking sectors. Management the oil revenue and direct it towards the developmental plans and modernizing the infrastructural.Iran does want to be present itself in major hub for the business entities and traders. Development of seaports, Airports and modernizing transportation and logistics is been prioritize from the Iranian government point of view. Strategic presence of the foreign companies in Iran will give absolute advantage and also use of facilities that government provides. Transfer of technology is another issue that the investors can enjoy the facilities such as tax exemption and easy access to the raw material. The best option will be provided by Mollasadra’s business advisors to have better focus in business.

On July 14, 2015, the P5+1 (i.e., China, France, Germany, Russia, United Kingdom and United States) and Iran agreed on the Joint Comprehensive Plan of Action (JCPOA), which limits Iran’s nuclear program while the international community enacts the lifting of sanctions on Iran. If the JCPOA is successfully implemented, it will result in the lifting of all US, EU and UN sanctions on Iran by March-June 2016. The implications for the Iranian economy and the welfare of its citizens are significant. On the domestic side, parliamentary elections in Iran and the formation of the new council that appoints the representative house for better formulation law are scheduled for February 2016. Currently is the implementation stage where the integration is started with Iran to process the business as fast as possible to enjoy the most lucrative market.

Page 9: Mollasadra Prospectus for linkedin

International Business and Presence With respect to factor mobility and promotion of foreign investment in Iran (FDI) in order to state a strategic presence in Iran, the foreign companies must understand two issues comparative and competitive advantages which can our perform many companies with transfer of technology. Iranian workforce is the most educated and skilled given the low cost of labor for the foreign companies, the presence foreign companies can be in terms of collaborations and joint venture there are companies which are interested to upgrade their technology and can have exchange of experience. Market capitalizations of Sectors is mentioned in the Tehran Stock Exchange in terms of Market portfolio of sectors. Based on the below pie chart the investors will get clear idea about the capital market and diversity of the Iranian market, and possible opportunities to expand for more investment by Foreign Portfolio Investment and Foreign Direct Investment (FDI).

11%

12%

15%

24%

7%

3%

2%2%2%

21%

Market Capitalization in TSE

Metal IndustryBankFinancial ServicesPetro ChemicalsTelecomAuto Manufacturing Pharmaceutical Investment GroupsProfessional Services Other Industries

Page 10: Mollasadra Prospectus for linkedin

Investment in Free Trade Zone

Incorporation of the business in the Free Trade Zone of Iran, and the companies will be exempted for paying taxes for at least 15 years and maximum till 20 years for their commercial activities. Any type of Business organization can be established by foreigners with 100 % investments and control with Greenfield strategy. Currently 7 major district have been mentioned as Free Trade Zone in order to encourage foreign investments and to minimize the political risk for investors.

The table below provides information about the Free Trade Zone:

Name Location Province Area

Anzali FTZ Caspian Sea Gilan 3.2 Sq.km

Aras FTZ Caspian Sea East Azerbaijan province

1,670 Sq.km

Arvand FTZ Persian Gulf Khuzistan 170 Sq.kmChabahar FITZ Chabahar Gulf Sistan and

baluchestan14 Sq.km

Kish FTZ Persian Gulf (Kish Island)

Hormozgan 90 Sq.km

Qeshm FTZ Persian Gulf (Strait of Horomoz)

Hormozgan 300 Sq.km

Maku FTZ West Azerbaijan West Azerbaijan province

22 Sq.km

Advantages of Free Trade Zone in Iran

Import goods without paying any custom duty fees Manufactured goods in free zones imported to mainland will be free of any custom duties No restrictions on transporting, transit and re-exporting your goods Joint venture between the foreign and domestic investments Transfer of technology and funds Tax exemption from 15 to 20 years Banking and transaction in Free Trade Zones with availability of SWIFT and

International system. Skilled Labor forces, social security coverages and foreigner’s employment and easy

work permit in Free Trade Zone. Retail sales are for domestic and foreign companies Granted Visa at port of entry in Free Trade Zone.

Page 11: Mollasadra Prospectus for linkedin

Business Organizations

As per the commercial code of Iran the companies must get registered for authentications. Iran has the most advanced registration system matching with international standards. The company registration requires setting of documents such as the type of the company, Name of the company, the object of the company, The Director Names, Rights of signatures, Number of shareholders, Board of Director and The Decision makers. Companies must identify their legal address and the location should be clear, and it will be verified by the company registrar office.

1. Limited Liability Company

2. Private Joint Stock company

3. Branch Office

Limited liability company

Private Joint-Stock company

Branch office

Company Law Iranian commercial law, Iranian attraction and protection of foreign investment Act 1995

Iranian commercial law, Iranian attraction and protection of foreign investment Act 1995

Iranian commercial law, Iranian attraction and protection of foreign investment Act 1995

Company’s obligations Full control Full control Parent company

Number of shareholders 2 or more 3 or more and at least 2 inspectors

Parent company

Minimum capital required $35 $110 -

Liability Limited by shares Unlimited liability Parent company

Incorporation Statutes and registration

Article of incorporation and

registration

Registration

Company Name Free and company form

Free and company form

Parent company

Formalities and process Low Moderate Low

Credit/ funds Generally possible Generally possible possible

Page 12: Mollasadra Prospectus for linkedin

Brand registration is mostly the manufacturers and workshop requirements which leads to Name, Logo, and Symbol, Sign, Patent and Trademark protection. The registration will be integrated with World Intellectual Property Organization which is an international body for brand, Patent, Trademark and Industrial Design. The Franchising and licensing is possible by the authority of the origin Brand/Patent/trademark/Industrial design, National Head and Regional Head office. Brand has 45 classifications where the product must be registered to lock and prevent any sort of copyright issues. The cycle for particular Brand registrations is every 10 years, must be extended.

Commercial ID card is an important certification for the traders for the purpose of lawful products and services. The importers and exporters must possess this card in custom for possible release of their product. The purpose is basically for the letter credit to have better banking transaction on offshore. Traders deal with the commercial invoices, certificate of Origin, Bills of lading, shipping documentation, custom areas/Free Trade zones, Tariffs, Product specification and labeling requirements.

The companies may conduct representative or branch offices for the purpose of conducting studies for investments in Iran. The branch is deemed to do business on behalf of company's head office. Therefore the head office shall be responsible for all activities of the local (Iranian) branch and office. While in Representative office the natural person or legal entity will persuade agency agreement and the agents of the foreign company shall be responsible for the activities in Iran carried out in the name of the Principal Company in abroad. The Law of Attraction and Protection of foreign investments is for such purpose to protect the interests of foreign investors.

Page 13: Mollasadra Prospectus for linkedin

Strategic Marketing

Setting up plans and policies to reach the objectives by the means of marketing and use of all channels for the purpose of advertisement. Mollasadra advertisement agency will provide services that the foreign companies need to reach their objectives in short span of time without any investments. The companies must understand the Marketing Mix - The Product Mix, Promotion Mix, Pricing Strategies, Segmentation, Targeting and Positioning, Brand and Branding Architecture, repositioning.

Logo design, Business cards, Pamphlet, Posters, Billboards, Web design, Video ads etc. are done by our Advertisement agency, use of advance tools and techniques with an outstandingly skilled people. Our advertisement agency will intervene in your strategic decision making process to have match the ads with cultural aspect. TV ads is one of the effective ways to attract mass and Mollasadra Advertisement Agency has partnership with the Islamic Republic of Iran Broadcast channels.

Social Media Marketing is modern channels of reaching the customers - Facebook, Google Plus, YouTube, Twitter, Foursquare, Pinterest, LinkedIn, WhatsApp, Telegram, SMS (Mobile Marketing), Our Advertising team will conduct campaigning online in the social media. Digital Marketing is a way to Search Engine Optimize your website by using the Google Analytics, AdSense and AdWords. Website must be visible by the customers in the Search Engines such as Google, Bing and Yahoo etc.

Page 14: Mollasadra Prospectus for linkedin

Financial and Market analyst

The Financial projects need analysis to select the best project with faster return, our analyst clearly understand the concept of time value of money. The companies has to finance their project based on the facts and evidence, the feasibility reports from several issues such as Technical, Legal, economical, operational and Scheduling. Our Project managers will recommend the capital structure (debt-equity ratio), projected cash flow and profitability, Estimated cost of the project and cash Liquidity.

The Market Feasibility analyst will help your business to have the best geographical location to have access to the Raw Material, energy and natural resources, the estimating Market size, potential Market and Demand analysis. Our Market advisors will provide you the most advanced Management Science solution to optimize your production, to select the best transportation and assignment, to obtain better decision making process.

Page 15: Mollasadra Prospectus for linkedin

Accounting and Auditing Services

Iran Accounting System is in the level of International Financial Reporting Standards, our holding has access to Generally Accepted Accounting Principles (GAAP). Assets management, allocation and valuation is the dealing of our accountant. Liabilities is to align the people that the companies are liable to pay. The accountant of Mollasadra will adjust the Balance sheet to deliver the proper financial positions. Revenue are the inclination to the assets and downplays the liabilities, the indication of the sales the inflow of cash and increase in asset value; Sales of the products and services, and Outsourcing. Expenses are declination to the assets and increases the Liabilities, incurring expenses is imply on outflow of cash; purchase of Raw material, salary, wages, shipping, rent payment, printing and advertisement, transportation and freight, electricity charges, water supply charges, commission, Telecommunication & Internet charges and IT related services which will mentioned in Income statement.

The management operation and production cost, cost accounting, Cash Flow and Fund Flow statements, LIFO, FIFO are been taken by our prime accountants.

Auditing is the independent verification of the financial statements in a fair and systematic orders. The auditor's responsibility is to keep the books of account as per the law of the land. For Auditing purpose Mollasadra will provide experienced Accountants to place the accounting elements as per the Iranian law. Bad or wrong Accounting is a problem creator for the businesses, in order to neither over nor under payments the books of accounting and financial statements must be systematic.

Our accountant will provide software presentations in a form of dashboards and scorecard to have clear picture of their financial activities.

Page 16: Mollasadra Prospectus for linkedin

Seminars and Conferences

Mollasadra institute as a great international holding will provide seminars and conferences in the field of legal affairs. It tries to present and introduce its services to different types of entities in all over the world.

One beneficial feature of our institute is conducting, organizing and sponsoring conferences and seminars. Another beneficial feature is exchanging information among different nations. It has strong connections with the experienced firms through these conferences and such seminars. Our institute will get useful information from their partners about legal affairs as well as providing these information to them. These information includes the different types of companies’ introduction, registration affairs - company, brand, branch and representative office - , WIPO services – patent, industrial designs -, issues related to the legal and arbitration. The aim of such international conferences is to strengthen the political, economic, industrial relations of the different nations and to connect the nations which have the same interest and improve their publicity as a great entities. These seminars can extend the relations of countries by holding meetings, discussions and dialogs between the trades and elites.

Mollasadra international holding with its experienced group and its highest position will be ready to held international conferences and seminars in Iran and abroad and will be ready to transfer its knowledge in its own working field and it will be pleased to broad its connection with other countries in different continents.

In these conferences, both partners are obliged to attend in order to recognize their needs and find the best solution to solve and facilitate the issues.

According to the significant role of Mollasadra in the field of government, it can help you to have a key function in the Iranian and foreign conferences

Page 17: Mollasadra Prospectus for linkedin

Trade Law in Iran

All sorts of lawful goods under the Iranian law are mentioned by Iran custom administration under the supervision of Ministry of Economic Affairs and Finance. Supervision of entry and exit of the goods in terms of import, export, transit and collection of duties and custom taxes are regulated under by the organization mentioned above.

The general direction of the custom laws of Iran does not prohibited any other goods from entering the country other than the list below but usually certain permits and licenses are required in order to clear your goods from customs.

Liquor products Gambling Items Weapons, ammunition and explosive goods Narcotic drugs Magazines, photos, films, snaps and those goods, which are against

religious and national dignity of the country. Any type of writings which are against the official religion of

the country and /or disturbing discipline and public purity and national dignity.

Import Registration

The import of all importable commodities by the governmental or non-governmental importers and entities except in following conditions will be subject to registration and receiving import certificate from the Ministry of Commerce upon observing other stipulated rules and regulations.

Those types of goods which have legal prohibition and/or their import and export have not been allowed according to the customs tariff table or special rules.

Commercial ID card

Commercial ID card is a document for import or export of products. Commercial ID card is issued by the Chamber of Commerce, Industries and Mines in Tehran or other provinces for the qualified applicants (whether Iranian or non-Iranian natural and legal entities) for a period of one year.

Goods status of Iran based on Trade Law

Allowed goods do not require any specific permission for clearance in customConditional goods

requires permission(s) for clearance in custom

Prohibited goods Illegal by laws of Islamic Republic of Iran

Page 18: Mollasadra Prospectus for linkedin

Taxation and Tax planning

Iran corporate Income tax is 25% foreign companies are entitle to the tax. Branches and the agencies are also subject to the taxes, the income earned in Iran by the contracting operations, royalties, licensing fees and other activities.

Value Added Tax is 9% is collection of fund from the consumers by the sellers, Adding the Values at each stage of subsequent purchase of the same item till the end user, the VAT is been charged.

Tax exemption for the foreign investment in the sectors are Agricultural sector (100%), industrial and mining (80%), Industrial and mining underdeveloped areas (100%), tourism (50%) and exports (100%).

Iran is also listed in the double taxation avoidance agreement DTAA, where if an investor establish a company in Free Trade zone which has zero tax for 20 years and open up branches in other country requires to pay no tax in the residing branch countries. In case of mainland corporate tax the tax is deducted from the company and hence the foreign residing branch of the same company is not entitle to pay tax. It will explained in detail in taxation system.

Taxation system for the foreign investors

The foreign companies in Iran enjoy same sort of facilities as an Iranian Investors. Both the Iranian and foreign entities are entitle to pay the same amount. Taxation registration is required for all of the companies so that the entities will bind to perhaps unlimited penalty. Tax exemptions and discounts are equally granted to the domestic and foreign investors. The Direct Taxation Law, was passed in 1987, with the core objective of formulating the taxation system in Islamic Republic of Iran. The law was extensively reviewed and reformed in 2001 to be in tandem with the ongoing economic conditions in the country.

Types of Taxes in Direct Taxation Law

Taxation is divided into two types in accordance with the Direct Taxation Law

Property Tax Income Tax Inheritance tax Property income tax Stamp duty Agricultural income tax

Salary income tax Self-employment tax Corporate income tax

Page 19: Mollasadra Prospectus for linkedin

Major Tax incentives which are for the purpose of development in the industrial areas and several other zones to promote for better and suitable areas with respect to reduce cost for the investors.

Business Activities Level of exemption Duration of exemption

Agricultural sector 100% Perpetual

Industry and Mining 80 % 4 years

Industry and Mining in Less Developed areas 100% 20 years

Tourism 50% Perpetual

Exports of services and Non-oil goods 100% Under the five year plan

Handicraft 100% Perpetual

Education and sports services 100% Perpetual

Cultural activities 100% Perpetual

Salary in less developed areas 50% Perpetual

All economic activities in Free Trade Zone 100% 20 years

Value Added Tax Act in Iran

The VAT rate stands at 9% as of 2015 (VAT rate for two special goods of cigarettes and jet fuel is relatively high). To reduce the country’s dependency on oil incomes. For VAT registration is required for legal entities. The annual one-percent increase in the VAT rate to put it at 9% in year of 2016. VAT is imposed on the sales of goods and services and their imports except the items mentioned in Article 12.

Page 20: Mollasadra Prospectus for linkedin

Avoidance of Double Taxation Agreement

In accordance with avoidance of double taxation the government of Islamic Republic of Iran has signed agreement to ease the trade and to boost economic activities between the foreign nationals and Iranian nationals for better cooperation.

List of Countries Signed the Agreement to Avoid Double Taxation with Iran (2011 Nov)

Azerbaijan Belorussia Armenia Bulgaria Russia Qatar

South Africa Bahrain Indonesia Venezuela Sri Lanka Georgia

Spain Uzbekistan Germany Poland Switzerland Kyrgyzstan

Austria Algiers China Kuwait Syria Lebanon

Jordan Ukraine Turkmenistan Pakistan France Kazakhstan

Page 21: Mollasadra Prospectus for linkedin

Legal Services by Mollasadra International Holding

Asper the legal issues, our holding has clear understanding of Iranian commercial code, Iranian Attraction Protection and Promotion of Foreign Investment Act, Civil code, Trade Law, European and International Commercial law. Arbitration is one way that we keep in our process to avoid any sort of misrepresentation and fraudulent acts.

Commercial litigation and dispute settlement will ensure the foreign investors to protect their interest in Iran. The legal system title is basically to give the trust to the foreign entities that our advisors will suggest your business the best possible solution in all aspects related to the activities of your business. Courts which are dealing with dispute settlements are courts of first instance, appellate court and supreme courts. Our holding had never lost in any cases in any of the courts which we have the sole title in Iran.

Attorneys in Iran usually work as individuals and there is only one holding that is Mollasadra (400 employees) practicing in Iran. There is only one specialize legal and Arbitration institution which is Niknaman of Mollasadra under our holding in Iran and most of the attorneys practice in all areas of the law.

Page 22: Mollasadra Prospectus for linkedin

Value creation by a company means what exactly a company offers from its primary activities in the process with available resources to fit and align strategic presence in a market. To deliver these values you can count on Mollasadra International Holding.

Our introduce as an International Holding in Iran providing our clients with professional legal services of the highest caliber, combining technical excellence with commercial awareness and a practical, constructive approach to your legal issues. We are a team of experienced and talented lawyers graduated from the most prestigious and distinguished universities in Iran.

Mollasadra International Holding capabilities extend across the commercial law, contracts, with particular expertise in trade regulation law, joint venture projects, domestic and international partnerships and agency agreements. The office also advises on activities related to oil and gas, free Trade zone, branch office, investment regulations, and the registration branch office and companies, intellectual property rights in Iran and etc.

We some outstanding associates in litigation and defending the civil and penal cases before Iranian courts. Our lawyers know how to manage legal expenses and we don't subscribe to the uncontrollable, stopwatch billing model favored by most law offices. Whenever possible, we offer affordable fee for our services so you can properly plan and budget for our services.

Page 23: Mollasadra Prospectus for linkedin

Contact

Block no. 56, before Bridge Kordestan, St. Mollasadra, Vanak Sq

Tel: + (98) 86080517

+ (98) 86080531

+ (98) 88883426

Email: [email protected]

Website: www.mollasadra.holdings