Registration of Private Limited Company

What is a private limited company

A company shall be created as a community of 2 or more individuals for performing commercial affairs, the asset will be split based on the partner’s shares and each of the partners are liable for the company debts and commitments based on the their asset value

How many people is a private limited company composed of

2 individuals (clause 94 of the Commercial Law).

Is it mand atory to inspect at a private limited company

No. Unless predicted at the articles of association

Is it possible for an individual at a private limited company to be a member outside of the partners

Yes, he/she can be (clause 104 of the Commercial Law).

What is the process for the registration of private limited company

Name confirmation, the arrangement of registration papers, signing the papers, issuance of the announcement from the Company Registration Office of related province, publishing in the official gazette and printing in a mass-circulation newspaper.

What documents are required for registering a private limited company?

Identity certificate and National Identification Card

Is it possible for a partner to transfer his/her own share to another

Yes, with the agreement of holders of three- fourth of the company asset having the numerical majority.

Is it possible to issue securities at a private limited company

No. It has not been predicted.

What are the pillars of a private limited company

1 or 2 manager from within or without
general assymbly
Board of Governors (if the number of partners exceeds 12) (clause 109, 106 and 104 of the Commercial Law)

How is the voting right in at a private limited company

Each of the partners will bear a voting right based on the share they have at the company (clause 107 of the Commercial Law).

Who is responsible for the assessment of the non-cash contributions at a private limited company

It will be measured by the partners themselves with their legal and criminal liability (clause 100, 98 and 101 of the Commercial Law).

Is it possible for the company nationality to change

It is possible if all of the partners are in unanimous (clause 110 of the Commercial Law)

How long can a manager keep his management position

There is no limit.

Have special shares been predicted at a private limited company

No. It hasn’t been predicted.

Is it legit to limit the manager’s authorities in the articles of association

Yes. Limiting company manager’s authorities in the articles of association against a third party will be legit.

Are managers banned toward competition

Is it possible for an individual to be both CEO and chairman at a private limited company

Yes. If it is approved by the holders of three fourth of the company asset or predicted at the articles of association (clause 111 of the Commercial Law)

How can a private limited company be dissolved

A number of the partners hold more than half of the company assets (clause 114 of the Commercial Law)

Is it possible for a company to be dissolved after the death of one of the partners

If it is predicted in the articles of association, the answer would be yes (article D clause 114 of the Commercial Law).

In what manner is the asset being split at a private limited company

The asset is split based on the partner’s share (clause 94, 96 of the Commercial Law).

Who are the most individuals registering for a private limited company

Individuals who need a family business.

Is the level of private limited company credit lower than the private company company

It seems so at the Iran Economy Law.

Can banks provide private limited companies with loan

In the Iran economy common law, banks are unable to provide loans with limited companies due to criminal guarantee (clause 94 of the Commercial Law)

If disagreements happen between the partners, what strategies are recommended for prevention

If possible, the power of attorney can be asked from parties.

What does the company asset in a limited liability company indicate

The Level of Credit and Partner’s Criminal Guarantee