Commercial Code of Iran

The Commercial Code of Iran is the most significant law of the country in connection to the commercial affairs. This is also one of the oldest legislation which has not radically modified from May 3, 1932.

Commercial Code of Iran

Commercial Code of Iran

The Commercial Code of Iran is mainly formed from the Commercial Code of France 1807. Recently and due to the new changes in the international commercial environment, the need for some modifications has been recognized by the Iranian jurists. The draft of the new Commercial Code of Iran has been prepared few years ago although it is not ratified yet by the Parliament.

In 1968, the chapter of Joint-stock companies has been modified completely in 300 articles. In addition to the provisions of the Joint-stock companies, two other chapters have been practically annulled through new legislation. These two chapters are about brokerage and bankruptcy.

The following items are discussed directly in the Commercial Code of Iran:

  1. The definitions of a merchant and commercial activities;
  2. The commercial books and the method of commercial registration;
  3. Different types of commercial companies and their governing rules;
  4. Bill of Exchange, Promissory Note and banking cheque;
  5. Brokerage, commission agent and the other types of commercial representatives;
  6. Carriage and transportation agreement;
  7. Commercial guarantees, and

In order to be in line with the modern requirements, in 2004, the Law on Electronic Commerce has been ratified by the Parliament.

You can find here below, the best English translations of the Commercial Code of Iran as well as its amendment on Joint-stock companies.

Commercial Code of Iran

The Amendment on Joint-Stock Companies