IRAQ Law and Practice Contributed by: Ahmed Al-Janabi, MENA Associates in association with AMERELLER
2.5 Labour Law Regulations Based on the Iraqi Labour Law No 13 of 2015, the main requirements include the following. • Local employment requirement – at least 50% of the company’s employees must be Iraqi nationals. • Foreign worker permits – foreign employees must obtain a work permit and a strict multi- entry visa. The work permit should be issued in the name of the investor or another desig - nated company. • Social security contributions – all employees must pay social security contributions. Foreign employees may be exempt if they are covered under a social security scheme in their own country. These regulations ensure that companies com - ply with local employment standards and social security obligations when acquiring or operating in Iraq. 2.6 National Security Review All foreign investors undergo a national security review before any M&A is finalised. • Security clearance process – the process is conducted by the National Security Office, the Ministry of the Interior, and the Intelli - gence Office. • Processing time – the review typically takes 10 to 15 days. If no objections or additional obligations are raised during this period, the Companies’ Registrar proceeds with the M&A. This review ensures that national security con - siderations are met prior to completing any acquisition.
details, with downloadable forms and clear guidelines. • Fee schedules and documentation ‒lists cur - rent fee information and detailed instructions to ensure compliance with Iraqi corporate law. • Regulatory updates – publishes news and announcements on legislative changes and regulatory amendments. • Searchable company database – allows users to verify company registration status and access detailed company information. • Support – includes contact details for further assistance and clarifications on the registra - tion process. 2.3 Restrictions on Foreign Investments There are restrictions on foreign investment in Iraq. According to the amended Iraqi Companies Law Number 21 of 1997 and the amended law of 2019: • foreign investors are limited to a maximum of 49% ownership in any company; and • at least 51% of a company’s shares must be held by Iraqi nationals. These provisions are designed to promote local participation and ensure compliance with national ownership requirements. 2.4 Antitrust Regulations In Iraq, there is no specific antitrust legislation governing business combinations. Instead, gen - eral legal provisions and other regulatory meas - ures address related issues: The Competition Anti-Monopoly Law of 2010 states certain limitations and restrictions on the market practice, but it does not deal directly with the control or limitation on merger transactions or the acquisition of shares in companies.
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