increase or reduction of an Iranian company’s capital
An increase or decrease in capital can change the ownership structure, the percentage of participation and the financial rights of individuals. The decision-making method and its formalities depend on the type of company and the origin of the capital change.
Request a consultationincrease or reduction of an Iranian company’s capital
An increase or decrease in capital can change the ownership structure, the percentage of participation and the financial rights of individuals. The decision-making method and its formalities depend on the type of company and the origin of the capital change.
Important aspects of this matter
Point 1
Company type and current registered capital
Point 2
Origin of increase or cause of decrease and its effect on the ownership of individuals
Point 3
The competent body, decision-making quorum and any members’ or shareholders’ rights
Point 4
Preparing the minutes and carrying out the relevant registration and financial formalities
Legal points and course of action
In joint-stock companies, capital increases and reductions are subject to the special rules of the Iranian Act Amending Part of the Commercial Code. Other company types must also comply with the rules and company documents applicable to their structure.
In every case, compare the company’s current registration records, internal documents and actual events. Similar case labels do not mean that the relief sought, opposing party or legal outcome will be the same.
Related topics
company formation and choice of entity under Iranian law
Choosing the appropriate legal structure, distinguishing a private joint-stock company from a limited-liability company and preparing formation documents.
Dissolution and liquidation of a company
Ending company operations, a dissolution resolution or judgment, appointment of a liquidator, debts and distribution of the remaining assets.
partner or shareholder dispute in an Iranian company
Disputes over management, profits, voting rights, document access, general-meeting decisions and performance of members’ agreements.
Registration of company changes and meeting minutes
General-meeting and board minutes; changes to directors, capital, address, business objects and authorised signatories.
Relevant legal sources
Iranian Act Amending Part of the Commercial Code
Iranian Commercial Code («قانون تجارت»)
Iranian Companies Registration Act
This list identifies the principal legal provisions relevant to the page. The applicable law and amendments must be checked against the dates, subject matter and circumstances of each case.
The official texts and latest amendments are available in the National Database of Iranian Laws and Regulations.
Frequently asked questions
Methods of contact
For legal advice or follow-up on a case, contact us using one of the methods below.