Mr. Morteza Mohammadi, LLM
Shares: A private joint stock company may issue both bearers and registered shares. The main differences between the bearer and registered shares are the transfer of shares and tax-related matters. The Company may give its stakes in ordinary and preferred types. The preferred type of shares has some priorities, such as multiple voting powers, priority dividends, and distribution of assets in the event of liquidation.
Capital: Payment for shares should be either in cash or in kind. The amount of capital for this type of Company should not be less than IRR 1 million at the time of incorporation. Before the registration is completed, Shareholders should transfer %35 of the subscribed capital to the account of the selected local bank. Within five years, the Board of Directors (BoD) and shareholders will call for the payment of the remaining charter capital.
Suppose the whole capital or portion of the capital amount is in the form of non-monetary assets; in that case, the official appraiser of the Ministry of Justice or the Organization for Investment and Economic and Technical Assistance of Iran must appraise the property's value. The right of possession for the whole property, including the title deeds, will be vested with the selected local bank, and the shareholders should submit a bank certificate alongside the other documents to the Company Registration Office ( CRO ).
The BoS should start an investigation immediately after the Company's incorporation if the capital in cash has been fully paid up and the non-cash contributions have been valued and delivered and if the Memorandum of Associations of the Company has expressly mentioned the value of the non-cash contributions.