A new report released this month titled “The State of Investments in Iraq” by Five One Invest – an initiative of the start-up incubator Five One Labs – noted that the Kurdistan Regional Government (KRG) has made it easier to start businesses in the Kurdistan Region.
We're excited to announce the launch of our State of Investments in Iraq report, a holistic study of investor & startup perspectives on Iraq’s entrepreneurial ecosystem.
— Five One Invest (@fiveoneinvest) July 3, 2024
Read & share!https://t.co/vQ2K6oOckW pic.twitter.com/QrKFMDdJBr
The report mentions how, in April 2022, a new by-law simplifying procedures for business registration in the Kurdistan Region was passed, bringing much enthusiasm within the entrepreneurial ecosystem.
“In May 2022, the KRG announced that registering a business name would take 24 hours, and the fee was reduced by 90%. Also, business registration fees were reduced by 60%,” the report said.
“Additionally, a business name registry would not extend beyond 24 hours, and a company’s registration would occur within a 24- to 48-hour window.” In 2024, the KRG put forth a number of additional measures to facilitate the registration process, including allowing start-ups to officially register their office from a coworking space address, an end to profit estimation for taxed start-ups, and an end to the 15% tax on the estimated profit for start-ups that have not turned a profit.
Moreover, start-ups will be exempt from taxation during the first three years of operation. To publicize the updated regulations, the KRG has promoted them through on-the-ground communication, grassroots campaigning, and liaising with inter- and cross-departmental government bodies to increase awareness of new legislation, processes, and requirements
“The KRG’s Ninth Cabinet has streamlined the process of starting a business in the Kurdistan Region. By introducing online business registration and name trade registration, they have significantly reduced the time and cost for entrepreneurs and start-ups,” Managing Director of Iraq at Five One Labs Savo Bakhtiar Rasoul told Kurdistan Chronicle.
“This has resulted in encouraging entrepreneurs to register their businesses and obtain legal protection, thereby increasing the chances to attract investment opportunities.”
However, despite these positive developments, Rasoul also said there “remains a need for increased investment in start-ups and interactions between local, regional, and international investors and Kurdistan Region start-ups."
The report also mentions that some challenges entrepreneurs in the Kurdistan Region previously faced included restrictions on name or trade registration, providing proof-of-office lease or ownership, and capital requirements to be deposited in a commercial bank account.
[THREAD] It’s now cheaper and quicker to register new businesses.
— Aziz Ahmad (@azizkahmad) April 13, 2022
The cabinet today passed the new bylaw thanks to interventions by PM @masrour_barzani and DPM @qubadjt despite resistance.
The move improves one indicator of doing business in Kurdistan, and creates competition.
On April 13, 2022, Deputy Chief of Staff to the Prime Minister Masrour Barzani Aziz Ahmad announced in a post on X that it had become cheaper and quicker to register new businesses due to interventions by Prime Minister Barzani and Deputy Prime Minister Qubad Talabani.
“The move improves one indicator of doing business in Kurdistan, and creates competition,” Ahmad said.
