This article provides a detailed breakdown of the average company creation and ongoing maintenance costs for a standard limited liability company (LLC) in Iraq, referencing official rates and common procedures for 2025. Readers will find summarized official fee structures, capital requirements, and related business setup expenses.
Company Formation Costs in Iraq (2025)
The primary legal entity for standard business operations in Iraq is the Limited Liability Company (شركة ذات مسؤولية محدودة). Below is a breakdown of the typical costs required to establish an LLC for the current year.
| Cost Item | IQD (Iraqi Dinar) | USD (1 USD ≈ 1,310 IQD) |
|---|---|---|
| Minimum capital requirement | 1,000,000 IQD | $763 |
| Company registration fee (Registrar of Companies) | 250,000 IQD | $191 |
| Publication in Official Gazette | 250,000 IQD | $191 |
| Lawyer fees (average for standard LLC setup) | 200,000 IQD | $153 |
| Total Average Creation Cost | 1,700,000 IQD | $1,298 |
Note: The total conversion is based on an indicative exchange rate of 1 USD ≈ 1,310 IQD. Actual rates may differ.
Annual Ongoing (Maintenance) Costs
After company formation, annual maintenance costs are incurred primarily through government fees and compliance services. Most business owners can expect the following average annual expenses for a standard LLC in Iraq:
| Ongoing Cost Item | IQD (Iraqi Dinar) | USD (1 USD ≈ 1,310 IQD) |
|---|---|---|
| Annual renewal fee (Registrar of Companies) | 250,000 IQD | $191 |
| Mandatory accounting and tax filing (average) | 200,000 IQD | $153 |
| Legal retainer (optional but common) | 150,000 IQD | $115 |
| Total Typical Annual Maintenance Range | 250,000 – 600,000 IQD | $191 – $458 |
The lower bound generally covers only statutory government filing and basic accounting; the upper estimate includes an average legal retainer, which while optional, is a common practice for risk management in the Iraqi business context.
Summary Table: LLC Setup and Annual Costs (Iraq, 2025)
| Phase | Cost in IQD | Cost in USD |
|---|---|---|
| Company Formation (one-off) | 1,700,000 IQD | $1,298 |
| Annual Maintenance (recurring) | 250,000–600,000 IQD | $191 – $458 |
Further Details and Key Considerations
A minimum capital deposit is legally required when registering an LLC in Iraq. While lawyers’ fees can vary, the figure listed reflects the market average for a straightforward corporate setup. All new companies are required to announce their formation in the Official Gazette, and there is a corresponding publication fee.
For annual maintenance, government renewal fees are mandatory. Accounting and tax filing costs will depend on business activities but, in most standard cases, fall within the range in the table above. Legal retainers are optional but favored in practice to navigate changing regulatory requirements or address potential disputes.
Authoritative Sources
Pro Tips: Efficient Company Setup and Compliance in Iraq
- Gather official documentation in advance, as delays in obtaining paperwork are a common source of time overruns in the registration process.
- Factor both the minimum capital and official registration fees into your start-up planning; these costs are non-negotiable and strictly enforced.
- Consider a modest legal retainer, even if not mandatory—this can save time and costs by handling regulatory changes or disputes efficiently.
- Recheck government fee schedules annually, as updates may occur without parallel changes to published English-language guidance.
Setting up and maintaining a standard company in Iraq requires an initial outlay of around 1,700,000 IQD ($1,298), followed by moderate annual costs for renewal, compliance, and (optionally) legal support. Carefully planning for both the up-front and recurring expenses ensures smoother regulatory compliance and helps avoid unexpected issues throughout the business lifecycle.