Costs of Starting and Running a Business in Iran

 

Starting a business in Iran requires careful financial planning. Both initial setup costs and ongoing operational expenses can vary depending on the type of company, location, and number of employees. Understanding these costs is essential for investors and entrepreneurs looking to establish a presence in Iran.

 

Initial Setup Costs

The first step in establishing a business involves company registration and setting up the necessary infrastructure. Key initial expenses include company registration fees, office rent and equipment, and employee recruitment costs. Registration fees typically range from €2,000 to €4,000 depending on the type of company and legal services used. Renting a small office in major cities usually costs around €700 per month, while office equipment expenses can range from €1,000 to €3,000. Recruitment costs, including advertising and hiring, generally fall between €500 and €1,500.

 

Ongoing Operational Costs

Once the business is running, ongoing expenses must be considered. These include employee salaries, utilities, internet and communication, and office supplies. The minimum wage in Iran is approximately €120 per month, with average salaries ranging from €200 to €500 depending on position and experience. Utility costs for electricity, water, and gas typically range from €50 to €150 per month, while internet and phone services cost around €30 to €70. Additionally, office supplies and miscellaneous maintenance expenses can add another €100 to €300 per month.

 

Economic Factors and Inflation

Iran’s economic environment and inflation rates have a significant impact on business costs. Prices for essential goods, energy, and services have increased considerably in recent years. For instance, the cost of living basket for an average worker has risen by more than 30% over a short period. Energy shortages and outdated infrastructure may also lead to higher electricity and heating costs for businesses, which should be accounted for in financial planning.

 

Key Financial Planning Tips

  • Carefully plan employee salaries and ongoing operational expenses to avoid cash flow issues.

  • Estimate office rental and equipment costs according to your actual business needs.

  • Include inflation and potential fluctuations in utility prices when budgeting annually.

  • Seek local financial and legal advice to optimize expenses and ensure regulatory compliance.

By understanding and planning for these costs, investors and entrepreneurs can make informed decisions and successfully operate their businesses in Iran.