According to article 2 of the “executive bylaw on the Permission for Registration of Foreign Companies’ Branches and Representations”, Foreign Branch is a local unit affiliated with the mother company, which performs the business and tasks of the mother company (principal) in the region. The Foreign Branch acts in the name and responsibility of the mother company (principal). Therefore, the principal (mother company) is responsible for the activities of its branch in Iran.

 On the other hand, Foreign Company’s Representation is defined as a legal/natural person that, according to the representation contract, performs some parts of the business and tasks of the represented (principal) company in the region. Foreign Company’s Representation in Iran, has the responsibility for its acts. Director(s) of the foreign company’s representation in Iran must be natural person(s) domiciled in Iran.