The High Council of Insurance in compliance with the duties set out in the “Establishment of Central Insurance of Iran and Insurance Operation” Act , in their meeting of 5 March 2000 approved the bylaw of “ Establishment, Operation and Discontinuation of the Contact Offices of Foreign Insurance Companies and Insurance Brokers in the Islamic Republic of Iran”

According to the abovementioned bylaw, contact offices of foreign insurance companies can operate as contact between their principal company and the Iranian insurance companies in the fields of follow up in reinsurance affairs, providing technical services and transfer of insurance know – how, but are not authorized to provide insurance and operate in the fields that are the scope of duties of the local insurance companies.

Central Insurance of Iran will supervise the operation of contact offices in line with its legal duties.

In order to establish a contact office, foreign insurance companies should apply in writing to the "Central Insurance of Iran" together with the feasibility report including the reasons and necessity of establishment of the contact office and the latest annual report including the financial status and activities of the company and its standing in its domicile insurance industry.

Central Insurance of Iran will consider the received applications for establishment of contact offices subject to the political and economical relationship of Islamic Republic of Iran with domicile of the applicant company. The establishment permit of the contact office will be issued after approval of the President of "Central Insurance of Iran" and the result will be advised to the applicant company.

Foreign company must establish its contact office within 6 months from the date of issuance of permit. Otherwise such issued permit will be considered as void; and establishment of a contact office need a new permit.

The contact offices of foreign insurance companies must be duly registered with the “Companies Registry” in accordance with its regulations. Providing the establishment permit issued by "Central Insurance of Iran" is necessary for registration of the Contact Office.

The address of the contact office will be published in the Official Gazette with prior advice to "Central Insurance of Iran". Any change in the address should be notified to "Central Insurance of Iran" and Registration Office and should be published in the Official Gazette.

Foreign employees should not be more than 50 per cent of the total employees of the office. Foreign employees of such offices have to acquire residence visa and valid work permit issued by the Iranian authorities.

In the event that contact office violates the laws and regulations of the Islamic Republic of Iran or act beyond the scope defined in the Bylaw, the "central Insurance of Iran" may, as applicable, reprimand, give notice or with the approval of the President (of Central Insurance of Iran) cancel the operation permit of the contact office.

Cancellation of the operation permit of the office or its closure for any reason should be registered in the Registrations Office and be published in the Official Gazette.