Short answer: In Baghdad and the other governorates not organised in a region, a foreign company branch may not trade until it files with the Registrar an official, certified document showing the full address of its premises in Iraq (Foreign Company Branches Regulation No. 2 of 2017, as amended, Art. 5). The property itself is governed by two rules: a real-estate disposition is concluded only by registration (Real Estate Registration Law No. 43 of 1971, Art. 3), and for property under Real Estate Rent Law No. 87 of 1979 the lease is written and a copy deposited within 30 days of signing (Art. 7/4/a). In the Kurdistan Region, the KRG foreign-branch service lists an official mailing address in the Region and, among the documents, an office lease or proof of ownership.
Who this is for
- A foreign company registering a branch in Baghdad, Basra or another governorate and looking for an office.
- A company registering a branch or company in Erbil, Sulaymaniyah, Duhok or Halabja.
- A new Iraqi company (LLC or other) that needs a head office to state in its contract.
- A Baghdad or Basra owner leasing an office to a foreign company who wants a sound lease.
1) Why premises matter for registration
Foreign branch (Baghdad and the other governorates not organised in a region): after the registration licence is issued, Article 5/First requires the branch to file, among other items, "an official document showing the full address of the branch's premises in Iraq, certified by the competent authorities", together with confirmation of a current account at a licensed bank and any sector licence its activity needs. The branch may not trade before completing these documents (Art. 5/Second). It must show its full name, as stated in the licence, and its "management centre in Iraq" in Arabic on its papers and documents (Art. 5/Third/a).
Iraqi company: the company contract must state "the company's head office, which must be in Iraq" (Companies Law No. 21 of 1997, as amended, Art. 13/Second).
Kurdistan Region: the KRG portal's "Foreign Company Branch Registration" service (MOTI-02) states that the branch needs an official mailing address in the Region and lists "office lease or proof of ownership" among the documents.
2) Check the title before signing
Because a real-estate disposition is concluded only by registration at the Real Estate Registration Department (Law 43/1971, Art. 3), the check starts with a recent property registration copy, not with papers outside the register:
- Is the lessor the registered owner? If an agent signs, does the power of attorney cover leasing?
- Does the registered property type suit use as an office?
- Is there a note on the register restricting disposal, or a seizure? (For example, the no-disposal note the Investment Law places on licensed housing-project property, Art. 10/Second.)
- If the property is jointly owned, who has authority to lease?
In the Region, property registration is handled by the General Directorate of Property Registration at the KRG Ministry of Justice and its governorate directorates; steps and documents are in the real estate section of our Erbil page.
3) The lease: what is written and deposited
- Definition: a lease grants a known benefit, for a known consideration, for a known term (Civil Code No. 40 of 1951, Art. 722). The lease should state clearly the use (company or branch office), the rent and the term.
- Writing and deposit: for property under Real Estate Rent Law 87/1979, the lease is written and a copy deposited with the Real Estate Tax Department (General Commission for Taxes) and the information office, or the police station where there is none, within 30 days of signing (Art. 7/4/a). The lease and the deposit receipt are kept in the premises file, and for each file we confirm which document the competent authorities accept as proof of address.
- Subletting and assignment: Article 17 of the Rent Law lists subletting or assignment without consent among the grounds for eviction. If two companies will share the office, or the lease will move from the parent company to the branch after registration, say so in the lease from the start.
- Changes to the premises: a substantial change without written consent is also a ground for eviction (Art. 17), so fit-out (partitions, cabling, signage) belongs in the lease.
- Who is the tenant: before registration there is no registered branch yet; the lease should state who the tenant is (the parent company through its authorised signatory, or the branch once registered) and how the lease transfers.
4) Can a foreign company buy its office instead of leasing?
The text we rely on is Investment Law No. 13 of 2006, as amended, Article 10/Second: an Iraqi or foreign investor may own state land and property for a consideration, and private or mixed-sector land and property for housing projects only, with a no-disposal note on the title until obligations are met, to prevent speculation. Outside a licensed project the answer depends on the file, so we read the text in force and the title for each case before any commitment. This is why most foreign branches start with a lease.
5) Short checklist before signing a premises lease
- A recent property registration copy, with the owner's name matched to the lessor or the lessor's power of attorney.
- The tenant defined precisely (parent company, or branch after registration) and how the lease transfers.
- Use (office), rent and term written clearly (Civil Code Art. 722).
- An express clause on subletting or office-sharing, and on fit-out and changes (Rent Law Art. 17).
- Deposit of the lease copy within 30 days of signing, with the receipt kept (Art. 7/4/a).
- The full address as it will appear in Arabic on the branch's papers (Regulation 2/2017, Art. 5/Third/a).
- In the Region: the office lease or proof of ownership in the branch file, and an official mailing address in the Region (MOTI-02).
How we work on a premises file
We review the registration copy and powers of attorney, draft or review the lease in Arabic and English, arrange the deposit, and tie the address to the company or branch registration file. We serve clients in Baghdad, the Kurdistan Region, Basra and the other governorates from our Baghdad office (Al-Yarmouk). Every property and lease is assessed on its own papers, and we do not promise an outcome.
See also: Company and foreign-branch registration · Branch or subsidiary in Iraq? · Real estate & property · Erbil: real estate · Basra
Frequently Asked Questions
Does a foreign branch need premises before it starts work in Iraq?
Yes. Article 5 of Regulation 2/2017, as amended, requires the branch to file an official, certified document showing the full address of its premises in Iraq, and it may not trade before completing the documents in that article.
Must the office lease be deposited?
For property under Real Estate Rent Law 87/1979: the lease is written and a copy deposited with the Real Estate Tax Department and the information office (or police station) within 30 days of signing (Art. 7/4/a).
What is checked in the title before leasing to a company?
A recent registration copy: the registered owner, the lessor's or agent's authority, and any note on the register. A disposition is concluded only by registration (Law 43/1971, Art. 3).
What does the KRG require about a foreign branch's premises?
Per service page MOTI-02: an official mailing address in the Region, and an office lease or proof of ownership among the documents.
Author: Othman Al-Juboori, Iraqi lawyer, Member of the Iraqi Bar Association, expert in Iraqi labour law, founder (2018) and Managing Director of Al-Taswia Legal Services Company, an Iraqi legal services company in Baghdad. www.al-taswia.com
General information, not legal advice. Sources last checked: 17 October 2026.
