Legal services for clients in Basra

• Labour law: federal Labour Law No. 37 of 2015 and Social Security Law No. 18 of 2023 apply in Basra.
• Company and foreign-branch registration: Companies Law No. 21 of 1997, as amended, and Foreign Company Branches Regulation No. 2 of 2017, as amended, which requires the parent company to have existed for one year.
• Real estate and property management: a real-estate disposition is concluded only by registration (Real Estate Registration Law No. 43 of 1971, Art. 3).

Who is this for?

• Energy companies, contractors and service providers operating in Basra.
• Foreign companies opening a branch or an Iraqi company to perform contracts in Basra.
• Employers and workers in labour disputes.

1) Labour law for companies operating in Basra

• Working hours: 8 hours a day or 48 hours a week, subject to the Law's exceptions (Labour Law 37/2015, Art. 67).
• End-of-service gratuity: due in all cases, including resignation, under Labour Law No. 37 of 2015.
• Social security: employer 12%, or 25% for private/mixed-sector employers whose profits come from selling Iraqi oil and hydrocarbons; worker 5%; state 8% (Law 18/2023, Art. 14(Second)). This matters for Basra's energy companies and contractors.
• Foreign workers:
• The work permit is valid for one year, renewable; the renewal request goes through the employer in the last month before expiry (Instructions 1/2026, Art. 5).
• A fee of IQD 2,000,000 is paid once per foreign worker entering Iraq (Law 18/2023, Art. 106(First)).

2) Company and foreign-branch registration

• LLC: an Iraqi entity under Companies Law 21/1997, as amended. Iraqi or foreign founders are allowed unless barred (Art. 12).
• Foreign branch: any foreign company that has existed for one year may open a branch (Foreign Company Branches Regulation 2/2017, as amended by Regulation 4/2023, Art. 2).
• Registration is with the Companies Registrar (Companies Registration Department), Ministry of Trade.

3) Real estate and property management in Basra

• Title first: a disposition is concluded only by registration at the Real Estate Registration Department (Law 43/1971, Art. 3).
• Leases: must be in writing, with a copy deposited within 30 days (Rent Law 87/1979, Art. 7(4)). Art. 17 sets the grounds for eviction. The Civil Code defines a lease as granting a known benefit, for a known consideration, for a known term (Art. 722).
• Jurisdiction: in-rem property claims go to the first-instance court where the property is located, so Basra property goes to a Basra court (Federal Court of Cassation, Decision 302/Expanded Civil Panel/2025).
• Investment housing: Iraqi and foreign investors may own land and property for housing projects only (Investment Law 13/2006, as amended, Art. 10(Second)).

How we work with Basra clients

We serve clients in Basra from our Baghdad office: contract and document review, follow-up with the competent departments, and representation in labour disputes. The firm has a team of 15 lawyers.

Links: Labour law · Company registration · Real estate & property · Social security · Work permits · Outside Baghdad

FAQ

About the author

Othman Al-Juboori: Iraqi lawyer, expert in Iraqi labour law, Member of the Iraqi Bar Association, and founder and Managing Director of Al-Taswia Legal Services Company. The firm has a team of 15 lawyers working from its Baghdad office. Author page Sources last checked: 16 October 2026.