LIMITED LIABILITY COMPANY

Business Nature: Can function as both a Manufacturer and a Trading Company

Company Profile:

In Iran, a Limited Liability Company (Sherkat-e Ba Mas'ooliyat-e Mahdood) is the most common form of corporate entity. The business nature of an LLC is determined by its Articles of Association and its registered scope of activity.

Classification:

1. Manufacturer: Many Iranian LLCs are registered as manufacturing entities. They operate factories, possess industrial licenses issued by the Ministry of Industry, Mine and Trade, and focus on the production and processing of goods.

2. Trading Company: Many other LLCs are registered specifically for commercial activities. They act as traders, importers, and exporters, focusing on the distribution, wholesale, and international trade of commodities without owning production facilities.

3. Hybrid Model: It is also common for an Iranian LLC to be registered with a broad scope that allows it to engage in both manufacturing and trading activities simultaneously.

Conclusion:

An Iranian LLC is not restricted to one category; it can be a factory, a pure trading house, or a combination of both depending on its specific commercial registration and operational license. To determine the status of a specific company, one must review its official registration documents or its industrial license issued by the Iranian government.

Iranian Limited Liability Companies operate across diverse sectors. Here are the primary categories of products they manufacture or sell:

Food and Agricultural Products

Dried fruits, nuts, saffron, dates, processed food items, dairy products, and canned goods.

Petrochemicals and Chemicals

Polymers, fertilizers, industrial chemicals, detergents, and plastic raw materials.

Construction Materials

Cement, ceramic tiles, glass, stone, steel products, and construction hardware.

Textiles and Apparel

Carpets, rugs, leather goods, clothing, fabrics, and home textiles.

Automotive and Spare Parts

Vehicle components, tires, batteries, and engine parts.

Machinery and Equipment

Agricultural machinery, industrial cooling systems, pumps, and specialized industrial tools.

Consumer Goods

Home appliances, furniture, household electronics, and cosmetics.

Energy and Mining

Bitumen, oil derivatives, copper, iron ore, and various mineral concentrates.