RESTRICTIONS AND CONDITIONS IN RESPECT OF SETTING UP A BRANCH FOR A FOREIGN COMPANY OR AN ECONOMIC ORGANISATION IN IRAQ

FIRST

1. The Contract duration shall not be less than (90) days excluding the Maintenance Period.

2. The total amounts of its contracts shall not be less than (80)* eighty thousand Iraqi Dinars.

3. The number of employees shall not be less than two permanent employees, provided that one of them to be an Iraqi national.

4. Each Branch shall have a separate Headquarter suitable and prepared to run its activities only, and it is not allowed to be used for any other purpose except the companies which are working under Joint Venture.

5. The Main Contractor shall bear and meet all the obligations and rights and contraventions of its sub-contractor before all the Iraqi Authorities concerned.

6. Covering of the expenses for the incorporation and administration of the foreign company Branch shall be met through drafts from outside Iraq in foreign currency or through a portion of the Iraqi Dinar realized officially to this

Company as a result of its contracts concluded with the Iraqi Authorities.

SECOND

Allowing for the foreign companies and the Economic Organizations operating in the country to bring extra amounts from outside Iraq in convertible foreign currency through the intermediation of one of the governmental banks or, in cash, after declaration thereof on the foreign Exchange Form No. (8) at the Border point end to be disposed of same by the following manner :-

A) Allowing the foreign company to open a Current Account in foreign currency at the governmental banking Organs in order to deposit the incoming amounts therein, and using this Account for meeting its obligations in foreign currency inside Iraq, and the Company is entitled to re-transfer the remaining balance of the foreign currency (which was not used) abroad.

B) The Company has the right to encash any amounts from its Account opened in foreign currency to an Account to be opened

for this Company in Iraqi Dinar at the banking Offices in the declared rates at the banks, and this amount shall be used to pay the local costs in Iraqi Dinar, and it is not allowed to re-encash the balance of this Account to the foreign currency but it should be used exclusively for covering its local expenses.