INVESTMENT in FARS INDUSTRIAL ZONES 

There are 60 industrial zones across the Fars and

their lands are also ready to transfer.

Following organizations permitted to issue the establishment licence for applicants who want to establish the iindustrial units :

• 1) Industry, Mine and Trade oraganization : establishment of industrial unit

• 2) Agicultural Jihad Oraganization : establishment of agricultural processing industries

• 3) Cultural Heritage, Handcrafts, and Tourism Oraganization : establishment of industries

• 4) Ministry of Culture and Islamic Guidance : printing establishment

• 5) Fars Province Chamber of Trade : in oerder to get introduction letter for service units.

Advantages of Establishing Industries in Industrial Zones

Usufruct of land : in the case of non-deprived areas, 30 percent should be paid in cash and the rest in installments over 30 months; with in deprived areas, the payment should be 15% in cash and the rest in installments over 36 months.

In order to implment the installment payment plan, there should be 6 months break for non-deprived and one year for the deprived areas.

In order to support veterans, elites, and inventors, 10% of the non-deprived and 5% of the deprived areas' contract should be paid in cash and the rest in installments over 42 months.

In the case of uneven lands, there should be 20% discount for land exploitation which should be implemented by board approval; in the regard, the cash payment will be reduced and the rest in installment over60 months. Regarding the total cash payment by the investors, 12% discount should be applied on the toatl amount of land exploitation which is also applicale in the case of the rest of installment.

50% discount will be applied on the land price by the board approval; if the manufacturer completes the industrial unit and get the exploitation licence for a 2000 square meter land within one year, 2000-5000 square meter land within two years, and over 5000 square meter land within 30 months; while, 35% of the land should be allocated to the florr area.

Issuing the exploitation licence, renewal the construction licence, issuing certication of construction completion, issuing certification of no offense, contract aggregation, and etc. are all free of cost.

All lands located within industrial zones have document of title which can be hypothecated to the banks and financialinstitutions; in order to obtain facilities, applicant can use the assigned land document as collateral. The cost of water, gas and, electricity networks depends on the assigned land while a signifiant portion of the costs are free.

Based on a contract, dated Oct 15, 2008, between Ministry of Energy and Ministry of Industry, Mine and Trade, there are some benefits for the applicants for power plant construction in industrial regions; in this regard, the right to exploit freely will be granted to the applicants for construction of power plant up to 2000 sq as the result of each MW electricity generation. However, in the case of surplus electricity, the applicant granted the exploit right according to the land price.

SCHIRAZ SPECIAL ECONOMIC ZONE

The most important characteristics of this area are :

Proximity to the Shiraz International Airport, connection to the Shiraz ring roa and also connection of the Shiraz transit road to the commercial port of Bandar-e-Abbas and Bushehr, proximityo the Shiraz-Isfahan and Golgohar-Bushehr railroads, and the existence of more than 15 academic and research centers across the region.

Benefits Gain by being in the Shiraz Special Economic Zone

• Proximity to the metropolis of Shiraz which makes it possible to use the manpower work and also cheap civil services

• Fars General Administration of Customs in order to facilitate the clairance of cargo (exports and imports)

• Transference of industrial land over a 40 months long term installment

• Free issuance of construction permit and constructio completion certification and also issuance of law livenses for producing processing, packaging and re-exporting

• Legal and personnal ownerships right of building site ans standing prorety for both Iranian an foreign investors

• Free entry of production line machinery, office equipment, and building materials wit out paying customs duties

• Importing raw materials without paying customs duties an processing according to the production plan

• Customs duty exemption fo importing raw materials used in the production based on thevalue added determined by the commission of determinig the value added in free and special economic zones

• Ability to transfer all or part of the imported goods to another person with the issuance of a warehouse receipt

• Import licence for used production line machinery

• Export of productions with foreign raw materials without custom duty and getting the export encouragement according to the value added

• Exporting of products to the free and special economic zones and also other countries without paying custom duty

• Tax exemption under Article 132 of the direct Tax Code

• Value added tax exempltion for services offered in the region

• No time limitation fot goods to be abandoned

• Covered warwhouse in support of appropriate insurance and applying loading and unloading machines in order to stock commercial goods

• Implementation of free zone's labor law in Shiraz Special Economic Zone and facilitate relations between employee and employer