reciprocity, enjoy the same rights and privileges of Iranians. The companies formed by such foreign nationals will be of Iranian nationality and subject to the same laws which regulate the activities of Iranian companies. Foreign investment in the framework of the Commercial Code The Iranian Commercial Code is divided into four parts: merchant and trade activities, trade companies, negotiable instruments, contracts and bankruptcy. Foreign nationals can, in the framework of the Commercial Code and subject to the observance of the relevant procedures, form and register companies in Iran. Iran's Commercial Code does not differentiate between Iranian and foreign stock holders of Iranian companies. In other words, there is no restriction regarding the nationality of those who want to establish companies in Iran. In this context, foreign exchange restrictions are equally applied to Iranian and foreign investors. Such companies, however, do not enjoy the privileges set out in FIPPA (see below). There are seven types of juridical entity or company which can be established under the Iranian Commercial Code as follows: Joint-stock company may be either a public company (Sherkat Sahami Am) or a private company (Sherkat Sahami Khass) Limited liability company (LLC) (Sherkat ba Masouliyat Mahdoud) General partnership (Sherkat Tazamoni) Limited partnership (Sherkat Mokhtalet Gheyr Sahami) Joint stock partnership (Sherkat Mokhtalet Sahami) Proportional liability partnership (Sherkat Nesbi) Manufacturing / Consumer Co-operative (Sherkat Ta’avoni va Masraf) From among all these different types, joint-stock company, in which the capital is divided by shares, is the most common and acceptable type of company which can be recommended to foreign investors. FIPPA Provisions of the 2002 Act entitled Foreign Investment Promotion and Protection Act (FIPPA) include: Allowing foreign investment in all sectors opened to Iranian private companies. A review of the definition of "Foreign Investor" to include Iranian expatriates provided that their investment capital originates from abroad. Allowing repatriation of local sales related profits in addition to export-related profits in hard currency at the current official exchange rate. Fair compensation in case of nationalization. If an act of the government disrupts the business activity, the government will be under obligation to make payments for any loan installments that are due on behalf of the project company. FIPPA allows for international arbitration in legal disputes. There are two major arbitral institutions in Iran: the Tehran Regional Arbitration Centre (TRAC) and the Arbitration Centre of the Tehran Commercial Chamber. The establishment of a maximum 45-day period