Iraq Launches Business Registration Guide to Boost Formal Economy and Jobs

The guide provides a step-by-step roadmap for entrepreneurs, micro, small, and medium-sized enterprises (MSMEs) to formally register their businesses.

 

Iraq’s Ministry of Trade, in partnership with the International Labour Organization (ILO) and with funding from the Government of Italy, has launched the Business Registration Guide, a practical tool designed to help entrepreneurs and small businesses navigate the process of registering their enterprises. The official launch took place at the Ministry’s Directorate for Private Sector Development in Baghdad on 2 September 2025.

Simplifying Business Registration

The guide provides a step-by-step roadmap for entrepreneurs, micro, small, and medium-sized enterprises (MSMEs) to formally register their businesses. By simplifying procedures, it aims to encourage more companies to move into the formal economy. Formalization not only improves access to finance and public services but also extends legal protections such as social security, wage safeguards, and health coverage for workers.

Currently, around 84 percent of MSMEs in Iraq operate informally, leaving both businesses and workers vulnerable. Informal enterprises often face growth limitations, while employees are excluded from basic protections. The new guide is expected to help close this gap, strengthen the private sector, and contribute to Iraq’s broader economic recovery.

Government and Partners’ Perspectives

Malik Al-Duraie, Director General of the Directorate for Private Sector Development, emphasized the central role of MSMEs: “Micro, small and medium enterprises are the backbone of our national economy. The Business Registration Guide was developed as a practical and simplified reference to help entrepreneurs enter the formal economy with confidence and ease. What makes this achievement unique is that it is the result of a genuine partnership between the Government of Iraq, the International Labour Organization, and our national institutions.”

ILO Country Coordinator for Iraq, Maha Kattaa, highlighted the social impact: “Formalization is more than a legal requirement, it is a gateway to decent work. Through this guide, we are helping business owners, especially youth and women, to grow sustainably, protect their workers, and access the opportunities that come with being part of the formal economy.”

Representing Italy, Rosamaria Genovese, First Secretary and Head of the Commercial and Cooperation Office at the Italian Embassy, reaffirmed her country’s support: “This guide is more than a technical resource, it is a symbol of opportunity. By facilitating more formal enterprises, it strengthens the foundation for decent work, social inclusion, and long-term resilience. Italy is proud to stand with Iraq and the ILO in promoting sustainable growth and empowering entrepreneurs.”

Policy Recommendations for Reform

In addition to the guide’s launch, the event featured a policy recommendation paper developed by the Ministry of Trade, the ILO, and national stakeholders. The paper outlined practical steps to further streamline and modernize Iraq’s business registration system. Key recommendations included:

• Simplifying documentation requirements to reduce red tape.

• Expanding digital registration platforms for faster and more transparent processes.

• Enhancing inter-agency coordination to prevent duplication and delays.

• Launching nationwide awareness campaigns to encourage businesses across sectors to formalize.

These measures are expected to create a more supportive ecosystem for entrepreneurs, particularly in regions where access to formal business services remains limited.

National Adoption and Recognition

The event concluded with the official signing and adoption of the Business Registration Guide as a national reference tool for MSMEs. A recognition ceremony followed, honoring the contributions of the technical team that developed the guide from its initial concept through to publication.

Part of a Wider Employment Initiative

The guide was produced under the ILO project “Towards More and Better Employment through Enhanced Support to Private Sectors in Southern Iraq – with a Focus on Green Business”, funded by Italy through the Italian Agency for Development Cooperation (AICS). The project is part of broader efforts to stimulate entrepreneurship, promote sustainable business practices, and generate new jobs across Iraq.

By equipping entrepreneurs with the knowledge to formalize their businesses, Iraq is taking a crucial step towards strengthening its private sector, creating decent work opportunities, and driving sustainable economic growth.