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The law of supporting science-based companies and institutions and commercialization of inventions and innovations

Head of the Parliament – Ali Larijani

Number 195602, dated Dec. 7th, 2009

President's office (The scientific and technological deputy of the president) – Ministry of science, research and technology

The law of supporting science-based companies and institutions and commercialization of inventions and innovations that was approved in the open meeting of Wednesday Oct. 27th, 2010, and was confirmed by the Guardian Council on Nov. 10th, 2010, and has reached the parliament via letter number 258/57953 dated Nov. 21st, 2010, is released for execution as attached.

President Mahmoud Ahmadi-nejad

 

The law of supporting science-based companies and institutions and commercialization of inventions and innovations

Article 1: Science-based companies or institutions are private or cooperative companies or institutions that are formed with the objective of synergy between science and wealth, the development of science-based economy, the realization of scientific and economic objectives (including expansion and functionality of innovations and inventions) and the commercialization of the research results and development (including design and production of products and services) in the area of higher technologies, with increased added value, especially in  producing related software.

Note: Governmental companies, public non-governmental institutions and establishments and companies and institutions that more than 50% of their ownership is held by governmental companies or public non-governmental institutions and establishments, are not included in the support offered by this law.

 

Article 2: The superior council of science, research, and technology (referred to as the council in this law) is responsible for policy-making, planning, and pursuing the execution of this law.  The secretary of this council is responsible for pursuing the resolutions of the council through appropriate entities.

 

Article 3: The supports and the finances available to science-based companies and institutions are:

  1. Exemption from paying taxes, customs, trade profits, and export dues for 15 years.
  2. Financing all or part of the production, presentation or utilization of innovation or technology by offering low-interest or non-interest long-term or short-term loans according to legal contracts.
  3. Priority establishment of the research, technology, engineering, and production units of science-based companies and institutions, which are the subject of this law, is in the location of centers for science and technology growth, growth centers, special economic regions, or special science and technology regions.
  4. Priority assignment of all or part of governmental research centers' shares that are capable of assignment based on the regulations of the law correcting some articles of the law of the fourth program for economic, social, and cultural development of the Islamic republic of Iran and executing the general policies of article forty-four of the constitution to science-based companies and institutions which are the subject of this law
  5. Providing adequate insurance coverage to reduce the vulnerability of products resulting from science, innovation, and technology, during all  stages of production, presentation, and utilization
  6. Easing of the tender conditions in subjects related to article 1, and making it possible for science-based companies and institutions to participate in it

Article 4: The Ministry of Economic Affairs and Finance, in accordance with the law of executing general policies of article 44 of the constitution approved February 2008, is obliged to prepare a list of all governmental research centers and institutions and submit it to the council within three months of the approval of this law.  And the council is obliged to identify the non-governmental research centers and institutions capable of being assigned to the private or the cooperative section, within 3 months of receiving that list, and The Ministry of Economic Affairs and Finance prepares their assignment according to the law mentioned in this article.

Note 1: The nature of these companies should not change after assignment.

Note 2: The Ministry of Science, Research, and Technology is responsible for the supervision of the execution, and the competency of buyers in this article.

 

Article 5: In order to aid the commercialization of innovations and inventions and flourishing and making technical knowledge practical through offering aid and non-interest loans and loans without obtaining any security, with the authority to assign all or part of the contributions to science-based companies or institutions, a treasury titled The Flourishing and Innovation Treasury associated with the superior council of science, research and technology, and under the supervision of the head of the council is established.  The financial sources of the treasury include governmental aid, credits included in the annual budget, any help and investment by real or legal individuals and affiliated and subsidiary governmental companies, public non-governmental establishments and municipalities and affiliated and subsidiary companies.

Banks may supply part of the financial resources of the mentioned treasury.  In order to supply the financial sources of this treasury, the government is obliged to consider at least half a percent of the public budget to aid this treasury, in its budget bill, from the third year onward.

Note 1: At least 5%of the capital of this treasury will be assigned to financing non-governmental research and technology treasuries (subject of article 45 of the law of the fourth program for economic, social, and cultural development of the Islamic republic of Iran), and approved by the Ministry of Science, Research, and Technology.

Note 2: The initial capital of the Flourishing and Innovation Treasury is 30,000 billion rials which will be supplied gradually within three years from the national development treasury or the currency reserve account,

Note 3: The articles of association of this treasury, including the pillars, duties, authorities, method of operation, management, and supervision of the treasury, in the framework of this law, by the superior council of science, research, and technology, within three months of the approval of this law, should be prepared and approved by the board of ministers.

 

Article 6: All governmental companies and units are permitted to perform part pf the purchase contracts of products or services with a foreign origin through technological research and development activities and conclude contracts with science-based companies and institutions, in order to reach self-sustenance.

 

Article 7: All units executing this law are obliged to investigate the requests for using the supports offered by this law and announce the final result to the applicant within one month.  And if the decision is to deny the request, the applicant should be notified with the reasons.  The applicant can then object through the secretary, and the council has to investigate the objection within one month.

 

Article 8: Science-based companies and institutions are permitted to locate their center of activity within the region of the city of Tehran and other cities, while observing environmental regulations.

 

Article 9: Research, technology, and engineering units located in science and technology growth centers are permitted to use legal benefits of free regions related to work relations, taxation and dues exemptions, foreign investments, and international financial exchanges, to perform assigned duties, in order to generate and develop science-based companies and institutions. And to strengthen international cooperation.

 

Article 10: Benefits, advantages and facilities mentioned in this law for science-based companies and institutions are submitted to the superior council of science, research and technology for approval, after matching with the objectives mentioned in this law by the Ministry of Science, Research and Technology.

 

Article 11: All individuals (real or legal) that have obtained the benefits of this law, in case they use the supports and facilities offered by this law for other purposes, in addition to being excluded from further use of these benefits, they will be punished as follows:

  1. If they have received financial facilities in addition to returning the original amount, will be fined in the amount of the received finances.
  2. If they have received facilities to enter tenders, they will be excluded from participating in tenders for 3 years.
  3. If they have received taxation or dues exemption, in addition to paying them, they will be fined in the amount of the exemptions.
  4. If they have received insurance coverage, they will be fined in the amount of the received insurance.

 

Article 12: The report of the execution of this law is prepared by the secretary of the council and submitted to the parliament every six months.

 

Article 13: The executive regulations of this law will be prepared within 3 months of approval by the Ministry of Science, Research and Technology and the Superior council of Science, Research and Technology, and will be approved by the board of ministers.

 

The above law, composed of thirteen articles and sic notes, was approved in the open meeting of the parliament on Wednesday October 27th, 2010, and confirmed by the Guardian Council on November 10th, 2010.