Journal of Islamic Law Research

Journal of Islamic Law Research

Legal Framework for the Promulgation of Business Regulations in Iran

Type : Research Article

Authors
1 PhD in Private Law, Mofid University, Qom, Iran.
2 PhD Student in Public Law, Faculty of Law, Shahid Beheshti University, Tehran, Iran.
Abstract
 ‌Context & Objective: The promulgation of regulations, functioning in parallel with the promulgation of statutes, constitutes a pivotal element in recognizing and securing the rights of stakeholders within the business environment. Within the Iranian legal system, the enactment of the Law on Continuous Improvement of the Business Environment and its subsequent decrees initiated a formal legal structuring of this domain. However, profound ambiguities persist due to structural and linguistic complexities, the temporal and spatial dispersion of regulations, and the absence of a clear doctrinal articulation regarding the exact nature and consequences of failing to publish regulatory norms. Inadequate or fragmented publication generates severe information asymmetry among market actors, fosters regulatory monopolies that enable corruption, and compromises the fundamental economic rights of citizens who rely on timely access to legal mandates. The primary objective is to elucidate the foundations, specific criteria, and standards of regulatory promulgation governing business activities. Consequently, the inquiry seeks to reconstruct the institutional and normative framework of the Iranian legal system, specifically addressing whether the mandate to publish regulations holds intrinsic legal subjecthood or serves merely as an informational mechanism. Furthermore, it aims to assess the legal sanctions applicable to non-publication or defective publication, evaluating the mechanisms available to compensate stakeholders and enforce state accountability.
 ‌Method & Approach: The inquiry employs a doctrinal methodology, navigating a dialectical path positioned precisely at the intersection of economic law and administrative law. A descriptive-analytical approach is utilized, relying extensively on targeted library resources and statutory analysis to unpack the conceptual underpinnings of regulatory dissemination.
 ‌Findings: Effective regulatory governance in the business sector necessitates rigorous adherence to five core criteria: meaningful stakeholder participation through public consultation, comprehensive and accessible information dissemination, timely publication incorporating mandatory implementation grace periods, clear and unambiguous legal drafting devoid of excessive technicality, and a robust regime of diverse, multi-layered sanctions. Under current Iranian legislation, specifically Article 30 of the Law on Continuous Improvement of the Business Environment, a regulation deployed without adhering to the prescribed digital publication standards does not fall under the category of absolute nullity. Instead, it is classified under a state of ʿadam-e nofūz (lack of legal penetration, signifying a suspended state of enforceability and validity that restricts the regulation from binding third parties until statutory publication conditions are retroactively fulfilled). While the normative framework theoretically conditions the enforceability of business rules on their registration in a centralized digital database, substantial discrepancies remain between codified law and executive practice. Institutional weaknesses, fragmented data infrastructure, non-compliance with prescribed consultation periods, and an absence of explicit administrative, civil, or penal sanctions for bureaucratic delays currently restrict the practical efficacy of these transparency mechanisms, leaving the burden of enforcement largely on post-facto judicial interpretation.
 ‌Conclusion: The promulgation of economic regulations transcends symbolic administrative formalities; it constitutes an indispensable prerequisite for the substantive validity of legal norms and the realization of market predictability. This necessity is deeply anchored in the broader doctrine of the rule of law and the fundamental Islamic jurisprudential principle of qobḥ-e ʿeqāb belā bayān (the repugnance of punishment without prior declaration, dictating that legal obligations cannot be enforced or penalized without prior, clear, and public communication). Although the Iranian legal framework has conceptually advanced by shifting from the traditional monopoly of the official gazette to linking the legal enforceability of business regulations to mandatory registration and public digital dissemination, the system remains nascent in its administrative execution. To bridge the critical gap between normative design and practical application, it is imperative to establish stringent institutional oversight mechanisms, institutionalize proactive stakeholder engagement, enforce specific civil and administrative liability regimes against regulatory bodies for publication delays, and mandate plain-language drafting. Without these structural reforms, the procedural requirement of promulgation risks being reduced to an ineffective administrative ritual, thereby failing to secure economic stability, prevent rent-seeking, and protect the legitimate expectations of market participants.
Keywords
Subjects

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  • Received 11 May 2026
  • Accepted 15 June 2026