Iran is a unitary presidential republic. In terms of political and civil liberties, Iran ranks 3rd. Citizens in Iran experience little to no civil liberties and political rights. Citizens are not free to express themselves and enjoy neither political freedom nor representative government. Countries with this political situation are dangerous for investment as an authoritarian government may have over-control over economic affairs. Prime Minister is Ayatollah Ali Khamenei.

According to the World Bank Group, Iran's Government Effectiveness Index is -0.41. This suggests that the government of Iran is mediocre. While some public and public services are limited, in other cases they can be considered adequate or even effective. Potential investors should carefully examine the government situation in Iran before considering any business maneuvers. In Iran, legislative power rests with an Islamic consultative assembly. The Global Peace Index (GPI) for Iran is 2,409. The Strength Rights Index for Iran is 2. Overall, it is rated as rather weak – bankruptcy and collateral laws fail to protect borrowers' and lenders' rights in the event of credit-related complications; Credit information, if any, is scarce and difficult to access. In 2013, Iran received $148.8 million in foreign aid. In 2014, foreign aid was $100.9. Iran is a member of the United Nations (UN). On October 24, 1945, it joined the UN as a full member state on its founding date. Iran is one of the original UN member states that founded the organization. Iran is a member of the World Bank.