This legislation has been adopted to encourage, Support and protect private investments and enterprises under Afghan constitution, article (10), based on market economy regulations and governing its related affairs.

No person shall engage in the business of receiving money deposits or other repayable funds from the public for the purpose of making credits or investments for his own account in Afghanistan without a banking license issued by Da Afghanistan Bank.

The Insurance Companies shall be established at the request of the Ministry of Finance and approval of the government. Private Insurance Companies may be established in Afghanistan according to the investment Law: License of the activities of the Insurance Companies will be issued by the Ministry of Finance.

This law has been enacted in the light of Art 42 of the Constitution in order to ensure the collection of revenues of the State through the customs of the country, arranging for the organization of customs, defining the scope of authority of relevant officials, the methodology for supervising and controlling the movement of goods in and out of Afghanistan, and providing for prevention of customs violations.

A tax is imposed on the income from Afghan sources of all persons, corporations, limited liability companies, and other legal entities whether in Afghanistan or abroad, and on the foreign income of residents of Afghanistan in accordance with provisions of this Law.