Establishing a secondary branch and subsidiary is one of the known methods that are used by the business firms to develop their domestic and international activities. Using these two tools- especially in some cases that the foreign companies intend to participate in Iran- may lead to some risks, but with respect to their impacts on the national economic growth, they should considered as an opportunity more than a threat. In this study, the legal aspects of the two issues are investigated, because using them by the entrepreneurs depends on knowing their legal aspects. Moreover, it is confirmed that the political dimension should not be neglected due to the impact of these methods on the international relations development. In addition to providing the legal grounds, it appears that providing the political grounds is needed to develop their application. The research methodology is an analytical and descriptive one according to the library resources.
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