How to Start a VPN Business in Iran: Doing It With Less Risks

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If you keep up with anything about the state of the internet in Iran, you know how people are more desperate to access blocked content.

You can step in and help a lot of people, and also get great profits along the way.

But it’s far from being as easy as it is to build a VPN in any other country. There are a lot of things to keep in mind.

Want to learn more? Keep reading, we’ll make sure you never bump into anything on the way!

 

Market Overview of VPNs in Iran

The VPN market is growing faster than it’s ever been in Iran, despite the government’s various efforts to put a stop to some VPNs. And it’s not showing any signs of stopping, either. Here are some notable numbers.

 

How To Start A VPN Business in Iran

how to start a vpn business in iran

Now, let’s get to the main part. How do you come into a market like Iran’s without crashing as soon as you’re there? Just follow these guidelines and you’ll be perfectly fine.

Keep in mind that your level of involvement will depend on what kind of VPN you’re setting up. Is it a white-label VPN? Then you’d need to only set up the paperwork. If it’s a self-hosted VPN like Amnezia, you’ll have more power over what features you get. 

 

1. Learn the Laws

Iran has strict internet laws, and the government often blocks VPNs—they’ve even done so recently. It’s a must to understand these rules before you launch. You might want to talk to a local VPN dev company who knows the ins and outs of how internet freedom works in Iran.

Useful Tip: Iran often blocks VPNs, so think about using technology that disguises VPN traffic. This can help your VPN stay accessible even when the government tries to block it.

 

2. Gather Documents

To start a VPN business in Iran, you’ll need some basic documents. These include a unique company name, the type of company (like Private Joint Stock or LLC), a description of your business, information on shareholder nationalities, a business address, minimum capital, and a company representative.

All documents must be in Persian, including the Articles of Association and Memorandum. Foreigners also need a FIDA Code (for identification), a Commercial Card (for trading), and a license from the relevant ministry based on the type of business.

 

3. Get to Know Your Market and Users

Don’t forget, it’s important to know who your customers are. People in Iran mostly use VPNs to get around blocks on social media and websites. Mainstream apps like Instagram are blocked. Most VPN users are young adults and tend to use their phones more than computers, so your VPN should work really well on mobile devices.

Useful Tips: Make your app easy to use and fast. Well-optimized apps are rare these days, and the Iranian VPN market is flooded with low-quality options. Also, consider talking with an Internet Activist to see what features similar users might like. You’ll still have to comply with government policies, but user comfort comes first.

 

4. Consider The Tech Stack

You’ll need simple tools that are still powerful, and easy to rely on when Iran’s internet goes haywire. The Protocol is the most important, it’s your first line of security. Wireguard is fast and easy to set up, while OpenVPN is also another option that provides more cross-device compatibility. 

As for the actual VPN itself, look to get something with Cloak, which helps hide your server’s location by making your VPN traffic look like regular web browsing when combined with a CDN. You might also want to set up a Snowflake node, which connects users to the Tor network for even more protection. It does not directly look like a VPN.

It’s better at masking your VPN than something like Proton’s Stealth protocol is, which encrypts data but does not hide the IP addresses of ProtonVPN datacenters.

 

5. Develop A VPN App 

You won’t get anywhere with your business if your app is flawed. It’s going to be the first, and most important step. Make sure everything runs smoothly, and give a bit of attention to the looks, too. Most people like fast, clean, and uncluttered VPNs.

Useful Tip: If you don’t know how to develop apps, try to work with a VPN App Development Company rather than hiring a solo developer. Preferably local. That way, you get the most out of your money, as you’ll get the app made faster.

 

6. Set Up Secure Servers

Security and speed are super important for your users. It’s best if you set up your servers and business outside Iran, so you won’t end up in legal tangles and be able to keep your user data safe, all the while providing fast connection. Also, make sure your VPN has a no-logs policy, which means you don’t keep track of what users do online.

Useful Tip: Since most users will be on their phones, your server switch and connection UI should be clean and easy to use.

 

7. Find Suitable Payment Solutions

Payments can be tricky in Iran since many international methods aren’t always available. Look into local payment systems like Shaparak or consider accepting cryptocurrencies, which can be a good option for privacy. 

Useful Tip: Keep an eye on pricing. Since Iran has a fluctuating economy, you might need to adjust your prices to keep them affordable.

 

8. Promote Your VPN Smartly

When marketing your VPN, be careful. Try to keep the talk on the security and privacy features rather than directly saying it helps bypass censorship. Use word of mouth and forums to gain an audience. You can also use Instagram and other mainstream platforms. It shows confidence in your own service, and it’s a great way to reach users who are likely already using VPNs themselves.

 

9. Provide Great Customer Support

Features alone will never make you stand out from all the other options. Another good option to try would be to offer top-tier customer support. Go as far as to provide support for your customers in Persian, and use multiple channels like email or chat. Many users may not be familiar with VPNs, so make sure all your team members provide clear and easy instructions.

Useful Tip: Regularly update your support materials to cover new issues or changes in how people access the internet in Iran.

 

10. Stay Updated on Changes

Iran’s internet laws and restrictions change all the time. Keep yourself on your toes about any new regulations or blocking techniques. This way, you can adjust your service as needed.

Useful Tip: Be ready to update your servers or app whenever new changes come up, to keep your VPN running smoothly.

 

Cost Of Starting A VPN Business in Iran

how to start a vpn business in iran

Starting a VPN in Iran costs between $50,000 and $500,000. 

Most of it goes to servers. There are cheap options that only cost $5 a month, but if you want to serve a good number of users, you’d need to go way over $100 a month.

Iran’s laws are also a minefield, so you’ll need to spend a lot of money on the legal aspect.

You’ll also need to shell out for top-end encryption. The costs don’t end there, either. 

Marketing in Iran is a tough job, so you’ll be facing extra expenses to get the right kind of marketing in. 

Then there are the ongoing costs: bandwidth gets more expensive as your user base grows. You’ll also need to keep up with constant maintenance costs.

 

Is It Profitable To Make A VPN Business in Iran?

how to start a vpn business in iran

Yes, it’s currently one of the best business opportunities you can get. 

Here’s why: People are willing to do anything for their safety and security. 

With the turbulent state of Iran’s internet, you’ll find plenty of customers no matter how little-known your service is. 

And the best part? Lots of people are still happy to pay for a good VPN, even as prices for other options keep climbing.

 

Challenges Of Having A VPN Business in Iran

how to start a vpn business in iran

You’re not going to have an easy time running a VPN business in Iran. That much will be obvious straight from the start. 

To begin with, you’ll be doing this in one of the countries with the lowest freedom scores around the globe

Even getting your VPN approved is a tough job, regardless if you’re hiring professional advice or not. This approval process is difficult, as the government limits it mostly to select organizations that strictly follow their rules. 

Iran’s National Virtual Space Center enforces these policies. Most other VPNs are blocked and considered outright illegal.

Problems You Might Face

If you’re planning to start a VPN in Iran, here are some challenges you’ll need to think about:

    • Frequent Blocking: The National Virtual Space Center regularly blocks unapproved VPNs. This can happen suddenly, which can leave your users frustrated​.
    • New Laws on the Way: The Cyberspace Protection Bill could bring even stricter rules for internet use. If this law goes through, using unauthorized VPNs might lead to serious penalties for either you or your users​.
    • Limited Advertising Options: There are strict rules against advertising VPNs on apps like Instagram and Telegram. You’ll have a hard time reaching potential customers and promoting your service safely.
    • Heavy Consequences For Operations: Not following the rules can bring heavy fines or get you shut down. You have to keep up with any changes in the law, so you don’t get caught off guard.
    • Expensive Investments: With all the constant blocking, you might need special, top-of-the-line tech to keep your VPN running. That can be incredibly expensive.

 

Marketing Tips to Grow Your VPN Business in Iran

how to start a vpn business in iran

Since the Iranian government is vicious towards VPNs, you won’t be able to market your VPN the usual way. Here are some good alternatives and tips to try:

  • Use Unconventional Social Media: Facebook and Twitter are blocked, so focus on less globally popular apps. Telegram has over 55 million users in Iran.
  • Promote Privacy & Security: People in Iran really care about privacy. Show how your VPN keeps their data safe and helps protect them from surveillance.
  • Make Content in Farsi: You need content that talks about the local challenges and how your VPN helps users bypass restrictions.
  • Offer Referral Programs: People trust recommendations from friends. Offer rewards like free months or discounts to users who bring others in.
  • Try Free Trials or Lite Versions: Let users test your service before they commit. A free trial or a basic version might make them more willing to try it out.
  • Focus on Young People & Students: Students and young people need VPNs for school, research, and accessing content. Offering student discounts can help attract them.
  • Join Online Communities: Participate in Farsi-language tech forums and groups. Offer useful tips and build trust with your potential users.
  • Work with Influencers: Work with local influencers or bloggers. Their recommendations can help you reach more people and build trust in your brand.

 

Parting Thoughts

Remember, whatever you do, make sure to do it with a careful step. 

As long as you do that, you’ll have a large and happy user base in no time. And that means more profits for you! 

There’s going to be a lot of competition alongside all the issues with the government, but if you’re patient and smart, it’ll be worth it.

Want to make things easier for yourself? We can be your first step! We provide top-tier VPN app development service.

It doesn’t matter if you want white-label or self-hosted, we’ve got everything in store!

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