Iranian authorities have closed the Tehran operations of Oriflame Cosmetics and detained five workers, the Swedish firm has said.
The reasons for the move were disputed, with Tehran alleging fraud and Oriflame saying the authorities disliked it employing women in certain roles.
Last week, Iran’s commerce and culture ministries called the company illegal and blocked its local internet site.
Oriflame said the move could be because it employs women as sales consultants.
In Tehran, state radio reported that the company had violated tax regulations and custom law, and operated an illegal marketing scheme.
An an Iranian newspaper, Kayhan, accused the company of supporting opposition members in Iran