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BIPS is a UK charity and company limited by guarantee. It was founded in 1961 with the aim of promoting and encouraging the study of Iran, its history, civilisation, and culture in all periods of history. Much of BIPS research and work in its early years was in the field of archaeology.

In 1976 BIPS opened its purpose-built centre in northern Tehran, designed by Reza Khazeni architects. The Tehran centre houses an extensive library that exceeds 40,000 English and Persian language volumes, journals and periodicals as well as epigraphic material, maps, photographic and fieldwork archives; a unique resource that is open to Iranian students, scholars and members of the public. It is thought to be the largest collection of English language volumes in Iran. The Tehran centre remains one of the few overseas institutes continuing to operate in Iran. It also houses a hostel for the use of visiting academics and students.