Following the failure of governmental parties led by Assadollah Alam, and the nationalists led by Manuchehr Eqbal in attracting the nation towards the parties and the Shah regime, the Shah decided on the formation of a formal and comprehensive party. The Rastakhirz party began its activity on March 2nd 1975 with the Shah’s remarks and all existing parties were dissolved. In his speech, King declared all people must become a member of the Rastakhiz party; otherwise they should leave the country. The king ordered all the politicians; workers and government employees should join the party. Parliament representatives who were members of other parties left their parties and joined the new party. According to the Shah in 1975, Factions in the party was more obvious, and it led to the formation of two factions: constructive (Sazandeh) led by Houshang Ansari and progressive (taraqqikhah) led by Jamshid Amuzegar.
The Project of Rastakhiz Party, which the King called it "comprehensive" were planned by Amuzegar’s faction who had a good grasp of the Shah’s wishes and mood. Amuzegar’s faction nourished from Dariush Homayoun’s thoughts and writings, and planned the party’s project as such that the Shah who was strengthening the basis of his ideology would be convinced that this was the only way to motivate the static and nonchalant atmosphere of the country. Accordingly shah left his slogans of “multi party system of government” and his condemning the “mono party dictatorial systems”.
During the party's political life, Amir Abbas Hoveyda was the Secretary-General for 20 months (since 3/2/1975 to 9/8/1976) and Ferieidun Mahdavi was the deputy secretary-General. After Hoveyda, simultaneous with the formation of the second congress of the party in November 1976, Jamshid Amuzegar became the secretary general, and MohammadReza Ameli Tehrani was selected acting secretary general. After his appointment as Prime Minister, in August 1977 the Secretary-General resigned from his office, and Mohammad Baheri deputy minister of court replaced him in the party, and Dariush Homayun became his deputy. During a meeting with members of the Politburo and the party's executive committee in a speech at the party on the fifth day of January 1977, the Shah remarked that “separation of party Secretary-General from his post of the prime minister was not expedient”, shortly after Jamshid Amuzegar became secretary-general for the second time. Javad Saeed became acting secretary general, and Mohammad Reza Ameli Tehrani and Mohammad Hossein Mussavi were appointed his deputies. It was not long before that Jamshid Amuzegar resigned of his office in the party’s session and Jawad Saeed replaced him. However, after five days he was forced to resign from his membership, and the party collapsed. According to the statuteof the party, it had five ranks including the “congress” as the highest rank, “central council", "Executive Board", "politbureau" and "Secretary General", as the other ranks of the party.
"Village Council", "district council”, "city council", "city council" and "County Council", were among the party councils.
Having 18 years of age was required for membership in the Party and those less than 18 years were affiliated to the party and the main center of the party was in Tehran.