Azerbaijan

 Azerbaijan f

Official Name:    The Republic of Azerbaijan

                Baku

         Azerbaijani

           Manat (AZN)

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Azerbaijan

In order to accelerate the attraction of investment in Azerbaijan, the Government of this country has a special emphasis on facilitating the registration of companies in Azerbaijan. As a result, according to the Ease of Doing Business Survey published by the World Bank in 2019, Azerbaijan is ranked 25th out of 180 countries in the world, ahead of countries such as Russia, Poland, and Bulgaria. Thus, registering a company in this country is the fastest possible way to obtain a temporary residence permit (TRP).

Over the past two decades, Azerbaijan has experienced significant economic growth and foreign investment in the country has been encouraged in various ways. Therefore, foreign citizens seeking to register a company in Azerbaijan will find themselves in a friendly and hospitable business environment. In order to register a company in this country, it is necessary to know the commercial laws and regulations of this country, including the types of companies, the legal steps of registering a company, the required documents, and the rights and benefits of registering a company in the Republic of Azerbaijan.

General Question

Is it possible to accompany family members by registering a company in Azerbaijan?
Yes.

What should be considered for writing a business plan or business plan for registering a company in Azerbaijan?
Summary of initial executive tasks and business objectives, expectations from products and services, determination of the management team, type of company shares as well as conditions for purchasing company shares in Azerbaijan should be specified, financial estimates and costs should all be considered. Be taken.

What are the costs of registering a company in Azerbaijan?
Company registration fee, annual company maintenance fee, financial support, or support for company registration.

Is it possible to have a financial partner to register a company in Azerbaijan?
Yes.

What are the requirements for opening a bank account in Azerbaijan?
Opening a bank account requires a passport, a business registration document, a company articles of association, as well as proof of residency in the country. The required documents depend on the company form.

What types of company registration do you offer in Azerbaijan?
Establishment of a limited liability company, the opening of a special joint-stock company, a joint-stock company, a limited liability company.

How to establish a limited liability company in Azerbaijan?
These companies are established for commercial purposes and have the widest application in Azerbaijan. These companies are stable companies in small and medium sizes that include at least one member. It goes without saying that the participants also have collaborations on legal investments. According to the legal name proposed for these companies, the activities of individuals are within a limited framework. It goes without saying that the profits from these partnerships cannot be exploited alone.

How to open a private joint-stock company in Azerbaijan?
These companies are designed for large-scale business activities, the presence of two founders, two persons, or legal entities is sufficient to establish these companies. The JSC considers special funds for the division of shares, which are owned by shareholders. The capital of these joint-stock companies can be transferred and exchanged in public. JSC shareholders must be trusted to carry out activities such as borrowing and paying off debts. It goes without saying that the JSC should consist of a board of directors, a supervisory board, and an audit committee to meet with shareholders.

What is a partnership like in Azerbaijan?
A partnership is a company formed for the purpose of doing business between two or more limited liability persons.

What is the opening of a limited liability company in Azerbaijan?
The performance of a limited liability company in terms of the rules intended for the board of directors and the limited liability of shareholders is the same as the performance of the first-mentioned company. The company is established by one or two natural persons or legal entities and the existing capital is divided among the shareholders. The main difference between the two types of JSCs is that in the latter case it is possible to transfer shares and exchange them in public.

What are the necessary documents to register a company in Azerbaijan?
Basic documents, selection of a bank in Azerbaijan and type of account, all documents must be fully collected so that they can be translated into Azerbaijani

What is the process of obtaining a license to register an Azerbaijani company?
The process of obtaining a work permit for a foreigner is complex, and there is an annual agreement for foreign workers to protect the domestic labor market. Using a nomination service provider means that the client’s work is perfectly legal.

What is the work permit for foreign specialists (staff) in Azerbaijan?
If a company intends to hire foreign specialists (employees), the company needs a work permit in Azerbaijan. It takes about 20 working days to obtain a work permit, and it is a government expense.

What is the punishment for working without a permit in Azerbaijan?
Penalties for working without a work permit range from AZN 3,000 to 5,000 (approximately € 3,824 to $ 6,373) and for individuals to AZN 30,000 to 35,000 (approximately EUR 38,236 to EUR 44,609).

Do I have to have a local company to work in Azerbaijan?
No. But if you are running a business in Azerbaijan, you must complete a face-to-face registration form, and tax laws require you to register a permanent representative within one month of starting an economic activity.

Where can we register our company in Azerbaijan?
This depends on the type of institution, the representative office must be registered in the Ministry of Foreign Economic Relations and after the official order of the Ministry of Foreign Economic Relations, a branch or joint venture company must be registered in the Ministry of Finance.

What documents are required to register a foreign investment company in Azerbaijan?
Among the required documents is the bank reference letter for the parent company, the charter of the parent company, the registration certificate, a feasibility study, representation for a representative in Azerbaijan.

Should the main registration documents of the Azerbaijani company be officially registered?
Yes, you have to register them in the main country of the requesting company and you also have to legalize the documents at the Azerbaijani embassy where the main company (or at the representative office headquarters) is located.

What does it mean to legalize company registration in Azerbaijan?
It means the approval of a notarized document at the Consulate of the Embassy of Azerbaijan.

What should be done after establishing a company in Azerbaijan?
Preparing the seal of the law firm, determining the electronic signature, opening a bank account, registering the employment agreement, informing the government officials, the documents required to guarantee a temporary residence permit and application form.

What is it like to get a residence permit in Azerbaijan by registering a company in Azerbaijan?
Azerbaijan allows all foreigners to own local companies without the need to set a specific capital for the company, and there is no law in the country stating that the manager is a local and employs employees in certain positions.

The benefits of company registration

  • Migration through company registration
  • Permanent residence of the applicant and family
  • The quick and easy company registration process
  • Low corporate dividend tax
  • Give decision incentives
  • Supporting loans in the field of tourism, technology

The negative of company registration

  • The amount of capital needed to invest in Azerbaijan in order for investors to succeed in obtaining a residence permit in Azerbaijan is very high for a country like Azerbaijan, and with the same amount of capital and perhaps much lower than this 500,000 manats can be found in European member states. Schengen invested and obtained residency in these countries.
  • Infrastructure in the Republic of Azerbaijan is very weak.
  • According to the graph of the desire to fight corruption in the Republic of Azerbaijan in the same article and the existence of corruption in this country, there is bribery in this country.
  • The residency status in Azerbaijan is unclear and the laws of this country do not comment clearly on this.
  • Political tensions in a country like Azerbaijan are high and the possibility of war in this country can have many negative consequences.
  • The distance of this country to the Schengen area and the low value of the official currency of Azerbaijan (manat) in relation to valid currencies such as the euro are other negative points of the registration of the Azerbaijani company.

Registration of companies in Azerbaijan and its types

Registration of a company in Azerbaijan can be done in one of the following cases.

Registration of a limited liability company in Azerbaijan (LLC)
This type of company is the largest commercial entity in Azerbaijan and is suitable for any type of business in Azerbaijan. There is no limit to the minimum capital or number of people who intend to invest in this type of company. The initial capital of the company must first be transferred to the company’s account. In this type of company, the founder of the company can take more responsibilities in addition to his share in the initial capital.

Registration of a public company in Azerbaijan (JSC)
This type of company is designed to operate on a larger scale than limited liability companies, which is formed by one or more founders or legal entities and persons. A specific fund is allocated to shares and the company can transfer its shares freely and make them available to the public. The shareholders of the company share in the amount of their debts and duties in the company. This type of company should consist of a board of directors, a supervisory board and an audit committee elected at a general meeting of shareholders.

Registration of a company with a special joint-stock company in Azerbaijan
This type of company is managed by a board of directors that can be established by one or more legal entities, each of which has a standard capital that is divided into shares. The difference between this type of company and a public joint-stock company is that the shares of this company cannot be transferred or transferred to the people.

Registration of a company with public participation in Azerbaijan (GP)
This company model is formed between two or more legal persons who can be the founders of the company, all of whom are fully responsible for the debts and business affairs of the company.

Registration of a limited liability company in Azerbaijan (LP)
Like public participation companies, it can be established by two or more individuals or companies, but not all of them will have unlimited liability, and at least one person can be fully responsible, and this person can not participate in entrepreneurial activities.

Registration of a foreign branch company in Azerbaijan
This type of company is in fact established only by foreigners who own a company in their own country and due to the expansion of their activities in Azerbaijan, intend to establish a representative office or branch of the main company. The branch of the company is the only institution developing a foreign legal entity in Azerbaijan, and the tax behavior of this company is similar to that of joint-stock companies in Azerbaijan, and it can transfer the profits from its activities abroad to Azerbaijan. Registration of these accounts in the state institutions of Azerbaijan is mandatory. The company’s branch is a legal entity that must operate based on the marketing and advertising of its parent company in Azerbaijan.

Company registration process 

It is possible to register a company in Azerbaijan after going through the following 5 steps, the necessary explanations of which are provided.

  • Get the relevant forms
  • Complete the form in Azerbaijani
  • Translate documents into Azerbaijani and get certified documents
  • Provide company registration documents and certificates
  • Opening a bank account in one of the banks of Azerbaijan and transferring the initial capital finally, after 3 months from the date of opening

Forms for registering a company in Azerbaijan:

  • Submitting a formal application for company registration
  • Complete the relevant forms
  • Announcement of the founder profile
  • Company address
  • Lease or purchase document of the company
  • Obtaining activity confirmation.
  • Pay the registration fee.
  • Azerbaijan is responsible for the administrative affairs of registering a company in Azerbaijan, and this process takes about 3 to 7 days, provided that all the documents are ready.
  • If you want to establish a branch company in Azerbaijan and your company is a commercial company, you must register your company with the Ministry of Economy and Finance of Azerbaijan and it is usually done between 2 and 7 days. If it is a non-commercial company, you must do so in the Ministry of Justice, and this may take up to 40 days in the Ministry of Justice.
  • The Articles of Association of the parent company, which have been approved by the notary public, must be approved by the Embassy of Azerbaijan.
  • The registration certificate of the parent company, which has been approved by the notary public, must also be approved by the Embassy of Azerbaijan.
  • Letter requesting the establishment of a company branch in Azerbaijan, which has been approved by the Notary Office and approved by the Embassy of Azerbaijan.