How to Register a Company in Azerbaijan


Website By Caspian Legal Center, Azerbaijan
Firm's Profile & Articles Law Firm's Profile & Articles
Phone Call +994 12 480 14 86Free ConsultationFree Consultation
To foster the investment attraction, special emphasis has been put on easiness of the registration of businesses (company) in Azerbaijan. As a result, Azerbaijan has been ranked on 18th place under the “starting the business” title on Doing Business Report of World Bank in 2018 among 190 countries. Over the years the number of documents and processes required for establishing company decreased significantly.

To foster the investment attraction, special emphasize has been put on easiness of the registration of businesses (company) in Azerbaijan. As a result, Azerbaijan has been ranked on 18th place under the “starting the business” title on Doing Business Report of World Bank in 2018 among 190 countries. Over the years the number of documents and processes required for establishing company decreased
FIND MORE LEGAL ARTICLES
significantly.

Partnership (general and limited partnerships), limited or additional liability company, joint stock companies are main types of commercial entities which might be incorporated in Azerbaijan. In practice, many businesses opt for to establish limited liability companies (LLC) considering practicality of such entities.

Azerbaijani law allows 100% foreign ownership in local companies and does not require any specific amount for company capital (share capital). In addition, there are no requirements regarding the nationality of the director or hiring local employees for certain positions.

Furthermore, local laws provide flexible rules for formation of joint ventures, without specific bars or restrictions on the rights of foreign shareholders, financing, transferring funds to and from Azerbaijan.

The followings are the key documents, processes and costs need to be considered for registration of company (LLC) in Azerbaijan:

Application Form – Form provided by Ministry of Taxes (registration authority of legal entities). These document needs to be notarised. Such form could be applied by the person duly authorised to do so.

Incorporation documents – Charter of company, Resolution of Board on establishment of LLC and appointment of legal representative.

Information about the shareholders, founders – IDs, passports of founders. Where founders are foreign legal entities Articles of Association, Memorandum and Certificate from trade registry required.

Document evidencing the domicile of LLC – Notarised consent letter from property owner to use the address as legal address (domicile) of LLC. Where the property owner is founder, shareholder such notarised agreement not required.

Receipt evidencing payment of state registration fee and charter capital – official registration fee for new LLC is 11 manats (AZN) and must be paid in advance before incorporation. State duty for registration of representative offices and branches of foreign legal entity is 220 manats (AZN). However, the charter capital must be paid within 3 month of company registration.

All these documents must be applied to legal entity registration office of Ministry of Taxes.

While these documents are necessary for registration of LLC, after the company established there is a need to consider also following issues:

- Preparation of corporate seal of the company;
- Obtaining of e-signature (ASAN imza) for the company;
- Opening of bank accounts;
- Registration of employment agreements (including the employment agreement of the Director of the company)
- Reporting to state authorities (tax, social security, statistics)

Caspian Legal Center (CLC) offers its one-stop-shop services that include consulting on and performing all of these steps in every level of company establishment and administration.

ABOUT THE AUTHOR: Mr Farid Nabili
Mr Farid Nabili is Managing Partner at Caspian Legal Center. He possesses LL.B degree from Baku State University and LL.M degree from Central European University. Mr. Nabili has more than 12 years of experience in commercial and business law. He has worked as in-house legal counsel and legal director for a local holding group, legal adviser for the Central Bank of Azerbaijan, head of tax law reforms unit at the Ministry of Taxes and a local law firm. Mr.Nabili is well experienced in international transactions, company law, real estate and construction, financial and tax law.

Copyright Caspian Legal Center - Google+
More information from Caspian Legal Center

Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.

Find a Lawyer

Find a Local Lawyer