Branch registration in Azerbaijan | Accounting.Az

Company registration

Step-by-step guide to registering a branch or representative office in Azerbaijan

Setting up branch registration in Azerbaijan is made simple with expert guidance from the specialists at Accounting.Az LLC. This overview details the key steps involved in registering a branch office or representative office, from legal requirements to the registration process and taxation.

What are branches and representative offices?

In Azerbaijan, foreign companies can open either a branch or a representative office. Both allow the company to operate in the country, but there are important differences between the two.

• Branch office: A branch is part of the parent company and can carry out commercial activities, such as sales and providing services. Establishing a branch office can enhance your company’s visibility and operational capacity in the market.
• Representative office: A representative office cannot conduct business directly. Its main role is to represent the parent company, do market research, and support business development.

Steps to register a branch or representative office in Azerbaijan

1. Meet the registration requirements

To register a branch or representative office, foreign companies need to provide the following documents:

• A notarized and apostilled copy of the parent company’s charter and certificate of incorporation.
• A statute outlining the activities of the branch or representative office.
• A power of attorney authorizing the person responsible for the registration.
• Identification documents of the head of the branch or office.

2. The registration process

The steps for registering a branch and a representative office are almost identical. The necessary documents must be submitted to the Ministry of Taxes, which handles company registration. The main steps include:

• Preparing documents, including the branch or office statute and the parent company’s legal documents.
• Filing the registration application with the Ministry of Taxes.
• Obtaining the Tax Identification Number (TIN) and the Registration Certificate.

3. Setting up a subsidiary

For companies looking for more independence, setting up a subsidiary may be a better option. Unlike a branch or representative office, a subsidiary is a separate legal entity. This provides more operational flexibility and protects the parent company from liability. However, establishing a subsidiary involves additional legal formalities.

Taxation of branches in Azerbaijan

Branches are subject to the same taxes as local companies, including corporate income tax, value-added tax (VAT), and payroll taxes.

Representative offices, which do not engage in commercial activities, are generally exempt from corporate income tax. However, they may still be required to pay other taxes, such as payroll taxes for employees.

Why use branch registration services?

The registration process can be complex, especially for foreign companies unfamiliar with Azerbaijan’s legal and tax systems. Using branch registration services can simplify the process by ensuring that all necessary documents are prepared and submitted correctly.

Conclusion

Branch registration in Azerbaijan is a strategic way for foreign companies to expand in the region. By understanding the registration requirements and process for a branch office, businesses can take advantage of opportunities in Azerbaijan’s growing market. Whether you’re registering a branch or establishing a subsidiary, it’s important to plan carefully and comply with local regulations.

For a smooth branch registration in Azerbaijan, it’s highly recommended to consult professionals. The specialists at Accounting.Az LLC are experienced in Azerbaijan’s legal requirements and will provide you with comprehensive services to ensure a hassle-free setup of your branch or representative office.

See more: https://accounting.az/en/category/company-registration/