As a law firm with extensive experience assisting foreign investors, we understand the importance of clear guidance when navigating company registration in a new market. Azerbaijan provides excellent conditions for establishing or expanding a business. Ranked 9th globally in the World Bank’s Doing Business report, it stands out as an attractive destination for entrepreneurs.
Registering a company in Azerbaijan requires following specific legal and regulatory procedures. This guide provides a comprehensive overview of the company registration process in the Republic of Azerbaijan. We will outline the steps involved in setting up a company, including the registration of a Joint Stock Company (JSC). By following these guidelines, you can efficiently establish your business.
Whether you are exploring company formation, business registration, or setting up a company in Azerbaijan, we ensure a seamless and transparent process. Our expertise in company registration in Azerbaijan allows us to help you navigate potential challenges and make well-informed decisions in this dynamic market.
Let us assist you in seizing the opportunities that come with doing business in Azerbaijan.
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Company registration and business establishment in Azerbaijan is selecting the appropriate legal entity type. Azerbaijan’s legal framework provides several options, each governed by specific regulations:
This is one of the most preferred options among foreign investors due to its flexible structure and the limited liability it offers to shareholders. In Azerbaijan, there is typically no minimum charter capital requirement for LLCs, making them an accessible choice for businesses of different scales.
Investors can choose for either an Open Joint-Stock Company (OJSC) or a Closed Joint-Stock Company (CJSC). The primary distinction lies in the transferability of shares and capital requirements. A CJSC requires a minimum charter capital of 2,000 AZN, while an OJSC requires 4,000 AZN. JSCs are well-suited for larger enterprises that plan to raise capital through public or private share offerings.
Foreign companies can also establish a branch or representative office in Azerbaijan. While branches are allowed to engage in commercial activities, representative offices are restricted to non-commercial functions, such as business representation. The decision between a branch and a representative office should be based on the specific operational needs of your company.
By selecting the right entity type at the outset, you can ensure a smooth company registration process and lay a strong foundation for your business in Azerbaijan.
STEP 1: Choose the Legal Form and Company Name The legal form of the company must be selected, for example, LLC, OJSC, branch or representative office. Then, the suitability and availability of the selected company name must be checked through the company search and registry in Azerbaijan.
The documents required for registration must be collected and prepared in the correct form. If the documents are submitted from a foreign country, it is important to have them legalized through an apostille or notarized in Azerbaijani.
The prepared documents must be submitted to the State Tax Service under the Ministry of Economy of the Republic of Azerbaijan. Documents can be submitted online, in person, or through an official representative, and the registration process usually takes 2–3 business days.
Once registration is complete, the company is provided with the following official documents: TIN (Taxpayer Identification Number), Certificate of Registration, Company Charter. These documents are the basis for the company to begin operating as a legal entity.
The legal representative must apply to the ASAN service center to obtain an ASAN İmza electronic digital signature certificate. This signature is necessary for online communication with government agencies and the execution of official transactions.
The company’s bank account must be opened and the charter capital must be deposited into this account. After this, business activities can begin, if employees are to be hired, their social insurance registration must be carried out and the necessary licenses and permits must be obtained.
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An essential factor in register a company and setting up a legal entity in Azerbaijan is determining whether your chosen business activity requires a license or permit.
It is mandatory to obtain the necessary licenses or permits before officially commencing operations in the following business areas in Azerbaijan. Otherwise, engaging in such activities is strictly prohibited and may result in legal consequences. List of Business Activities Requiring a License (excluding cases arising from state security considerations)
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Foreign nationals looking to establish a business in Azerbaijan must also take migration laws into account. Depending on your role within the legal entity, you may qualify for a temporary residence permit. The following conditions allow for obtaining such a permit:
Additionally, engaging in paid employment in Azerbaijan requires a work permit in addition to the residence permit. Foreign nationals and stateless persons must secure this permit through their employing entity, whether a local or foreign company. Obtaining a work permit is also a valid basis for acquiring a temporary residence permit under migration laws. However, certain categories are exempt from the work permit requirement, including:
Understanding these regulations is essential for ensuring a smooth company registration process and compliance with Azerbaijan’s migration laws.
Company registration in Azerbaijan presents many opportunities, but it also requires thorough planning and compliance with local legal and regulatory requirements. Whether you are looking to establish a limited liability company, a joint-stock company, or a branch office, understanding the necessary procedures and making well-informed decisions is key to a successful business setup.
At Accounting.Az Consulting Firm, we specialize in assisting foreign investors throughout the entire company registration process in Azerbaijan. From choosing the right legal structure to handling charter capital requirements, licensing, and migration procedures, our experienced team ensures a smooth and efficient business establishment.
If you are considering expanding your business into Azerbaijan, we encourage you to reach out for a consultation. Let us help you navigate the company registration process and set your business on the path to success.
To register a company in Azerbaijan, you must:
1) Choose the appropriate legal form (LLC, JSC, etc.)
2) Select and verify your company name
3) Prepare and legalize the required documents
4) Submit documents to the State Tax Service
5) Obtain ASAN Imza (electronic signature)
6) Open a corporate bank account and commence operations
The company registration process usually takes 2–3 business days after submitting all necessary documents to the State Tax Service. However, obtaining ASAN Imza and opening a bank account may add a few more days.
No minimum charter capital is required, which makes it ideal for small and medium businesses.
Yes, foreign individuals and entities can fully own and operate companies in Azerbaijan.
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