Regulatory changes and amendments to the corporate and business legislation in the Republic of Azerbaijan increased the flow of investment to the business environment of the country. These changes specifically affected the rules of company registration in Azerbaijan especially increasing the smoothness of the process and shortening the list of documents and time required for company establishment in Azerbaijan. As a result of reforms, the development of a business environment of Azerbaijan has been recognised by a number of international organizations. Over the years Azerbaijan ranked among the top countries under the “starting the business” title on Doing Business Report of World Bank.
Company Formation in Azerbaijan
Usually, before starting a business in Azerbaijan entrepreneurs need initial information about forms of legal entities allowed by the law and differences among them. Here, it must be stated company registration in Azerbaijan can be in different forms as partnerships (general and limited partnerships), limited or additional liability companies, joint-stock companies. In practice, many businesses choose to establish limited liability companies (LLC) considering the flexibility of operations and shortened process of registration. For company establishment in Azerbaijan local laws, allow 100% foreign ownership and there is no requirement for any minimal amount for the company initial capital (share capital). It means, for business set up in Baku or in other regions of the country, there is no need regarding the nationality of the shareholders, directors of the company as well as hiring local employees for certain positions is not necessary. Furthermore, local laws provide flexible rules for the formation of joint ventures, without specific limits or restrictions on the rights of foreign shareholders, financing, transfer of funds to and from Azerbaijan. For company registration in Azerbaijan, there is a number of key documents, processes, costs and steps those shall be considered for registration of the company (LLC) in Azerbaijan:
– Making a decision about the form of the company including the number and names of shareholders, name of the company, initial share capital, legal address and legal representative (director). Here if required, the establishment of main bodies of the company as a supervisory and executive board and members of them may also be decided.
– Preparation of Application Form – Template of this application provided by the Ministry of Taxes (registration authority of legal entities). This document shall be notarized and applied by the person duly authorized to do so.
– Incorporation documents – Articles of association of a company, Resolution of Shareholders on the establishment of LLC and appointment of legal representative.
– Information about the shareholders, legal representative and members of main bodies, – here if locals IDs, if foreigners passports will be required. When establishing a subsidiary company of foreign legal entity, registry documents of the parent company will be necessary to submit with proper legalisation.
– Receipt evidencing payment of state registration fee and charter capital – official registration fee must be paid in advance before incorporation while share capital can be paid within 3 months of registration provided that this has been prescribed by the charter. State duty for registration of representative offices and branches are different from registration of limited liability company (LLC) in Azerbaijan.
While these documents are necessary for the business set up in Baku, Azerbaijan, once the company establishment in Azerbaijan completed, there is a need to consider the following issues as well:
– Order of corporate seal of the company;
– Obtaining of e-signature (ASAN imza) for the company or electronic identification means;
– Opening of bank accounts for the company;
– Registration of employment agreements (including the employment agreement of the Director of the company)
– Reporting to state authorities (tax, social security, statistics)
How we can help you
If you are considering forming a business or you need expert help with company registration in Azerbaijan, LegalGenius™ is ready to assist you with its skilled team of lawyers, consultants and tax experts. We are committed to making the process as stress-free and streamlined as possible for you, and we will take care of all your document preparation and administrative tasks regarding the registration forms, payment of government fees, local address registration, banking support, etc., whilst always keeping your exact objectives and unique vision in mind throughout the process.
Please use our Company Formation Wizard if you would like to set up your registered company in Azerbaijan or if you would like to know the costs involved prior to proceeding with our exceptional services. For other queries and special requests for complex or customised company formation services, please contact us at firstname.lastname@example.org