Azerbaijan’s immediate neighbors are Georgia, Armenia, Turkey, Russia, and the Caspian Sea, and it is situated between Europe and Asia. It is a democratic country with a voluminous cultural heritage. Additionally, it is rich in natural resources like gas and oil. Investors from all over the world have been drawn to the little-known nation because of its stable economy and rapid development over the past few years. As more and more investors flock to take advantage of the available investment opportunities, the number of people interested in company registration in Azerbaijan keeps increasing yearly.
Manufacturing, oil, energy, tourism, and agriculture are some of the sectors that have drawn a lot of foreign interest. The ease of registering businesses (companies) in Azerbaijan has received particular attention for encouraging investment attraction. As a result, out of 190 nations, Azerbaijan was ranked 18th in the category of “starting a business” in the world, and in the bank’s business report for 2018. The quantity of paperwork and procedures needed to form a company significantly decreased over time.
Documents required for Azerbaijan company registration
There are specific documents you need to have when considering company formation in Azerbaijan. They consist of the following, without being restricted to:
Application form
The Ministry of Taxes provides this form (registration authority of legal entities). These papers must be notarized. Anyone with the proper authorization could submit such a form.
Documents required for incorporation include:
- A company’s charter.
- A shareholder resolution establishing an LLC.
- A legal representative’s appointment.
- Information on the shareholders and founders, including IDs and passports.
It is necessary to have the Articles of Association, Memorandum, and certificate from the trade registry when the owners (shareholders) are foreign legal entities.
Registration fee
The official registration fee for a new LLC is 11 manats (AZN), and it must be paid in advance before incorporation. A receipt must be provided as proof of payment for the state registration fee and charter capital.
Representative offices and branches of foreign legal entities are subject to a 220-manat state fee for registration (AZN). However, if this has been mandated by the charter, the charter capital must be paid within 3 months of the company’s registration.
The ministry of taxes’ legal entity registration department
The Ministry of Taxes’ Legal Entity Registration Department must receive all of these documents. While these papers are required for an LLC’s registration, once the business is up and running, the following matters also need to be taken into account:
- Creation of the company’s corporate seal.
- Acquiring an electronic signature (ASAN imza) for the business.
- Opening of accounts at banks.
- Employment agreements registered (including the Director of the company employment agreement).
- State officials (tax, social security, statistics).
- Name and location of the company.
- If you have a VAT Certificate, a notarized lease.
- A bank agreement containing information about the corporate account for businesses.
In Azerbaijan, the procedure for obtaining a certificate of business registration can be finished in one week. You must, however, submit all of the necessary applications for the required permits and licenses before you can begin the registration process. All of the company’s official documents must also bear the company seal for them to be considered valid and legal.
According to Azerbaijani law, foreign investors are permitted to own 100% of local companies, and there are no minimum capital requirements (share capital). Additionally, there are no requirements for hiring local workers or the nationality of the director
Additionally, local laws offer flexible guidelines for joint venture formation, with no specific limitations on the rights of foreign shareholders, financing, or money transfers to and from Azerbaijan.
Information about Azerbaijan’s state registrar
The State Registrar in Azerbaijan not only handles company registration procedures but also provides access to data on other entities registered in the nation. On request, information about a company’s board of directors or incorporation date can be obtained. The State Registrar of Azerbaijan has made it simpler to register a business thereby putting in place a one-stop shop program that makes it simple to incorporate a business. In this case, the process has been streamlined.
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Breakdown of Azerbaijan company registration fees and expenses
