Business Registration: ACON Law Firm’s Expertise
In recent years, there has been a noticeable rise in the number of international investors and entrepreneurs establishing businesses in Azerbaijan, a notable shift from the recent past. This article zeroes in on the essential legal considerations for registering a business in Azerbaijan. It provides insights into the necessary steps and prerequisites for business registration in Azerbaijan, avoiding an in-depth exploration of the factors driving this heightened interest.
For those contemplating business registration and embarking on entrepreneurial ventures in Azerbaijan, this blog post aims to deliver valuable information. Additionally, if you seek consultancy and legal support for the business registration process in Azerbaijan, don’t forget that ACON Law Firm offers its services and welcomes your applications. Our comprehensive legal services ensure a seamless experience for both local and international clients.
Business Registration forms in Azerbaijan:
In Azerbaijan, companies can initiate their activities by officially enrolling under one of the provided legal structures:
- Business registration
- Branch Registration
- Subsidiary Registration
Additionally, note that foreigners should follow the requirements applicable to the citizens of Azerbaijan when applying to register a business in Azerbaijan.
Business registration in Azerbaijan is the process of starting a business in the country. Foreign individuals and business entities can engage in this business activity to register their companies, subsidiaries, or branches and participate in commercial activities within the country.
The Civil Legislation of the Republic of Azerbaijan regulates various legal forms of commercial entities. However, based on our experience, we observe that people often prefer the following organizational legal forms when registering their companies in Azerbaijan:
• Limited Liability Company (LLC): An LLC in Azerbaijan can be formed by individuals or entities with no minimum capital requirement. Founders’ liabilities are limited to their share in the Charter capital. It can be registered as a Sole Proprietorship or Partnership.
• Joint Stock Company (JSC): Larger businesses in Azerbaijan often opt for a JSC, established by multiple founders. There are two main types: Open Joint Stock Company (OJSC) and Closed Joint Stock Company (CJSC).
Essential Documents for Registering a Business in Azerbaijan
If you’re looking to establish a business in Azerbaijan, it’s crucial to provide the necessary documentation for a smooth registration process. Ensure you have the following documents ready:
- Application Form: Complete the application form to initiate the registration process.
- Firm Charter: Include the official document outlining the firm’s structure, objectives, and operational guidelines.
- Decision on Business Establishment: Submit the formal decision indicating the intent to establish the business.
- Appointment Decision for Director (CEO): Decision to appoint the director (CEO) of the firm.
- Founder and Firm Head Identification: Present a copy of the document validating the identity of both founders and the appointed head of the firm.
- Power of Attorney: If opting for business registration through a legal representative, provide a power of attorney.
- Payment Confirmation and Charter Balance: Include a receipt confirming the payment of the state fee and ensuring the balance aligns with the provisions in the Company Charter.
Subsidiary Business Registration in Azerbaijan
According to Azerbaijani law, a subsidiary is an independent business, subject to the same registration rules as any other firm. The registration process is uniform for local and international companies establishing a subsidiary in Azerbaijan. However, foreign companies must legalize specific documents according to international standards.
Required Documents for Subsidiary Registration:
To register a Subsidiary Firm in Azerbaijan, you need to prepare and submit the following documents:
- Application form.
- Legalized founding documents of the mother firm
- Detailed information about the founders of the mother firm
- ID of the CEO of the founding firm
- Charter
- Decision on the establishment of the Subsidiary Firm
- Power of Attorney
- Payment of the state fee
How to Register a Business in Azerbaijan
Follow these steps to register a business or branch in Azerbaijan:
Step 1: Choose the legal structure:
Decide whether to register as a Limited Liability Company (LLC) or a Joint Stock Company (JSC). You can also consider setting up a branch or subsidiary based on your business needs.
Step 2: Collect documents:
Once you decide on the legal structure, gather the necessary documents and pay the required fees. Note that the registration forms are available only in Azerbaijani.
Step 3: Deposit Charter Capital:
The minimum required capital varies based on the business type.
Step 4: Apply for registration:
Submit your application, including all documents and fees, to the State Tax Service. The registration process typically takes 2-3 working days. Upon approval, you’ll receive a Tax Identification Number, Registration Certificate, and Company Charter. Foreign entities and individuals can register remotely through legal representatives.
Step 5: Obtain necessary licenses:
While most businesses can operate with just business registration, some may need additional licenses or permits. Certain activities are subject to specific licensing requirements according to the law.
ACON Law Firm’s expertise ensures a meticulous review of your documents, reducing the risk of errors during the registration process.
Conclusion
ACON Law Firm offers invaluable legal assistance for branch or business registration in Azerbaijan. Our expert consultants are here to provide comprehensive business consulting as well as legal services. Therefore, Contact us today to embark on a successful business journey in Azerbaijan.
