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Azerbaijan Temporary Residence Permit (TRP) by Making a Deposit

July 8, 20220

The grounds for issuing a temporary residence permit to foreigners and stateless persons in the territory of the Republic of Azerbaijan are defined in the Migration Code of the Republic of Azerbaijan. One of these requirements is to deposit at least AZN 100,000 based on a term deposit agreement with banks operating in the Republic of Azerbaijan to obtain a Temporary Residence Permit (TRP). Foreigners and stateless persons can apply for a temporary residence permit (TRP) in Azerbaijan by opening a deposit account and depositing an appropriate amount in the bank based on a bank deposit agreement. This blog will provide information on the necessary documents for making a deposit to the bank and opening a deposit account to obtain a temporary residence permit  (TRP) in Azerbaijan.

I. Bank Deposit Agreement

The Civil Code of the Republic of Azerbaijan states that according to the bank deposit agreement, the bank accepts the amount of money from the depositor and undertakes to return the amount of the deposit to the depositor as stipulated in the agreement and to pay interest for it. Banks and the national operator of postal communication have the right to attract funds to deposits.

The bank deposit agreement is concluded in written form. In this case, the deposit must be confirmed with a bank book, a bank or deposit certificate, or another document issued by the bank to the depositor. A contract that does not comply with these requirements is void.

A. Types of deposits

According to Article 947 of the Civil Code, there are two types of bank deposits: demand deposits and term deposits. To obtain a residence permit, it is envisaged to conclude a term deposit agreement. A term deposit agreement is concluded to obtain income for a predetermined period. Here, the interest rates are higher compared to the demand deposit agreement. However, if the deposit is returned at the request of the depositor before the end of the term, interest on the deposit is paid in the amount corresponding to the amount of interest paid by the bank on demand deposits. If the contract stipulates a separate amount of interest, this amount is taken into account.

According to any type of bank deposit agreement, the bank must give at least a quarter of the amount of the deposit at the first request of the depositor immediately, and the rest within five banking days at the latest. In this case, deposits made by legal entities with other conditions of return in the contract are an exception. The condition of the contract that the natural person waives the right to receive the deposit on first demand is irrelevant.

If the depositor does not demand to return the amount of the fixed deposit after the expiry of the term, the contract is considered to be extended by the terms of the demand deposit.

B. Interest on the deposit amount

The bank pays interest to the depositor in the amount determined by the contract for the amount of the deposit. If the contract does not stipulate a different rule, the bank has the right to change the amount of interest paid for demand deposits. When the bank reduces the amount of interest, the new amount of interest is applied to the deposits placed before the notification about it after one month has passed from the moment of notification. When an individual makes a time deposit, the amount of interest in the contract cannot be unilaterally reduced by the bank. If a separate rule is not provided in the contract, the amount of interest under the contract concluded by the bank with the legal entity cannot be changed unilaterally.

Interest is calculated from the day after the day the amount is received in the bank until the day before the amount is returned to the depositor or removed from the depositor’s account on other grounds. This rule does not apply to overnight deposits. Unless otherwise specified in the contract, interest is paid to the depositor separately from the amount of the deposit at the end of each quarter at his request. In that period, the amount of the deposit on which the interest is calculated increases the interest of the unclaimed interest. When the deposit is returned, all interest accrued up to that date is paid. 

As a result, naturally, by making a deposit in any bank located in the territory of the Republic of Azerbaijan, you get a temporary residence permit (TRP) as well as an income from your deposit.

C. Deposits in favor of third parties

  The deposit can be deposited in the bank in the name of a certain third party. If a separate period is not provided in the contract, that person acquires the depositor’s right from the moment he submits his first demand based on these rights to the bank or informs the bank of his intention to use the rights. Specifying the name of the natural person or legal entity to whose benefit the deposit is made is an important condition of the relevant bank deposit agreement. A bank deposit agreement in favor of a natural person who is not in life at the time of the conclusion of the agreement or a legal entity that does not exist at that time is irrelevant. The person who concluded the contract can use the depositor’s rights regarding the funds deposited in the deposit account until the third party expresses his intention to use these rights.

D. Bank book

The conclusion of a bank deposit agreement with a natural person and depositing money into his deposit account is confirmed by the bank book. The bank deposit agreement may provide for the issuance of a named bank book or an anonymous bank book. The name and location of the bank in the bank book, and if the deposit is made in a branch, also the name and location of the relevant branch, the account number for the deposit, as well as all amounts of funds transferred to the account, all amounts of funds removed from the account, and the number of funds in the account until the date of submission of the bank book to the bank the balance must be shown and confirmed by the bank. The bank issues the deposit pays the interest on the deposit, and executes the orders of the depositor on the transfer of money from the deposit account to other persons when the bank book is presented. If the named bank book is lost or unfit for submission, the bank issues a new bank book to the depositor upon his application.

II. Savings (Deposit) Account Opening

To make a deposit, a bank account must first be opened. The rules on the bank account agreement apply to the relationship between the bank and the depositor on this account. According to the “Regulation on Opening, Maintaining and Closing Bank Accounts” of the Central Bank of the Republic of Azerbaijan, there are 4 types of bank accounts:

  • current accounts;
  • current sub-accounts;
  • savings accounts;
  • correspondent accounts.

To make a deposit, a deposit bank account must be opened. Savings accounts are accounts opened for attracting customers’ funds to deposits and conducting relevant transactions according to the bank deposit agreement.

A.  Documents required for opening a deposit account for individuals:

Foreign citizens must present a passport, and other border crossing documents resulting from international agreements to which the Republic of Azerbaijan is a partner, and stateless persons must present an identity card issued to stateless persons permanently residing in the territory of the Republic of Azerbaijan as a document confirming their identity.

B. Documents required for opening a deposit account for a legal entity:
  • notarized copy of the charter of the legal entity;
  • notarized copy of the extract from the state register of legal entities (reflecting the latest changes);
  • a document confirming the identity of an individual entrepreneur;
  • duplicate-certificate issued by the tax authority for commercial and non-commercial legal entities, as well as individual entrepreneurs (Entering the “Online clerical” subsystem of the Internet Tax Administration, filling out the “Application for obtaining a certificate-duplicate to open a bank account” form and applying to the tax authority in electronic form. Duplicate certificates are sent electronically by the tax authority to the banks connected to the electronic data exchange, and the taxpayer is notified about this. A duplicate certificate prepared for banks that do not join the exchange is presented to the taxpayer in paper carriers)
  • signature specimen/signature and seal sample sheet.
C. Documents required for opening deposit accounts to branches and representative offices of legal entities:
  • a notarized copy of the extract from the state register of a legal entity (reflecting the latest changes);
  • notarized copy of the statute of the branch, representative office approved by a legal entity;
  • duplicate certificate issued by the tax authority;
  • signature and stamp sample sheet.
D. Documents required for opening a deposit account in favor of third parties:
  • information that makes it possible to identify the person in whose favor the account is opened (for a legal entity – his name and information from the state register, for an individual – name, patronymic, surname, identity document;
  • if the account opener is a natural person, an identity document;
  • in the case of a legal entity opening the account, a notarized copy of its charter and extract from the state register of legal entities (reflecting the latest changes).

When the person in whose favor a deposit account is opened informs the bank of his intention to use the depositor’s rights on the account, documents for opening a deposit account are required for that person. When the person who opened the account uses the account he opened himself, the necessary documents for opening a savings account must be submitted to that individual. In the case of a legal entity, a signature, a sample form of a seal, and a duplicate certificate issued by the tax authority are required for commercial and non-commercial legal entities, as well as individual entrepreneurs.

As the ACON team, we are pleased to provide you with consulting services related to obtaining a temporary residence permit (TRP) by making a bank deposit in the Republic of Azerbaijan!

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