Company registration in Azerbaijan is the process of obtaining official state registration for businesses planning to engage in commercial activity within the country. Company formation is the first stage for starting business activities in Azerbaijan. Of course, individuals have the legal right to start entrepreneurship without the creation of a legal entity. However, usually, local and foreign individuals and entities prefer business registration to conduct business activities in Azerbaijan. Let’s also note that, as in most countries, the most preferred organizational and legal form for the company in Azerbaijan is the Limited Liability Company (LLC).
Company | Subsidiary | Branch |
---|---|---|
Fully independent | Parent control | Not independent |
Own assets | Own registration | Same legal entity |
Legal entity | Separate liability | Parent liability |
Own liability | Shareholding structure | Local operations |
Profit control | Independent management | Follows headquarters |
Setting up a company in Azerbaijan is the official state process of registering a business entity or an individual intending to engage in commercial activities in Azerbaijan. This is a mandatory first step to lawfully operate a business in the country. Businesses in Azerbaijan can be registered in two primary forms, as mentioned in the photo above.
Foreigners have the same rights and requirements as Azerbaijani citizens when registering their businesses.
A Limited Liability Company (LLC) can be established by one or more individuals or legal entities. The founders’ liabilities are limited to the extent of their shares in the Charter capital. Notably, there is no minimum Charter Capital requirement for LLC registration in Azerbaijan. Entrepreneurs can register an LLC as a Sole Proprietorship or a Partnership.
A Joint Stock Company (JSC) is typically chosen for larger business entities. Azerbaijani law defines two types of JSCs:
To register a company in Azerbaijan, you need the following documents:
A subsidiary in Azerbaijan is considered an independent company and follows the same registration requirements as other company forms. Foreign businesses must legalize certain documents according to international standards when registering a subsidiary.
Document | Description |
---|---|
Application Form | Filled and signed application form for subsidiary registration. |
Founding Company Registration Documents | Legalized proof of registration of the parent company. |
Information About Founders | Full names, nationality, and roles of the founders. |
Identity Documents of the Founding Company Head | Valid passport or national ID of the parent company’s authorized person. |
Charter of the Subsidiary Company | Charter or Articles of Incorporation of the new entity. |
Decision on Establishment | Official decision and appointment of head/legal representative. |
Identity Document of the Head | Passport or ID of the subsidiary’s director or legal representative. |
State Fee Payment | Bank receipt confirming payment of state registration fee. |
Share Capital Deposit Confirmation | Proof of deposited capital as required by law. |
Legalized Power of Attorney | Required if someone else submits documents on your behalf. |
When starting or expanding a business in Azerbaijan, one crucial decision is whether to establish an independent company or a subsidiary company. This choice can significantly impact your business operations, legal obligations, and financial performance. Below, we’ll explore the key differences between these two business structures.
Key Features | |
---|---|
Full Control | Owners manage and operate the company independently, with full decision-making power. |
Separate Legal Entity | The company exists as a legally distinct entity from its founders or shareholders. |
Tax Obligations | Subject to corporate tax laws in Azerbaijan and must fulfill reporting duties independently. |
An independent company is a standalone entity with full legal autonomy. It operates without being controlled by any other company. Key characteristics include:
Key Characteristics | |
---|---|
Controlled by a Parent Company | Management and strategic decisions are influenced by the parent company. |
Separate Legal Entity | The subsidiary operates as an independent legal structure. |
Tax Benefits | May enjoy favorable tax rates or deductions under Azerbaijan’s tax laws. |
Alignment with Parent Company Goals | The subsidiary works in line with the parent company’s long-term objectives. |
A subsidiary company, on the other hand, is a company controlled by a parent company, which holds a majority of its shares. Important aspects include:
Choose the legal form of your company. You may also consider registering a branch or subsidiary.
Gather the necessary documents and pay the associated fees.
Deposit the required Charter capital. For an LLC, there is no minimum requirement.
Submit your application to the State Tax Service. The registration process typically takes 2 working days. Upon completion, you will receive a Tax Identification Number, Registration Certificate, and Company Charter.
Certain businesses may require additional licenses or permits to operate legally in Azerbaijan.
After we receive your company’s founding documents, we will electronically apply to open a bank account in Azerbaijan. This process typically takes 1 to 2 working days.
Starting your own business as an individual entrepreneur in Azerbaijan? Here’s a straightforward guide to help you through the registration process:
Individual Entrepreneur Registration is the process of officially setting up your own business as a sole proprietor in Azerbaijan. This allows you to operate a business under your own name without forming a separate legal entity.
For assistance with company or subsidiary registration in Azerbaijan, or for consulting services to start a business, contact ACON Consulting. We are dedicated to providing comprehensive legal support and are here to welcome you as a valued client. We are here to help you every step of the way.
Ready to begin? Contact ACON Consulting today to start your business in Azerbaijan. |
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