Company Registration in Azerbaijan
Company registration in Baku Azerbaijan is more easy than ever now. The Azerbaijan Government made some changes and amendments to the corporate and small business legislation in the Republic of Azerbaijan. By this legislation, anyone now can start small business in Baku Azerbaijan more easily. They done this to tackle the Corona virus aftershocks. These changes increased the flow of investment to the business environment of the country and helping the economy. This recent move of changing the laws, specifically affected the rules of company registration in Azerbaijan. Especially increasing the smoothness of the process to register a company or business in Baku. According to these changes, the list of documents and time required for company establishment in Azerbaijan have been shortened.
As a result of these extra ordinary reforms the Company registration in Baku Azerbaijan has become a very fast and easy task. This remarkable development of a business environment in Azerbaijan has been recognized by many international organizations. Since last 10 years, Azerbaijan is ranking among the top 20 countries under the “EASE OF DOING BUSINESS” title on Doing Business Report of World Bank. In 2021, business set up in Baku is amongst the priorities of investors looking for profitable investment options.
04 Easy Steps for Company Registration in Baku Azerbaijan
First of all you need to make a decision about the formation of a company including the following things
a. Number and names of shareholders
b. Name of the company, initial share capital, legal address and legal representative (director).
c. The establishment of main bodies of the company as a supervisory and executive board and members of that boards may also be decided. For example, Managing Director, Sales Manager, Operations Manager etc.
- After deciding the bodies of the company, your first step is to preparation the Application Form. Template of this application will be provided by the Ministry of Taxes (registration authority of legal entities). This application form shall be notarized and applied by the person duly authorized to do so.
- Secondly you need to prepare the Incorporation documents. These documents included the Articles of association of a company. Resolution of Shareholders on the establishment of LLC and appointment of legal representative.
- Thirdly you need to provide the information about the shareholders. Legal representative and members of main bodies, – here if locals IDs, if you don’t have local ID then passports will be required. After establishing a subsidiary company of foreign legal entity, the registry documents of the foreign parent company will be necessary to submit with proper legalization.
- Evidence of the 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. State duty fee for the registration of branch offices are different from registration of limited liability company (LLC) in Azerbaijan.
Necessary Documents for Company registration in Baku in 03 days
Let me make it clear, these documents are necessary for the business set up in Baku, Azerbaijan. Once the company establishment in Azerbaijan completed, there is also a need to consider the following issues as well:
- Order of corporate or company seal or stamp
- Obtaining of e-signature (ASAN imza) for the company or electronic identification of your company
- Opening of bank accounts in the name of company
- Registration of employment agreements for the workers,including the directors
- Reporting to state authorities for tax, social security, statistics
Our team of professional lawyers can help you with proper documentation of a company registration in Azerbaijan. We will assist you in all steps of incorporation including after registration support of tax and social reporting and all state payments.
Things to remember Before Apply For Company registration in Baku Azerbaijan
It is necessary to mention, before starting a business in Azerbaijan entrepreneurs need initial information. This information includes the forms of legal entities allowed by the law and differences between the different legal entities.
Different Forms of Companies in Azerbaijan
Here, it must be stated, the company registration in Azerbaijan can be in different forms as following
- Partnerships (general and limited partnerships),
- Limited or additional liability companies,
- Joint-stock companies.
In practice, many businesses choose to establish limited liability companies (LLC). Because the flexibility of operations and shortened process of registration.
Here is good news, for company establishment in Azerbaijan local laws. Azerbaijan allows 100% foreign ownership and there is no requirement for any minimal amount of SHARE CAPITAL. It means, for business set up in Baku or in other regions of the country you can start your business from 100 US dollars. 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.
Something more to know, local laws provide flexible rules for the formation of joint ventures/companies. It provides 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 important documents, processes, costs and steps those shall be considered for registration of the company (LLC) in Azerbaijan: