Azerbaijan is the only CIS country where its national currency remained stable even during the time of crisis and currently 1 Manat is equal to ca 1.28 US dollars, therefore higher than the US currency. One of the right decision that you can make is opening a business in Azerbaijan since this country has a stable economy, innovative strategies and the development of the oil sector has been successful. In case you’re planning company formation in Azerbaijan, we can assist you in clarifying some of the questions that you may be having.
Types of Companies Available for Company Formation in Azerbaijan
Limited liability company — according to the civil code of Azerbaijan, a limited liability company does not have a limitation to the number of members and the minimum share capital. However, the amount of the share capital, you must pay in full before your company is registered. This type of company is considered to be one of the most convenient types of business that you could start in Azerbaijan.
Branch/Representative office — this type of business is taken to be equal to legal entities in its status. It differs from other types of businesses in terms of account opening and taxation. In terms of accreditation, there’re no limitations on legislation. We can also register foreign banks once they obtain the required licenses.
To choose the incorporation form which will suit, you can ask our specialists about this issue so that you can compare the advantages and disadvantages of tax burdens and business challenges for different incorporation forms.
Specificity of Company Formation in Azerbaijan
Before you proceed with company formation in Azerbaijan the following has to be decided:
Name of the company
Details of the members (full names, citizenship and passport number)
Type of business activity that you wish to engage in
The bank that you wish to choose in Azerbaijan and the type of accounts that you plan to open
In accordance with the legal acts, any corporate body is assumed to be located where its executive operates from (The CEO and directors). There’re 2 types of addresses that we can offer:
Standard legal address — an address which is used mainly for registration purposes.
Virtual office service — this can be used for many purposes other than registration. Although it’s more expensive compared to standard legal address
We usually recommend our clients to order the virtual office service, since the tax authorities are able to perform tax inspections so as to verify the actual location of any corporate entity. The CEO position of your company may be given either to an Azerbaijan citizen or to any foreign resident.
One thing that you should take into account is that the Azerbaijan law has set out provisions which are aimed at the protection of the domestic labor market. The government normally sets out annual quotas on the number of foreigners who are supposed to work within its territory. Any company that wishes to employ a foreigner must obtain a work permit from the government and then submit it to the required state bodies.
This implies that during registration any foreign citizen must have a residence permit, so that his/her appointment may not be declared illegal leading to an Azerbaijan resident being appointed to his/her position. As a business, you need a CEO to sign the required documents for company registration and also interact with tax authorities. In case you do not have residence permit or local director during registration, our company can offer you a nominal service.
We can also assist to organize the registration of the company without your presence through the power of an attorney. In this case, your visit will be only required when opening your business bank accounts. To find out more information on company formation in Azerbaijan, time-frames, fees, please contact our specialists.