Starting a Business in Azerbaijan

June 10, 2024

Azerbaijan has significantly drawn the attention of foreign investors and businesspeople, particularly over the last decade. Certainly, specific reasons underlie the growing interest of foreigners in starting businesses and investing in Azerbaijan. However, we will not discuss these specific reasons in this blog post. Instead, our primary focus will be on business development indicators, the process of starting a business and exploring business opportunities in Azerbaijan.

We hope this article will be beneficial for foreigners planning to start their business in Azerbaijan. Also, remember that, for any consulting and legal services you might need to establish your business in Azerbaijan, you can contact DLB Consulting.

How to Start a Business in Azerbaijan

According to the 2020 Doing Business Report, Azerbaijan ranks 9th globally in terms of ease of starting a business. This report notably emphasizes the simplicity of legal procedures, highlighting minimal bureaucratic requirements for business initiation in Azerbaijan. Furthermore, this simplicity is one of the key factors that attract foreigners to consider starting businesses in Azerbaijan. However, it is important to note that the ease of starting a business should not be considered as the only deciding factor when planning a new business. In summary, we believe that to successfully start a new business, it’s important to have a business plan based on careful market research and to consider the legal requirements and regulations in the context of any country, including Azerbaijan.

Business Idea, Market Research and Business Planning

Most would agree that a business idea is as important as investment funds when starting a business. Occasionally, we witness remarkable success stories of individuals who launched businesses with minimal investments. Such success is often the result of a solid business idea that has been meticulously planned. Consequently, before initiating a business in our country or elsewhere, ensure your business idea is viable. Consulting professionals for business advice is even more advisable.

We are confident in the success of business ideas that are planned based on detailed market research. For this reason, we strongly recommend planning your business idea before starting a business in any country, also in Azerbaijan. Planning your business idea allows you to adjust your business concept to the local market’s characteristics, accurately identify opportunities and set clear goals. It also helps you to develop an effective business strategy for financial management and marketing of your company, and reduce risks by recognizing and addressing them beforehand. For all these reasons, it is necessary for you to give sufficient attention to the planning phase of your business idea.

Legal Requirements and Regulations

When starting a business in Azerbaijan, it is important to concurrently address legal requirements and regulations, alongside market research and business planning. As we have previously mentioned, starting a business in our country involves minimal bureaucratic requirements. Thus, to start business activities in most fields, registering your company in Azerbaijan is usually sufficient. However, this should not be understood as an absence of regulation in these business areas. So, due to the unique nature of different business sectors, the legislation imposes specific requirements for each type of business activity. Therefore, obtaining legal consulting, specifically relevant to your business concept including tax consulting, is recommended when starting a business.

Additionally, it should be noted that for some specific business areas, obtaining a special permission or license is mandatory. These types of business activities are limited in number, and their scope is clearly defined by the legislation.

Start Your Business Activity in Azerbaijan

If you have already planned your business idea and are familiar with the local legal regulations related to your business activity, then you are ready to start doing business in Azerbaijan. For this, you must first register your company in Azerbaijan and obtain any necessary permits as required by the legislation related to your business activity. And that’s it – you’re all set to operate your business in Azerbaijan! We are confident in the success of your business venture in our country!

The Process of Starting a Business in Azerbaijan

You should follow these practical steps to start a business in Azerbaijan:

Step 1: Register a Business

Business registration is the first step to start a business in Azerbaijan. You can either register a company or you can start a business as an Individual Entrepreneur. To register a company, you must collect the necessary documents, fill out the application forms, and pay the required fees. Within just three working days the State Tax Service will register your company. Additionally, the process of obtaining a TAX ID as an Individual Entrepreneur takes only one working day. However, having a temporary or permanent residence permit is necessary to obtain a TAX ID in Azerbaijan;
Step 2: Open Bank Accounts and Obtain a Digital Signature (ASAN IMZA)

Once your company is registered, the process of opening bank accounts typically takes two to three working days. Additionally, obtaining a Digital Signature (ASAN IMZA) for your company only takes one working day. This enables you to perform numerous online operations on behalf of your company;
Step 3: Lease a Commercial Space (if required)

If your type of business activity requires it, this is the next step in starting your business. If it doesn’t, you can proceed anyway;
Step 4: Obtain a POS Terminal and Cash Register (if required)

Depending on your business type, these may be essential for starting business activity;
Step 5: Obtain a Business License or a Permit (if required):

To start a business in Azerbaijan, for most business activities, simply registering the business is sufficient. However, certain specific businesses require licenses (or permits) to engage in. A Business License (Permit) in Azerbaijan is a formal certificate that grants companies and Individual Entrepreneurs the legal right to engage in those specific business activities.
Step 6: Start the Business Activities

Once all necessary stages are completed, your business is ready to start operating in Azerbaijan.

Remember that during your business operations, you will be involved in numerous corporate legal relationships. Therefore, it’s important to regularly consult a lawyer for legal matters related to your business activities. For certain types of businesses, the need for regular corporate legal services is even more recommended. This approach is significant for legally organizing your activities and reducing legal risks.

Legal and Consulting Services to Start a Business in Azerbaijan

We believe that this article has provided you with valuable business consulting information essential for starting a business in Azerbaijan. And at last, we also want to emphasize that if you require business consulting and legal services to start your own business in Azerbaijan, you can apply for the expertise of DLB Consulting.

Related Corporate Services

DLB Consulting provides the following consulting and legal services for foreign business entities and individuals who are planning to start a business in Azerbaijan: