Opening a bank account in Azerbaijan is a straightforward process for locals as well as foreigners, whether they are opening it for personal needs or for their business. However, it is true that in recent months, it has become somewhat complicated to open bank accounts for foreigners and their businesses. So, in many cases, banks require foreigners to have residence permits in Azerbaijan and meet other similar requirements to open bank accounts.
We hope this blog post will be informative for those planning to open a bank account for their business or personal needs in Azerbaijan. Furthermore, if you require consulting and legal services regarding the process of opening personal or business bank accounts in Azerbaijan, remember that you can apply for DLB Consulting’s services.
Personal bank accounts in Azerbaijan
As previously mentioned, foreigners, regardless of their citizenship and even without a residence permit in Azerbaijan, have the right to confidently open personal bank accounts in Azerbaijan. However, each local bank may have its own requirements for opening bank accounts. Most banks could require a Residence Card of Azerbaijan to open a personal bank account, or they might have other specific requirements depending on the foreigner’s citizenship.
Types of personal bank accounts
Depending on the purpose of use, there are different types of bank accounts in Azerbaijan, as in every country. However, the types of bank accounts mentioned below are more widely used by both locals and foreigners:
- Current Accounts: Used for daily transactions and easy access to funds.
- Savings or Deposit Accounts: Used for saving money and earning interest over time.
- Foreign Currency Accounts: Used for holding funds in various currencies.
It may be useful to note that foreigners can open personal bank accounts in Azerbaijan in different currencies, whether it is a deposit (savings) or current account. In addition to Azerbaijani Manat (AZN) accounts, they can have personal bank accounts in USD, EUR, Turkish Lira, Russian Ruble, etc., in local banks.
Foreigners are interested in opening bank accounts in Azerbaijan for various reasons. In many cases, opening bank accounts is important for their daily use and saving needs. Additionally, foreigners often open personal deposit or savings accounts to obtain a residence permit in Azerbaijan. According to the legislation, foreigners are eligible to obtain a Temporary Residence Permit in Azerbaijan if they deposit at least AZN 100,000 (approximately USD 59,000) into local banks under a term deposit agreement. In turn, to obtain a permanent residence permit on the same basis, the deposit amount required is AZN 200,000 (approximately USD 120,000).
How to open a personal bank account in Azerbaijan: Required documents
To open a personal bank account in Azerbaijan, foreigners or their legal representatives have to visit the bank branch and submit the following required documents:
- Application Form;
- Passport or Residence Card;
- Valid visa (for citizens of visa-required countries);
- Power of Attorney (if applying through a legal representative).
As you can see, the process of opening personal bank accounts is quite simple and requires very few documents. However, it is important to note that obtaining local bank payment cards is not as easy for foreigners. Therefore, to obtain bank cards, foreigners must have residence permits in Azerbaijan.
Business bank accounts in Azerbaijan
Local companies owned by foreigners, as well as branches of foreign businesses, have the right to open corporate bank accounts in Azerbaijan. For companies, the process of opening a business bank account in Azerbaijan is quite straightforward, similar to the process for personal bank accounts. However, each local bank may have its own requirements for opening company bank accounts.
Types of business bank accounts
Depending on the purpose of use, there are different types of corporate bank accounts in Azerbaijan, as in every country. However, the types of bank accounts mentioned below are more widely used by businesses:
- Current Accounts: Used for business transactions and easy access to funds.
- Savings or Deposit Accounts: Used for saving money and earning interest over time.
- Foreign Currency Accounts: Used for holding funds in various currencies to meet business needs.
It could be beneficial to mention that foreign company branches and local companies can open business bank accounts in Azerbaijan in different currencies. Therefore, in addition to Azerbaijani Manat (AZN) accounts, they can have corporate bank accounts in USD, EUR, Turkish Lira, Russian Ruble, and other currencies in local banks.
How to open a corporate bank account in Azerbaijan: Required documents
To open a business bank account in Azerbaijan, companies or their legal representatives must visit the bank branch and submit the following required documents:
- Application Form;
- Founding documents of the Company;
- Passport or residence card of the Company Director;
- Passport or residence card copies of the Founders;
- Power of Attorney (if applying through a legal representative).
We must note that the documents listed are generally required. When applying to open a bank account for your business, you may be required to provide additional documents depending on your field of activity and the organizational legal form of your company.
Legal Services for Opening Bank Accounts
We hope that this blog post has provided you with detailed insights into the requirements and process of opening bank accounts in Azerbaijan. Furthermore, if you need professional legal assistance with opening a personal or business bank account in Azerbaijan, please feel free to reach out to DLB Consulting.