Branch Registration in Azerbaijan

March 5, 2024

In our globalized world, expanding to new markets is one of the main targets for companies. Notably, there has been a marked increase in the presence of foreign companies in Azerbaijan in recent years — a trend we expect to persist. Foreign companies typically establish their presence by registering their branches in Azerbaijan and/or representative offices. Correspondingly, it is worth mentioning that the legislation of Azerbaijan grants the same rights to foreign companies for the registration of their branches and representative offices as it does to local companies.

We hope this blog post will offer valuable insights into the process of registering a branch in Azerbaijan and representative offices. Moreover, if you will require legal assistance to navigate this process, you can apply for the services of DLB Consulting.

Branch of Foreign Company

A branch of a foreign company is a separate unit of it in another country, performing either all or part of the company’s activities and as well as representative functions. Therefore, the company has the right to define its branch’s scope of activity. It’s important to note that the company branch’s scope of activity must be clearly outlined in its Statute.

The legislation of the Republic of Azerbaijan grants equal rights and imposes the same registration requirements on both local and foreign companies for branch establishment. However, foreign companies must submit some additional documents and ensure their documents are legalized according to international standards when registering branches in Azerbaijan.

Foreign Company Branch Registration Process in Azerbaijan

The Civil Code of the Republic of Azerbaijan and the Law on State Registration and State Register of Legal Entities regulate the registration process for foreign company branches in Azerbaijan. The State Tax Service under the Ministry of Economy carries out the registration of branches of foreign companies in Azerbaijan. In conclusion, it should be noted that state registration for a foreign company’s branch is completed within 2-3 business days following the submission of the required documents. Now, let’s examine the registration specifics for Representative Offices.

Required Documents for the Registration of Branch of Foreign Company in Azerbaijan

To register a branch of a foreign company in Azerbaijan, you must prepare, collect, and submit the following list of documents:

Application form;
Documents confirming the state registration of the foreign founding company(to be duly legalized);
Information about the founders of the foreign founding company;
Copy of the document confirming the identity of the head of the foreign company;
The Statute of the branch of foreign company to be registered;
Original or notarized copy of the decision by the foreign legal entity on the establishment of the branch and the appointment of its head or legal representative;
Copy of the document confirming the identity of the head or legal representative of the branch to be registered;
Document confirming the payment of the state fee;
Power of Attorney (to be duly legalized);

Steps to Register a Branch of Company in Azerbaijan

You must follow these practical steps to register a branch of foreign company in Azerbaijan or representative office:

Prepare, Collect and Legalize Required Documents for Registration:

After deciding on the company’s legal form, you must prepare and collect the necessary documents and pay the associated fees. Note that the registration forms for any company type are exclusively available in Azerbaijani.
Apply for Registration and Obtain a Registration Certificate:

Once you’ve completed all necessary documents, legalized and translated the necessary documents, and paid the fees, submit your application to the State Tax Service. The registration process usually takes 3-4 working days. Upon registration, you’ll receive a Tax Identification Number, Registration Certificate and Statue of Branch. Note that foreign legal entities can also register their branches remotely through legal representatives, without the need to be physically present in Azerbaijan;
Obtain Any Necessary Licenses or Permits:

While registering a branch in Azerbaijan is generally sufficient to start operating for most business activities in the country, certain types of businesses may require additional licenses or permits. The legislation specifies a select number of businesses require a license (permit).

Representative office and its registration in Azerbaijan

According to the Legislation of Azerbaijan a Representative Office functions as a distinct division of a company, only representing it and not engaging in any commercial activities. As it is clearly stated, Representations of foreign companies in Azerbaijan are not engaged in business activities, unlike company branches. However, it’s important to note that the Legislation also allows Representative Offices to conduct certain non-commercial operations on behalf of the founding company. For example, they may invest in real estate on behalf of the founding foreign company, among other activities

The Legislation sets the same registration requirements for both branches and representative offices of foreign companies in Azerbaijan. Additionally, the list of documents needed to register a Representative Office is the same as that required for Branch Registration.

Legal Services to Register a Branch or Representative Office of Foreign Company in Azerbaijan

Having discussed the registration processes for Branches and Representative Offices it’s clear that Azerbaijani legislation facilitates foreign investment with a unified approach. If you’re seeking assistance with these procedures or any other related services, the DLB Consulting Team is ready to provide expert support.

As the DLB Consulting Team, we specialize in registering branches in Azerbaijan and representative offices for foreign companies. Should you require these or any of our other services, please reach out to us. We would be delighted to collaborate with you.

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