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Branch Registration in Azerbaijan

October 7, 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 can establish their presence in Azerbaijan through branch registration and/or by registering their representative offices in the country. Correspondingly, it is worth noting that the legislation 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 offers valuable insights for foreign companies planning to register their branches and/or representative offices in Azerbaijan. Additionally, if you require legal assistance to navigate this process, you can apply for the services of DLB Consulting.

Foreign Company Branch Registration in Azerbaijan

A branch of a foreign company is a separate unit in another country that performs either all or part of the company’s activities, including representative functions. Branch registration in Azerbaijan is the official state registration of a unit of a foreign company planning to engage in business activities within the country. The foreign company has the right to define the branch’s scope of activity. However, it’s important to note that the branch’s scope of activity must be clearly outlined in its Statute.

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

Branch Registration Process in Azerbaijan

The Civil Code and the Law on State Registration and State Register of Legal Entities regulate the branch registration process for foreign companies in Azerbaijan. In turn, The State Tax Service under the Ministry of Economy carries out the registration of branches of foreign companies in the country.

Required Documents for Foreign Company Branch Registration in Azerbaijan

To register a branch of a foreign company in Azerbaijan you must 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;
  • ID Copy of the head of the foreign company;
  • The Statute of the branch of foreign company to be registered;
  • An original or notarized copy of the decision on the establishment of the branch in Azerbaijan;
  • An original or notarized copy of the decision on the appointment of its head or legal representative;
  • ID Copy 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);

Representative Office Registration in Azerbaijan

A representative office of a foreign company in Azerbaijan functions as a distinct division representing the company’s interests. Indeed, representative office registration in Azerbaijan is the official state registration of a unit of a foreign company which will represent the interests of the foreign company. According to the Civil Code, unlike branches, representative offices do not directly engage in commercial activities in Azerbaijan. However, they may make investments on behalf of the founding foreign company, among other activities.

For your information, the legislation sets the same requirements for registering branches and representative offices of foreign companies in Azerbaijan.

Representative Office Registration Process in Azerbaijan

The Civil Code and the Law on State Registration and State Register of Legal Entities regulate the registration process for representative offices of foreign companies in Azerbaijan. The State Tax Service, under the Ministry of Economy is responsible for registering these representative offices.

Required Documents for the Representative Office Registration in Azerbaijan

To register a representative office of a foreign company in Azerbaijan 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;
  • ID Copy of the head of the foreign company;
  • The Statute of the representative office to be registered;
  • An original or notarized copy of the decision on the establishment on the establishment of the representative office in Azerbaijan;
  • An original or notarized copy of the decision on the appointment of its head or legal representative;
  • ID of the head or legal representative of the representative office to be registered;
  • Document confirming the payment of the state fee;
  • Power of Attorney (to be duly legalized);

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

You must follow these practical steps to register a branch and/or representative office in Azerbaijan:

Step 1: Prepare, Collect and Legalize Required Documents:

It is necessary to prepare, collect, and legalize the required documents to apply for branch registration or to register a representative office.

Step 2: Apply for Registration and Obtain a Registration Certificate:

Once you’ve prepared, legalized, and translated the necessary documents and paid the fees, submit your application to the State Tax Service. In Azerbaijan, the registration process for a branch or representative office typically takes 3-5 working days. Upon registration, you’ll receive a Tax Identification Number, Registration Certificate, and Branch Statute.

Step 3: 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).

Step 4: Start Activities:

Once the State Tax Service has registered your company’s branch or representative office, and you have obtained any necessary licenses for your activities, you can begin your business operations in Azerbaijan.

Branch Registration in Azerbaijan
Branch Registration (Representative Office) Process in Azerbaijan

Legal Services to Register a Branch and/or Representative Office in Azerbaijan

If you require legal assistance with the registration of branch and/or representative office in Azerbaijan, or consulting services to start a business, feel free to contact DLB Consulting. Our team provides professional legal services for registering foreign company branches and representative offices in Azerbaijan. We would be delighted to welcome you as one of our valued clients.

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