In today’s globalized world, expanding into new markets remains a key objective for many companies. Notably, there has been a significant increase in the number of foreign companies operating in Azerbaijan in recent years — a trend that we expect to continue. In this context, foreign companies can establish a presence in Azerbaijan by registering a branch or a representative office. It is important to note that legislation grants foreign companies the same rights as local companies to register a branch or open a representative office in Azerbaijan.
We hope this blog post provides valuable insights for foreign companies planning to register a branch or open a representative office in Azerbaijan. If you need legal assistance during this process, you can apply for the services of DLB Consulting.
Registration of a Foreign Company Branch 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 when registering their branches in Azerbaijan. However, foreign companies must submit additional documents and ensure they are legalized in accordance with international standards.
The Civil Code and the Law on State Registration and the 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 is responsible for the process of registering branches of foreign companies in the country.
Required Documents
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;
- 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 functions as a distinct division that represents the company’s interests. In essence, representative office registration in Azerbaijan refers to the official state registration of a unit of a foreign company established to represent its interests. According to the Civil Code, unlike branches, representative offices do not directly engage in commercial activities in the country. However, they may carry out certain functions, such as making investments on behalf of the founding foreign company. It is also worth noting that the legislation sets the same requirements for registering branches and representative offices of foreign companies 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 carrying out the registration process.
Required Documents
To register a representative office of a foreign company in Azerbaijan, you must submit the following 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;
- 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);
The Process: Steps to Register a Branch or Open a Representative Office
You must follow these practical steps to register a branch or open a representative office in Azerbaijan:
Step 1: Prepare, Collect, and Legalize the Required Documents
It is necessary to prepare, collect, and duly legalize the required documents to apply for branch registration or to register a representative office in Azerbaijan.
Step 2: Apply for Registration and Obtain a Registration Certificate
Once you have prepared, legalized, and translated the necessary documents and paid the applicable fees, submit your application to the State Tax Service. The registration process for a branch or representative office typically takes 3–5 working days. Upon successful registration, you will receive a Tax Identification Number (TIN), a Registration Certificate, and the approved Branch Statute.
Step 3: Obtain Any Necessary Licenses or Permits
While registering a branch 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 or permits for your activities, you may begin business operations in Azerbaijan.
Legal Services
If you require legal assistance with the registration of a branch or the opening of a representative office in Azerbaijan, or consulting services to start a business, feel free to contact DLB Consulting. Our team will provide you with professional legal services for registering branches and representative offices of foreign companies in the country. We would be delighted to welcome you as one of our valued clients.
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:
- Establishment of legal entities: Company Registration.
- Preparation of the Charter for the Company (Articles of Association) to be registered;
- Drafting, development and implementation of service agreements, codes of ethics, and compliance policies;
- Opening corporate bank accounts for the businesses to be registered;
- Obtaining business licenses for the required business activities;
- Legal and tax due diligence;
- Accounting and tax services;
- General legal and business consultation;
- Business Planning;
- Business Development Consulting;
- Corporate Legal Services.