How to Register a Company in Azerbaijan

Business Registration in Azerbaijan – Forms of Business Registration – Corporate Legal Services

Business Registration is the state registration of an entity or individual planning to start commercial activities. It is indeed the first important step to starting lawful business activities in any country, including Azerbaijan. As additional information, foreign entities and individuals have the same rights as residents to register a business in Azerbaijan.

According to the law, to start commercial activities, it is legally necessary to apply for business registration in Azerbaijan in one of the following forms:

• Legal Entity: Entrepreneurs prefer to register a company, branch or subsidiary when they plan to engage in business activities as a legal entity.
• Individual Entrepreneur: When starting as an Individual Entrepreneur, the business person engages in business independently, without forming a legal entity.

With this blog post, we will share our insights regarding the requirements and application process for company registration in Azerbaijan. Additionally, if you require legal services to register a legal entity in Azerbaijan, consider applying for our services

Company Registration in Azerbaijan 

Company registration in Azerbaijan is the state registration of a legal entity planning to engage in commercial activities in the country. Indeed, company formation is the first important legal step for starting a business in the country. Notably, foreign individuals and businesses have the same rights as locals to register a company and/or subsidiary to engage in business activities in Azerbaijan

According to the Civil Legislation, there are several organizational forms of companies in Azerbaijan. However, applicants mostly prefer to register a company in one of the following legal forms: Limited Liability Company (LLC) or Joint Stock Company (JSC).

LIMITED LIABILITY COMPANY (LLC)

A Limited Liability Company (LLC) is a legal form where the founders are not personally liable for the company’s obligations. This legal form encompasses the Private Limited Company (LTD), a widely recognized legal form in many countries.

According to the law, Limited Liability Companies (LLCs) can be established by one or more individuals or legal entities. Notably, there is no minimum charter capital requirement for registering a Limited Liability Company (LLC) in Azerbaijan. Additionally, entrepreneurs can register a Limited Liability Company (LLC) either as a sole proprietorship or as a partnership.

JOINT STOCK COMPANY (JSC)

Founders often prefer to register large business entities as Joint Stock Companies (JSCs) in Azerbaijan, which typically involve multiple founders. According to the Civil Law of Azerbaijan, there are two main types of JSCs: Open Joint Stock Company (OJSC) and Closed Joint Stock Company (CJSC).

Required Documents for the Company Registration

To register a company in Azerbaijan, applicants have to prepare, collect and submit the following documents to the State Tax Service:

1. Application form;
2. Company Charter;
3. Decision on company registration;
4. ID Copies of the founders and the head of the Company;
5. Power of attorney;
6. Receipt confirming the payment of the state fee and the Charter capital.

Subsidiary Registration in Azerbaijan

A subsidiary is an independent company established by another company or through a partnership of companies. In turn, subsidiary registration in Azerbaijan is the state registration of a company that will be owned by another company (or companies).

A subsidiary must meet the same registration requirements as any other form of company. Additionally, the legislation ensures equal registration rights and requirements for both local and international companies registering a subsidiary. However, foreign companies must legalize certain documents according to international standards to register a subsidiary company in Azerbaijan.

Required Documents for the Subsidiary Registration

To register a subsidiary company in Azerbaijan, applicants have to prepare, gather and submit the following documents to the State Tax Service:

1. Application form;
2. State registration documents of the founding company (duly legalized);
3. ID Copy of the head of the Founding company;
4. The Charter of the subsidiary company;
5. Decision on the establishment of the Subsidiary Company;
6. Decision on the appointment of its head or legal representative;
7. ID Copy of the head of the subsidiary to be registered;
8. Receipt confirming the payment of the state fee and the Charter capital.
9. Power of Attorney.

How to Register a Company in Azerbaijan: Step by Step Explanation

Step 1: Decide on the Legal Form

You can register a company in Azerbaijan as a Limited Liability Company (LLC), a Joint Stock Company (JSC), or in another legal form. Additionally, you may consider registering a subsidiary of your company in Azerbaijan to address your specific business needs.

Step 2: Prepare and Collect Required Documents

Once you have decided on the company’s legal form, you must prepare and collect the necessary documents and pay the associated registration fees. Note that the registration forms for any company type are available exclusively in the Azerbaijani language.

Step 3: Deposit the Charter Capital

In Azerbaijan, the minimum required charter capital varies depending on the legal form of the company. For example, there is no minimum capital requirement for registering a Limited Liability Company (LLC). In turn, a Joint Stock Company (JSC) requires a minimum charter capital of AZN 2,000 (approximately USD 1,200).

Step 4: Apply for and Obtain a Registration Certificate

Once you’ve completed all necessary documents, deposited the charter capital, and paid the fees, submit your application to the State Tax Service. The registration process in Azerbaijan typically takes 2-3 business days from the date of submission. Upon registration, you’ll receive a Tax Identification Number (TIN), a Registration Certificate, and the Company Charter.

Step 5: Obtain Any Required Licenses or Permits

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

Legal Services to Register a Company in Azerbaijan

In conclusion, if you require legal assistance to register a company or subsidiary in Azerbaijan, feel free to contact DLB Consulting. Our team will provide you with professional legal services for business registration, along with any business consulting services you may need. We would be delighted to offer our services and welcome you as one of our valued clients.

Remote Registration: By Proxy

Foreign companies and individuals can register a company or subsidiary company in Azerbaijan by proxy. DLB Consulting also provides professional legal services for remote company registration in Azerbaijan. Simply apply for our services and provide our lawyers with a power of attorney. Our legal team will manage the entire process of subsidiary or company formation, without requiring your visit to Azerbaijan.

Related Corporate Services

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

• Establishment of legal entities;
• 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.