Azerbaijan has significantly drawn the attention of foreign investors and businesspeople, particularly over the last decade. Certainly, specific reasons underlie the growing interest of foreigners in starting businesses and investing in Azerbaijan. However, we will not discuss these specific reasons in this blog post. Instead, our primary focus will be on business development indicators, the process of starting a business and exploring business opportunities in Azerbaijan.
We hope this article will be beneficial for foreigners planning to start their business in Azerbaijan. Also, remember that, for any consulting and legal services you might need to establish your business in Azerbaijan, you can contact DLB Consulting. For the past eight years, we have been able to provide our services to clients from all around the world to start their businesses in our country and have had the opportunity to work with globally well-known firms.
How to Start a Business in Azerbaijan
According to the 2020 Doing Business Report, Azerbaijan ranks 9th globally in terms of the ease of starting a business. This report notably emphasizes the simplicity of legal procedures, highlighting the minimal bureaucratic requirements for business initiation in Azerbaijan. Furthermore, this simplicity is one of the key factors attracting foreigners from around the world to consider starting businesses in the country.
However, it is important to note that the ease of starting a business should not be the only deciding factor when planning a new venture in a foreign country, including Azerbaijan. From our business consulting perspective, to successfully launch a business, it is essential, firstly, to have a well-prepared business plan based on thorough market research aligned with your business idea, and secondly, to ensure compliance with the legal requirements and tax regulations specific to your business activity.
Business Idea, Market Research and Business Planning
Most would agree that a business idea is as valuable as investment capital when starting a new venture in any country. We often see success stories built on great business ideas. However, it’s also important to remember that every market, including Azerbaijan, has its own specifics. That’s why you should make sure your idea makes sense in our market by doing detailed market research before taking the next step.
Once you’ve done your market research based on your business idea, it’s important to prepare a plan before getting started. Planning your business helps you take well-structured steps toward success. It allows you to adjust your business concept to the local market’s characteristics, accurately identify opportunities, and set clear goals. It also helps you develop an effective strategy for financial management and marketing, while reducing risks by identifying and addressing them in advance.
Legal Requirements to Start a Business in Azerbaijan
When starting a business in Azerbaijan, it is important to address legal requirements and regulations alongside market research and business planning. As previously mentioned, starting a business in our country involves minimal bureaucratic procedures. In most fields, registering your company in Azerbaijan is generally sufficient to begin business activities legally.
However, this does not imply a complete absence of regulation in these areas. Due to the unique nature of different business activities, the legislation may impose specific requirements and provide certain benefits for each type. Therefore, obtaining legal and tax consulting based on your specific business concept is highly recommended.
Additionally, it should be noted that in Azerbaijan, certain sectors—such as healthcare, education, and others—require a special permit or license. These activities are limited in number, and their scope is clearly defined by law.
The Legal Process of Starting a Business in Azerbaijan
It is highly recommended to seek professional guidance when planning to start a business in Azerbaijan, in order to avoid potential business risks and legal complications. However, in general, starting a business in Azerbaijan simply involves following the practical legal steps outlined below:
Step 1: Register a Business in Azerbaijan
Business registration is the first legal step to starting a business in any country. In Azerbaijan, you can either register a company or operate as an Individual Entrepreneur. To do so, you must prepare and gather the necessary documents, pay the required fees, and submit your application to the State Tax Service accordingly.
Step 2: Open Bank Accounts and Obtain a Digital Signature
Once your company is registered, you can apply to open corporate bank accounts for your business. The process typically takes two to three working days. To do this, you simply need to apply to local banks with your company’s founding documents.
Additionally, it is necessary to obtain a Digital Signature (ASAN Imza) for your company immediately after registration. ASAN Imza allows you to carry out various online operations on behalf of your company.
Step 3: Lease a Commercial Space (if required)
To start your business activities, it is necessary to lease a commercial space only if your type of business activity requires it. To clarify, leasing a space is not a legal requirement for most types of businesses. If your business does not require a physical location, you are not obligated to lease one.
Step 4: Obtain a Business License or a Permit (if required)
To start a business in Azerbaijan, registering the business is legally sufficient for most types of activities. However, certain specific activities require a license or permit to operate. A business license (or permit) in Azerbaijan is an official certificate that grants companies and Individual Entrepreneurs the legal right to engage in those regulated activities.
Step 5: Start Business Activities in Azerbaijan
Once you have completed all the steps mentioned above, you can begin your business operations in Azerbaijan. Make sure to comply with all legislative requirements and regulations while conducting business to avoid any potential legal risks or penalties.
Legal and Consulting Services to Start a Business in Azerbaijan
We hope this article has provided you with valuable business consulting information essential for starting a business in Azerbaijan. Finally, we would like to emphasize that if you require business consulting or legal services to establish your own business in Azerbaijan, you can rely on the expertise of DLB Consulting. For the past 8 years, DLB Consulting has been providing legal services and business consulting to globally recognized companies and foreign individuals seeking to start their businesses in Azerbaijan. We are proud to offer our services to clients worldwide and to be part of their success stories.
Related Corporate Services
For your additional information, DLB Consulting provides the following consulting and legal services to its worldwide clients who are planning to start a business in Azerbaijan:
- Establishment of legal entities: Company Registration, Branch Registration and Subsidiary Registration;
- Market Research;
- Business Idea Development and Business Planning;
- Business Development Consulting;
- Corporate Legal Services;
- Opening corporate bank accounts for the businesses;
- Obtaining business licenses for the specific business activities;
- Legal and financial due diligence;
- Accounting and tax services;
- General legal and business consultation.
FAQ
To start a business in Azerbaijan, you must first register your business with the relevant authorities. Once your business is registered, you may need to obtain additional permissions, certifications, or licenses, depending on your business type. If such permissions are required, you must obtain them before starting operations. If no additional permissions are needed for your business type, you can proceed with your business operations right after registration.
Foreigners have the same rights to start a business in Azerbaijan as citizens of Azerbaijan. To start a business in Azerbaijan, all they need to do is ensure they are complying with the legal requirements relevant to their business field. Legal requirements and regulations may vary depending on the type of business. However, for most types of businesses, company registration is the only requirement for both locals and foreigners to start a business in Azerbaijan.
In addition to legal considerations, it is also advisable to conduct market research and create a solid business plan before starting. Therefore, we recommend seeking advice from local business experts and lawyers when planning to start a business in Azerbaijan.
The legal requirements can vary significantly depending on the type of business. While company registration is legally sufficient to start businesses such as cafes, restaurants, retail stores, or IT services, there are strict legal requirements for sectors like banking, healthcare, and education. Therefore, legal compliance depends on the specific business type. That’s why we recommend hiring experts to ensure your business operations fully comply with the law.
There is no legal investment (capital) requirement for most types of businesses to start a business in Azerbaijan. However, for certain specific sectors such as banking or investment companies, the law does require a minimum level of capital.
From a business perspective, the amount of investment needed depends on the type of business you plan to start. Your investment needs may vary depending on your business model, scale, and goals.
Yes, according to the law, the legal requirements are the same for all foreigners, regardless of their citizenship, when starting a business in Azerbaijan. Simply put, there is no legal difference whether a foreigner is from France, Germany (or any other European country), Canada, the USA, India, Pakistan, China, Iran, Turkey, Japan, the UAE, Saudi Arabia, Iraq (or any other Arab country), etc.
Yes, if the nature of your business does not require your physical presence for daily operations, you can start and run a business remotely in Azerbaijan.
Yes, foreigners from all around the world are actively doing business in various sectors in Azerbaijan. While there are entrepreneurs from many different countries, most foreign business owners in Azerbaijan come from the USA, Canada, the UK, Germany, France, the UAE, Saudi Arabia, India, Pakistan, and China.
To start a business in Azerbaijan as a foreigner, it is not required to have a local business partner. Foreigners can establish their businesses in Azerbaijan without the need for any local partners or team members.
No, it is not necessary to lease a commercial space to start a business in Azerbaijan if the nature of your business allows it. However, for certain specific types of businesses, having a physical location is required by law or common practice—such as for dentists, kindergartens, and similar services.
Actually, some cities such as Baku, Sumqayit, Nakhchivan, and Ganja are economically active. However, to be clear, Baku—the capital city—is the most economically active.
There are opportunities across nearly all business sectors in Azerbaijan. Based on our experience, the key to success is having a strong business idea, a solid business plan, and sufficient investment. Generally speaking, both foreign and local companies are currently investing in sectors such as food services, agriculture, renewable energy, tourism, and more.