Triumphs span from noteworthy transformations in statutes, the establishment of centralized registries of immovable estates and chattels, e-governance, the endorsement of global financial narrating and bookkeeping principles, to the formation of distinctive fiscal precincts, manufacturing and technological precincts, and the inauguration of a solitary terminal emporium mechanism for corporate enrollment in Azerbaijan.
The article will talk about how to set up a company in the free zone of Azerbaijan.
Company registration in Azerbaijan: advantages of the country
As heretofore elucidated, this nation proffers the boon of a pivotal locale, whereby global interconnection is delineated by far-reaching, well-founded conveyance connections from Azerbaijan to Europe, Asia, and the entirety of the globe. Yet another paramount advantage enticing extraneous investment to Azerbaijan is its robust pecuniary system and enterprise-accommodating milieu.
Ever since autonomy in 1991, Azerbaijan's Gross Domestic Product (GDP) has sustained an incessant ascension. In the year 2021, GDP is anticipated to burgeon by 5.6 percentage points. Recent triumphant fiscal transformations have forged a propitious commercial milieu within the nation. Azerbaijan has garnered the subsequent standings in the World Bank's Business Undertaking Classification (2020):
- Commencing a venture rating: 9th standing out of 190 economies universally.
- Facility of Conducting Commerce Rating: 34th standing out of 190 economies universally.
Moreover, the Commonwealth of Azerbaijan presently possesses over 57 duplicate impost pacts at the global echelon. Azerbaijan boasts a robust standing as a swiftly evolving commerce hub.
Registration of a company in the free zone of Azerbaijan
The ALAT Unfettered Pecuniary Vicinity (in Baku) was instituted to foster barter in the locale. The tactical orientation of the vicinity is directed at evolving into a provincial pecuniary hub and amplifying competitiveness on the Europe-Caucasus-Asia and North-South barter routes. The vicinity is contrived to heighten extraterritorial pecuniary infusion in the non-petroleum domain.
If thou art to enroll a corporation in Azerbaijan, thou shouldst consider that the perpetual evolution of the realm's non-petroleum domain doth wield a pivotal sway in ensuring prospective economic burgeoning. The aims of the governance's tactic art embodied in the Vision 2020 manuscript, which accentuates sundry principal aspirations:
- Assortment of the economy.
- Contemporization of the naphtha and petrochemical industry.
- Edification and execution of novelties.
- Enhancing the caliber of anthropic advancement.
- Sustaining ESG axioms.
One of the cardinal buttresses of variegation and exhilaration of pecuniary ascension will be the allure and cultivation of nascent accretionary pursuits and fabrication, encompassing alien straight investment in Azerbaijan. The emphasis ought to be predominantly on exportation pursuits, with tangible superadded value in the indigenous frugality and vocation establishment.
The AFEZ possesses unparalleled government-sanctioned statutes that permit it to proffer a spectrum of inducements and advantages not procurable in any alternative locale of the nation, encompassing tax and tariffs absolutions, a singular maintenance hub, and a self-governed arbitrament mechanism. In order to foster the evolution of the novel AFEZ, the authorities instituted the Free Economic Zone Authority (AFEZA), which is accountable for all facets of oversight and authorization.
The juridical structure for the functioning and governance of AFEZs emanates from the Gratis Economic Region Enactment promulgated by Parliament. The ordinance afforded for AFEZs is distinctive legislation, thus it supersedes the customary stipulations of the enactment in the event of disputes. Parliament has sanctioned in excess of 80 statutes and ordinances in sundry domains, along with permitting and global discord resolution modalities.
The administration of the free zone shall have the right:
- To fabricate, promulgate, and rectify the intrinsic statutes of the liberated precinct in consonance with worldwide exemplary methodologies and norms;
- To institute, subsidize, empower, and scrutinize the bureaucratic entities of the liberated precinct with the intent of formulating a governance structure in the liberated precinct in consonance with worldwide norms.
Company registration process in the free zone of Azerbaijan: target investors
So, if you are interested in registering a company in the free zone of Azerbaijan, take into account that the target investors of the zone are:
- Enterprises situated in the AFEZ and qualified for privileges. This division encompasses entities whose undertakings are connected to the generation of exalted value-appended commodities. The commodities and amenities of such enterprises are geared toward exportation, and progressive technologies are employed in the course of their undertakings.
- Investors situated in the AFEZ and INELIGIBLE for privileges. This division encompasses service purveyors that furnish indispensable mercantile amenities to AFEZ patrons. Such entities are sanctioned to situate in designated zones within the AFEZ.
- Enterprises from beyond the AFEZ that are INELIGIBLE for exemptions. This division encompasses entities whose amenities are oriented towards the indigenous consumer market. These enterprises fabricate sub-supply wares and purvey amenities to AFEZ's primary patrons. Their situs is a designated zone contiguous to the AFEZ.
Registration of a company in the ALAT free zone (Azerbaijan): incentives
The AFEZ administration will provide a number of advanced office premises and in manufacturing acreage parcelsdustrial land plots with ready-to-use external and internal infrastructure and utility networks. Also, 2 logistics centres will be established to meet the logistical needs of legal entities.
If you want to open a company in the free zone of Azerbaijan, it will be interesting to know that the AFEZ Administration will provide a package of tax and non-tax incentives, the main ones being:
- Immunity from Imposts, revenue tribute, excises, and levies when bringing in and sending out of the AFEZ.
- Noneconomic income tribute for laborers (if monthly wage does not surpass USD 4705 (at the moment of inscription)).
- Communal safety advantages for alien adept laborers are at one's discretion.
- Noneconomic possession curbs do not employ.
- None indigenous companion prerequisites.
- Autonomous global contention resolution mechanisms.
- Entry to visas for alien inhabitants.
- Sturdy safeguarding of cognitive asset entitlements.
- Support in discovering locally adept staff.
- Autonomous supervisory jurisdiction.
Conclusion
The recent modernisation of legislation and the creation of free zones and logistics parks have made the business environment of this country attractive to foreign investors. Do you want to set up a company in a free zone in Azerbaijan? Then you can directly contact the specialists of our company for additional advice. We also provide comprehensive support in company registration abroad.
