The article will be especially useful for those, who are interested in registering a company in Azerbaijan remotely, or want to buy Azerbaijani existing enterprise with an account.
Azerbaijan is a state with a republican form of government, located in the east of Transcaucasia, territorially owned by Asia Minor.
It is a country with a rapidly developing industrial and agricultural economy, the main sectors of which are: an agriculture, a metallurgy, chemical industry, an engineering, a food industry, a tourism.
- A capital is Baku;
- An official language is Azerbaijani;
- A currency is the Azerbaijani manat (AZN).
Planning to conduct activities in this region, first ask for individual advice on opening a company in Azerbaijan from YB Case team.
In 2019, a state took 40th place in terms of simplicity of a tax system, 34th place in terms of ease of doing business, 9th place in registering enterprises, 1st place in terms of obtaining loans, according to the Doing Business rating.
The main advantages include:
- A stable economic/political situation;
- A well-developed banking system;
- A loyal tax system;
- A favorable environment for foreign investment;
- 58th place in a ranking of global competitiveness among 140 countries.
A most priority niches for business in 2020 are:
- Oil/gas industries;
- A light industry;
- Services sector;
- An agriculture.
Deciding to establish a mining company in Azerbaijan or open an Azerbaijani production company, then you can check with our experts for details.
A most common forms of the Republic of Azerbaijan are the following:
- an LLC;
- an Open Joint-Stock Company (OJSC);
- a Closed Joint-Stock Company (CJSC).
Features of opening an LLC in Azerbaijan:
- A number of founders is 1;
- A registration of a legal address in Azerbaijan;
- No share capital.
Opening the OJSC in Azerbaijan:
- Choosing a unique company name;
- A required number of directors is 1 (an individual or a company);
- A statutory fund is not less than 4 thousand AZN (more than 2 thousand EUR);
- Supervisory Board and Board of Directors;
Setting up a CJSC in Azerbaijan:
- A unique name;
- A statutory fund is 2 thousand AZN (more than 1 thousand EUR);
- A sale of shares is prohibited;
- A registered office in this jurisdiction.
After official registration procedure, these steps should be taken:
- Obtaining ASAN Imza for a director;
- Opening a bank account in Azerbaijan, when submitting a tax certificate (a copy) to a selected bank through an electronic tax system;
- Registering an employment contract of a legal director in the state register of notifications of an employment contract.
A license since 2018 can be obtained on a special Internet portal in 15 days. A whole process of obtaining a license in Azerbaijan, renewal and restoration takes place remotely. Its validity period is 5 years. If foreign individuals and legal entities plan to engage in licensed activities, they must be registered with the Ministry of Justice of the Republic of Azerbaijan.
To register an enterprise in Azerbaijan or to buy an Azerbaijani existing company will also be a profitable solution due to a relatively low taxation. A corporate tax is 20%. A VAT is 18%.
A local income tax for companies, owned by the municipality, does not exceed 20%, a simplified income tax is 4-8%. When registering a company in Baku, a local income tax rate will be 4%, in other regions of the state - 2%.
- if the company is not registered as a VAT payer;
- if the annual turnover of the company is less than 200 thousand AZN.
Exceptions: enterprises, goods subject to excise, credit and insurance organizations, as well as investment funds and professional participants in the securities market.
If you want to open a company in Azerbaijan, specializing in the provision of trade and public catering services, then note, that simplified rates, subject to an annual turnover of more than 200,000 AZN, will be 6% and 8%, respectively.
- A package of documents (including a foreign passport, a bank certificate with a wet seal);
- Your preferred activity.
Estimated terms for establishing an enterprise in Azerbaijan are 3-5 days.
If you are interested in buying an existing foreign company or opening a corporate account with a bank in Azerbaijan, request for personal advice on registering a business in Azerbaijan.