Establishing a Company in Azerbaijan
Today, you will learn about the method and steps for establishing a company in Azerbaijan and how to start investing there, step by step.
Details of the services provided for establishing a company in Azerbaijan, work permit, and residence permit:
According to the new laws related to the establishment of companies for foreigners in Azerbaijan, there are two methods to establish a company there.
First Method (takes about 15 days):
Required Documents for Company Formation
- A special power of attorney authenticated by the Documentation Administration of the Ministry of Foreign Affairs in the home country.
- A passport authenticated by the Documentation Administration.
- Documents indicating the address of the establishment (OK TAMAM Azerbaijan branch).
Company Formation Procedures
- After submitting all documents to the OK TAMAM Azerbaijan branch, all these documents are translated and authenticated by the Documentation Office.
- Then, all translated and authenticated documents are submitted to the embassy related to the company owner for approval.
- Afterwards, all the mentioned documents are submitted to the Ministry of Foreign Affairs in Azerbaijan for approval.
- Finally, OK TAMAM Azerbaijan branch will submit all documents to Easy Service to get approval for company formation.
- A bank account will be opened in an Azerbaijani bank with the deposit of the capital amount.
Note: The duration for company establishment is up to fifteen days (15 days)
Second Method (takes about 3-4 days)
Required Documents for Company Formation
- A special power of attorney authenticated by the Azerbaijani embassy related to the Ministry of Foreign Affairs of the home country.
- A passport authenticated by the Azerbaijani embassy.
- Documents indicating the address of the establishment (OK TAMAM Azerbaijan branch).
Company Formation Procedures
- fter submitting all required documents to the OK TAMAM Azerbaijan branch, they are handed over to Easy Service to start the procedures for establishing the company.
- A bank account will be opened in an Azerbaijani bank with the deposit of the capital amount.
Notes
- The duration for company establishment is three to four days.
- The company owner must hire at least one Azerbaijani worker after a while with a monthly salary of at least $118 and a monthly employment tax of $30.
- The company founder must be present in Azerbaijan to complete all procedures (OK TAMAM Azerbaijan can carry out these procedures, but it requires additional payments).
- The company must be active, requiring at least $1000 in income and expenses annually.
Company Establishment Costs
- Translation and notarization of documents.
- Approval from the Ministry of Foreign Affairs in Azerbaijan.
- Easy Service (Asan) cost.
- Company address (legal address).
- Stamps.
- Obtaining Easy Service online signature for tax and insurance reporting.
- Accountant’s ledger.
- One-year accounting service.
- Company establishment expenses in both cases: $2,500 USD.
Additional Information on Establishing Companies in Azerbaijan
- Tax and Social Protection Government Fund fees.
- According to legislation, all companies must employ at least one worker, meaning the company must designate at least one official manager, and the minimum monthly salary per worker is $118, thus paying $30 per worker to the tax and social protection government fund, which means paying $360 annually to the tax.
- The legal tax income in Azerbaijan is 4% of the total income, and if the income exceeds 200,000 manats annually, the company must pay 18% of the total income.
- Fees for accounting services for the annual financial report of the company, which are paid to government administrations (taxes, social protection fund, finance, etc.).
- Tax Administration – All companies must submit a quarterly tax report and an annual report to the Tax Administration.
- Social Protection Government Fund – All companies must submit a quarterly and annual report to the Social Protection Government Fund.
- Statistics Committee – All companies must submit an annual report to the Statistics Committee.
Work Permit in Azerbaijan
All foreign expatriate workers such as the company director and their supervisors can obtain a work permit.
Conditions for Obtaining a Work Permit in Azerbaijan
- The company must submit a work permit application for all its employees.
The company must prepare all the following documents:
Required Documents for a Work Permit
- Official documents of the company (incorporation documents, tax card, etc.) authenticated by a notary.
- Enrollment application (obtained from the Immigration Department).
- Employment contract between the company and the employee.
- The employee, according to the job description, must submit all their documents (such as educational qualifications and previous work experiences, etc.).
- Passport certified by the Documentation and Accreditation Administration.
- One-year lease agreement.
- Health certificate.
- Payment of government service fees.
- Note: The duration for obtaining work permits ranges between three to four weeks (3-4 weeks).
Work Permit Expenses: $1,350 USD
Advantages and Benefits of Establishing a Company in Azerbaijan
- New and open market for investment.
- Requires less capital compared to other countries.
- Ease of company establishment procedures.
- Lower cost of establishment procedures and taxes.
- Ease of obtaining residency and work permits.
Other Types of Companies in Azerbaijan
Open Joint Stock Companies
- Unlimited number of shareholders.
- Shareholders may share their stake with anyone without reverting to other shareholders.
- The minimum capital is 4,000 manats, about $2,352.
- After establishment, all shares must be registered with the state security administration.
- Government expense value (11 manats about $7).
- The incorporation documents are the same.
Closed Joint Stock Companies
- Shareholders are the founders of the company and other shareholders.
- Limited number of shareholders.
- The maximum is 50 people.
- The minimum capital is 2,000 manats, about $1,176.
- Shares can only be sold between the company owners and shareholders.
Arab Countries Allowed to Enter Azerbaijan with an Electronic Visa
