Starting a Business in Azerbaijan

This table summarizes the procedures and costs associated with setting up a business in Azerbaijan.

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Standardized company

Legal Form: Limited Liability Company (LLC)
City: Baku

Registration Requirements Summary:


  Procedure Time to complete: Cost to complete:
1 Obtain a confirmation of the legal address of the company from the proposed lessor 1 day no charge
2 Notarize company documents 1 day 30 AZN
3 Deposit the charter capital in a bank and obtain a receipt; pay the state registration fee and get a receipt 1 day AZN 11 + AZN 20
4 File documents with the company registrar at the One Stop shop Taxes, register for VAT purposes 5 days included in procedure 3
5 Obtain a company seal 1 day may vary between AZN 4 AZN 40
6 Open a permanent bank account 1 day AZN 30

Registration Requirements Details

Procedure 1.
Obtain a confirmation of the legal address of the company from the proposed lessor
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Comment:
The company must obtain a lease agreement to confirm the location of its permanent governing body. Usually, a guarantee letter from the proposed lesser, along with a notarized copy of the ownership certificate for the premises, is acceptable as evidence of the LLC's legal address.
Procedure 2.
Notarize company documents
Time to complete:
1 day
Cost to complete:
30 AZN
Name of Agency:
Comment:
Several documents required for registration have to be notarized. This includes company charter, the lease agreement and authorization by the land lord.
Procedure 3.
Deposit the charter capital in a bank and obtain a receipt; pay the state registration fee and get a receipt
Time to complete:
1 day
Cost to complete:
AZN 11 + AZN 20
Name of Agency:
Comment:
Although there is no minimal capital requirement for LLCs, an LLC shall be established with some capital, which in practice can be quite nominal. Capital of the LLC shall be fully paid-in prior to the state registration of the LLC.

The most practical way is payment of the LLC capital to the temporary account with the bank. Following registration the LLC the proceeds on the temporary account are transferred to a regular settlement account of the LLC. Banks may charge fees for opening bank accounts. Amount of fee may vary but is normally 20 AZN.

The state fee for registration of a LLC is 11 AZN. The registration fee shall be paid by founders (or their representatives) of limited liability companies to the account of the Ministry of Taxes with treasury. Ministry of Taxes is a state authority responsible for registration of a LLC since 1 January 2008

The Ministry of Taxes is vested with the authority to register limited liability companies pursuant to the Decree No. 696 of the President of the Republic of Azerbaijan dated 28 December 28, 2007 ( setting principle of “one stop shop” for registration of commercial legal entities
The payment of charter capital may also be evidenced by an extract from the bank account, which would be acceptable to the Ministry of Justice as evidence of payment of the charter capital. The bank issues a letter addressed to the Ministry of Taxes, confirming payment of the charter capital. The bank account cannot be used for other purposes until tax authority consent is received after registration. The registration fee is AZN 11.
Procedure 4.
File documents with the company registrar at the One Stop shop Taxes, register for VAT purposes
Time to complete:
5 days
Cost to complete:
included in procedure 3
Name of Agency:
Comment:
Since January 2008, the Ministry of Taxes is responsable for business registration within 3 business days at the One stop shop. VAT registration is conducted within 5 business days. 100% of registrations are carried out through one stop shop, which became fully operational in January 1, 2008.
1. Standard application form.
2. Founding documents – the charter of the entity approved by the founder or his/her legal representative, resolution on establishment and approval of its charter;
3. Bank receipt confirming the payment of the state registration fee;
4. If the founder is a legal entity – notarized copy of the certificate on registration (extract from state registry) and the charter;
5. If the founder is an individual – copy of his/her identity card;
6. A document confirming the legal address of the entity (this document may be a notarized rental agreement, lease, or free-of-charge use contract, or notarized agreement on use of legal address of object’s proprietor (owner), or document confirming ownership of the property.
7. In case of appointment of an authorized representative, a copy of his/her identity card.
Procedure 5.
Obtain a company seal
Time to complete:
1 day
Cost to complete:
may vary between AZN 4 AZN 40
Name of Agency:
Comment:
No state duty is charged. The cost of the stamp depends on the price of the private contractor and varies between AZN 4 and AZN 40. Various companies produce the seals, and the law does not restrict a company to any particular producer.
Procedure 6.
Open a permanent bank account
Time to complete:
1 day
Cost to complete:
AZN 30
Name of Agency:
Comment:
Opening a permanent bank account requires the following documents :
1. Standard application form
2. Notarized copy of certificate on state registration.
3. Notarized copy of the statute of the company.
4. Stamp and signature sample card – notarized.
5. A special authorization form - “Notification duplicate” issued by the local tax authorities (where the LLC has been registered) and addressed to a bank where the company’s account is to be opened.