BAKU, Azerbaijan, January 6. Company registration in Azerbaijan is one of the first and most important steps in starting a business in the country. Official registration gives the company legal status and allows the entrepreneur to conduct business legally and transparently. Azerbaijan has been recognized as a favorable environment for starting a business in recent years. The fact that the country is rated as the 9th best business environment in the world in the World Bank's Doing Business report is proof of this. For this reason, official company registration in the country is attractive and of strategic importance for investors.
Company registration in Azerbaijan also creates attractive opportunities for foreign investors. The article will provide information about the registration process, its legal and practical requirements, advantages and additional procedures for foreign citizens (TIN, bank account, legal address, residence permit). In addition, extensive information will be provided about the tax system and accounting in Azerbaijan, as well as the services provided by Accounting.Az in the field of company registration.
The importance and main stages of company registration
Official registration of a company provides the entrepreneur with limited liability and wide opportunities. Compared to operating as an individual entrepreneur, a registered company can operate in a wider range of areas, conclude official contracts and attract investment. Company registration procedures in Azerbaijan are quite simple, the economy is stable and open to foreign investment. The company registration process in Azerbaijan is usually completed in a short time and includes the following main steps:
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1. Selection of legal form and name: The legal form of the company is determined (for example, LLC - limited liability company is the most preferred form). There is no minimum authorized capital (usually 10 AZN) required for each LLC form. Then, the uniqueness and compatibility of the chosen name is checked in the company registry and search system.
2. License and founder requirements: To operate in specific areas (e.g. banking, telecommunications, financial services), it is necessary to obtain an appropriate license. The company's founders' ID cards or passports, the founding resolution, the charter and other documents must be submitted. For foreign founders, the documents must be certified with an apostille and translated into Azerbaijani.
3. Documents: Constituent documents (application form, charter, etc.) are drawn up in accordance with the requirements of the legislation. In the case of documents from foreign organizations, an apostille or notary certification may be required. The main documents required for registration include the founding agreement (charter), the founding resolution, copies of the founders' ID cards, a certificate of legal address, a document on the opening of a bank account, if any, a receipt for payment of state duty.
4. Application and state registration: The prepared documents are submitted to the State Tax Service under the Ministry of Economy (manually or online). Registration confirmation is usually received within 2-3 business days and the company is assigned a TIN (Taxpayer Identification Number). Using electronic systems reduces time loss and speeds up the process.
Features of the Procedure for Foreign Citizens
The registration procedure in Azerbaijan is also open to foreign citizens. That is why investors can take advantage of the following opportunities:
1) The legislation in Azerbaijan allows foreigners to establish a company with 100% shares. This means that the entrepreneur can conduct business without a local partner.
2) When documents of foreign founders are brought from abroad, they must be certified with an apostille and officially translated into Azerbaijani. The Accounting.Az team will help you with these procedures.
3) It is possible to obtain a work visa in Azerbaijan; after opening a business, you can apply for a TRP – temporary residence permit in Azerbaijan – based on the investor's authority. Accounting.Az provides full support in the preparation and execution of visa documents.
Do you need TRP in Azerbaijan? Contact us now and get a free consultation!
📱 Phone: +994502258205, +994123100929, +994125983798
📧 E-mail: [email protected]
🌐Website: www.accounting.az
4) Azerbaijan offers an open economy and a stable business environment. There are preferential tax regimes, special economic zones and entrepreneurship incentive packages for foreign investors.
5) After the company registration is completed, there are additional steps that are necessary for the continuation of the business. During company registration, the Ministry of Taxes automatically assigns a TIN (taxable person number). With this number, the company submits tax reports and conducts banking transactions.
6) After registration, it is necessary to open an account for the company in Azerbaijani banks. For this, constituent documents, TIN, copies of passports of the founders and a certificate of legal address are submitted.
7) Each company must have a permanent legal address for registration. If necessary, Accounting.Az will assist in finding a legal address.
Tax System and Accounting in Azerbaijan
The profit tax rate for legal entities in business activities in Azerbaijan is 20%. There is a simplified tax regime for small-income entrepreneurs; a simplified tax of up to 2% may be applied depending on the volume of income. The standard VAT rate is 18%. VAT is paid for most goods and services. Tax exemptions or preferential rates may be applied to some goods. Income earned by individuals is taxed depending on whether it is from the oil and gas sector or the private sector. Employers also pay social insurance contributions in addition to wages. Companies must maintain accounting records, prepare annual and periodic financial reports and submit them to the relevant authorities for the correct calculation of taxes.
Accounting.Az – A reliable partner for your business
Professional support is also very important in the process of founding and managing a company. “Accounting.Az” is a reliable partner for entrepreneurs and companies in this area. This consulting company provides such important services as company registration in Azerbaijan, obtaining temporary residence permits for foreigners, accounting, tax and business consulting. Thanks to its team of experts, clients can focus on business development without wasting time on documentation. “Accounting.Az” provides reliable support at every stage of entrepreneurial activity with its extensive experience in corporate law and finance. With all these services, Accounting.Az is an indispensable partner for those who want to start a new business in Azerbaijan. Consequently, the correct implementation of the company registration process in Azerbaijan with professional support is one of the right steps taken for the future sustainable development of your business.
📞 Contact information:
📱 +994502258205, +994123100929, +994125983798
📧 E-mail: [email protected]
🌐Website: www.accounting.az