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Guide to Company Incorporation in Azerbaijan

August 17, 2011, 1:19 pm
BridgeWest

1. What is the minimum share capital for a Limited Liability Company in Azerbaijan?

There is no specified minimum share capital when establishing a Limited Liability Company in Azerbaijan. However, a minimum capital might be set by an executive authority. In this case, the amount must be paid in full prior to registration by each shareholder.

2. What is the minimum share capital for a Joint Stock Corporation in Azerbaijan?

A Joint Stock Corporation (JSC) in Azerbaijan can be open or closed. The minimum share capital is different for the two types of companies. An open JSC needs a minimum 4,000 AZN (Azerbaijani manat), while a closed JSC requires only half of this amount, that is 2,000 AZN. In both cases, the capital has to be paid in full prior to registration. 

3. Are there any special requirements for establishing a Limited Liability Company in Azerbaijan?

The registration procedure for a Limited Liability Company in Azerbaijan is not different from the procedure in other European countries. The registration with the Ministry of Taxes is needed before starting any activity and the documents can be filed to the authorities also known as “one-stop-shop”. A registration fee has to be paid before submitting the documents (approximately 11 AZN). Do not forget to have your business documents notarized. However, this procedure should be available in one-stop-shops too. After 3 days, an identification number will be released.

4. How can I register for VAT in Azerbaijan?

Registration for VAT in Azerbaijan is completed when the company is registered with the Ministry of Taxes. The registration is mandatory if the annual turnover for more than a year exceeds 150000 AZN. The VAT must be reported every month, no later than the 20th of the current month.

5. How can I open a bank account in Azerbaijan?

After opening a temporary bank account to deposit the minimum share capital when the company is set up, one will need to open a permanent bank account. In order to do that, you can analyze the offers of several Azerbaijani banks and after you have decided, you should fill in an application form, provide a proof of state registration of the company and submit a special authorization from the local tax authorities. Usually the necessary documents are a standard application form from the bank, a notarized copy of a state registration certificate and a statute of the company, a notarized stamp and signature sample card of the persons authorized to perform fiscal operations and a special authorization form provided the local tax authorities.

6. How can I recruit personnel in Azerbaijan?

Personnel recruitment in Azerbaijan can be performed personally or through a recruitment agency or website. There are several newspapers where the announcement regarding the hiring can be made, but it is advisable to contact a recruitment agency witch will find the suitable candidates for the vacant place in the company.

7. What is the average salary in Azerbaijan?

The monthly salary in Azerbaijan is around 3292 AZN.

8. What is the overall economic situation in Azerbaijan?

The global economic situation is reflected in Azerbaijan, too, as the price for oil has been decreasing. In 2010, Azerbaijan entered into top eight biggest oil suppliers to EU countries. Other specific products for the Azerbaijan’s economy are the cotton, natural gas and the agriculture products. Azerbaijan is a member of the Economic Cooperation Organization and is performing trades mostly with Russia, Turkey, Iran, UAE and the members of EU. The GDP is in a continuous growth, therefore any foreign investments are welcome and they present low risks.  




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Company Formation in Azerbaijan

Baku

BridgeWest provides company formation in Azerbaijan. Our assistance includes:

> drafting the Articles of Association (necessary for the company incorporation in Azerbaijan);
The Articles of Association required to ... [More]