Open Company Branch or Subsidiary in Azerbaijan

Setting up a company is one way to invest in Azerbaijan. However a less risky procedure is setting up a company branch of a foreign company. This means the parent company will be liable for the debts and obligations of the branch which won't be regarded as a separate legal entity, but is subject to taxation. The incorporation process of an Azerbaijani branch is a little more complex than establishment of the company; however it is straightforward and can be easily completed provided all the required steps are accomplished.

Preliminary activities prior to setting up a company branch in Azerbaijan
Prior to registering a branch in Azerbaijan with the Commercial Register, the founders of a company branch must prepare the foundation documents of the business entity. These include articles of association, list of managers, specimen signatures and company charter. These documents must be notarized and a representative should be appointed for the company branch. An authorization with power of attorney should be issued on the representative's name. A bank account for future transactions needs to be opened in order to deposit the working capital. The bank issues a certificate useful later on in the registration process.

Registering a company branch in Azerbaijan
Every business entity which will engage in business activities must register with the Ministry of Justice of Azerbaijan. The application for registration should contain the notarized articles of association of the branch, list of names and addresses of the managing board and directors, specimen signatures and a proof of existence of the parent company, usually consisting of certificate of registration issued by the relevant institution in the respective country. The documentation should be submitted to the Ministry's central office, which must complete the registration within 10 days after the required documents are submitted. In case there are any problems with the documents presented, the Ministry submits a letter of notification within 5 working days.

After obtaining the registration certificate, the Azerbaijani branch must obtain a company seal, register at the Ministry of Tax for tax purposes and at the State Committee for Statistics, State Social Protection Fund and enroll all employees at the Employment Fund. These procedures imply separate applications containing documentation on the company and on employees.

Setting up an Azerbaijani branch from abroad
Setting up a foreign company, or branch in Azerbaijan is valued, as foreign investment is welcomed in many business sectors. In order to ser up a company branch, the business entity is required to have a legal address, and the incorporation process should be completed through a representative authorized through power of attorney.

How long does it take to set up an Azerbaijani branch?
The process of branch incorporation in Azerbaijan is a little more complex then establishing a regular company as it requires additional documentation. However the time required to complete it, is not much longer. Preparing the documents and notarizing them should not take more than one day. The same rule applies for opening a bank account. Filing the required application and obtaining the registration certificate usually takes three days. Registering with tax purposes and employees, may take up to 5 days, but a company comes into existence upon issuance of the registration certificate. Usually the registration process for a company branch is completed in 15 days.