Registration of a company and obtaining residence in Azerbaijan
Foreigners can earn money and also obtain residence in Azerbaijan by registering a company in this country. Applicants who intend to register a company in Azerbaijan must invest at least 500,000 manats. They must hire 5 full-time Azerbaijani citizens or 10 part-time permanent citizens of this country in their companies. 80% of this company’s personnel should be Azerbaijani. In this case, the applicants will receive an initial three-year visa, which can be extended for another three years. It is the only residence method that gives you a residence permit for more than a year.
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Company registration and different kinds of companies in Azerbaijan
The applicants can register one of the following companies in Azerbaijan.
- A limited liability company (LLC)
This type of company is the most common commercial entity in Azerbaijan and is suitable for all kinds of businesses. There is no limitation for the minimum capital or number of people who intend to invest in this type of company. The applicants must first transfer the initial capital of the company to its account. The founder of the company can take more responsibilities in addition to one’s share in the initial capital.
- A public joint-stock company (JSC)
This type of company operates on a larger scale than a limited liability company. It is formed by one or more founders, individuals, and legal entities. A specific fund is allocated to the company’s shares, and it can freely transfer the company’s shares to the public. The shareholders will share the debts and duties of the company. This type of company should have a board of directors, a supervisory board, and an audit committee elected at a general meeting of shareholders.
- A special joint-stock company
A board of directors will manage this type of company. This board can be established by one or more legal entities, each of which has a standard capital that is divided into shares. The difference between this type of company and a public joint-stock company is that shares of this company cannot be transferred to the public.
- A general partnership company (GP)
It can be formed between two or more legal persons who can be the founders of the company. All of them are fully responsible for the debts and business affairs of the company.
- A limited partnership company(LP)
It is like a general partnership company. The applicants can establish this type of company by two or more individuals or companies. However, not all of them will have unlimited liability, and at least one person should be fully responsible. This person cannot participate in entrepreneurial activities.
- A foreign branch of the company in Azerbaijan
Foreigners who own a company in their country can establish this type of company in Azerbaijan. These applicants intend to establish a representative office or branch of the main company to expand their activities in Azerbaijan. The branch of the company is the only institution, which develops a foreign legal entity in Azerbaijan. This company’s tax situation is similar to the joint-stock companies in Azerbaijan. It can transfer the profits from its activities in Azerbaijan to foreign countries. It is mandatory to register these accounts in the state institutions of Azerbaijan. This company’s branch is a legal entity that must operate based on the marketing and advertising of its leading company.
Company registration in Azerbaijan and its costs
Registration of a company in Azerbaijan has some expenses that differ from company to company. For example, the registration fee for a limited liability company is 11 Azerbaijani manats, which must be paid as soon as the company is established. The registration fee for companies that are a branch of a foreign company in Azerbaijan is 220 manats. This article was prepared by the experts in the MIE Austria, and any copying of it is illegal.
Company registration in Azerbaijan and the minimum initial capital
The applicants can register a company in Azerbaijan with different initial capitals depending on the type of company. For example, in public joint-stock companies, the minimum required capital is between 2,000 and 4,000 manats. The amount of initial capital in special joint-stock companies is not mentioned, and any shareholder with any desired amount of money can register a company in this country. It is critical to know that foreigners who intend to obtain residence in Azerbaijan by registering a company must invest at least 500,000 manats to get residency in Azerbaijan. The applicants must transfer the initial capital of the company to its account within a certain period.
The company’s registration process in Azerbaijan
It is possible to register a company in Azerbaijan after going through the following 5 steps.
- Get the relevant forms
- Complete the form in Azerbaijani
- Translate documents into Azerbaijani and get the certification of the documents
- Company registration documents and certificates
- Opening a bank account in one of the banks of Azerbaijan and transferring the initial capital after 3 months from the date of opening
You must go through the following steps to obtain the company registration forms in Azerbaijan.
- Submit a formal application for company registration.
- Prepare and complete the relevant form.
- Announce the personal information of the founder.
- Read the rules of company registration in Azerbaijan.
- Announce the address of the company and provide the lease or purchase document of the company’s location.
- Obtain activity confirmation.
- Pay the registration fee.
The responsibility of carrying out the administrative affairs of registering a company in Azerbaijan is on the Registry Office of this country. This process will take three to seven days if the documents are correct and complete.
Registering a branch of a company in Azerbaijan is the most requested kind of company, which we will explain in the following.
- If you have a commercial company, you must register your company with the Ministry of Economy and Finance of Azerbaijan. This process usually takes between two to seven days. If it is a non-commercial company, you must do so in the Ministry of Justice. This process may take up to 40 days.
- The applicant must provide the leading company’s article of association, which must be approved by the notary public’s office and the Azerbaijani embassy.
- The applicant must provide the registration certificate of the central company, which must be approved by the notary public’s office and the Azerbaijani embassy.
- The applicant must provide the request letter of registering a branch of the company in Azerbaijan, which must be approved by the notary public’s office and the Azerbaijani embassy.
The process of company registration branch in Azerbaijan is a bit more complicated than registering other companies. The applicants may need to provide additional documents.
Company registration in Azerbaijan and business plan
The applicant must have a business plan for registering a company in Azerbaijan. The business plan in Azerbaijan must be in line with the participatory strategy in Azerbaijan. This business plan must be in close cooperation with the future visions of the Azerbaijani government. It must speed up the economic diversification, non-oil and competitive economic growth, and it should be in line with the export opportunities of the Republic of Azerbaijan.
The written business plan must help diversify Azerbaijan’s economy. It should also promote sustainable non-oil growth in this country, especially in water, infrastructure, and transport projects. The priority is service and urban projects. Overall, it should be in line with the participation strategy of Azerbaijan. The applicant can register the company after the approval of the business plan.
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