
Company Formation in Azerbaijan
Get local expert advice

Virtual office in Azerbaijan
Prestigious business address

Shelf company
Ready for doing business

Quick Facts | |
---|---|
Types of companies | Limited liability company Joint stock company Closed stock company General or limited partnership
|
Minimum share capital for IBC | No minimum share capital |
Minimum number of shareholders for IBC | 1 |
Time frame for the incorporation (approx.) | 3 days |
Corporate tax rate | 20%
|
Dividend tax rate | 10% |
VAT rate | 18% |
Number of double taxation treaties (approx.) | 53 |
Do you supply a registered address? | Yes |
Local director required | No |
Annual meeting required | Yes |
Redomiciliation permitted | No |
Electronic signature | No |
Is accounting/annual return required? | Yes |
Foreign-ownership allowed | Yes |
Any tax exemptions available? | - for small and medium enterprise members and companies; - for startups classified as a micro or small entreprises. |
Tax incentives | - small and medium enterprise members and companies enjoy several tax exemptions for seven years; - startups classified as a micro or small enterprise are exempt from certain taxes for three years. |
Foreign investors who want to start a business in Azerbaijan can choose between the following legal entities:
Choosing the type of entity should be considered before starting the incorporation procedure. Our company formation agents in Azerbaijan can assist foreign entrepreneurs who want to set up businesses here and want to choose an appropriate business form.
The sole trader or proprietorship is the simplest non-corporate legal entity that can be created by those who want to start a business in Azerbaijan. Its main characteristics are:
Foreign citizens who want to start a business in Azerbaijan under this legal form must first obtain a residence permit.
The partnership is another non-corporate legal entity that can be used for conducting small operations in Azerbaijan. There are two types of partnerships that can be established here: the general and the limited one. The main resemblance between them is that they require a minimum number of two participants called partners.
In the case of the general partnership, both participants will have the same rights and obligations towards the business. In the case of the limited one, it must have at least one general partner and several limited ones. It must be noted that limited partners will only have specific rights and obligations connected to the activity of the business.
There are no share capital requirements when it comes to setting up a partnership in Azerbaijan, while its creation will rely on a partnership deed.
The partnership is not often employed by those who start a business in Azerbaijan, but for foreign investors, it can provide the great benefit of partnering with local entrepreneurs and thus getting to know the local market much faster.