can be issued in about one week, and then the special licenses and permits applications must be submitted before starting the activities. A
seal is also necessary for all sorts of contracts and agreements, in order to make them reliable and legal. Please consider that if you want to
from overseas, a representative with a power of attorney must be appointed before drafting the documents for registration.
Generally, a credit rating
is utilized by sovereign wealth funds, pension funds, and other investment vehicles to measure the creditworthiness of Azerbaijan, this way exercising a great impact on the borrowing expenses of the country
. Standard & Poor’s credit rating for Azerbaijan
was set at BB+; Moody’s credit rating
for the country was established at Ba2 with a stable outlook and Fitch’s credit rating for Azerbaijan
was last declared at BB+.
The international rating agency Standard & Poor’s has last set the long-term and short-term sovereign credit rating of Azerbaijan
in foreign and domestic currency at BB+/BB. The sovereign credit rating
of the country remained the same because of the strong fiscal position of Azerbaijan and mainly because of the availability of foreign currency reserves of the State Oil Fund, as declared by the Finance Ministry in July of 2017. Our company registration
consultants in Azerbaijan
can offer further details on this subject.
Moody’s Investors Service last rated Azerbaijan at Ba2. This stable viewpoint mirrors Moody’s projection that the additional direct debt growth and the contingent obligations will level off by 2020. The stable viewpoint also presumes that, in time, the local authorities will manage the fiscal policy and its balance sheet, as well as the assets of its sovereign wealth fund in a manner which will develop the flexibility and capability to buffer efficiently the impact of lower-for-longer oil costs and the current decline of oil production. Our Azerbaijan company formation agents
can provide further details on this credit rating
Fitch Ratings has set Azerbaijan’s long-term foreign and local currency issuer default ratings (IDR) at BB+. The issue rating on the country’s senior unsecured foreign and local currency debt was also established at BB+. The country’s BB+ ratings mirror a strong external balance sheet and a low government debt, curtailing from accumulated surpluses of high oil profit, with great dependence on hydrocarbons.
Foreign direct investments (FDIs) in Azerbaijan
According to recent statistics:
- FDI inflows in Azerbaijan reached 1,5 billion USD in 2019;
- the FDI inward stock for 2019 was assessed at 32,2 billion USD;
- Azerbaijan ranks 34th in the World Bank’s 2020 Doing Business Report;
- recently, a new free trade zone located 65 km from Baku and meant to improve foreign trade was created.
If you want to start a business in Azerbaijan
and need guidance you can rely on our company formation services in Baku
and other large cities of the country.
Frequently asked questions
Azerbaijan represents a country with a rising economy that attracts many foreign investors who are looking to diversify their businesses. As follows, our company formation consultants in Azerbaijan present the most frequently asked questions on the company formation procedures in this country.
1. Why invest in Azerbaijan?
The local government has made important efforts to attract foreign investments in Azerbaijan oil and gas sector, which has increased since 1995. The total foreign trade in 2014 was around USD 31 billion, out of which the imports stood at approximately USD 9.2 billion and the exports at USD 21.8 billion.
2. How do you set up a company in Azerbaijan?
It is a frequently asked question
received by our Azerbaijan company formation
agents. To start doing business in this country, it is not necessary to have a joint partner, even though there are certain financial and business benefits that such a partner can bring.
3. What are the legal entities that can be opened in this country?
The legal entities which can be opened in Azerbaijan are:
• the joint venture;
• the entirely owned local subsidiary;
• the representative office of a foreign parent company.
Our company registration advisors in Azerbaijan can assist you to open these types of companies in this country.
4. Can I open a branch in Azerbaijan?
Branch offices in which the local company effectuates activities on its own are allowed, however, the branch is mainly treated as a local subsidiary.
5. What needs to be done before registering a legal entity here?
In Azerbaijan, the following procedures have to be effectuated before starting a company:
• set up a legal address and obtain the legal confirmation of the lease;
• notarizing the company documents;
• acquitting the minimum required capital.
6. How to get a legal address in Azerbaijan?
According to the local legislation, the location of the company is recognized as the address of its permanent office. The data about the location is then entered in the Unified State Register of Companies.
7. Who can be a director of a company?
8. Are work permits necessary in Azerbaijan?
If a legal entity intends to hire foreign specialists, it will need permission for them to work in the country.
9. How long does it take for a work permit to be issued?
A work permit in Azerbaijan can be issued in around 20 days and a state fee has to be acquitted.
10. What happens after the company is set up?
After a company is being set up, a few months after the company registration in Azerbaijan, it is required to get in touch with the Fiscal Administration bodies to declare the profits of the entity.