Company Registration in Azerbaijan is becoming an increasingly popular choice for both international and local entrepreneurs due to the country’s strategic location, rapidly growing economy, and favorable business environment. Located at the crossroads of Europe and Asia, Azerbaijan offers attractive tax incentives, access to key regional markets, and simplified bureaucratic procedures for setting up and managing a business.
In Azerbaijan, companies are often registered in industries such as oil and gas, construction and infrastructure, trade, transport and logistics, manufacturing, IT, and others.
Advantages of Company Registration in Azerbaijan
There are several advantages to registering a company in Azerbaijan. Here are a few key benefits:
- You can register a company remotely, and both the founder and director can be foreign nationals.
- You can manage the company online using e-residency (ASAN imza).
- Azerbaijan’s strategic location provides access to large markets.
- Reasonable tax rates.
- Tax incentives, free economic zones, and industrial and technological parks.
- You can apply for residence documents in the country based on the business registration.
Forms of Business Registration in Azerbaijan
Company registration in Azerbaijan is regulated by the Law on State Registration and the State Register of Legal Entities. The law provides the following forms of business registration in this jurisdiction:
- Sole Proprietor
- Limited Liability Company (LLC)
- Additional Liability Company
- Open Joint Stock Company
- Closed Joint Stock Company
- General Partnership
- Limited Partnership
- Branch Office
The most popular form of company registration in Azerbaijan is the Limited Liability Company (LLC). As in most jurisdictions, this form attracts entrepreneurs due to its simple registration process, efficient management structure, and limited liability to the amount of share capital. Around 90% of all registered companies in Azerbaijan are LLCs.
Both foreign individuals and legal entities can register an LLC in Azerbaijan. The director can also be a foreigner. There are no minimum requirements for the number of founders, but the maximum number of founders is limited to 50 people.
The minimum required share capital is 1 manat. However, it is recommended to establish a more substantial share capital to enhance the company’s credibility with partners and government authorities.
Taxes for Companies in Azerbaijan
The corporate tax rate in Azerbaijan is 20%. An alternative simplified taxation system with a rate of just 2% is available, but it comes with restrictions on the types of activities and an income threshold of 200,000 manats (approximately USD 120,000) over any consecutive 12 months. Some activities under the simplified system are subject to rates of 1%, 4%, 6%, or 8%.
Additionally, Azerbaijan offers special tax regimes that provide significant benefits for businesses. For example, companies registered in technology or industrial parks can benefit from tax exemptions on corporate profits, dividend withholding taxes, and VAT on imported equipment used for construction, research, and other activities within the park. These benefits are available for 10 years from the date of registration and are mostly aimed at IT companies. Notably, technology park residents can operate outside the park while still enjoying these benefits.
The standard VAT rate is 18%, with the possibility of applying a 0% rate in certain cases. VAT registration becomes mandatory when turnover exceeds 200,000 manats over 12 consecutive months.
Withholding tax is applied at the following rates: a) dividends – 5% for Azerbaijani residents and 10% for non-residents; b) interest – 10%; c) royalties – 14%.
Bank Account for Companies in Azerbaijan
Opening a bank account is the next step after registering a company in Azerbaijan.
The banking system in Azerbaijan consists of up to 30 traditional banks, with International Bank of Azerbaijan being the largest, followed by Kapital Bank, PASHA Bank, and Xalq Bank. We can help open a traditional bank account remotely, which requires a power of attorney from the company’s director and the preparation of documents. It takes up to five business days to open an account once the documents have arrived in Azerbaijan.
Alternatively, or additionally, we recommend opening an account with a payment system, which can also be done online with our assistance.
Process of Company Registration in Azerbaijan
There are several ways to register a company in Azerbaijan: via a power of attorney, with personal attendance, or with an electronic signature. The most reliable way is through a trusted representative in the jurisdiction who can handle any tasks and potential issues locally, which is why most clients opt for registration through a power of attorney.
To initiate the process, we will need the following information and documents:
- Completed company registration form (we will provide)
- High-resolution scanned copy of the founder’s and director’s passport
- Official document confirming the address of residence for the founders and director
- Power of attorney (we will provide a sample) Once the documents arrive in Azerbaijan, registration takes up to three business days.
Tax table
| Type of tax | % |
|---|---|
| Corporate Tax | 2-8/20 |
| VAT | 18/0 |
| Dividend Tax | 5/10 |
| Interest Tax | 10 |
| Royalty Tax | 14 |
Price table
| Service | USD |
|---|---|
| Company registration | 900 |
| Legal address for 1 year | 500 |
| Opening a traditional bank account | 500 |
| Opening a payment system account | 250 |
| Accounting services | 100 |
You can view the full list of jurisdictions in which we offer company registration here.
If you are considering company registration in Azerbaijan to enter the Caucasian market, feel free to submit a request on our website or contact us by any other convenient means.
Join successful Caucasian entrepreneurs – register your company in Azerbaijan with our help!
