Benefits of relocation of business to Azerbaijan:
- Quick establishment of businesses;
- Field specific tax and customs incentives;
- Low labor costs;
- Protection of repatriation;
- Free trade zone;
- Technological / industrial parks;
- "One stop shop" for business licenses;
- Visa-free regime for the citizens of Russia, Belarus, Ukraine.
1 Incorporation of a business entity
Civil Code of the Republic of Azerbaijan determines incorporation of the companies by foreign entities in different forms, but most frequently chosen forms by foreign companies are followings:
- a Limited Liability Company;
- a Branch Office;
- a Representative Office.
The timeframe for setting up a new entity takes up to 4 days after the submission of the necessary documents. State fee for incorporation is AZN 15 for an LLC and AZN 300 for a Branch or Representative Office. The incorporation process consists of following steps:
- Preparation and issuance of necessary documents abroad;
- Translation and notarization of documents received from the founders;
- Preparation of application forms;
- Submission of the entire package of documents to the tax authority;
- Registration;
- Collecting the corporate documents of a new entity;
- Ordering company seal, electronic signature, login details to the electronic cabinet of the legal entity in the tax system, opening bank accounts.
A foreign company needs the following documents for the establishment of a new entity:
- Corporate documents of the Foreign Company - Extract from the Chamber of Commerce/Registration Certificate, Articles of Association;
- Power of Attorney issued by the Parent Company to the representatives (GRATA team) for representing and registering the new Company in the Republic of Azerbaijan;
- Shareholder Resolution to incorporate a new entity in the Republic of Azerbaijan, Charter of the new Company, application forms, receipt approving the payment of the charter capital (there is no threshold defined for the charter capital) - These documents also can be provided by trustees authorized by the Parent Company through a Power of Attorney;
- Scan copy of the passport of the head/director of the new entity;
- Power of Attorney issued by the head of the new entity that authorizes the representatives to register him/her as a head of the entity;
- In case the chosen form of the entity is a branch or representative office – a Power of Attorney issued by the Parent Company in the name of the director of the new entity.
Documents issued by a foreign country shall be legalized/apostilled in order to be recognized in the Republic of Azerbaijan. The documents issued by a state authority such as an extract from the Trade Registry or Registration Certificate only need an apostille. The documents issued by the Parent Company such as the resolution or Power of Attorney shall be notarized and apostilled, the notary must certify both the identity and the authority of the signee(s). For some of CIS countries, notarized copies are sufficient. Meaning that apostille or legalization is not required.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.