For the registration of a subsidiary company in Azerbaijan, mother company shall pass a valid decision about the registration of a subsidiary company in Azerbaijan; Incorporation Certificate and Articles, as well as public registry document listing directors shall be submitted (notarized copies, apostilled or legalized where applicable). It is important to verify and prove the power of the corporate body passing resolution on the registration of a subsidiary company in Azerbaijan before domestic registration body.
In Azerbaijan, the company registry maintained by the Ministry of Economy through the State Tax Service is partially open to the public. Basic information about registered legal entities, such as the company’s name, legal address, and status, is publicly accessible. However, certain sensitive details, including ownership structure, shareholder information, and financial data, may not be fully disclosed to the public and are accessible only to authorized state bodies or parties with a legitimate interest.
To search for company information, one can use the official online portal of the Ministry of Economy / State Tax Service, which provides a public registry search tool available here. Searches can typically be conducted by the company’s name or taxpayer identification number.
In Azerbaijan, reporting beneficial ownership information is a mandatory requirement for companies and other legal entities to ensure transparency and compliance with anti-money laundering legislation. The process begins with identifying the ultimate beneficial owners, i.e., individuals who directly or indirectly control, own, or benefit from the company’s shares or voting rights, or otherwise exercise significant influence over the entity.
Once identified, the company must submit the relevant information to the State Tax Service under the Ministry of Economy of the Republic of Azerbaijan using the prescribed official form. The submission should include the beneficial owners’ full names, personal identification data, details of ownership or control, and any other information required by law.
Companies are required to update this information promptly whenever changes occur, ensuring that the registry maintained by the State Tax Service remains accurate and up to date. Non-compliance with these obligations may result in administrative penalties.
The replacement of a company director in Azerbaijan begins with the adoption of a resolution by the company’s supreme governing body, typically the shareholders’ meeting, approving the removal of the current director and the appointment of a new one.
Following this, it is necessary to complete the “Application for State Registration of a Commercial Entity”, in which the details of the new director must be indicated. The form must be signed by the shareholders and the new director and affixed with the company’s seal. If the shareholders or director are unable to sign in person, they may issue a power of attorney authorizing corporate lawyers to sign on their behalf and submit the registration to the State Tax Service. Importantly, no state fee is charged for the registration of a director change. Once the application is submitted and accepted, the new director is officially registered and recognized.
The transfer of shares in a company registered in Azerbaijan requires the collection of official certificates from state authorities, such as those confirming the absence of encumbrances on the shares and the absence of tax liabilities, with the exact list depending on the circumstances of the transaction. Once the full set of documents has been obtained, the parties must conclude a notarized share transfer agreement, which serves as the legal basis for registering the new shareholder. The registration of such changes is carried out by the Ministry of Economy of the Republic of Azerbaijan through the State Tax Service.
Registering a company in Azerbaijan is generally straightforward, particularly for Limited Liability Companies (LLCs), but it involves several mandatory steps and associated costs. The state registration fee for an LLC is 15 AZN, while branches or representative offices of foreign companies are subject to a fee of 300 AZN. Agricultural entities pay a reduced fee of 5 AZN, and banks, stock exchanges, insurers, and brokers are also subject to 300 AZN.
In addition to the state fee, notarization of signatures on registration documents is required. For signature confirmation, the state fee is 3 AZN, and the service charge is an additional 3 AZN per signature. Documents issued abroad must be translated into Azerbaijani and notarized; if necessary, they must also be legalized or apostilled in the country of origin. The cost of notarized translation generally depends on the language and ranges from approximately 15 to 25 USD per page.
An electronic signature (ASAN İmza) is required for signing official documents digitally and costs 33–36 AZN. It is obtained after company registration. The certificate is valid for three years and can be renewed free of charge upon request, ideally one month before the expiration date. The ASAN İmza account must also be topped up monthly to maintain functionality.
Regarding authorized capital, an LLC in Azerbaijan has no minimum requirement. Other types of entities are subject to specific thresholds: Closed Joint-Stock Companies (CJSCs) require 2,000 AZN, Open Joint-Stock Companies (OJSCs) 4,000 AZN, banks 50 million AZN, non-banking financial institutions 300,000 AZN, credit unions 4,000 AZN, investment funds 500,000 AZN, and insurers between 5 and 10 million AZN depending on the type. Authorized capital is deposited into a corporate bank account shortly after registration.
In Azerbaijan, both Limited Liability Companies (LLCs) and Joint-Stock Companies (JSCs) are independent legal entities with similar rights: they can contract in their own name, attract investors, participate in public procurement, operate separately from shareholders, and limit liability to charter capital. Both are governed by corporate law, subject to the Labour Code and taxation rules, and micro and small business entities are exempt from mandatory audits. If established by several founders, both LLCs and JSCs require a foundation agreement that sets out the charter, property contributions, and rules of participation.
The main distinction lies in ownership and investment potential. LLCs have fixed ownership shares and are often preferred for smaller or closely held businesses, with transfers subject to pre-emptive rights. JSCs issue freely transferable shares, making it easier to attract investors and raise capital, which is why they are typically chosen for larger projects or public offerings. LLCs are simpler and less costly to maintain, with no minimum charter capital, while JSCs are subject to stricter governance, disclosure, and reporting standards that enhance transparency and investor confidence.
To start a business in Azerbaijan, it is essential to determine whether your planned activity requires a license. Under the Law of the Republic of Azerbaijan “On Licenses and Permits,” certain types of business activities—such as banking, insurance, auditing, construction, security, healthcare, pharmaceuticals, education, telecommunications, and the trade of regulated goods like alcohol or tobacco—are subject to mandatory licensing. If your activity falls within one of these regulated sectors, a license must be obtained prior to commencing operations.
For most other activities, including retail, consulting, IT services, or non-restricted manufacturing, no specific license is required, and standard company registration procedures are sufficient to legally start operations. To ensure full compliance and avoid potential legal or administrative issues, it is strongly recommended to consult a local legal expert who can provide guidance on licensing requirements applicable to your specific business and industry.
While the involvement of a lawyer is not legally mandatory for company registration in Azerbaijan, engaging a qualified corporate lawyer is highly recommended and, in practice, often essential for a smooth and efficient incorporation process. Legal professionals help ensure compliance with all applicable laws, avoid procedural errors, and expedite registration. Their expertise is particularly valuable in preparing and reviewing documents, advising on the appropriate legal form of presence (e.g., LLC, branch, representative office), navigating licensing requirements, and interpreting local legislation.
A lawyer can also provide tailored advice based on your business model, industry, and long-term goals, including guidance on charter capital, corporate governance, tax matters, and the employment of foreign nationals. In a legal environment where minor formal mistakes—such as missing translations, incorrect document formats, or outdated templates—can cause significant delays, having a local expert ensures both efficiency and strategic advantage. For foreign investors, legal support helps align local administrative procedures with international business standards, reducing potential risks and ensuring a smoother entry into the market.
To register a branch of a foreign company in Azerbaijan, the parent company must submit an application along with its charter, certificate of incorporation (or an extract from the commercial registry), a resolution approving the establishment of the branch and appointing a director, a notarized power of attorney, and the director’s passport.
The branch must also have a registered legal address in Azerbaijan. All documents originating from abroad must be translated into Azerbaijani and notarized; depending on the country of origin, apostille certification or consular legalization may also be required. Registration is carried out by the State Tax Service under the Ministry of Economy of the Republic of Azerbaijan. The state fee of 300 AZN must be paid in advance, and the payment receipt presented at the time of submission.
The statutory period for company registration in Azerbaijan is three business days after submission of all required documents. However, the overall timeline largely depends on how quickly the necessary documents are collected and the procedures for filing the registration application are completed.
When registering a company in Azerbaijan, it is essential to choose the appropriate legal form, such as a Limited Liability Company (LLC) or Joint-Stock Company (JSC), with LLCs being the most common due to their simplicity and flexibility. The charter capital must comply with legal requirements, including minimum thresholds for regulated sectors such as banking, insurance, and investment. A company must have a unique legal name and a registered address in Azerbaijan. Founders can be individuals or legal entities, and directors may be local or foreign citizens; non-resident directors require a valid work permit.
The registration package typically includes the application form, founders’ and directors’ identification documents, the company charter, founding decision or minutes, and a notarized power of attorney if a representative is used. Foreign-language documents must be translated into Azerbaijani and notarized, and in some cases, apostille or consular legalization may be required. Certain activities may also require sector-specific licenses or permits before operations can commence. Since 2025, all companies must disclose their ultimate beneficial owners (UBOs) to the relevant authorities to ensure transparency and prevent misuse of corporate structures.
According to the Civil Code of the Republic of Azerbaijan, the minimum charter capital for a limited liability company (LLC) is not formally regulated and, in practice, can be low as 10 AZN. However, certain regulated sectors prescribe specific minimum capital requirements.
For example, a Closed Joint-Stock Company (CJSC) must have at least 2,000 AZN, an Open Joint-Stock Company (OJSC) 4,000 AZN, a Non-Banking Financial Institution 300,000 AZN, and a Credit Union 4,000 AZN.
In the investment fund sector, a Joint-Stock or Share Investment Fund requires 500,000 AZN, while the managing legal entity must maintain 125,000 AZN. Financial institutions face higher thresholds: newly established banks must hold 50 million AZN, insurers 5 million AZN for non-life and 10 million AZN for life insurance, reinsurers 20 million AZN, and Credit Bureaus 2 million AZN.
Registering representative office in Azerbaijan requires, as the primary document, decision of the company, including foreign companies, on registering a representative office in Azerbaijan. This decision shall be adopted by the authorized body of the company. Article of Association, Incorporation Certificate, power of attorney issued to the head of the Azerbaijani representative office, charter of the representative office in Azerbaijan, application form and the payment for the registration are among the required documents. The process takes about one week.
To start a business in Azerbaijan, tax registration is required. Tax registration is possible via obtaining sole entrepreneur tax identification number or setting up a company in Azerbaijan. For registering as sole entrepreneur, Azerbaijani residence card would be required. No such requirement applies while registering a company. No minimum investment or local partner is required in any option.
For sole business purposes, no local director or minimum local employee requirements are specified by the laws. Further requirements and criteria apply in order to qualify for residency of Azerbaijan.
No such minimum share capital requirement is prescribed by the laws. However, it must be emphasized that where the director of the company intends to apply for residency permit in Azerbaijan on the base of company (business) in Azerbaijan, minimum share capital shall not be less than 50 000 AZN (Approx. 29 500 USD)
Yes, joint venture may be formed in the form of a legal entity owned by two shareholders acting under the shareholder agreement and the articles of association. It is also possible to organize joint venture in the form of project, i.e. joint business agreement without establishing a legal entity.
No such requirement is prescribed by the laws, although having residency card of Azerbaijan may accelerate processes for e-signature purposes, it is not required to have residency card of Azerbaijan in order to be a shareholder of a company in Azerbaijan.
Company types in Azerbaijan are as follows: Limited Liability Company, Additional Liability Company, Open Joint Stock Company, Closed Joint Stock Company, General Partnership, Limited Partnership, Flat-Construction Cooperatives.
