Why Foreign Investors May Choose to Register Company in Azerbaijan
You might be familiar with Azerbaijan because of the great chess players the country has produced in recent years. The country has also gotten noticed in other international sports such as women’s volleyball and football. Tennis, cycling, and motorsports (car racing) are areas where the country has been involved.
However, there is more to Azerbaijan than just sports. The country is now opening its doors to foreign investment in a bid to boost its economy. Despite the political situation in the country, foreign investors seem to be eager to invest. One reason for this is the steady supply of oil and gas from Azerbaijan, the country’s main industry. For this reason, there are many oil pipelines within Azerbaijan from which it also derives resources. This has helped open up the country to foreign trade for its other industries.
Register Company in Azerbaijan to Enter Different Industries
There are different industries that you might want to register company in Azerbaijan in. Some of these are:
- Agriculture (inclusive of wine-making, horticulture, and growing cotton and medicinal plants)
- Food processing
- Defense industry
- Oil exploration and development, among others.
You will be glad to know that Azerbaijan’s government has made it quite easy for local and foreign investors to do business. As of 2008, the “Doing Business” report of the World Bank has praised Azerbaijan as the “Top Reformer Country for 2007 to 2008”. This means that investors will find it easier and faster to register company in Azerbaijan even if it is their first time to do business there.
How Foreign Investors Can Register Company in Azerbaijan
The very first requirement you need to meet if you are considering to register company in Azerbaijan is to present a valid passport. The Legal Entity Registration Department of the Ministry of Taxes is in charge.
You will then have to secure a formal company registration form from the Ministry of Taxes. This document has to be notarized by the legal representative of the company.
There are three main documents needed for the incorporation of your company. These are the Appointment of Legal Representative, the Company Charter, and the Resolution of Shareholders for setting up the LLC.
If you have partners (co-shareholders) in the new company, you will have to present their passports and valid IDs as incorporation documents. The government also requires more information about your partners in writing.
The company’s legal representative has to show notarial consent in the incorporation documents. You then have to present valid receipts of the state registration fee as well as the charter capital.
What Happens After You Register Company in Azerbaijan
Should you succeed when you register company in Azerbaijan, you will also have to do the following:
- Secure the Mobile Signature of Your Company Director (also known as your company’s legal representative).
- The Mobile Signature is called the ASAN Imza.
- Secure your company’s unique Corporate Seal.
- Enter the e-taxes system by visiting a local bank to set up your company’s bank account by presenting a valid tax certificate.
- Visit the state registry of employment agreement notices to register the Director of your company’s employment agreement. The Director is understood to be the legal representative.
One problem that foreign investors might want to resolve is finding the right talented employees to hire. This might be easier than you think because many have pursued higher education, especially science and technology. The literacy rate is 99.5%, based on the United Nations Development Program Report 2009. You may also need the services of a language translator, depending on the academic background of your potential staff.
The country of Azerbaijan has travelled a long road throughout history to get to where it is now. It has hurdled many political changes and setbacks along the way. But at least it is now more stable politically. Proof of this is the high rate of registration for new businesses and the entry of foreign investors.
Should you need assistance in business services (such as corporate secretarial services), you may contact us at 3E Accounting when setting up your company. We will be glad to render service to you and your company when you enter Azerbaijan.