Azerbaijan Company Incorporation Services
Thanks to its oil and gas development and the liberalisation of the country’s trade system, Azerbaijan is among one of the fastest growing economies in the world especially in recent years. Conveniently located between Europe, The Middle East and Asia, running a business in Azerbaijan means the perfect opportunity to make use of this strategic gateway into the neighbouring economies.
Types of Business Entities in Azerbaijan
Investors and entrepreneurs who are considering a company incorporation in Azerbaijan have the option of choosing from the following entities:
- A joint venture
- A wholly-owned subsidiary
- A representative office of foreign-registered company
- Branch operations
For the joint venture business entity, it is not necessary for an investor to have a partner in this case, although there may be fiscal and business advantages to having one. It is up to the investor if they would like a partner or not.
A branch operations model will involve the local branch conducting operations under its own name, which is permitted. Branch operations, however, are still treated as a local subsidiary.
Representative offices, on the other hand, are not allowed to do business under its own name, although it can act on behalf of the head office.
All business entities and companies incorporated in Azerbaijan will be subjected to taxes. A representative office is subjected to the corporate profits tax which is at a rate of about 25%. A joint venture entity is taxed 25% when its foreign investments represent 30% or more of the total charter capital. A locally incorporated company is subjected to 35% tax, although there are some forms of businesses which are taxed at higher rates.
What You Need for A Company Incorporation in Azerbaijan
To incorporate your company in Azerbaijan is easier than expected. So easy, in fact, that unlike the lengthy processed that are required in some countries before a company can be incorporated, Azerbaijan’s process can be summarised into two steps:
- Acquiring an electronic signature for the purpose of online registration – This is a needed pre-requisite to register the company online and is issued by the Ministry of Taxes Certificate Services and the Ministry of Information Technology. Getting the signature done can be completed within a day.
- Registering the company online and obtaining the TIN number and VAT registration – This can be done at the Ministry of Taxes. Online registrations have been exempted from state fees and is free to do.
Need more advice on Azerbaijan company incorporation? Our friendly experts are ready to help! Contact us at 3E Accounting today for more information on how we can help make your incorporation process a smoother one.