Azerbaijan's beneficial environment encourages foreign entrepreneurs to choose this destination to establish their businesses. A favorable point that has been obtained from this jurisdiction and that is important to highlight is that trade with Turkey and European nations is in full development.

The investment climate in this jurisdiction is gradually improving. In recent years, the government of Azerbaijan has worked steadily to integrate the country into the global market, attract foreign investment, maintain the growth rate and diversify its economy.

There are many legal forms that can be registered by foreigners in this jurisdiction, among them we have the Limited Liability Company or LLC, this entity is established with at least one member and is not subject to a minimum share capital.

The LLC for foreigners is additional liability, but with the power that investors can assume their personal liability above the value of the participation in the capital of the company.

If your company needs to be established as a Joint Stock Company or JSC, in Azerbaijan you can choose between an open and a closed one. An open JSC can be registered by one or more persons or even companies, the shareholders are responsible for the obligations and debts of the company.

A closed corporation is set up in the same way as an open corporation, but differs in that the mutual capital in a closed JSC is divided into shares and these are not transferable.

Corporate income tax is exempted from payment in the case of resident entities that are registered in industrial and technological parks. This exemption is available for 7 years from the moment of registration.

SUBSIDIARIES OR BRANCHES?

Subsidiary company registration is a fully independent company created by an international company wishing to expand its operations to this jurisdiction, where services and products have to be adapted to the local market.

This type of legal form will be treated as a domestic company and the foreign parent company acts only as a shareholder. The liability of a subsidiary trading company rests with the subsidiary without affecting the foreign parent company in any way.

Unlike the subsidiary, the creation of a Branch in Azerbaijan, is an international company that limits its business activities to the operations defined by the parent company, as these are satellite businesses established by foreign companies that wish to have a presence in other jurisdictions.

A branch representative residing in the jurisdiction is appointed to oversee operations. The branch is the structure of choice for foreign entrepreneurs wishing to expand a business.

If you want to register an entity in Azerbaijan, Foster Swiss can advise you. We help you with practically everything: we provide advice from the moment you choose a corporate structure for your company up to one year after incorporation. And of course we take care of the whole process for you.

For more information on this topic or any other requirement related to our services, please contact us directly at info@fosterswiss.com