According to the Law on Alat free trade zone of the Republic of Azerbaijan, the first free trade zone of Azerbaijan was established in Alat settlement, Garadagh district, Baku.The Law envisages great opportunities for investors to make their investment in the free trade zone, benefit the legal privileges provided by the Law. Some of those privileges are the followings:
1. Tax free regime – Residents of the free trade zone are exempted from all taxes applicable in Azerbaijan;
2. Customs free regime – Residents of the free trade zone are exempted from all import fees and taxes;
3. Currency regime – Investors, shareholders, residents/legal entities of the free trade zone and their employees are entitled to use any foreign currency as for the payment of employment or financing of other transactions without any restriction. They can also invest their money in and transfer of their money from the free trade zone without any restriction;
4. Resolution of disputes – Arbitration center or other dispute settlement body will be established in the free trade zone. If the parties do not agree on other dispute settlement forum, then those bodies will be authorized to review the disputes. Azerbaijani courts are not authorized to review any dispute arising within the territory of the free trade zone;
5. Language – English can be used as a working language in the free trade zone in addition to Azerbaijani. Other languages can also be used in case of necessity;
6. The licensing, employment, environmental, migration, financial, land, notarial actions, insolvency, intellectual property and other legislative requirements of the Republic of Azerbaijan are not applied within the territory of the free trade zone. All of those requirements will be determined by the special authority operating the free trade zone.
This article was published by Baku Attorneys & Consultants, an Azerbaijani law firm. We have been advising on multiple project finance and investment transactions to foreign and local business in Azerbaijan. Please, do not hesitate to contact us via www.batco.az in case you have further questions or need advice on project financing or investment related matters, as well as, corporate, business, tax, migration, employment, contracts and other legal issues.