FAQ

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Can foreign persons or entities establish business in Azerbaijan? Are there any requirements on partnering with local persons/entities?

Foreign natural persons or legal entities may establish their businesses in Azerbaijan through incorporation of legal entities or registration of branch/representative offices of their legal entities or registration as a solo entrepreneur. There are no limitations on the shareholding percentage to be owned by the foreign natural person or legal entity. Unlike many jurisdictions, local partner is not required in order to establish business presence in Azerbaijan.

What is the amount of initial investment required for registration of business (company incorporation) in Azerbaijan?

There are no limits or minimum investment amount or any additional requirements to be complied with by foreign natural persons or business when establishing their presence in Azerbaijan. Save for joint-stock companies and subject to the minimal state fees, the investment capital can be as low as 1 AZN.

Can I obtain residence permit as an investor? Are my family members eligible to apply for residence permit as well? Is work permit required?

Shareholders (participants) of the business (legal entity) may apply for temporary residence permit (TRP) after registration of the company, provided that they are employed by the company, as a manager or deputy manager. TRP application process takes 20
business days and is issued for one year, to be extended usually for one year on each application. Foreign natural persons, who register as sole entrepreneurs must employ at least five Azerbaijani nationals in order to be eligible for TRP. Direct family members (wife/husband) and children under 18 of the person who has obtained TRP can also apply for TRP on the ground of being family members of such person. Managers and deputy managers of the legal entity where a foreign capital exists are exempt from work permit.

Which type of visa is required in order to enter into Azerbaijan as an investor?

In general, any foreign person can incorporate a company or register a branch of his/her business in Azerbaijan regardless of the type of visa s/he holds. However, persons wishing to apply for TRP after registration of business must come either on a business visa (shareholder-(deputy) managers) or work visa (non-shareholder – (deputy) managers or persons who intend to apply for work permit). Important to bear in mind that it is not possible to switch tourist or personal visit visas to other type of visas while being in Azerbaijan.

Can a foreign national acquire property in Azerbaijan? Does ownership of property qualify the owner for TRP?

Foreign nationals or companies enjoy the same rights with the Azerbaijani persons when it comes to purchasing or owning real estate – they can own real estates of any type (flats, apartments, condos, commercial real estate etc.). However, ownership of land plots by foreign natural persons is an exception when it comes to buying a land plot – they cannot own land plots. Meanwhile, the law does not prohibit the foreign natural persons to lease land plots for a long-term period (e.g. up to 99 years). Besides that, legal entities registered in Azerbaijan, which are owned by foreign natural persons or legal entities, may also purchase or own land plots. This structure allows a foreign investor to effectively own and exercise ownership rights over land plots. Pease note that ownership of property with a value of 100.000 AZN or more allows the owner and his/her immediate family members under 18 to obtain TRP.

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What taxes are applicable on property owned by foreign persons?

Azerbaijani law does not discriminate between the property owned by locals or foreign persons. Under the current tax law, a purchase tax is applicable upon acquisition of the property and further, annually collected property tax is imposed on owners. Both taxes are conculcated as per square meter of the property and can be considered very low or intangible in comparison with European and MENA region countries.

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What does BAC do?

Who are we and what services we offer to our clients?

BAKU ATTORNEYS & CONSULTANTS (BAC) is a full-service law firm based in Baku, Azerbaijan. The law firm is managed and led by legal and consulting professionals with broad expertise in their area of practice. Our lawyers and attorneys are qualified to practice in Azerbaijan with extensive international and local experience in complex transactions. Our professionals hold L.L.M and masters’ degrees from the prominent educational institutions of the U.S., U.K., and EU. Our law firm provides legal, business consulting, tax and accounting services in Azerbaijan, including corporate and M&A, tax, banking & finance, energy and natural resources, intellectual property, media & sports, criminal law, litigation and debt recovery, real estate and property development, immigration and labor etc. Along with generating cutting-edge legal advice and unique business solutions, we are proud of our strong commitment in pro-bono services in the communities we exist in.

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BAKU ATTORNEYS & CONSULTANTSOur office
OUR LOCATIONSWhere to find us
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Baku: +994 55 204 89 49
GET IN TOUCHBAC Social links
BAKU ATTORNEYS & CONSULTANTSOur office
+994 55 204 89 49
OUR LOCATIONSWhere to find us
https://batco.az/wp-content/uploads/2020/04/img-footer-map.png
Baku: +994 55 204 89 49
GET IN TOUCHBAC Social links

Copyright by BAC. All rights reserved.

Copyright by BAC. All rights reserved.