What is the principle of registering companies in Azerbaijan?
Registration of a company in Azerbaijan is carried out by one window principle in the State Tax Service.
How long does it take to register a Company ?
Company registration process takes 3 working days, registration of branches and representative offices takes 5 working days.
How much does it cost to register a legal entities?
The state duty for registration of a legal entity is 220 AZN, which is equivalent to about $129.41.
What form of business is the most popular in Azerbaijan?
The most popular form of business in Azerbaijan is the Limited Liability Company (LLC)
Where can i find applications forms and other documents ?
You can find the application forms and certificates , samples of the charters and decisions, and other documents in the "one window" section of the website of the State Tax Service of Azerbaijan.
How long does it take to receive a license an necessary permits ?
If the type of activity of the company requires a license and necessary permits, they can be obtained within 15 days through the Portal of Licenses and Permits.
What is the corporate tax rate in Azerbaijan?
Corporate tax - 20%.
What is the VAT rate in Azerbaijan?
VAT - 18%. Companies with annual turnover of more than 150.000 AZN should be registered as payers of VAT only.
What is the property tax rate?
Property tax - 1% of the average net book value of fixed assets.
What is the land tax rate in Azerbaijan ?
Land tax - 0.6 manat per 1 conditional point. Their total amount depends on the area of the plot, its location and purpose.
How is trade tax calculated in Azerbaijan?
It is calculated depending on the wholesale value of resources and minerals. The highest rate is set for oil and gas sector enterprises - 26% of the wholesale cost per cubic meter.
How can I use tax under the simplified taxation system?
It is possible only for enterprises whose annual volume of taxable operations does not exceed 120,000 AZN. There is a rate of 4% of gross revenue in Baku and 2% in other regions.
How is the tax calculated ?
You can use calculators to calculate some taxes and deductions on the website of the State Tax Service.
Is it possible to register online?
In 2019, the option of online business registration through the website of the registration authority was developed. The procedure takes about 20 minutes.
At what stage is the sphere of e-commerce in Azerbaijan?
The e-commerce field in Azerbaijan is in its development stage. There are two dominant areas of Internet commerce: B2B and B2C. An obstacle to the development of e-commerce in Azerbaijan is that a significant part of the population prefers to pay in cash.
How many online stores operate in Azerbaijan?
According to data by the beginning of 2020, about 200 online stores operated in Azerbaijan
What has played a significant role in the development of e-commerce in Azerbaijan?
A significant role in the development of e-commerce in Azerbaijan was played by the creation of the Digital Trade Hub.
What is it The Digital Trade Hub of Azerbaijan ?
The Digital Trade Hub of Azerbaijan is an e-commerce platform where electronic transactions are legally valid, and the registration procedure for participants on the portal is verified by the state using the Registry of legal entities.
What are the benefits of receiving an electronic signature?
After obtaining an electronic signature, the Digital Trade Hub enables non-residents of Azerbaijan to carry out operations to open companies and bank accounts, hire employees, as well as carry out export-import operations.
What is the e-Residence and m-Residence program ?
State program of e-Residence and m-Residence is being implemented in Azerbaijan, allowing businessmen from all over the world to establish and manage their business in Azerbaijan, using all cross-border electronic services of Digital Trade Hub (DTH).
How can I become a Virtual Resident of INNOLAND?
To become an INNOLAND Virtual Resident, you need to fill out a registration form and send a presentation of your project. The duration of the Virtual Residency program is 12 months.
What documents are required to register a company in Azerbaijan?

The list of documents required for registration of a company in Azerbaijan (with no foreign capital):


  • Notarized "Application for State Registration of a Commercial Entity";

  • "Information on the founder natural entities";

  • A copy of the ID card of the individual founder (founders) natural entity;

  • "information on the founder legal entities"; 

  • A notarized copy of the certificate of state registration (extract from the State Registry) and the Charter of the founder legal entity (founders);

  • The Charter approved by the founder (founders) of the structure or its authorized representative (in two counterparts);

  • A decision(s) on the foundation of the entity, approval of the charter and formation of the management bodies;

  • "information on the application of special tax regime" (if the entity operates under a special tax regime);

  • a copy of the document proving the identity of the legal representative;

  • a document confirming the legal address;

  • a document confirming the payment of the state duty (a receipt); 

  • a document confirming payment of the authorized capital (bank receipt, mortgage on immovable property, etc.), except for cases when the Articles of Association of a limited liability company stipulate payment of the authorized capital within a certain period of time; 

  • the applicant's ID card;

  • A power of attorney (in case the application is signed by an authorized person).

What documents are required for registration with foreign capital in Azerbaijan?

For registration of a company with foreign capital in Azerbaijan in addition to the above documents you also need:

  • If the founder is a foreign legal entity - documents confirming its registration in a foreign country - a notarized copy of the registration certificate (extract from the Registry) and other documents.

  • In case the founder is a foreigner or a stateless person - a document confirming his economic activity in any country.

What can the company do after the registration is complete?
After completing registration, the company can obtain a mobile signature (ASAN Imza), a corporate seal, open a bank account (this requires submitting a copy of the tax certificate to the selected bank via the e-tax system), register the labour contract of the legal representative (director) in the state Registry of labour contract notices.
What is the road tax rate in Azerbaijan?
It is levied on foreign vehicles when crossing the customs points and on producers of gasoline, fuel and liquefied gas. In the first case the rate depends on the engine power and the term of the vehicle's stay in the territory of the state. In the second case it is determined on the basis of the wholesale or customs value of the products.
Where is the registration authority of Azerbaijan located?

The registration authority in Azerbaijan is the State Tax Service of Azerbaijan. List of departments:

 

State Tax Service of the Nakhchivan Autonomous Republic

Address: A. Aliyev str., AZ 7000, Nakhchivan 

 

Main department of the National Revenue of State Tax Service

Address: 105 Heydar Aliyev Avenue, Baku, AZ 1029

 

Main Territorial Tax Administration No.2

Address: 2, Kulieva str., 44th quarter, Sumgait, AZ 5001

 

Territorial Tax Department # 3

Address: Yeni korpu, 1, AZ 4000, Guba 

 

Territorial Tax Department # 4

Address: 118 km of Baku-Gazakh highway,AZ 5600, Shamakhi  

 

Territorial Tax Department # 5

Address: 14, G.Shykhbala oglu str., AZ 1812, Shirvan

 

Main Territorial Tax Department No 6

Address: 97A, Zarifa Alieva str., AZ 4200, Lankaran  

 

Territorial Tax Department # 8

Address: SMD-42 settlement, AZ 1200, Beylagan 

 

Territorial Tax Department # 9

Address:  112A Ali Karim str., AZ 2300, Geychay 

 

Territorial Tax Department #10

Address: 1 Ismail Bey Gutgashinli St., Gabala, AZ 3600

 

Main Territorial Tax Department # 11

Address: 14 Nizami str.,AZ 6600, Yevlakh  

 

Main Territorial Taxation Department No. 12

Address: 87 Shah Ismail Khatai ave., Ganja, AZ 2003

 

Territorial Tax Department #13

Address: 1 Nizami str., Zagatala town, AZ 6200

 

Territorial Tax Department # 14

Address: 5 Heydar Aliyev ave.


 

What documents are required to open a company account in a bank of Azerbaijan?

Documents required to open a company account in a bank of Azerbaijan:


  • An application;

  • A notarized copy of the charter of the organization;

  • A notarized copy of the certificate of state registration;

  • A notarized copy of the certificate of registration of the commercial legal entity;

  • original of the duplicate certificate issued by the tax authority (in the name of the bank -

  • valid for 10 days);

  • Signature and seal sample sheet (notarized);

  • A copy of the decision ( the identity of which with the original is certified by the legal entity) on appointing the persons mentioned in the signature sample sheet to the positions; if the position of chief accountant is not stipulated in the staff list, it is necessary to have the respective letter addressed to the Bank in this regard or a note in the signatures and seals sample sheet;

  • A copy of the founder's identity card;

  • Copies of IDs of the persons mentioned in the signature samples;

  • FATCA-compliant self-assessment questionnaire.

Which E-commerce sites are the most used in Azerbaijan ?

A well known B2B e-commerce site in the country is the state portal Azexport. Other e-commerce portals include:


konttakt.az – Marketplace of electronics (mobile and desktop phones, televisions, tablets, computers and office equipment, cameras, camcorders, audio and video equipment) and household appliances in Azerbaijan;

Tap.az – site for private announcements in Azerbaijan;

Turbo.az - car buying and selling 

Bermud.az – online store of electronics and household appliances;

Bina.az – real estate buying and selling. 


Can foreign startups become participants in the INNOLAND virtual residency program?
Foreign startups can become participants of the Virtual Residency Program of INNOLAND. Virtual residents get access to all of the organizer's events, the opportunity to participate in "ASAN Learning" workshops, free access to the e-OFFİCE financial reporting platform, and mentor support for their startups.
What recruiting agencies are in Azerbaijan?

The list of active human resources and recruiting agencies in Azerbaijan.


Human Capital Baku (HCB) –Recruiting company, provides services to find employees for businesses in a number of areas: from IT-specialists, marketers, sales managers, to specialists in the field of logistics, accountants, etc.


FK-DIPLOMAT LTD – Recruiting company providing personnel recruitment services in the following areas: top management, finance and accounting, banking professionals, human resource management, manufacturing and engineering, construction and architecture, information technology, marketing and advertising, design and engineering, trade and sales, programming, etc. 


What Co-working spaces are in Azerbaijan?

Name - The Office

Address - 215 Bashir Safaroglu Street, Baku, Azerbaijan

WEB-address - http://theoffice.az/ 

Overview - https://www.coworker.com/azerbaijan/baku/the- office Working hours - Mon-Sat 10-00 to 22-00, Sun- off

Price of rent of a fixed working place - from 350 AZN/month.

Price of a workplace in Open Space - from 250 AZN/month. Personal office rent - from 800 AZN/month Availability of meeting rooms - yes


Name - Co-working space INNOLAND 

Address - 89 M.K. Ataturk ave., Baku, Azerbaijan, Tel: +994 12 444 74 33 (2670), e-mail: office@innoland.az 

WEB-address - http://innoland.az/ru/activity/7 

Overview -

Working hours - 24/7

Rental price of a fixed workspace -

Open Space Workplace Rental Price - 

Personal Office Space Rental - / Meeting Rooms Availability -


Name - Co-working Space Regus 

Address - Baku White City Business Centre, 5th floor, Baku, AZ1025

WEB-address -

Overview - https://www.regus.ua/ru-ua/coworking-space/azerbaijan/baku/baku-bwc 

Working Hours -

Rental price of a fixed workplace

Open Space Workplace Rental Price - Personal Office Space Rental - / Meeting Rooms Availability -


Name - COLAB

Address - Baku, 151 Neftchiler ave. (entrance from Uzeyir Hajibeyli street), phone: +994 50 278 00 72, e-mail: welcome@colab.az 

WEB-address - https://colab.az/ru/ 

Overview -

Working hours -

Rental price of a fixed workplace - Price of a workplace in Open Space - 300 AZN/month. Rental of personal office space - / availability of meeting rooms - yes

 

Name - Fabrika

Address - 92, Nizami Street, Baku, Azerbaijan

WEB-address - https://www.facebook.com/coworking.az/ , https://coworking.az/ 

Overview - https://www.coworker.com/azerbaijan/baku/fabrika Working hours - Monday-Friday: from 10:00 to 19:00, Saturday-Saturday: from 11:00 to 18:00 Fixed workplace rental price

Price of a workplace in Open Space - 140 AZN/month. 

Rental of personal office space - / Availability of meeting rooms – yes





 

How can startups in Azerbaijan attract funding?

Startups in Azerbaijan have the opportunity to raise funding through:


  • A grant competition held by the State Fund for the Development of Information Technology. It is possible to receive a grant from 10,000 to 300,000 Azerbaijani manats, or from $5,880 to $176,470 in the equivalent.

  • Entrepreneurship Development Fund under the Ministry of Economy of Azerbaijan. The limit of small credits which can be given to the enterprises from the Fund is 50,000 manat, the limit of medium credits - 1 million manat, the limit of large credits - 10,000,000 manat. At that, the first half of the loan period is preferential. Loan terms are three, five and ten years for small, medium and large loans respectively.

  • Infipro Inc is a venture capital fund in Baku investing in IT, Internet and software startups.

  • A joint fund of the Ministry of Transport, Communications and High Technologies of Azerbaijan and DAAL Venture Capital, a venture fund from Saudi Arabia. The formation of the fund provides for the Memorandum signed in May 2019 during the international summit Monex Caspian in Azerbaijan.

  • Khazar Ventures is an organization that makes venture capital investments in start-ups in Azerbaijan.

When did a pilot project on the use of blockchain technology start in Azerbaijan?
In 2018, Azerbaijan announced the use of blockchain and smart contracts in the country's legal system and in the housing sector. In December 2018, the State Property Committee of Azerbaijan launched a pilot project on the use of blockchain technology in the registration of real estate.
When was blockchain introduced in the financial sector of Azerbaijan?
In May 2019, it was announced that by the end of the year, blockchain will be introduced in the financial sphere of Azerbaijan. In particular, the Central Bank of Azerbaijan was to transfer all electronic transactions to blockchain. In October 2020, the Central Bank of Azerbaijan launched the BankID blockchain-based bank customer identification system. The blockchain-based system was created by IBM using Hyperledger Fabric, an open source platform of the Linux Foundation consortium.
What platforms for accelerating startups are there in Azerbaijan?

There are a number of organizations in Azerbaijan that help startups launch and develop their products.

Incubator and accelarator INNOLAND the State Agency for Services to Citizens and Social Innovation under the President of Azerbaijan (ASAN). The incubation program lasts from 3 to 6 months and includes mentor support, networking, and the opportunity to use office space. The acceleration program lasts 3 months, during which startups develop their product and learn different practices covering all areas of business development. 

Accelaration program Azerbaijan Innovation House.  It lasts 12 weeks and helps startups from Azerbaijan connect with Silicon Valley. The program was founded in February 2020 by INNOLAND.

Program of incubation of NEXT STEP innovation center.  As part of the program, participants get access to coaching, create an MVP, and develop their own business model. The duration of the program is from 2 to 6 months. Projects that have completed the incubation program can apply for funding. You can apply for participation through the website of NEXT STEP innovation center.

Sup VC – acceleration program, which allows startups to grow and enter international markets. The duration of the program is 3 months. As part of the program, startups work on a product and prepare for a demo day.

FasterCapital – online incubator and accelerator in Azerbaijan, a division of the international incubator and accelerator of the same name. There is one startup participating in the acceleration program in Azerbaijan - the project MedNot.

Incubator Park of the Advanced Technologies NANA.  The Fast Track Acceleration Program, developed by the High-Tech Park of the Ministry of Transport, Communications and High Technologies, was implemented in 2018. This is the first acceleration program in Azerbaijan implemented by a state structure.

Pre-acceleration (3 months) and pre-incubation (6 months) programs from the business incubator Barama Innovation & Entrepreneurship Center

 The incubator was created in 2009 and consists of an innovation laboratory, business incubation, entrepreneurship support and business solutions areas. Since 2019 Barama Innovation & Entrepreneurship Center is supported by the Innovation Agency of Azerbaijan.