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Find out about the various business structures available in Azerbaijan and how to get a venture started...
Azerbaijan's stable economy already has an effective oil sector, but the country is also expanding its development into other kinds of innovative businesses.
Types of Business Structure
Limited Liability Company (LLC)
An LLC is the most convenient and widespread way of doing business. Azerbaijan's Civil Code states the minimum and maximum amount of share capital; up to 50 people can be founders. If authorised capital is declared, payment must be made immediately at the time the company is registered.
Joint Stock Company (JSC)
In Azerbaijan, JSCs are divided into open joint stock companies and closed joint stock companies. The minimum share capital for an open JSC is at least AZN4,000 (about US$5,100), while for a closed JSC it is at least AZN2,000 (about US$2,550).
Representative or Branch Office
According to Azerbaijan law, a representative or branch office is not a legal entity. The parent company is liable for their activities and they are managed by a director on the basis of a power of attorney issued to him by the parent company. However, representative offices and branches as well as legal persons have the right not only to exercise executive functions, but also to engage in any commercial activity not prohibited by the legislation of Azerbaijan.
Registration can be done in eight working days. There are companies in Azerbaijan that can provide registration services for obtaining the appropriate business licence for representative offices or branches of foreign banks.
Naming the Company
After selecting a business structure, a few options for the company name are needed. The name of a legal entity in Azerbaijan must be unique. Legal entities with foreign participation which use foreign-language titles must have the name transliterated into the Azeri language.