How to start a business in Azerbaijan

Azerbaijan is an upper middle income country located at the crossroads of Eastern Europe and Western Asia. With a population of 9,416 milion and a GNI (Gross National Income) of 7,350 USD per capita, Azerbaijan ranks 12 in World’s Bank ranking regarding the challenges one must face when starting a business (out of 189 economies).

12 is really good you might think, but if you take a look at the aggregate ranking on the ease of doing business, Azerbaijan occupies the 80th position for 2015. Now don’t get too discouraged! Let’s see the full half of the glass and focus on why Azerbaijan ranks 12:

• Where do you need to address to register your company?

To register your company you need to address the Ministry of Taxes a one-stop national, service for business and tax registrations. You can find them here: www.taxes.gov.az

• How many days are necessary to complete all the legal procedures?

You only need to wait 5 days before your company is up and running

• How many procedures are necessary to start a business?

3 procedures are required by law to start a business. Here they are:

1. Obtain electronic signature
Business registration in Azerbaijan is done online so before addressing the Ministry of Taxes you need to obtain an electronic signature from the Ministry of Communications and Information Technologies. To obtain the signature you need to wait 1 working day and pay around 30 AZN (about 38USD)

2. Register your company online, obtain TIN number and register for VAT
To register your business go to www.taxes.gov.az, which is the official site of Ministry of Taxes and follow the steps presented there. Usually you need to fill in a registration form and submit electronically the following documents:
         -Memorandum of Association and the Articles of Association;
         -Resolution of establishment
         -Your identity card;
         -A document confirming the legal address your company (if leased you need to take the document to a public notary to be notarized; this will cost 2 AZN).
In 2 working days after submitted all required documents you will receive by email the registration of incorporation. If you want, you can obtain a hard copy from the Tax Office but the online number you receive will suffice.

3. Obtain your company seal
To legally operate your business you need to have a stamp with your business name and registration number. You can obtain this by addressing any company that produces seals, no legal boundaries in this field. The cost of a stamp is between 4 AZN and 40 AZN depending on the model you choose.

So now that you saw why Azerbaijan is the 12th business start-up paradise in 2015, what’s stopping you from opening your next venture here?