Services · Company formation

How to register a company in Azerbaijan as a foreigner

Updated 5 October 2026

A 15 manat state fee and two working days to register, but only a company with capital of 50,000 manats or more gives a foreign director a residence permit. We cover the MMC, online filing with Asan İmza, the 20% and 5% taxes, the beneficial owner register, banks and the rules for citizens of Russia and Belarus.

Is it worth opening a company in Azerbaijan

A 15 manat state fee (about 9 US dollars) and two working days by law - that is what registering a limited liability company in Azerbaijan looks like. There is no minimum share capital, and a foreigner can own 100% and act as director. The manat (AZN) is the national currency; the Central Bank rate in 2026 is 1.70 manats per US dollar.

The cheap entry is paid for later. A foreign director is exempt from a work permit and gets a residence permit by virtue of the position only if the company's paid-up capital is at least 50,000 manats (about 29,400 US dollars). The rule has applied since 16 May 2023, when the Migration Code was amended. A company with 100 manats of capital registers just as fast but gives its owner no right to live and work in Baku.

The second catch is the word "online". The State Tax Service (Dövlət Vergi Xidməti) registers companies through the e-taxes.gov.az portal, but a foreign founder needs an enhanced electronic signature, and its certificate is issued in Azerbaijan in person. Without a trip, the only route is a paper filing under a notarised power of attorney.

A good fit for businesses that sell to Azerbaijani buyers, bid in local tenders, move goods through Baku or plan to live in the country, and for IT companies with technology park resident status: their profit is tax-free for 10 years. Not a fit for anyone seeking a zero-tax company: profit tax is 20% plus 5% on dividends. Nor for founders who want to run the firm from afar and never visit: the bank and the electronic signature will not allow it. Nor for routing Russia-related payments through an Azerbaijani account: local banks operate under secondary sanctions risk, and in 2026 the EU banned transactions with one of them.

Which company to open in Azerbaijan: MMC, joint-stock company or branch

A foreign founder almost always needs just one form - the MMC. It stands for Məhdud Məsuliyyətli Cəmiyyət, a limited liability company (LLC): members risk only their contribution, a single founder can hold the whole stake, and there are no shares or shareholder register.

The Civil Code also provides for partnerships, the additional liability company and the cooperative. In a general partnership and in an additional liability company the members also answer for debts with their personal assets, so these forms protect a foreign founder less than an MMC does.

A branch costs more at the start - a 300 manat state fee against 15 - and more in tax: the same 20% on profit plus 5% when net profit is remitted to the head company. In return, the head and deputy head of a branch or representative office are on the official list of grounds for a residence permit. A foreigner without a residence permit cannot register as an individual entrepreneur: tax registration requires the card issued by the State Migration Service.

Can you register a company in Azerbaijan online and without a visit

Online registration of an MMC with a foreign founder takes the same two working days and carries no state fee, but the application must be signed with an enhanced electronic signature. That is where the remote route stumbles.

The signature is called Asan İmza - a mobile electronic signature tied to a SIM card of a local operator (Azercell, Bakcell or Nar). Its certificate is applied for in person at a taxpayer service centre or an ASAN xidmət centre (the state network of one-stop service centres) and issued within one working day. So the online route is open only to those who have visited Azerbaijan at least once.

The second route is on paper, and it works without a visit. A representative files the notarised application and documents under a power of attorney. Companies with foreign participation are registered by the Legal Entities State Registration Office of the tax service's Main Department of National Revenues. The time limit under Article 7-1 of the Law "On State Registration and State Register of Legal Entities" (No. 560-IIQ of 12 December 2003) is two days.

For comparison: an MMC with local founders is registered online at once in the fast-track mode or within one working day in the ordinary mode.

Documents a foreign founder needs

• the decision to found the company, approve its charter and form its management bodies;
• the charter approved by the founder or a representative;
• a passport copy for an individual founder;
• for a corporate founder: registration certificate, trade register extract, charter;
• a copy of the director's identity document;
• a document confirming the legal address in Azerbaijan;
• beneficial owner information (Appendix 4 to the application);
• the state fee receipt and a power of attorney if a representative files.

Foreign documents are certified with an apostille (Azerbaijan is a party to the 1961 Hague Convention) or legalised through a consulate. For CIS countries the tax service refers to the 2002 Chisinau Convention on legal assistance: under Article 12, official documents of member states are accepted without further certification. Each document needs a translation into Azerbaijani.

Steps and timing

Two days is the registration itself. Most of the time goes into the founder's documents and the bank's review.

How much does company registration in Azerbaijan cost

The state charges 15 manats (about 9 US dollars) for registering an MMC on paper and nothing for registering it online. The rates are set in Article 20 of the Law "On State Duty" (No. 223-IIQ of 4 December 2001).

MMC capital does not have to be paid at once. The tax service asks for a bank receipt confirming payment, except where the company's charter sets a period for it. Capital contributed in kind requires an independent auditor's opinion on its value.

Example calculation. The founder is a citizen of another country and also the director; the filing is on paper under a power of attorney. The state receives 15 manats of state fee and 3 manats for the signature on the application - 18 manats, about 11 US dollars. The rest is the apostille and notary in the founder's country, translation and rent of the address.

The real price of entry appears when a foreign director wants to live in the country through this company. Then 50,000 manats (about 29,400 US dollars) must be paid into the share capital. It is not an expense - the money stays with the company and goes into turnover - but it has to be committed at the start. For comparison: a residence permit through real estate or a bank deposit requires at least 100,000 manats.

What taxes does a company pay in Azerbaijan

20% on profit and another 5% on dividends - that is what an Azerbaijani company gives up before money reaches its owner. Out of every 100 manats of profit the founder keeps 76.

• Profit tax - 20% (Article 105 of the Tax Code). Advance payments are made quarterly by the 15th, the annual return is filed by 31 March. Losses are carried forward for 5 years.
• Dividends - 5% withheld at source, and this tax is final (Article 122).
• VAT (ƏDV, əlavə dəyər vergisi) - 18%. Registration is mandatory once turnover over any 12 consecutive months exceeds 200,000 manats (about 117,600 US dollars). Returns and payment are due monthly by the 20th.
• Simplified tax - 2% of turnover instead of profit tax, available while the company is not VAT-registered and turnover stays within the same 200,000 manats. The regime is designed for retail and services to the public and is closed, for example, to wholesale trade and to rental and royalty income.
• Payroll contributions. In the private non-oil sector the employer pays social insurance of 22% on the first 200 manats of salary and 15% on the part up to 8,000 manats.

Example calculation. A company on the general regime earns 100,000 manats of profit. Profit tax is 20,000 manats. When the remaining 80,000 manats are paid out as dividends, 5% is withheld, that is 4,000 manats. The founder receives 76,000 manats; the total burden is 24%.

Reliefs exist, and they are targeted. A micro-enterprise with an average headcount of at least three employees and no social insurance debts has 75% of its profit exempt. Technology park residents pay no profit tax for 10 years. Residents of the Alat Free Economic Zone near Baku are exempt from taxes and customs duties under a 2018 law, but the zone selects projects itself.

All rates, exceptions and calculations for employees and founders are on the page taxes in Azerbaijan.

Reporting, audit and the beneficial owner register

Registration in Azerbaijan is permanent: there is no annual renewal and no fee for it. But since 2025 every company must disclose its beneficial owner to the tax service, and this is the main change for foreign founders.

Beneficial owner register

Law No. 175-VIIQD of 11 April 2025 added the beneficial owner (benefisiar mülkiyyətçi) to the law on state registration. This is the individual who ultimately owns or controls the company; the ownership threshold is 10% of capital or more, directly or through a chain of companies. New companies file the information at once, in Appendix 4 to the registration application. For existing companies the tax service has announced deadlines by business size:

• large - by 31 December 2025;
• medium - by 30 June 2026;
• small - by 31 December 2026;
• micro-enterprises - by 31 December 2027.

Article 403-1 of the Code of Administrative Offences provides for a fine for failing to submit accurate and up-to-date information.

Tax and financial reporting

• profit tax return - once a year, by 31 March; advance payments - quarterly;
• VAT - monthly by the 20th; simplified tax - quarterly by the 20th;
• payroll tax and contribution reports - quarterly;
• annual financial statements - by 30 April of the following year, consolidated statements - by 30 June. Cabinet of Ministers Decision No. 262 of 11 September 2025 launched the e-mühasibat (electronic accounting) system, through which statements are submitted to the Ministry of Finance;
• changes to register data (director, address, members, charter) - within 15 working days. The period used to be 40 days.

Who needs an audit

Article 91.4 of the Civil Code requires a limited liability company to have its annual statements verified by an independent auditor every year. Micro and small enterprises are exempt. A small business has up to 50 employees and annual income of up to 3 million manats (about 1.76 million US dollars). Until a company outgrows these limits, it needs no audit.

The law does not require an MMC to have a company secretary. A director, a legal address in the country and an electronic cabinet on the tax service portal are mandatory.

Can a foreigner be a director and does a company give a residence permit

A foreigner can be the director of an MMC, and the registration law sets no citizenship or residence requirements. The restriction came from elsewhere - the Migration Code - and since 16 May 2023 it has cost 50,000 manats.

Before the amendments, the head and deputy head of any company with a foreign founder worked without a work permit and obtained a residence permit. Now the status goes to the head of a legal entity with a foreign founder if its paid-up share capital is not less than the amount approved by the Ministry of Economy, or to the owner of at least 51% of such a company. The Ministry set the threshold at 50,000 manats (about 29,400 US dollars). Deputy heads of a local company now need a work permit.

The second condition kicks in after a year. On extension, the migration service looks at the company's turnover: it must be not less than the amount approved by the same ministry. In practice, this is 100,000 manats a year (about 59,000 US dollars). A shell company with capital but no revenue will not deliver the status a second time.

The capital and turnover requirements do not apply, among others, to companies holding a startup certificate and to residents of industrial parks.

What this means in practice

• The director lives abroad. The capital can be any amount: the work permit question does not arise as long as the director does not live or work in the country.
• A foreign director lives in Baku. Capital of at least 50,000 manats or an ordinary work permit is needed, and a year later - turnover.
• The director is an Azerbaijani citizen. There are no migration issues, but the founder hands the signature and operational control to a hired manager.

Russian citizens should mind the visa-free stay limit: since 1 January 2025 it cannot exceed 90 days in a calendar year. Running a company on short visits is possible; living in Baku without a residence permit is not. Grounds and procedure are covered on the page Azerbaijan residence permit.

How to open a company bank account in Azerbaijan

Without a document from the tax service, no bank in Azerbaijan will open a company account. Under Article 35 of the Tax Code, accounts for legal entities are opened only against a certificate-duplicate (şəhadətnamə-dublikat), and only at the bank named in it.

The application for the duplicate is filed with the registration application or later. The tax service issues it within two days if the company has no debts to the budget. The duplicate is valid for 10 days: if no account is opened, it lapses and has to be obtained again.

Then the usual bank review starts: the company, its founders and beneficial owners, the origin of funds, the business model and future counterparties. The decision rests with the bank. A company with no office, staff or contracts in the country finds approval harder to get. What to prepare for the review is covered on the pages business account in Azerbaijan and personal account in Azerbaijan.

Citizens of Russia and Belarus

Azerbaijani law does not bar citizens of Russia and Belarus from registering companies: Azerbaijan has not joined the sanctions against Russia, and the document list is the same as for other foreigners. For documents from these countries the tax service refers to the CIS convention on legal assistance: official documents of member states are accepted without an apostille.

The difficulty lies in payments. On 23 April 2026 the European Union, in its 20th sanctions package, extended the transaction ban to four banks in Kyrgyzstan, Laos and Azerbaijan - for helping to circumvent sanctions or for connecting to the Russian financial messaging system. The Azerbaijani bank on that list is Yelo Bank. Secondary sanctions risk for Azerbaijani banks is no longer theoretical. For Russia-related payments, especially in euros and dollars, prepare supporting documents in advance.

Before approaching a bank, collect documents on the origin of capital, contracts with future counterparties, a description of the business model and proof of the beneficial owner's address and tax residence.

What we do

• we analyse the task and say plainly if Azerbaijan does not suit it: the same task may be better served by Georgia, Kazakhstan or Armenia;
• we choose the form - MMC, branch or representative office - and the amount of capital with residence permit plans in mind;
• we prepare the founding decision, charter, application, beneficial owner information, powers of attorney, translations and apostilles;
• we file the documents with the tax service online or on paper and see the company through to the certificate, the register extract and the VÖEN tax number;
• we help with a legal address in Baku;
• we bring in Murblz accounting and tax specialists: bookkeeping, tax returns, payroll reports, annual financial statements in the e-mühasibat system;
• we obtain the certificate-duplicate, prepare a compliance package for the bank and help open the account;
• we support the director and the founder in obtaining an Azerbaijan residence permit.

Legal representation - notarial acts, representation before the tax service, the migration service and the courts - is handled by Murblz specialists together with locally licensed partners.

Other countries are in the sections company registration and company registration abroad. Everything about the country is on the page Azerbaijan.

See also

Business account · Personal account · Investment property · Country taxes · All country programs

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