Προφίλ συναλλασσόμενης χώρας Αζερμπαϊτζάν

Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Legal business entities

Types of companies and capital (max/min)	Number of partners/shareholders and liability	Maximum and/or minimum capital	Liabilities	Registration fees
Sole proprietorship	1 person.	No minimum capital.	The owner is liable for debts of the company on his personal assets.	Deposit the charter capital in a bank and obtain a receipt; Pay the state registration fee and get a receipt: AZN 11 + AZN 20. Obtain a company seal: AZN 22. Open a permanent bank account: AZN 30.
Private Limited Company	No minimum.	No minimum capital.	Liability is limited to the amount contributed.	Deposit the charter capital in a bank and obtain a receipt; Pay the state registration fee and get a receipt: AZN 11 + AZN 20. Obtain a company seal: AZN 22. Open a permanent bank account: AZN 30.
Public Limited Company.	Minimum 3 partners.	No minimum capital.	Liability is limited to the amount contributed.	Deposit the charter capital in a bank and obtain a receipt; Pay the state registration fee and get a receipt: AZN 11 + AZN 20. Obtain a company seal: AZN 22. Open a permanent bank account: AZN 30.
General partnership.	Minimum 2 partners.	No minimum capital.	Liability is unlimited.	Deposit the charter capital in a bank and obtain a receipt; Pay the state registration fee and get a receipt: AZN 11 + AZN 20. Obtain a company seal: AZN 22. Open a permanent bank account: AZN 30.
Limited partnership.	Two types of partners: active partners and sleeping partners.	No minimum capital.	Liability of active partners is unlimited. Liability of sleeping partners is limited to the amount contributed.	Deposit the charter capital in a bank and obtain a receipt; Pay the state registration fee and get a receipt: AZN 11 + AZN 20. Obtain a company seal: AZN 22. Open a permanent bank account: AZN 30.

Business setup procedures: Legal clauses concerning registration are vague and contradictory: registration is the first difficulty that entrepreneurs meet when setting up a company in this country. However, since 2008, the country has taken numerous measures to facilitate the reduction of the number of procedures to start a company (from 15 to 5 different procedures). The creation of a company is now managed by one organization (The Ministry of Finance and Taxes) that permits in theory to start a company in 3 days.
The competent organization: For more information, check the website of the Agency for the Promotion of Investment in the Republic of Azerbaijan.

FDI in figures

Foreign Direct Investment	2007	2008	2009
FDI of inward flow (millions USD)	-4748.88	14.09	473.305
FDI inward stock (millions USD)	8542.525	8556.615	9044.021
Performance Index*, ranking on 141 economies	140/141	135/141	111/141
Potential Index**, ranking on 141 economies	65/141	58/141	-
Number of Greenfield investments***	17	42	44
FDI inwards (in % of GFCF****)	-67.1466123104301	0.155245082472844	79.1936718487948
FDI stock (in % of GDP)	25.8470422356227	17.515636407871	21.0228560687446

πηγή:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk.*** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Azerbaijan

Strong points: The country's strong points are:
- Fast economic growth;
- An interesting geographic location;
- Competitive production costs;
- Cheap and qualified labor;
- The size of its energy sector;
- The signing of numerous bilateral treaties aimed at promoting trade.
Weak points: The country's main weak points are:
- The poor quality of its infrastructures;
- The high rate of corruption within the administration;
- The slowness of procedures;
- The destabilization risks due to the conflict in Karabakh;
- Other than the oil industry, there are few developed sectors;
- A certain level of Insecurity.
Government measures to motivate or restrict FDI: The country has signed numerous treaties to encourage FDI. It has also put in place legislation facilitating the creation of companies, limiting corporate taxes, and laws to protect FDI.
For more information and to consult the law texts, visit the Agency for the Promotion of Investment in Azerbaiajan website.
Bilateral investment conventions signed by Azerbaijan: The country has signed conventions with many countries: Austria, Belgium, Bulgaria, China, Egypt, Finland, Georgia, France, Germany, Greece, Iran, etc.

Procedures relative to foreign investment

Freedom of establishment: In theory, there is a great amount of freedom for investments, but the bureaucracy and the corruption makes investing difficult outside the energy sector, which is dominated by foreign investments.
For more information, consult the report "Investment Climate 2009" on the US Department of State's website.
Acquisition of holdings: A majority holding interest in the capital of a local company is legal in Azerbaijan.
Obligation to declare: The Agency for the Promotion of Foreign Investments in the country gives information on the authorizations required for setting up a company.
Competent organization for the declaration: Agency for the Promotion of Investment in the Republic of Azerbaijan
Ministry of Taxes of the Republic of Azerbaijan (for starting a company)
Requests for specific authorizations: For certain sectors, specific authorizations are necessary.

For more information, consult the report "Investment Climate 2009" on the US Department of State's website.
For more information, consult the website of the Agency for the Promotion of Investment in the Republic of Azerbaijan.

Finding assistance for further information

Investment aid agency: Agency for the Promotion of Investment in the Republic of Azerbaijan
Ministry of Economic Development of Azerbaijan
Other useful resources: Website of the Azerbaijani government