Source-cited draft: company formation & entity choice for Azerbaijan (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Built by Michael Cutajar and the OpenAccountants team. Written from the official sources it cites.
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Common entity types
Limited liability company (LLC/MMC), joint-stock company (open/closed), branch and representative office of a foreign company, sole entrepreneurCivil Code of the Republic of Azerbaijan — https://www.caspianlegalcenter.az/what-we-do/corporate-law
Most common form
Limited liability company (LLC / Məhdud Məsuliyyətli Cəmiyyət — MMC)Civil Code of the Republic of Azerbaijan — https://gsl.org/en/offers/company-registration-in-azerbaijan-establishing-a-limited-liability-company-llc/
Minimum charter capital — LLC
No statutory minimum (nominal capital, e.g. AZN 10, commonly used) AZN ((approx — confirm) no fixed legal minimum)Civil Code of the Republic of Azerbaijan — https://gsl.org/en/offers/company-registration-in-azerbaijan-establishing-a-limited-liability-company-llc/
Charter capital payment timing
Capital may be contributed before registration or within 3 months of registration ((approx — confirm))Civil Code of the Republic of Azerbaijan — https://gsl.org/en/offers/company-registration-in-azerbaijan-establishing-a-limited-liability-company-llc/
Registration authority
State Tax Service under the Ministry of Economy (single-window registrar of legal entities)Law on State Registration of Legal Entities and the State Register — https://accounting.az/en/company-registration-in-azerbaijan/
Core incorporation steps
Reserve name and registered address; prepare charter and founder's resolution appointing a director; pay state fee and submit to the State Tax Service; register for tax/VAT and social insuranceLaw on State Registration of Legal Entities and the State Register — https://accounting.az/en/company-registration-in-azerbaijan/
Registration timeline
Typically 2-3 business days for a locally-owned LLC ((approx — confirm) foreign-owned can take longer)Law on State Registration of Legal Entities and the State Register — https://accounting.az/en/company-registration-in-azerbaijan/
State registration fee — LLC
AZN 15 AZN ((approx — confirm) plus any professional service fees)Law on State Duty of the Republic of Azerbaijan — https://dlb.az/company-registration/
Post-registration setup
Obtain electronic (ASAN Imza) signature for the director, company seal, corporate bank account, and register employment contracts in the state e-registryLabour Code of the Republic of Azerbaijan — https://accounting.az/en/company-registration-in-azerbaijan/
Annual compliance — profit tax
File annual profit tax return and pay by 31 March; make quarterly current (advance) paymentsTax Code of the Republic of Azerbaijan — https://taxsummaries.pwc.com/azerbaijan/corporate/tax-administration
Ongoing compliance — VAT and payroll
Monthly VAT returns (if registered) and monthly PIT/social/medical/unemployment reporting, due by the 20th of the following monthTax Code of the Republic of Azerbaijan — https://taxsummaries.pwc.com/azerbaijan/corporate/tax-administration
Accounting / reporting framework
Financial statements prepared under National Accounting Standards or IFRS depending on entity category (Law on Accounting) ((approx — confirm) category thresholds)Law on Accounting of the Republic of Azerbaijan — https://www.caspianlegalcenter.az/insights/more/corporate-tax-azerbaijan
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
The most common vehicle is the limited liability company (LLC / MMC), registered with the State Tax Service under the Civil Code and the Law on State Registration of Legal Entities. There is no meaningful minimum charter capital and registration is typically completed within a few business days.
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