Azerbaijan Company Formation & Entity Choice

Entity types, capital and incorporation

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.

• Common entity types — Limited liability company (LLC/MMC), joint-stock company (open/closed), branch and representative office of a foreign company, sole entrepreneur (Civil 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) AZN (approx — confirm) (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)) (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 insurance (Law 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) (approx — confirm) (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) AZN (approx — confirm) (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-registry (Labour 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) payments (Tax 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 month (Tax 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) (approx — confirm) (Law on Accounting of the Republic of Azerbaijan — https://www.caspianlegalcenter.az/insights/more/corporate-tax-azerbaijan)