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Azerbaijan

Legal form:

Inc., LLC., Ltd.

Delivery:

2 weeks

Price: $

2500

Payment methods:

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Requirements:

Document checklist:

Local legal address (Handled by B2B Hub) 

1.Passport
2.Proof of Residence 

Registrar

Organization name

Ministry of Taxes of Azerbaijan

Abbreviation

Country

Azerbaijan

Email

NA

Phone

NA

Listing
Open website
UK comapny formation (1).webp

About

Azerbaijan

Capital
Official languages
Population 
Currency

ISO 4217

Baku

Azerbaijani

10,109,450 (as of 2020)

Manat

AZN

FAQ

Q: What types of companies can be formed in Azerbaijan?

A: The most common types of companies in Azerbaijan are Limited Liability Companies (LLC), Joint-Stock Companies (JSC), and Branches or Representative Offices of foreign companies.


Q: What are the requirements to form a company in Azerbaijan?

A: The requirements for forming a company in Azerbaijan include at least one director, a registered office address, and a minimum share capital of AZN 2,000 (approximately USD 1,200) for an LLC and AZN 50,000 (approximately USD 30,000) for a JSC.


Q: How long does it take to register a company in Azerbaijan?

A: The registration process for a company in Azerbaijan can take approximately two weeks.


Q: What are the documents required to register a company in Azerbaijan?

A: The documents required include the company's charter, a registered office address, details of the company's directors and shareholders, and payment of the relevant registration fees.


Q: Can foreigners own a company in Azerbaijan?

A: Yes, foreigners can own and operate a company in Azerbaijan. However, foreign ownership of a company may be subject to certain restrictions in certain sectors.


Q: What are the tax implications of forming a company in Azerbaijan?

A: Companies in Azerbaijan are subject to corporate income tax, which is currently set at a rate of 20%. There may also be other taxes and fees depending on the industry in which the company operates.


Q: What are the ongoing compliance requirements for a company in Azerbaijan?

A: Companies in Azerbaijan are required to file annual tax returns, maintain accurate financial records, and comply with various reporting and disclosure requirements. There may also be industry-specific regulations and compliance requirements.


Q: Can I use my Azerbaijani company to do business outside of Azerbaijan?

A: Yes, you can use your Azerbaijani company to conduct business anywhere in the world, as long as you comply with the relevant laws and regulations in those jurisdictions. However, you may need to obtain additional licenses and permits to operate in certain countries.

Economy

Azerbaijan has a strong and growing economy, with a GDP of $45.2 billion in 2019. This is a 4.2% increase from 2018, and the country is expected to continue to grow in the coming years. The country has a diversified economy, with the main industries being oil and gas, agriculture, and tourism. The oil and gas sector accounts for around 40% of the country’s GDP, while agriculture and tourism make up around 10% each. The country also has a strong manufacturing sector, with exports of machinery, food products, and textiles. The unemployment rate in Azerbaijan is 5.2%, which is lower than the global average. The country also has a low inflation rate of 2.2%, which is well below the global average. Overall, Azerbaijan has a strong and growing economy, and is expected to continue to grow in the coming years.

Taxation

Taxation in Azerbaijan:


Azerbaijan has a territorial tax system, which means that individuals and companies are taxed only on income earned within the country's borders. The tax system is regulated by the Tax Code of Azerbaijan.


Corporate taxation:


- Corporate income tax (CIT): The standard CIT rate in Azerbaijan is 20%. The CIT is applied to the taxable income of resident companies, as well as non-resident companies that earn income in Azerbaijan.

- Withholding tax: Withholding tax is applicable to certain payments made to non-residents, including dividends, interest, and royalties. The withholding tax rate varies depending on the type of payment and the tax treaty between Azerbaijan and the non-resident's country of residence.

- Value-added tax (VAT): The standard VAT rate in Azerbaijan is 18%. VAT is charged on the sale of goods and services in Azerbaijan, as well as on the import of goods into the country.


Personal taxation:


- Personal income tax (PIT): The PIT rate in Azerbaijan is a flat rate of 14%. The tax is levied on the income of individuals who are resident in Azerbaijan for tax purposes.

- Social security contributions: Both employers and employees are required to make social security contributions in Azerbaijan. The employee contribution is 3% of their salary, while the employer contribution is 22% of the employee's salary.


Process and calendar for tax payments:


- Corporate tax: Companies are required to file and pay their CIT on a quarterly basis, within 40 days after the end of each quarter. An annual tax return must also be filed by March 31 of the following year.

- Personal income tax: Individuals are required to file and pay their PIT on an annual basis, by April 1 of the following year. Employers are required to withhold PIT from their employees' salaries and remit the tax to the tax authorities on a monthly basis.

- VAT: VAT returns must be filed and paid on a monthly basis, within 20 days after the end of each month.


It is important to note that tax laws and regulations may change over time, so it is advisable to consult with a tax professional or the local tax authority for the most up-to-date information.

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