THE RESULTS OF THE "FROM IDEA TO SUCCESSFUL BUSINESS" STARTUP COMPETITION HAVE BEEN ANNOUNCED!
Company (LLC) registration in Azerbaijan (Innovation in registration of an LLC)
As EKVITA, we provide services in multiple areas of law (corporate, labor, migration, tax, litigation, etc.), as well as accounting, audit, business development and accompany our clients starting from early stages of their businesses. In this regard, putting it simply, I would like to speak about “opening the company”. That is, what is the most appropriate organizational form for starting a business in Azerbaijan, its advantages, necessary procedures in the registration process and etc. As you know, there are several organizational forms for the establishment of a company in the legislation. However, today I would like to tell you about the Limited Liability Company (LLC), which is the most acceptable and simple one among the rest in terms of procedural and legal requirements. If we refer to the definition of LLC – a limited liability company means company established by one or more persons (natural persons and (or) legal entity), the charter capital of which is divided into shares, the sizes of which are specified by the charter. As can be seen from mentioned definition, the legislation does not set limits regarding the number of founders of the LLC. In other words, the founder can be one or more persons, including a foreign citizen. It should be noted that in the case of foreign citizens, the legislative or documentation requirements are the same as for Azerbaijani citizens, i.e. there are no additional or special requirements. Another benefit of the LLC is the absence of any restrictions regarding its charter capital in the legislation. In other words, there is no minimum or maximum limit, the charter capital may be settled in any amount. Therefore, in many cases, when establishing the LLC, the charter capital is formed in the amount of 10-100 manats. It also should be noted that the registration process of the LLC is notable for its simplicity, and it would be appropriate to emphasize the innovative policy pursued by the Ministry of Taxes in this sphere. Thanks to it, Azerbaijan has established itself in 9th place in terms of the “Starting a Business” indicator among 190 countries this year, according to the annual Doing Business Report of the World Bank.Powered by Froala Editor
EKVITA Legal Updates
Legal Act: Order on the implementation of renewable energy pilot projectsLegal Act: Law on the procedure for using the right of legislative initiative by citizens of the Azerbaijan RepublicLegal Act: Law on n minimum living wage in the Republic of Azerbaijan for 2020Legal Act: Law on the limit of the demand criteria in the Republic of Azerbaijan for 2020Legal Act: Decree on amendments to the Decree of the President of the Republic of Azerbaijan On ensuring the activities of the Agency for the development of small and medium-sized businesses of the Republic of AzerbaijanLegal Act: Law on amendments to the Law on Courts and JudgesLegal Act: Law on amendments to the Code of Administrative OffensesLegal Act: Law on amendments to the Tax CodeLegal Act: Law on amendments to the Law on State Forensic Examination ActivitiesLegal Act: Law on amendments to the Law on Health InsurancePowered by Froala Editor
EKVITA December Legal Updates
Legal Act: Law on Amendments to the Law on Deposit InsuranceLegal Act: Law on Amendments to the Law on Full Deposit InsuranceLegal Act: Decree on Amendments to the Procedure for the Formation, Management and Use of the Fund to Support the Fight Against CoronavirusLegal Act: Law on Amendments to the Code of Administrative OffensesLegal Act: Law on Amendments to the Law on MediationLegal Act: Order on measures for the implementation of a pilot project for the construction of a wind farm with a capacity of 240 MWLegal Act: Law on the subsistence minimum in the Republic of Azerbaijan for 2021Legal Act: Law on Amendments to the Law on Environmental ProtectionLegal Act: Law on Amendments to the Labor CodePowered by Froala Editor