A company may start functioning in Azerbaijan from the moment of state registration and is allowed in two forms: individual entrepreneurship and establishment of a commercial legal entity.

Commercial legal entities can be organized as partnerships where each partner is liable with their own property for the debts of partnerships and limited liability and joint-stock companies where shareholders’ liabilities are limited to their portion in the charter capital. LLCs are commonly used form of legal entity in Azerbaijan.

Establishing an LLC is not complicated process that can be divided into 2 steps: registration stage and post-registration stage.

The registration of the commercial entities is carried out by the State Tax Service (under the Ministry of Economy) within 2 business days upon submission of the relevant documents. The documents can also be submitted electronically.

In order to bring a newly established company to “ready-to-operate” condition, the followings need to be carried out:

• Obtaining ASAN Imza (Mobile Signature) for the legal representative or login account;
• Obtaining of corporate seal for the company;
• Obtaining the temporary residence and work permit for the legal representative;
• Obtaining the e-representative;
• Registration of the legal representative's employment agreement notice;
• The payment of charter capital. The charter capital that is indicated in the charter must be paid within 3 months upon company registration;
• License (if required).

There is a number of procedures in which a legal entity/company can be incorporated in Azerbaijan. Foreign investors may either establish a limited presence (representative office or branch) or opt for a full presence through various legal organizational forms.