Business Practices

General information

Kwintessential: , guide and advices for the Republic of Azerbaijan

Opening hours and days

Banks: from 9.30 am to 5.30 pm from Monday to Friday.
Companies : from 9 am to 6 pm from Monday to Friday.
Shops : from 9 am to 7 pm from Monday to Saturday.
Weekly off-days : Saturday and Sunday.

Accounting Rules

Tax year

The financial year begins on the 1st of January and ends on 31st December of the same year.

Accounting standards

The Azerbaijani accounting norms respect the norms by the International Accounting Standards Board.
For more information, visit the website of the Ministry of Finance of the Republic of Azerbaijan  (in English and Russian).
To consult the laws on the accounting norms in the Republic of Azerbaijan, click here .

Accounting regulation bodies

Ministry of Finance of the Republic of Azerbaijan

Accounting reports

All companies have to prepare their annual accounts by referring to the Chart of Accounts, whose actual version dates from 1996.

In 2001, the Ministry of Finance published the Revised Accounting Norms (UASs). These are quite different from the IFRS norms except those concerning two sectors of activity :
- the financial sector
- the energy sector

However, with the new accounting law of 2004, certain companies have to use the IFRS norms : financial institutions, big companies, Investment Funds and credit institutions.
Other companies have the choice between IFRS and NAS norms.
Small companies (whose annual sales turnover is less than 2.5 billion AZM or whose assets value is less than 5 billion AZM) will have the choice between NAS and a simplified method of accounting.
These new rules will be applicable from 1st January 2008 for the large companies and from 1st January 2006 for the small ones.
During the transition period, the old accounting rules will be applicable.

Publication requirements

With the exception of companies operating under a Production Sharing Agreement (PSA), annual accounts should be in Azeri and in the local currency (manat).

The Production Sharing Agreement (PSA) exempts certain foreign companies from the form of their accounts. In practice, the majority amongst them use the IFRS norms.

Companies have to submit their audited annual accounts before 15th March.

Professional accountancy bodies

Association of Accountants of the Republic of Azerbaijan

Certification and auditing

Audit is obligatory for companies having foreign capital, for Private Limited companies and companies whose annual turnover is more than 2.5 billion AZM or whose assets value is more than 5 billion AZM.

The auditor should be certified by the Chamber of Auditors of Azerbaijan.
The Auditing Services Law 1995 governs the audit rules in Azerbaijan. These are based on the international norms (ISAs).

Accounting news

Azerbaijan: general information website on the Republic of  Azerbaijan.
 

Tax Rates

Intellectual Property

National organizations

After the declaration of independence of Azerbaijan from the USSR in 1991 the country created in 1993, the department of patents and trademarks under the aegis of the Committee of Technology and Sciences (Patent and License Department of the State Committee of Science and Technology)
Azerbaijan is a member of the World Intellectual Property Organization, the Paris Convention, the Convention of Bern (literary and artistic works), of The Universal Convention of the copyright of authors and of the Eurasian Patent Organization.

Regional organizations

Copyright Agency of the Republic of Azerbaijan

Legal Framework

Independence of justice

The judiciary in the country does not work independently and is corrupt and inefficient.

Equal treatment of nationals and foreigners

The judiciary does not guarantee an impartial trial to a foreign national.

The language of justice

The judicial language of Azerbaijan is Azerbaijani.

Recourse to an interpreter

It is possible to call for an interpreter.

Sources of the law and legal similarities

The Constitution of 1995 is the main source of the law, with the country's legal system based on a civil law system.
For more information, visit the website of the Law University of New York (section dedicated to the Azerbaijani law).

Checking national laws online

Azerbaijan: website containing general information on the Republic of Azerbaijan, juridic section

Standards

National standards organizations

National Agency for Standardization (website in English under construction)

Integration in the international standards network

The institution responsible for laying down product standards and certification in Azerbaijan is The Azerbaijan State Standardization and Metrology Centre (AZGOST).
In theory, health norms are applicable for imports and this application is said to be carried out under the control of the country's Chamber of Commerce and Industry.
So far as certification is concerned, there exists none of it and no request has been made for the moment.

Classification of standards

AZN

Online consultation of standards

The National Agency for Standardization has a website on which one can consult the classifications and the procedure for classification (only in Russian, the English website is currently under construction).

Certification organizations

National Agency for Standardization (website in English under construction).