Republic of Azerbaijan

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Operating a Business in Azerbaijan

Setting up a company | Working conditions | Cost of labor | Social partners

Setting up a company

Legal business entities

Types of companies and capital (max/min)	Number of partners/shareholders and liability	Registration fees
Sole proprietorship No minimum capital.	1 person. The owner is liable for debts of the company on his personal assets.	Deposit the charter capital in a bank and obtain a receipt; Pay the state registration fee and get a receipt: AZN 11 + AZN 20. Obtain a company seal: AZN 22. Open a permanent bank account: AZN 30.
Private Limited Company No minimum capital.	No minimum. Liability is limited to the amount contributed.	Deposit the charter capital in a bank and obtain a receipt; Pay the state registration fee and get a receipt: AZN 11 + AZN 20. Obtain a company seal: AZN 22. Open a permanent bank account: AZN 30.
Public Limited Company. No minimum capital.	Minimum 3 partners. Liability is limited to the amount contributed.	Deposit the charter capital in a bank and obtain a receipt; Pay the state registration fee and get a receipt: AZN 11 + AZN 20. Obtain a company seal: AZN 22. Open a permanent bank account: AZN 30.
General partnership. No minimum capital.	Minimum 2 partners. Liability is unlimited.	Deposit the charter capital in a bank and obtain a receipt; Pay the state registration fee and get a receipt: AZN 11 + AZN 20. Obtain a company seal: AZN 22. Open a permanent bank account: AZN 30.
Limited partnership. No minimum capital.	Two types of partners: active partners and sleeping partners. Liability of active partners is unlimited. Liability of sleeping partners is limited to the amount contributed.	Deposit the charter capital in a bank and obtain a receipt; Pay the state registration fee and get a receipt: AZN 11 + AZN 20. Obtain a company seal: AZN 22. Open a permanent bank account: AZN 30.

Business setup procedures: Legal clauses concerning registration are vague and contradictory: registration is the first difficulty that entrepreneurs meet when setting up a company in this country. However, since 2008, the country has taken numerous measures to facilitate the reduction of the number of procedures to start a company (from 15 to 5 different procedures). The creation of a company is now managed by one organization (The Ministry of Finance and Taxes) that permits in theory to start a company in 3 days.
The competent organization: For more information, check the website of the Agency for the Promotion of Investment in the Republic of Azerbaijan.

Working conditions

Legal weekly duration: 40 hours
Retirement age: 62 years for men and 57 years for women.
Working contracts: There exist two types of contracts: a fixed term one and a permanent one, both having a probationary period.
For more information, consult the website of the Consulate of the Republic of Azerbaijan in the United States.

Cost of labor

Minimum wage: AZN 50 (USD 62)
Average wage: Average monthly gross earnings in Azerbaidjan is AZN 193 (USD 240).
Social contributions: Social security contributions paid by employers: 37%.
Social security contributions paid by employees: 1%

Social partners

Social dialogue and involvement of social partners: Trade unions are not free to exercise their rights as they undergo pressure and restrictions from the Presidency. It is especially forbidden to declare a strike in the public transport. The country violates numerous conventions of the International Labor Organization.
For more information, consult the report on the violations of trade union rights.
Unions: Trade Union Confederation of Azerbaijan
Labor regulation bodies: Ministry of Economy

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