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Azerbaijan - DOING BUSINESS |
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Local business incentives
| A free trade zone has been created in order to encourage the country's development by attracting foreign investors. This zone is located in Sumgeait, an industrial town by the Caspian sea, 25 kilometres North of Baku. Metallurgy , Chemistry, Petrochemistry and Textile Industries are mainly enhanced.
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Legal forms of companies
| Form |
Number of partners/shareholders |
Minimum and/or maximum capital |
Liability |
Registration fee |
Release of financial documents |
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Sole proprietorship
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1 person.
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No minimum capital.
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The owner is liable for debts of the company on his personal assets.
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No
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Private Limited Company
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No minimum.
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No minimum capital.
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Liability is limited to the amount contributed.
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No
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Public Limited Company.
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Minimum 3 partners.
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No minimum capital.
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Liability is limited to the amount contributed.
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Yes
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General partnership.
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Minimum 2 partners.
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No minimum capital.
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Liability is unlimited.
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No
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Limited partnership.
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Two types of partners: active partners and sleeping partners.
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No minimum capital.
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Liability of active partners is unlimited.
Liability of sleeping partners is limited to the amount contributed.
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No
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Registration and licensing 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.
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Foreign exchange control
The manat is only convertible on the Azeris territory. All currencies transactions are checked by the ANB (Azerbaijan National Bank), which also controls the foreign currencies and gold reserves of the country. Individual or legal entities can open in Azerbaijan a foreign currencies account, after authorization. Foreign investments' profits and possible liquidation profits can be converted into foreign currencies and repatriated with no limitation.
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Regulations concerning equity investment
A majority holding interest in the capital of a local company is legal in Azerbaijan.
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FDI inflows in Azerbaijan
| FDI inflows (millions US$) |
2000 |
2001 |
2002 |
World rank |
| Foreign Direct Investments (F.D.I.) |
1392
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3285
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4769
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24
/ 196 |
| Sources : UNCTAD Database FDI/TNC |
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Last modified in
December 2003
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