Opening an LLC in Azerbaijan – Company Registration and Key Steps

Starting a business in Azerbaijan begins with registering a legal entity. The most popular legal structure among both local and foreign entrepreneurs is the Limited Liability Company (LLC). It offers flexibility, tax efficiency, and simplified management. In this article, we explain what is required to open an LLC in Azerbaijan, how the online registration process works with Asan Imza, and what steps you need to take before and after registration.

What is an LLC and why choose it?

An LLC is a legal entity that can be established by one or more founders. Key advantages of registering an LLC in Azerbaijan include:

• No minimum charter capital required
• Option to use simplified tax regimes
• Fast and convenient online registration
• Can be established with only one founder and one director

What is required to open an LLC in Azerbaijan?

To register an LLC, you’ll need the following:

1. ID or passport of the founder and the director
2. A legal address in Azerbaijan
3. Determination of the company’s charter capital
4. A valid electronic signature (Asan Imza)

Note: Online registration is only possible if you have an electronic signature (Asan Imza). It can be obtained via mobile operators or at ASAN service centers.

How does company registration work?

The registration of an LLC in Azerbaijan consists of the following steps:

1. Preparing documents: Company details are collected — including information about the founder(s), director, and legal address.
2. Electronic registration: Registration is completed via the e-system of the Tax Authority using Asan Login or Asan Imza.
3. Receiving the Tax ID (VÖEN): Once the application is submitted, the system automatically generates the company’s tax identification number (VÖEN), and the company is officially registered.

Registration typically takes 1–3 business days.

How does online company registration work?

If you’re abroad or prefer to save time, you can register your LLC completely online using Asan Imza. The entire process — from submitting documents to receiving your tax ID — can be done remotely.

What happens after registration?

Opening a bank account

After registration, it’s mandatory to open a corporate bank account for the LLC.

Important: The director must be physically present at the bank to open the account. For Azerbaijani citizens, some banks allow online account opening.

Accounting and tax reporting

Once your company starts operating, you must submit monthly and annual tax reports. It’s highly recommended to engage a qualified accountant or use outsourced accounting services.

Frequently Asked Questions

How long does it take to register an LLC?

In most cases, registration is completed within 1–3 business days.

Can a foreign citizen open an LLC in Azerbaijan?

Yes. Foreign individuals are allowed to be both founders and directors of an Azerbaijani LLC.

What tax regimes are available for LLCs?

There are two main tax systems available:

• Simplified tax regime – ideal for small businesses
• Standard regime (profit tax) – for larger companies or specific sectors

The choice depends on the company’s turnover and field of activity.

Is there a minimum capital requirement?

No. Azerbaijani law does not impose a minimum charter capital requirement. You can specify any amount that suits your business goals.