Προφίλ συναλλασσόμενης χώρας Αζερμπαϊτζάν

Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Sole proprietorship No minimum capital.	1 person Limited to invested capital.
Private Limited Company Minimum limit is appointed by the relevant Government Body.	No minimum Limited to invested capital.
Public Limited Company Minimum limit is appointed by the relevant Government Body.	No minimum Limited to invested capital.
General partnership No minimum capital	No minimum Limited to invested capital.
Limited partnership. No minimum capital.	No minimum Limited to invested capital.

Business setup procedures

Setting up a company	Αζερμπαϊτζάν	Eastern Europe & Central Asia
Procedures (number)	6	6.3
Time (days)	8	16.3

πηγή: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Azerbaijan.
The Ministry of Finance and Taxes, register a company.
The competent organization: Public Registration of Legal entities.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI of inward flow (millions USD)	14.09	473.305	563.132
FDI inward stock (millions USD)	8556.615	9029.75	9592.882
Performance Index*, ranking on 141 economies	135/141	111/141	-
Potential Index**, ranking on 141 economies	58/141	-	-
Number of Greenfield investments***	42	44	-
FDI inwards (in % of GFCF****)	0.155245082472844	79.1936718487948	-
FDI stock (in % of GDP)	17.515636407871	21.0228560687446	-

πηγή:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk.*** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Azerbaijan

Strong points: The country's strong points are:
- Fast economic growth;
- An interesting geographic location;
- Competitive production costs;
- Cheap and qualified labor;
- The size of its energy sector;
- The signing of numerous bilateral treaties aimed at promoting trade.
Weak points: The country's main weak points are:
- The poor quality of its infrastructures;
- The high rate of corruption within the administration;
- The slowness of procedures;
- The destabilization risks due to the conflict in Karabakh;
- Other than the oil industry, there are few developed sectors;
- A certain level of Insecurity.
Government measures to motivate or restrict FDI: The country has signed numerous treaties to encourage FDI. It has also put in place legislation facilitating the creation of companies, limiting corporate taxes, and laws to protect FDI.
For more information and to consult the law texts, visit the Agency for the Promotion of Investment in Azerbaiajan website.
Bilateral investment conventions signed by Azerbaijan: The country has signed conventions with many countries: Austria, Belgium, Bulgaria, China, Egypt, Finland, Georgia, France, Germany, Greece, Iran, etc.

Procedures relative to foreign investment

Freedom of establishment: In theory, there is a great amount of freedom for investments, but the bureaucracy and the corruption makes investing difficult outside the energy sector, which is dominated by foreign investments.
For more information, consult the report "Investment Climate 2009" on the US Department of State's website.
Acquisition of holdings: A majority holding interest in the capital of a local company is legal in Azerbaijan.
Obligation to declare: The Agency for the Promotion of Foreign Investments in the country gives information on the authorizations required for setting up a company.
Competent organization for the declaration: Agency for the Promotion of Investment in the Republic of Azerbaijan
Ministry of Taxes of the Republic of Azerbaijan (for starting a company)
Requests for specific authorizations: For certain sectors, specific authorizations are necessary.

For more information, consult the report "Investment Climate 2009" on the US Department of State's website.
For more information, consult the website of the Agency for the Promotion of Investment in the Republic of Azerbaijan.

Finding assistance for further information

Investment aid agency: Agency for the Promotion of Investment in the Republic of Azerbaijan
Ministry of Economic Development of Azerbaijan
Other useful resources: Website of the Azerbaijani government