Foreign citizens and investors who come to Azerbaijan can complete various actions if they decide to move here permanently or start a business. One of these actions refers to opening bank accounts, as nowadays, all transactions must be completed through bank operations.
No matter if you want to open a bank account in Azerbaijan as a non-resident or as a resident visa holder, our local consultants are at your service with information and representation with local financial institutions.
You can also rely on us if you are interested in company formation services in Azerbaijan and bank account opening for corporate use.
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Types of bank accounts in Azerbaijan
Just like in other countries, there are national and foreign banks that operate in Azerbaijan through branch offices and which allow both residents and non-residents to open several types of bank accounts which are generally categorized as accounts for personal and corporate purposes.
Those who want to open a bank account in Azerbaijan in 2021 can choose between the following:
- personal or current bank accounts which can be set up by natural persons;
- savings or deposit accounts which are available for natural persons seeking to save money;
- corporate bank accounts for companies registered in Azerbaijan;
- foreign company accounts which are available for overseas enterprises operating here;
- merchant accounts which are mandatory for e-commerce companies in Azerbaijan.
It is also possible to open a bank account in Azerbaijan as a non-resident without being a corporation in 2021.
You can rely on our company registration advisors in Azerbaijan for guidance in setting up various types of bank accounts here.
How to open a bank account in Azerbaijan as a natural person in 2021
Citizens and residents of Azerbaijan can easily set up bank accounts with local financial institutions based on several documents, among which:
- the ID or valid passport in the case of foreign persons;
- the temporary ID for foreign citizens who stay in Azerbaijan for more than a month;
- the application form released by the chosen bank.
It is quite easy to open a bank account in Azerbaijan in 2021 as a natural person, no matter if it is set up for daily use or for savings. It is also worth noting that local banks also issue credit and debit cards upon the creation of current accounts.
In some cases, current accounts can be created with the help of Azerbaijani employers in order for employees to receive their salaries.
How to open a bank account in Azerbaijan as a non-resident
Non-residents can also open bank accounts in Azerbaijan with local financial institutions or branches of banks registered in their home countries, depending on their nationalities.
The good news about opening a bank account in Azerbaijan as a non-resident is that there are no specific requirements imposed on foreign citizens who want to set up accounts here. Compared to other countries where utility bills are required by banks, this requirement does not apply here.
Both companies and natural persons seeking to open bank accounts in Azerbaijan can set them up in various currencies, not only in Azerbaijani manat, the country’s currency.
In most cases, US dollars, British pounds, and Euro are common currencies in which bank accounts are opened here.
If you want to open a company in Azerbaijan and want to set up its account in a foreign currency, you can discuss your options with our specialists in company incorporation.
Corporate bank accounts in Azerbaijan in 2021
Investors who wish to open a company in Azerbaijan are required to follow a set of steps that refer not only to preparing the company documents and registering the business but also handling banking matters. A company founder will need to open a bank account in Azerbaijan, that will be used for depositing the minimum share capital as well as in order to engage in trading.
In other cases, entrepreneurs may also be interested in opening a bank account in their own name. This is also mandatory for those who are planning on doing business under a sole trader.
Company formation in Azerbaijan is a process that is subject to a set of requirements and it can be easily accomplished with the help of our agents. Our team is ready to answer any questions related to corporate formation, including those that have to do with setting up a bank account.
Foreign investors may have a number of questions regarding banking and permitted actions. In this article, our team of specialists in company incorporation in Azerbaijan answers some of the most commonly asked questions about this topic.
What are the documents needed to open a company bank account in Azerbaijan in 2021?
The list of documents depends on the type of business, that is a locally registered company or a branch office. For investors who set up a company in Azerbaijan, the list includes the following:
- application form for opening the account;
- certified copy of the company’s incorporation documents;
- specimen signatures, certified by a notary;
- a notice from the tax authorities.
Banks may require additional documents as per their own internal rules. We recommend requesting a formal list of documents before commencing the process. Investors who cannot be present in the country during these preliminary steps can rely on the services provided by our agents.
The time needed to open the bank account can differ, although in most cases this process is not a lengthy one. Some banks may have policies according to which opening a bank account for a religious organization or a non-governmental organization may take longer.
Individuals who wish to open a bank account in Azerbaijan in 2021 are typically required to present a valid identification document, a temporary identity card (when applicable) and a filled in application form. Other documents may be required.
How to open a merchant account in Azerbaijan
The number of e-commerce companies has increased in Azerbaijan and when starting such a business, there are various steps to complete.
Just like a traditional company, an e-commerce one must also open a bank account in Azerbaijan, however, a merchant account is also required for allowing customers to make online payments. Merchant accounts are open with providers that can process online payments and the procedure is quite easy requiring information about the company and just a few papers to file.
We can also help with the creation of an online company if you are interested in launching a business on the Internet.
Can a foreign company open a bank account in Azerbaijan?
Yes. Foreign companies that choose to operate in the country, most commonly under the form of a branch, are allowed to open a bank account and, in addition to this, they can also open the bank account in a foreign currency (EUR or USD are commonly used).
It is important to note that opening a bank account in Azerbaijan for a branch in 2021, additional documents will be required and these will include copies and/or legalized copies of the foreign company’s Articles of Association as well as the director’s signature (and stamp, when applicable) on the application form (this can also be filled in by the company’s representative).
What are the costs associated with opening a bank account in Azerbaijan?
These costs differ from one bank to another and typically include those for opening the account and the subsequent ones for its maintenance. The closure of the account, as well as the issuing of account documents and other procedures, can be free of charge.
Corporate banking services can include ones such as currency exchange, domestic and cross-border money transfers, mobile services and internet banking, services related to e-commerce, corporate loans, salary cards, corporate deposits, and others.
Services provided by banks in Azerbaijan
No matter if you want to open a bank account in Azerbaijan as a non-resident or a resident, the same services are offered by local and foreign banks and these are usually related to:
- online access to the account and Internet banking;
- the possibility of contracting various types of loans;
- money transfers from Azerbaijan to other countries and vice versa;
- exchange in multiple currencies;
- salary payments in the case of employees;
- the issuance of credit and debit cards and overdrafts.
Doing business in Azerbaijan
Azerbaijan has become attractive as an investment destination once its oil and gas sectors have started developing. Nevertheless, the modern-day country has many other business fields that are increasingly attractive to foreign entrepreneurs. The telecommunication and transportation infrastructure, the industrial and agricultural sectors as well as healthcare and other services sectors present interesting investment opportunities.
The data presented below include both projections for the evolution of the economic growth in Azerbaijan, as well as a number of statistics from previous years:
- 2.7%: the economic growth expected for 2019 according to the robust domestic demand and hydrocarbon production.
- 3% and more: this is the expected value for non-oil economic growth in the medium term.
- 1.4%: the value of the GDP growth in 2018 and 2.4% in the first half of 2019.
- 2.7%: the projected real non-oil GDP growth for 2020, as indicated by the International Monetary Fund.
For more information on how to set up a company in Azerbaijan, including details on how to open a bank account, please contact our agents. We can provide complete assistance for starting a business, obtaining a license, and handling banking matters.