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Set up a Subsidiary in Azerbaijan

Set up a Subsidiary in Azerbaijan

A company, no matter whether it is established in Azerbaijan or not, can form a subsidiary in this country in one of three legal types of entities which are available for commercial purposes: a joint stock company, a limited liability company or an additional liability company. In this article, our company formation agents in Azerbaijan explain a few details related to setting up a subsidiary in Azerbaijan.

Characteristics of a subsidiary in Azerbaijan

At the level of 2021, a subsidiary in Azerbaijan is considered a separate company from the parent one. The parent company contributes with property to the subsidiary, however, generally, is not responsible for its subsidiary obligations.

Exceptions to this rule are the liability to third parties, to other minority shareholders, as well as in bankruptcy.

For example, a parent company could be responsible for the obligations of its subsidiary in bankruptcy, if the bankruptcy is due to the parent company’s fault concerning the execution of its instructions. Our Azerbaijan company formation consultants can provide more information related to this matter.

Moreover, for 2021, a parent company and its subsidiary in Azerbaijan are equally and severally responsible for the obligations resulted by the latter because of the implementation of the instructions of the parent company even if the parent company is not in bankruptcy.

A limited liability company and a joint-stock company can be considered dependent on another legal entity or partnership if any of them owns more than 20% of the capital of a limited liability company or the voting shares of a joint stock company.

A legal entity or partnership which buys such qualifying ownership has to immediately make public the information on this acquisition.

Registration procedures for a subsidiary in Azerbaijan in 2021

In order to set up a limited liability company in Azerbaijan, seven procedures are to be followed and 11 days are necessary. This process is more rapid than the regional average for Eastern Europe and Central Asia and is much quicker than the global average. Our company registration agents in Azerbaijan can assist you to open such a company in Azerbaijan.

There are no supplementary procedures needed in order to set up a subsidiary in Azerbaijan in 2021, other than the requirement for the parent company to provide an apostille or notarized or translated copy of the incorporation documentation and the charter of the parent company abroad. Our lawyers in Azerbaijan can give you details about the laws for foreign investments if you wish o extend the business operations through a subsidiary.

The creation of a subsidiary in Azerbaijan in 2021 can be supervised by our company formation agents.

If you have more questions about subsidiaries in Azerbaijan, or if you need help in setting up a company in Azerbaijan, please get in touch with us.