Azerbaijan is a country in the Caucasus region of Eurasia, located at the crossroads of Eastern Europe and Western Asia. Recent legislative development in Azerbaijan regarding companies' registration made the entrepreneurial environment attractive to initiate the business. According to the World Bank Doing Business Report 2018, Azerbaijan has ranked among the top 20 countries in the world, under the starting business category.
Disclaimer: Be aware that this article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
What is a sole proprietorship in Azerbaijan
A sole proprietorship is an entrepreneurial activity carried out by individuals without establishing a legal entity for the purpose of obtaining income on an individual basis, based on private property, taking on risks and responsibilities.
An individual must have full legal capacity in order to operate a business personally. Full legal capacity is reached at the age of 18. However, a 16-year-old person may engage in entrepreneurial activity with the parent's approval, which amounts to having the full legal capacity in this case.
As in many areas, proper and comprehensive planning of the work you will do in business is the foundation of a successful business. Resources, sales organization, market analysis, and finances are vital for your business to be successful.
Registration process for a sole proprietorship in Azerbaijan
After detailed business planning, the sole proprietors are registered by the Ministry of Taxes. There is no fee specified for the registration, and the process can be done online. There is a video tutorial (in Azerbaijani language) on how to use the e-taxes. These documents are required for the registration:
- Application for registration of an individual
- Copy of Identity Document (for citizens of the Republic of Azerbaijan - ID card; for foreigners - a temporary or permanent residence permit issued by the State Migration Service of the Republic of Azerbaijan);
- The application by the authorized representative submitted a notarized power of attorney and ID card copy of the document
- Information on the application of the special tax regime (if operating under the special tax regime)
The tax authority issues the entrepreneur a tax ID (VOEN) used to fulfill the tax obligations.