As we know, one of the fundamental steps in establishing a new business and ensuring its sustainability is the formation of a company.

According to the legislation of the Republic of Azerbaijan, several types of legal entities (companies) are provided. These include LLCs (Limited Liability Companies), OJSCs (Open Joint Stock Companies), CJSCs (Closed Joint Stock Companies), and others. However, the most common form among them is the Limited Liability Company (LLC).

How can an LLC be established?

In practice, there are two main ways to establish an LLC:

1. Electronically (online)

2. In the traditional (paper-based) form

Establishing a company online

To register a company online, you must visit the website of the Internet Tax Administration at https://www.e-taxes.gov.az/, go to the “Login” section, enter your ID card FIN code and the phone number registered under your name, and enter the verification code sent to your phone.
After logging in, select the “electronic registration of a legal entity” section and fill in the required information in the application form.

Another important point to note is that when registering a company online, you can also order an ASAN signature certificate, open a bank account, and submit information regarding employment contracts through the system.

Once your electronic registration application is completed, the founding documents of the LLC (the company charter, extract from the registry, and taxpayer identification number — TIN/VÖEN) will be sent to your electronic cabinet by the State Tax Service within 1 business day.

How to establish a company in the traditional way?

To establish an LLC in the traditional (offline) manner, the following steps must be carried out in order:

1. Determine the company’s legal name and legal address

2. Prepare the founders’ resolution on establishing the company

3. Draft the company charter

4. Prepare the application for state registration of a commercial legal entity and provide information about the founders (individuals or legal entities)

5. Pay the state duty

6. Open a bank account for the company

7. Pay the charter capital

8. Submit all required documents to the State Registry of Commercial Legal Entities or to ASAN service centers

If all submitted documents are in order, within 3 business days you will receive:

• the company charter,

• the tax certificate (TIN/VÖEN),

• and the extract from the State Register of Commercial Legal Entities.

If all your documents are in order, the company's charter, tax certificate (i.e., TIN), and an extract from the state register of commercial legal entities will be provided to you within three business days.

After that, you can have the company's official seal made by presenting the company's charter.

It is recommended to consult a lawyer when establishing the company and during subsequent stages to avoid serious problems.