What are the Investment and Trade Opportunities in Azerbaijan?

Azerbaijan is a country with an area of 86,600 km2 located between the Greater and Lesser Caucasus mountains. With its capital Baku and a population reaching 10,139,177, Azerbaijan is a well-known country accompanied by the manat currency. The mention of this name is also open to interpretation in an economic sense.

Azerbaijan has made significant contributions to the market in terms of investment and trade and has tried to support these contributions steadily.

So, what are the investment and trade opportunities in Azerbaijan?
With borders to the north with Russia, to the northwest with Georgia, to the south with Iran, and to the west with Turkey, Azerbaijan showcases the opportunities provided by its geopolitical position, and these opportunities do not remain merely as a communication network but also transform into commercial relationships. Therefore, Azerbaijan provides opportunities in both geopolitical and process terms alongside its material opportunities.

How is the Distribution of Investment in Azerbaijan According to Sectors?

One of the other elements Azerbaijan offers to investors is numerous investment areas. Azerbaijan, which has made itself prominent in many sectors, continues to develop and shows that it is open to new investments.

So, what are these sectors?
• Agriculture and Animal Husbandry
• Industry
• Mining and Energy
• Construction and Contracting Services
• Transportation and Telecommunications Infrastructure
These sectors have many different distributions and characteristics.

- Agriculture and animal husbandry is the second most important sector for Azerbaijan, after oil. This sector, which has a share of 6% in GDP, indicates that Azerbaijan has arable lands. Azerbaijan, which primarily produces cotton, tobacco, sugar beets, and vegetables-fruits, both achieves many successes and maintains an open stance for investments in this sector.
- Industry, ranking first among Azerbaijan's sectors, has become the main character of the industrial sector with oil. The main reasons for this include Azerbaijan's; first refinery establishment, first use of oil tankers, and being the first country to extract oil from the sea. Azerbaijan, which also showcases itself in the food and manufacturing industries, offers great opportunities to investors.
- In the mining and energy sector, Azerbaijan is benefitting from oil and has started to receive a considerable amount of foreign investment after declaring independence. Thus, it has created a competitive environment in its investment market for investors.
- Azerbaijan, which has experienced declines in construction and contracting services over time, has sought investments to develop this sector and has been able to provide the required assistance over time. Therefore, this sector is quite accommodating concerning investment.
- Azerbaijan, which is not sufficiently developed in both the transportation and telecommunications sectors, does not prefer to refrain from accepting investments in these sectors. Thus, these two sectors provide an environment where both sides can profit from the investment.

Looking at all these data, it can be observed that Azerbaijan has a variety of sectors and that the doors to investments that support these varieties are always open.

What are the Advantages of Investing in Azerbaijan?

Azerbaijan opens many doors of advantage with its encouraging and tolerant attitude towards investment and investors. These are;
• In case of any dispute, it can be agreed to take the dispute to arbitration (Arbitration: The resolution of disputes between parties by individuals known as arbitrators rather than government institutions.) and the issue can also be resolved during this process.
• Unless otherwise stated, the rights of foreign investors are the same as those of local investors. In fact, some different opportunities may also be provided to foreign investors.
• Due to its borders with many countries, a trade network can be established with various countries. Thus, much more can be obtained than the existing profit rate.

Looking at the above data, it can be concluded that the element that makes investment in Azerbaijan advantageous is Azerbaijan itself. With the facilities and equality it provides, investing in Azerbaijan is like standing at a crossroads that ends positively on both sides. Therefore, it is a very transparent and quick process for Azerbaijan to prove itself to investors.

5 Reasons to Invest in Azerbaijan

• It can sometimes grant more rights to foreign investors than local investors.
• It has a strategic geopolitical position.
• It creates a favorable investment process.
• It shows success in many different sectors, creating diversity.
• It spreads trust as a result of consistently achieving success both through investments and other factors.

All these reasons demonstrate why Azerbaijan is one of the preferred addresses for investment. Additionally, the rapid handling of the investment initiation processes in Azerbaijan is also one of these reasons. With these characteristics, Azerbaijan attracts new investors every day and maintains the stability of its economy in its own hands.

How to Establish a Company to Invest in Azerbaijan?

Organizations or institutions wishing to establish an investment-oriented company in Azerbaijan must fulfill certain steps. These are;
• It is essential to submit the documents of the company/parent company to the relevant authorities completely.
• These documents must be certified in their home country.
• Depending on the type of company, the establishment agreement or bylaws must be signed.
• Licenses that cannot be transferred to other institutions or organizations are very important.
• After completing the above steps, companies must register with tax offices.
So it goes.

After all these steps and the necessary document submissions, an investment-oriented company is established in Azerbaijan. Azerbaijan solves this process within a minimum number of days with the necessary laws while also providing incentives to investor companies.

Considering these, investing in Azerbaijan is a very productive process and brings many profits along with it.

Steps You Need to Follow When Starting a Business in Azerbaijan

There are some steps you need to follow when starting a business in Azerbaijan, which offers many advantages for foreign investors. These steps are;
• Determining Your Company Name and Location Before Getting Your Registration,
• Creating a Record for the Company,
• Translating Documents in a Foreign Language to the Mother Language,
• Submitting the Company Registration and Certification Information,
• Opening a Bank Account in Azerbaijan and Depositing Your Existing Capital,
• Obtaining Your Business Registration Forms.

6 Steps to Follow When Creating a Registration for Your Business in Azerbaijan

1. An Official Letter of Intent to Establish Your Business
2. The founder's or founders’ information and a form verifying their identities must be obtained,
3. The company’s articles of association must be obtained,
4. The company's permit documents must be acquired,
5. The activities of your business must be confirmed,
6. Fees must be paid and approved for registration.

What Types of Companies Can Be Established in Azerbaijan?

If you live in a foreign country and are considering setting up a company in Azerbaijan, you need to be informed about the types of companies that exist in Azerbaijan. So what are the types of companies that exist in Azerbaijan and that you can establish?
• Limited Company
• Joint Stock Company
• Closed Joint Stock Company
• Cooperative Company
• Sole Proprietorship