Branch Registration in Azerbaijan: Roadmap for Foreign Companies
If you are a foreign business looking to expand into Azerbaijan, registering a branch office can be a smart choice. It allows you to work under your parent company’s name while doing business in Azerbaijan.
In this guide, we explain everything you need to know about branch registration in Azerbaijan – step by step.
✅ What is a Branch in Azerbaijan?
A branch is not a separate legal entity. It is an extension of a foreign company that operates in Azerbaijan. The branch works under the control of the parent company and follows Azerbaijani laws while doing business locally.
📌 Important: A branch cannot make independent decisions like a local company. It follows instructions from the head office.
Why Register a Branch in Azerbaijan?
Here are some key reasons why foreign businesses choose branch registration in Azerbaijan:
Easy market entry without forming a new company
100% foreign ownership is allowed
Lower cost than setting up a new legal entity
Full control remains with the foreign company
Suitable for short or long-term projects
📋 Requirements for Branch Office Registration
To register a branch office, you need to prepare these documents:
Parent company’s registration certificate (with notarized translation)
Power of attorney for the branch manager
Decision of the parent company to open a branch
Passport copy of the branch manager
Charter or regulations of the branch
Legal address in Azerbaijan
All foreign documents must be notarized and legalized (or apostilled).
Steps for Branch Registration in Azerbaijan
Prepare the required documents
Translate and notarize all foreign documents
Apply to the State Tax Service
Receive the registration certificate
Open a bank account and register for VAT (if needed)
⏱️ Timeline: It usually takes about 5–7 working days after submitting all documents correctly.
💼 Branch vs Company: What’s the Difference?
| Feature | Branch Office | Local Company |
|---|---|---|
| Legal Status | Not independent | Independent legal entity |
| Ownership | 100% by foreign parent | Can be foreign or local |
| Control | From head office | Local management |
| Taxation | Same tax system | Same tax system |
In Conclusion
If you want full independence, then forming a company might be better. But for projects or representation, a branch is faster and cheaper.
Contact our legal team for full assistance from start to finish.
For full company setup, check our blogs:
Frequently Asked Questions (FAQ)
Yes, the branch must follow local tax laws and register with the tax authorities in Azerbaijan.
Yes, but only under the authority given by the parent company through a power of attorney.
No, 100% foreign ownership is allowed for branch registration in Azerbaijan.
Branches usually pay profit tax (20%), VAT (18%) if applicable, and social insurance contributions for employees.
Yes, the branch is taxed on its local income earned in Azerbaijan, separate from the foreign parent company.
If the branch’s annual turnover exceeds 200,000 AZN, VAT registration is mandatory. Otherwise, it is optional.
Yes, Azerbaijan has double taxation treaties with many countries. This helps avoid being taxed twice — both in Azerbaijan and the parent company’s country.