|                                                                                                                                                             |  | REGISTERING A COMPANY IN AZERBAIJAN                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
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|**BISNISHome PageSearchBISNISEmbassyReportsCountryReportsIndustryReportsPublicationsSourcesof FinanceLeadsand EventsExchangeRatesState ExportsOtherSources** |  | July 1997by Nofal RzayevMore American companies than ever before are doing business in Azerbaijan.  Registration is one
of the first hurdles they face in establishing a presence in this oil-rich country.  Although the law
on registration contains unclear and contradictory instructions, the Azerbaijani Ministry of
Justice, which is responsible for registering all legal entities in Azerbaijan, has provided a
thorough list of documents required for the registration procedure.More than 70 U.S. companies have currently established offices in Azerbaijan, according to U.S.
Embassy statistics--nearly a 30 percent increase over the same time last year.  U.S. presence in the
Azerbaijani market grows by approximately three new entrants per month.  Along with oil
companies, U.S. firms represented include oil industry equipment suppliers, engineering and
construction firms, transportation and freight forwarding companies, consumer and food products
firms, and legal, financial, and business consultants.Branch or Representative Offices
The Registration Department of the Ministry of Justice is responsible for registering all
Azerbaijani legal entities, including those wholly or partly owned by foreign companies.  As of
January 1997, the Registration Department requires the following documents for registration of a
company branch or representative office by an FLE or "foreign legal entity" (Note: documents 1
through 6 should be submitted in both English and Azerbaijani; documents 7-11 should be in
Azerbaijani):1.  a letter from the FLE signed by its president and representative applying for registration (one
copy); 
2.  record of a decision of the management board of the FLE stating its intention to open an office
in Azerbaijan (two copies);
3.  a notarized power of attorney issued by the FLE to the director of the company's branch or
representative office (2 copies);
4.  two copies of the director's identification document (passport) and photo;
5.  two copies of the charter document of the parent company and certificate of the company's
registration.  Both sets of copies must be certified by the consular section of the Azerbaijani
Embassy in the United States;
6.  a bank statement from the company's bank (one copy);
7.  basic principles of the branch or representative office signed and sealed by the head of the legal
entity (5 copies);
8.  a receipt for payment of the state registration fee--Azerbaijan Manat 825,000 for a branch or
$2,000 for a representative office (payment should be made to the state budget fund at the
National Bank of Azerbaijan, account 30100062, code 501004);
9.  two copies of the registering company's seal and stamps;
10. an identification code;
11.  a document certifying the company's legal address in Azerbaijan.Wholly Foreign-owned or Joint Venture Companies
A company applying for registration of a wholly foreign-owned or joint venture company must
provide documentation listed above in points 1, 2, 5, 6, and 8-11.  In addition, companies
registering a wholly owned or joint venture company should also submit five notarized copies of
the company's charter approved by the founder of the company.  If there are two or more entities
establishing a company, then notarized copies of the minutes of the general meeting establishing
the company, signed and sealed by each founder, are required.  For joint ventures, the
Registration Department also requires two copies of the founding contract.If there is any problem with a company's submitted application materials, the Registration
Department must issue a letter within five working days describing the problem.  Otherwise, the
application of the company goes directly to the board of the ministry and should be approved at
the next registration board meeting.  Following board approval, the ministry will issue a
registration certificate. For more information contact Fazil Mamedov, Chief of the
Registration Department of the Azerbaijani Ministry of Justice, at 011 994 (12) 988-223.Nofal Rzayev represents BISNIS in Baku.This report is provided courtesy of the Business Information Service for the Newly
Independent States (BISNIS)