The Republic of Azerbaijan routinely carries out systematic actions for the quick and sustainable growth of the economy. Since gaining its independence from the former Soviet Union in 1991, Azerbaijan has undertaken several initiatives to lure in foreign capital and businesspeople. Of course, none of these measures have proven ineffective. As a result, Azerbaijan saw a significant increase in international investment throughout these years. As a result, the share of foreign investments is currently increasing in both the oil industry and the non-oil sector. The fundamental cause of this, of course, is Azerbaijan’s welcoming business and investment environment. Azerbaijan is ranked 34th out of 190 nations in terms of how easy it is to do business, per the “DOING BUSINESS” data.
This is adequate for a nation that has recently reclaimed its economic independence. Additionally, it supports the idea that the sustainable economic growth strategy will lead to even better outcomes soon. But what exactly defines this climate as business-friendly? Why do foreign investors choose to conduct business in Azerbaijan?
Economic, political, and legal stability provide a favorable environment for foreign investors.
The country of Azerbaijan now has exceptionally favorable political, economic, and legal conditions for those looking to start a business or make new investments. Therefore, the purpose of the state’s foreign policy is to build strong international relationships, which is seen in all areas of endeavor. Azerbaijan’s economic policy is characterized by its interest in and openness to international trade. This entails adopting a welcoming mindset toward both foreign employees and money.
Economic stability
One of the most essential conditions for foreign entrepreneurs to launch a business is a stable economic climate. A stable economic environment aids forecasting and investment decisions, which lowers company risks. The establishment of a stable economic environment was one of the key objectives Azerbaijan established for itself during its independence.
We can certainly say today that Azerbaijan’s economic statistics are steady and growing rapidly. One of the motivations for encouraging foreigners to create businesses in Azerbaijan alongside locals is this.
Legal stability
The legal assurance of these measures is one of the key prerequisites for assuring economic progress. A favorable business climate is a result of stable legislation. Investors might thereby prepare for their future legal concerns. Unfavorable conditions may arise due to an uncertain legislative environment. And even if the current investment climate is good, it can still happen in the future.
The Republic of Azerbaijan’s legislation is stable, and one of its top focuses is to defend the rights of investors.
Ease of starting a business in Azerbaijan
One of the primary factors attracting foreign investors to Azerbaijan is the ease with which a business can be established. In “Doing Business” surveys, Azerbaijan ranks ninth out of all countries. When it comes to ease of doing business, costs, turnaround time, and minimal capital needs for company registration, Azerbaijan is unbeatable.
Ease of procedure
The proper and prompt execution of procedural actions is one of the key considerations when beginning a firm. Investor activity is somehow hampered by the intricacy of the company registration process, resulting in time waste. For international investors, this process may be more difficult and time-consuming because they are unfamiliar with the country’s laws and legal system. Therefore, one of the factors that encourage foreign investors to launch a business in Azerbaijan is the country’s online registration procedure.
Saving time
Creating a company simply just three business days. Registration online takes 1-2 days. As a result, quick and easy processes let business owners concentrate all of their time on growing their company.
Minimum requirements when starting a business in Azerbaijan
Capital is one of the major problems while beginning a business. In Azerbaijan, there is no minimum requirement for this. Starting a firm does not need to make a capital declaration. Subject to statutory criteria, any minimal amount of money can be used to launch a business in the Republic of Azerbaijan.
The simplicity of the licensing procedure
The fewer sorts of company activities and permits that call for a license are other factors that promote commerce. The number of fees and the simplification of the application process for licenses promotes the creation of an environment that is conducive to business.
