DOING BUSINESS IN AZERBAIJAN 2018 AZPROMO established by: MINISTRY OF ECONOMY OF THE REPUBLIC OF AZERBAIJAN 84 U.Hajibayov str., “The Government House”, Baku, Azerbaijan, AZ1000 phone: +994 12 493 88 67 fax: +994 12 492 58 95 e-mail: [email protected] www.economy.gov.az This publication prepared by: AZERBAIJAN EXPORT & INVESTMENT PROMOTION FOUNDATION Baku Business Center, 32 Neftchiler ave., Baku, Azerbaijan, AZ1000 ov phone: +994 12 598 01 47, +994 12 598 01 48 asad fax: +994 12 598 01 52 vasif by e-mail: [email protected] gned i www.azpromo.az des www.export.az DOING BUSINESS IN AZERBAIJAN2018 Important notice: This information is provided for general guidance only. Specific legal advice should be sought prior to taking any action in respect of the matters discussed herein. Every possible effort has been made to ensure that the information con- tained in this book is accurate at the time going to press. Statistical data by: The State Statistical Commit- tee of the Republic of Azerbaijan DOING BUSINESS IN AZERBAIJAN 2018 CONTENTS COUNTRY INFORMATION 9 HISTORY, GEOGRAPHY AND STATE .................................................. 10 ECONOMIC SNAPSHOT ................................................................... 14 WHY AZERBAIJAN 23 POLITICAL AND ECONOMIC STABILITY ............................................ 24 REFORMIST BUSINESS ENVIRONMENT ............................................. 24 ATTRACTIVE INVESTMENT CLIMATE ................................................ 24 SKILLED LABOUR FORCE ................................................................. 24 A PERFECT HUB ............................................................................... 25 FAST DEVELOPING INFRASTRUCTURE .............................................. 25 ABUNDANT RESOURCES .................................................................. 25 AZPROMO SERVICES ....................................................................... 26 BUSINESS CLIMATE 29 ESTABLISHING A LEGAL PRESENCE .................................................. 30 LAND AND PROPERTY ..................................................................... 33 LICENSING ...................................................................................... 35 EMPLOYMENT ................................................................................ 36 FOREIGN TRADE REGULATION ......................................................... 39 CURRENCY REGULATION AND REPATRIATION OF PROFITS ................ 41 TAXATION ....................................................................................... 43 ACCOUNTING ................................................................................. 50 INTELLECTUAL PROPERTY ............................................................... 52 DISPUTE RESOLUTION AND ARBITRATION ....................................... 54 SECTORS REVIEW 59 ENERGY .......................................................................................... 60 CHEMICALS .................................................................................... 63 AGRICULTURE ................................................................................. 65 FOOD PROCESSING ......................................................................... 68 CONTENTS TEXTILES ........................................................................................ 71 ICT .................................................................................................. 73 CONSTRUCTION .............................................................................. 76 MACHINERY AND EQUIPMENT ........................................................ 78 TRANSPORT AND LOGISTICS ........................................................... 80 TOURISM AND HOSPITALITY ........................................................... 82 FINANCIAL SERVICES ...................................................................... 85 INSURANCE .................................................................................... 86 INDUSTRIAL PARKS ......................................................................... 87 AGRO-PARKS .................................................................................. 89 HIGH-TECHNOLOGY PARKS ............................................................ 89 OVERVIEW OF THE REGIONS 91 ABSHERON ..................................................................................... 92 ARAN ............................................................................................. 92 GANJA-GAZAKH ............................................................................. 93 GUBA-KHACHMAZ .......................................................................... 93 DAGLIG SHIRVAN ............................................................................ 94 SHEKI-ZAGATALA ........................................................................... 94 LANKARAN ..................................................................................... 95 NAKHCHIVAN ................................................................................. 95 YUKHARI GARABAKH ...................................................................... 96 KALBAJAR-LACHIN ......................................................................... 96 GENERAL INFORMATION 99 BUSINESS ETIQUETTE .................................................................... 100 USEFUL CONTACTS 107 ANNEXES & MAP 117 ILHAM ALIYEV President of the Republic of Azerbaijan. In 2017, our country developed rapidly and successfully. The results achieved in all spheres of life have made a great contribution to the overall development of our country. The Azerbaijani people, their will and our policy are the source of stability in Azerbaijan. Our policy is based on national interests, which are above everything for us. Security, stability, economic and social development of our country, its growing role in the international arena are guarantors of stability. In 2017, great successes were achieved in the economic sphere. 2017 was a year of profound economic reforms. The gross domestic product has increased, albeit not significantly. It is particularly gratifying that our non-oil sector has grown – the growth rate constitutes 2.5 per cent. The non-oil sector of our industry has increased by 3.6 per cent and agriculture by 4.1 per cent. Our foreign exchange reserves have also increased. Many important infrastructure and social projects were implemented in our country. These projects require tremendous resources. Despite this, our foreign exchange reserves increased by 4.5 billion dollars in 2017 and currently constitute about 42 billion dollars. Our export potential is growing. In 2017, exports increased by 19 per cent and non-oil exports by 24 per cent. In 2017, we created 221,000 jobs, including 177,000 permanent ones. This is a very good indicator. We should note that at the end of 2017, unemployment in Azerbaijan was at the level of 5 per cent and poverty at 5.4 per cent. I believe that this is one of the best results on a global scale. Many important historic events took place in the field of energy. One of them was the extension until 2050 of the contract for the Azeri-Chirag-Gunashli field. This will allow us the opportunity to maintain our levels of production for many years – at least until 2050. This will make it possible for foreign investors to continue to invest heavily in the oil sector in Azerbaijan. The Games of Islamic Solidarity were held in Azerbaijan . Another success has been added to our politi- cal, diplomatic and economic achievements – the sport success. The Games were held at the highest level. Azerbaijan hosted the entire Muslim world and showed its hospitality. Our athletes delighted us as our na- tional team finished in the first place. At the same time, these Games have been an important step towards strengthening Islamic solidarity. They have demonstrated the intentions and policies of our country. 2017 was declared a Year of Islamic Solidarity in Azerbaijan. Many events held throughout the year both in Azerbaijan and abroad testify that the decision to declare 2017 a Year of Islamic Solidarity won great sup- port and sympathy in the Muslim world. 2017 was a successful year for our country. Our country has become even stronger and is optimistic about the future. 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Gobustan, a the Karakoyunlu, Agkoyunlu and Safavids. De- UNESCO World Heritage Site, located about 70 spite the dominance of large neighboring states, kms south of Baku, has petroglyphs dating back northern Azerbaijan (Shirvan) managed to retain to the 12th century