If you want to travel to Azerbaijan and explore the existing business opportunities there and in this way found new businesses, invest in or even expand the capacity of your investment, but if you don’t know how to execute it, this concise article will be beneficial for you.
Why Should You Choose to Invest in Azerbaijan?
Strong points of the country are presented below:
- Rapid economic growth;
- Gorgeous geographic location;
- Competitive production costs;
- Cheap and qualified labor-power;
- The significant size of its energy sector;
- Numerous bilateral and multilateral contracts aimed at the promotion of world trade, investment as well as finance.
Initially, it is necessary to know that nowadays the conditions for establishing a company and developing your own business are very favorable and convenient in Azerbaijan. Several reasons are available for this:
1) Due to recent changes to tax legislation, you can quickly become a company in a shorter time with full potential through electronic means without any formal obstacle or interruption and deal with any activities with a maximum extent that are not prohibited by law. Another factor, such as business conditions created by the government for foreign investors and the establishment of additional privileges for them is assisting the involvement of foreign entrepreneurs who initiate coming to Azerbaijan without engaging in any obstacles.
2) One of the main issues which must be known by entrepreneurs who wishes visiting Azerbaijan or wants to invest in is that 90% of the economy consists of oil-gas and oil products in the country. This implies that the non-oil sector is completely suitable for investments. According to recent researches, Azerbaijan is for the time being is within the 10 most suitable countries for investment in the world in terms of future perspectives.
3) Although the biggest portion of the foreign investment is directed to the oil and gas sector, one of the top priorities of the government is to diversify the country’s economy and attract foreign investors, in particular in the following sectors of agriculture, transportation, tourism and information and communication technologies.
4) The country is a member of customs union including Russia, Kazakhstan and Belarus, which, in terms of volume, is the most important in the region and is almost exclusively related to hydrocarbons, with major projects for oil and gas pipelines and relating services. In March 2016, President Aliyev signed a decree establishing a free trade zone next to the “Alat seaport”, locates 65 km south of the capital city Baku. Under the recently amended Customs Tariff law, entrepreneurs importing capital equipment for priority sectors are exempted from taxes up to seven years.
5) Azerbaijan ranks in 65th venue (out of 190 economies) in the World Bank's 2016 Doing Business report. Dealing with construction permits, getting electricity and securing credits are where the country lags behind the most.
How will you stay in the country, on what basis will you be interested in the future and recognize the suitable area for you? The conveniences and opportunities created by the Migration Legislation for foreigners come to your aid. By using various visas and getting different residence permits throughout the country, you will be capable of collecting entire respective data you need for investment. Last but not least, becoming a foreign investor you will be more advantageous, indeed.
03 July 2019