AZE - CHANGES TO MIGRATION LAW
Legal requirements for obtaining of temporary/permanent residence and work permits are being changed for shareholders, directors and other applicants
Legal requirements for obtaining of temporary/permanent residence and work permits are being changed for shareholders, directors and other applicants
On 16 May 2022, the Law of the Republic of Azerbaijan on Amendments to the Migration Code of the Republic of Azerbaijan (“Law”) has come to force.
Among other points of interest, some existing articles of the Migration Code relating to issuance of temporary residence and work permits were amended as well as certain provisions relating to issuance of permanent residence permit was completely revised.
The changes cover two major directions: (i) grounds for issuance of temporary residence permit and (ii) grounds for issuance of permanent residence permit
As per the Law, along with already established grounds for issuance of permits for temporary residence to foreign nationals and stateless persons (here-in-below foreign nationals) in Azerbaijan, as of now, foreign nationals should be prepared to invest in country’s economy at least AZN500,000 including real estate worth at least AZN 100,000 in the territory of the Republic of Azerbaijan as well as to hold government securities with a nominal value of at least AZN100,000 or stocks of legal entities whose shares are at least 51 percent owned by the state, in order to apply for temporary residence permit.
Moreover, head of legal entity incorporated in the Republic of Azerbaijan where the founder(s) is a foreign legal or physical person can now apply for temporary residence permit if the share capital of such legal entity is not less than the amount approved by the relevant executive authority (level to be determined and advised within 3 months from the date the Law came into force) or when such a person owns at least 51 percent of the shares of legal entity provided that the annual turnover of the same meeting the minimums determined by the Ministry of Economy of the Republic of Azerbaijan (level to be determined and advised within 3 months from the date the Law came into force). A certain form of recording will have to be developed by the Tax Authority within the same time frame.
Furthermore, the list of foreigners having temporary residence permit and holding state securities or stocks of legal entities whose shares are 51 percent or more owned by the State, will be forwarded to the National Depository Center. Should the nominal value of the such investment owned drop below AZN100,000 or if these securities are sold, transferred, expropriated, etc. then the National Depository Centre will share the same information with the State Migration Service within 3 business days for their further consideration.
The above-mentioned requirements do not apply to business entities that have so called investment promotion document or a Startup certificate, operating in free economic zones, non-commercial legal entities, residents of industrial parks, industrial districts and agricultural parks as may be determined by the government. Some of the documents mentioned in this para are still developed by the government and circulated to general public.
Considerable changes have been made to the circumstances around issuance of TRP for those foreign nationals engaged in individual entrepreneurial activity and for those working under the auspices of international agreements in Azerbaijan. Thus, as of May 16, 2023 the above-mentioned categories of foreign nationals could only be considered for issuance of permit for temporary or permanent residence in the territory of the Republic of Azerbaijan if at least 5 individuals are employed for full-time work or, at least 10 individuals have found a part-time employment by signing duly registered local employment contract. Furthermore, to qualify, at least 80 percent of the above-mentioned employees must be citizens of the Republic of Azerbaijan or individuals listed in the Migration Code (holders of permanent residence permit, seaman, employees of Alyat Free Economic Zone or IT parks, etc.).
Also, certain changes have been made to the conditions for issuance of permanent residence permit (newly updated list is available at www.migration.gov.az). In accordance with the changes, heads of establishments and their deputy can apply for permanent residence permit if they prior temporarily resided in Azerbaijan for a period of at least 2 years.
It is also worth mentioning that, heads of legal entities established in Azerbaijan as well as founders of legal entities with foreign investment holding at least 51 percent of the share capital of such legal entity can apply for permanent residence permit, provided they meet the criteria established by the Ministry of Economy of the Republic of Azerbaijan in relation to annual turnover (will be available within 3 months from the date the Law came into force).
Founder(s) of legal entities with foreign investment established in Azerbaijan and holding at least 51 percent of the share capital of such legal entity who also happened to maintain active managerial position in the same legal entity may enjoy exemption from work permit. The same relating to heads of such legal entities.