AZE - CHANGES TO MIGRATION LEGISLATION

Please be advised that earlier in May’23 we informed you on considerable changes to the Migration Legislation related to legal requirements for obtaining of temporary/permanent residence and work permits for shareholders, directors and other applicants. It was proposed that a minimum level of share capital along with annual turnover volume should be set up by the relevant state authority in order to determine possibility/ability of  shareholders/directors of the legal entities and other applicants to operate under WP exempt category.

Effectively, on December 29, 2023 the Ministry of Economy of the Azerbaijan Republic, adopted the Decision on the “Approval of the level of share capital and annual turnover of the legal entity for issuance (extension) a temporary or permanent residence permit in the  Republic of Azerbaijan under the requirements of Articles 45.1.6-1, 52.1.10, 52.1.11, point 2 of the Note to the Article 45 of the Migration Code of the Republic of Azerbaijan” (“Decision”).

In accordance with the Decision, as of January’24, (i) (a) director of legal entity with foreign investment established in Azerbaijan can work/operate under WP exemption category if such legal entity meets the minimum requirements relating share capital in the amount of AZN 50.000 and annual turnover of the same is AZN 100.000; (b) founder of legal entity with foreign investment established in Azerbaijan may qualify for WP exemption if holds at least 51 percent of the share capital of such legal entity (above mentioned level of share capital and annual turnover requirements still apply) and active managerial position in the same legal entity.

PREVIOUS READING: Director and/or founder of legal entity with foreign investment regardless of amount of share capital, annual turnover and active participation in the activities of a legal entity could work under WP exemption category.

(ii) The same individuals listed above can apply for Permanent Residence Permit if minimum level of share capital will be at 100.000 and annual turnover is AZN 200.000.

PREVIOUS READING: *Founder of legal entity with foreign investment established in Azerbaijan could apply for permanent residence permit if prior temporarily resided in Azerbaijan for a period of at least 2 years regardless of amount of share capital and annual turnover of the same

(iii) As well as foreign nationals engaged in individual entrepreneurial activity in the Republic of Azerbaijan should have minimum level of turnover at AZN 50.000 to apply for TRP and AZN 100.000 to apply for PRP.

PREVIOUS READING: Foreign nationals engaged in individual entrepreneurial activity could apply for permanent residence permit if prior temporarily resided in Azerbaijan for a period of at least 2 years regardless of annual turnover.

Please note that above mentioned amendments in respect with share capital and annual turnover are effective January 2024, but the requirement on annual turnover for the newly established legal entities will come into force effective January 2025.