LLC stands for "Limited Liability Company." It is an abbreviation for a company that is established by one or more individuals (physical or legal persons) and divided into shares according to the charter capital specified in the articles of association.
One of the main advantages of an LLC is that the participants (for example, directors) are not personally liable for the obligations of the company. Additionally, they bear the risk up to the value of the assets they contribute to the company`s activities.
In other words, any commercial organization engaged in trade, manufacturing goods, and providing services is referred to as an MMC. The income earned during the company`s activities is divided among its founders in proportion to their shares in the charter capital. The activities of LLCs are regulated by the Civil Code.
In the Republic of Azerbaijan, the registration of an LLC is carried out according to Article 87 of the Civil Code. The term "LLC" is used specifically for the registration of commercial organizations in the form of an LLC - Limited Liability Company legal entity. An LLC is considered a company established by one or more individuals (physical or legal persons) and divided into shares according to the charter capital specified in the articles of association. The participants of a limited liability company do not bear liability for its obligations and bear the risk up to the value of the assets they contribute to the company`s activities. Therefore, the concept of registering an LLC not only refers to the process of creating any company but also determines its legal form as an LLC.
In accordance with the legislation of the Republic of Azerbaijan, several forms of legal entities (companies) are envisaged. Examples include MMC, JSC, LLC, and other forms. However, among these, the most common form is the limited liability company, namely LLC.
How can an LLC be established?
In practice, there are two forms of establishing an LLC: electronically and conventionally. To register a company online, you need to visit the website of the Internet Tax Administration, enter the "Login" section, enter your ID card FIN code and registered number, and enter the code sent to your phone. Then select the "electronic registration of legal entities" section and enter the relevant information on the application form. Another important point is that when registering the company online, you can also apply for an ASAN signature certificate, order a bank account, and add information about employment contracts to the system. After completing your electronic registration application, the documents for establishing the LLC (Charter of the Company, deregistration, TIN) will be sent to your electronic cabinet by the State Tax Service within 1 working day.
Conventional establishment of LLC
For conventional establishment of the company, the following steps should be taken sequentially:
- Determining the legal name and legal address of the company;
- Preparing a decision of the founders on the establishment of the company
- Preparing the charter of the company;
- Preparing an application for submission to the relevant registration authority and preparing information about the founders (physical or legal persons);
- Payment of state duty;
- Opening a bank account for the company;
- Payment of the charter capital;
- Submitting the documents to the State Registration of Commercial Legal Entities or ASAN service centers
If all your documents are in order, you will be provided with the charter of the company, the tax certificate (TIN), and the deregistration from the State Register of Commercial Legal Entities within three business days. After that, by submitting the charter of the company, you can order the official seal of the company. We recommend that you seek legal assistance to avoid serious problems during the establishment and subsequent stages of your company.
"Samadov" Law and Audit offer all services for the registration of legal entities, opening a bank account associated with the TIN, obtaining permits through the portal, and, in general, all services for opening your company.
