Azerbaijan: Recent changes to Migration Code
Please be informed of the changes made to the Migration Code of the Republic of Azerbaijan, which deal with the list of exemptions from work authorization requirement, as well as bases for temporary residence permit (TRP) and permanent residence permit (PRP) applications.
Which law introduces the changes?
The Law of the Republic of Azerbaijan No. 853-VIQD
What are the changes?
1. Deputy heads of Azerbaijani legal entities with foreign participation are now required to obtain work permits.
The exemption from the obligation to have a work permit remains with respect to the heads of such legal entities themselves, and now extends to founders who own at least 51% of shares in the authorized capital.
2. Some of the bases for obtaining the TRP have been amended.
In particular:
- Holding government securities, or investment securities of legal entities with 51% or more shares belonging to the state, which have a nominal value of at least 100,000 manats is a valid basis for obtaining the TRP.
- The possession of the mentioned securities, the possession of real estate on the territory of Azerbaijan and the investment of funds in the form of term deposits in banks may now count towards the amount of investment in the economy. The total amount of such investment of at least 500,000 manats is the basis for obtaining the TRP.
- The TRP may now be issued only to a foreign founder who is the head of an Azerbaijani legal entity, provided that the authorized capital corresponds to the minimum amount approved by the Azerbaijani authorities, or that the founder owns at least 51% of the shares in the authorized capital. Previously, all heads of Azerbaijani legal entities with foreign participation and their deputies were eligible.
After residing in Azerbaijan for at least 1 year, the extension of the TRP on this basis will additionally require that the turnover of the legal entity meets the minimum amount approved by the authorities.
The requirements for the authorized capital and turnover do not apply to the following categories of legal entities:
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Those having an investment promotion document or a Startup Certificate
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Those carrying out activities in economic areas established by the authorities
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Non-commercial legal entities
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Residents of industrial parks, industrial districts and agricultural parks
3. The law elaborates on the bases for obtaining a PRP.
Obtaining a TRP on specific bases and continuous temporary residence for at least 2 years are retained as key requirements.
NB! The period of temporary residence is considered continuous if a person has not left the territory of the Republic of Azerbaijan for more than 90 days within 180 days.
However, the law now contains a specific list of cases, in which the PRP may be granted. Some of them are stricter than the corresponding bases for obtaining the TRP. In particular, the PRP may be granted in the following cases:
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If the father, mother, husband (wife), child, sister or brother are citizens of Azerbaijan (for the purpose of obtaining TRP the list of close relatives is not specified)
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If a foreign national owns real estate or has term deposits in banks in the territory of Azerbaijan in the amount of at least 200,000 manats (for the purpose of obtaining TRP the amount of at least 100,000 manats will suffice)
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If a foreign national holds government securities, or investment securities of legal entities with 51% or more shares belonging to the state, which have a nominal value of at least 200,000 manats (in contrast to 100,000 manats for obtaining a TRP)
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If the founder is the head of an Azerbaijani legal entity with foreign participation. The conditions are the same as for obtaining a TRP, but the minimum turnover requirement is added. Similar to obtaining the TRP on this bases, exceptions apply for some categories of legal entities.
Who is affected?
Foreign nationals who plan to obtain work permits, TRP or PRP in Azerbaijan.