Step 1
Obtaining an electronic signature
To obtain an electronic signature, purchase and activate an ASAN Imza.
Contact your mobile operator; you'll need your current number registered in your name or acquire a new one. Activation is conducted in “ASAN Service” centers.
“ASAN Imza” comes in two types: personal and business. A business signature is required for registering as an individual entrepreneur. Make sure to mention this when purchasing.
Step 2
Choosing the type of activity
There are a total of 758 types of activities. Review the list via this link or find the relevant type by searching on the tax website during registration.
Some types of activities require a license (details available here).
Initially, choose an activity that doesn’t require a license, as obtaining a license requires having a TIN. You can add the license after opening the TIN.
Step 3
Choosing the tax obligation
An individual must select the appropriate tax regime based on their activity.
Simplified Tax (2%): Best for those providing services to individuals. Tax is 2% of total income without expense deductions. For example, 2% of 100 AZN income equals 2 AZN. The turnover should be up to 200K AZN.
Income Tax (20%): Suited for those working with other taxpayers. Tax is 20% of income after deducting expenses. For example, with 20,000 AZN income and 5,000 AZN expenses, tax is 20% of 15,000 AZN, or 3,000 AZN. Income tax is paid at a 5% rate if there are at least 3 employees.
Value Added Tax (VAT, 18%): Recommended for importers and those working with VAT payers. It is recommended primarily for those who import and work with VAT payers (to offset VAT). If the turnover exceeds 200K AZN in the last consecutive 12 months, it is mandatory to become a VAT payer.
Step 4
Registration on the tax website
Log in to the tax website with your ASAN signature (enter PIN 1 within 2 minutes). Register, fill out the application, and submit it. Include your address, activity code, and tax regime. Confirm the application with PIN 2 within 2 minutes.
Step 5
Obtaining the certificate
Get the certificate in your personal account on the tax website. The document confirms receipt of the TIN.
Step 6
Opening an account in the bank
Open an account online at PASHA Bank. A manat account is mandatory. For international transactions, add a foreign currency account.
The differences will help you choose the legal form
| Individual entrepreneur | Legal entity |
|
One person |
Not tied to a specific individual |
|
Liable for debts with their own assets |
Liable for debts only with its own assets |
|
Does not pay tax on dividends |
The founder pays a 10% tax on dividends |
|
Profits from the business activities belong entirely to them |
Profits belong to the company and not to the founders |
| Legal entity |
|
Not tied to a specific individual |
|
Liable for debts only with its own assets |
|
The founder pays a 10% tax on dividends |
|
Profits belong to the company and not to the founders |
Both individual entrepreneurs and legal entities can enter into contracts, hire employees, buy and sell goods, rent warehouses, and build production facilities, etc.
