Doing Business in Azerbaijan 2009 - Azerbaijan Export ...

Currency regulation & repatriation of profit
Foreign exchange
Foreign exchange transactions are governed by the Law on
Currency Regulation. The Central Bank of Azerbaijan (CBA)
administers the overall enforcement of currency regulation. Various
aspects of foreign currency regulation also cover precious metals
and foreign securities, among other matters.
Azerbaijan’s currency control legislation distinguishes between
“residents” and “non-residents”, with more stringent requirements
currently applying to residents. The definition of “resident” includes
private individuals having a permanent place of residence in
Azerbaijan and legal entities established in accordance with
Azerbaijani legislation. Branches and representative offices of
foreign entities established in Azerbaijan do not fall within the
definition of a resident. Currency operations are divided into
routine currency operations and operations involving the movement
of capital. Routine currency operations include:
• transfers for payment of goods and services under import/export
contracts with a term of payment not exceeding 180 days;
• transfers in connection with the financing of export/import
transactions with a term not exceeding 180 days;
• transfers of dividends, interest, and other income from deposits,
investments, credits and other operations;
• non-commercial transfers, for example including transfers of
inheritances, wages, pensions or alimony.
Operations involving the movement of capital are deemed to
include all other non routine currency operations, e.g.:
• direct investment in entities for the purpose of deriving profit
and obtaining control over the entity;
BUSINESS CLIMATE
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