People who want to set up a limited liability company (LLC, MMC) most often ask: how long does registration take, is there a fee, and can it be done online? In this article we explain the main rules of electronic state registration of an LLC based on the Law "On State Registration and the State Register of Legal Entities".
What is electronic LLC registration?
The law provides for state registration of legal entities in electronic form. For an LLC there are two forms of electronic registration: fast electronic state registration and ordinary electronic state registration. The main difference between them is the time it takes.
How long does LLC registration take?
Under the law, electronic state registration of an LLC with local investment is carried out (Law on State Registration of Legal Entities, Article 7-1):
| Registration form | Time |
|---|---|
| Fast electronic state registration | immediately |
| Ordinary electronic state registration | no later than 1 day |
Is a state fee charged for electronic registration?
Under Article 4.3 of the law, a state fee is charged for state registration, but electronic state registration of an LLC with local or foreign investment is an exception to this rule. In other words, no state fee is charged when an LLC is registered electronically (Law on State Registration of Legal Entities, Article 4.3).
This is one of the main advantages of electronic registration compared with a paper application.
Why is an enhanced electronic signature needed?
During electronic registration, the founder must authenticate with an enhanced electronic signature (Law on State Registration of Legal Entities, Article 5-2.1). This confirms that the application was actually submitted by the founder.
What to think about before registration?
Besides the technical requirements of the law, it is useful to clarify a few questions before setting up an LLC:
- Who are the founders of the company and how will the shares be divided?
- What is the company's name and line of business?
- Who will be the director and how will their powers be defined?
- Do all founders have an enhanced electronic signature?
- Which form of registration will you choose — fast or ordinary?
To prevent relations between founders, transfer of shares and management rules from becoming a dispute later, it makes sense to agree on these issues before the documents are prepared.
Summary
- An LLC can be registered electronically: in a fast or ordinary procedure.
- For an LLC with local investment, fast electronic registration is carried out immediately, ordinary electronic registration no later than 1 day (Article 7-1).
- No state fee is charged for electronic registration of an LLC with local or foreign investment (Article 4.3).
- The founder must authenticate with an enhanced electronic signature (Article 5-2.1).
If you have legal questions about setting up an LLC, founding documents or an agreement between founders, message us on WhatsApp: +994 77 739 10 12
📚 Sources
🌐 The original article is in Azerbaijani; the official sources are available in Azerbaijani.
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