Azerbaijan changes procedures for permanent, temporary residence permits for foreigners

Foreign citizens and stateless people must have real estate worth at least 200,000 manats ($117,647) or a bank deposit for this amount to obtain a permit for permanent residence in Azerbaijan.

This requirement was outlined in the draft amendments to the Azerbaijani Migration Code, Report informs.

The corresponding executive bodies will send a list of people who have a permit for permanent residence in the country to the banks within three working days.

If the amount of the term deposit of these people is less than 200,000 manats or the deposit agreement is terminated, the bank must notify the relevant executive bodies within three working days.

An amount worth 100,000 manats ($58,823) is considered acceptable for obtaining a temporary residence permit.

The conditions for issuing temporary residence permits to foreigners and stateless people in Azerbaijan are being tightened.

According to Article 45.1.6-1 of the Migration Code, a temporary residence permit is issued to foreigners and stateless people in Azerbaijan if they hold the position of head and deputy head of a legal entity registered in Azerbaijan, and the founder or at least one of the founders should be a foreign legal person or an individual.

In practice, there are cases of abusing this article. Not all foreigners who have established a legal entity actually intend to engage in entrepreneurship, their goal is to obtain a temporary residence permit in the country, or use the country's territory to travel to third countries. As a result of this change, a new approach is expected to be created and regulation is expected to be improved in this sphere.

The new version of Article 45.1.6-1 tightens the conditions for issuing a temporary residence permit in Azerbaijan to foreigners and stateless people residing in the country for at least one year.

A new article 45.3 is proposed to be added to the Code as a result of this amendment. Thus, a list of people who have received a temporary residence permit in Azerbaijan, owning state securities or investment securities of legal entities, whose shares by 51 or more per cent are owned by the state, is sent by the relevant executive bodies within three working days to the National Depository Centre.

In case of a decrease in the total nominal value of investment securities, including state securities owned by these people, below 100,000 manats or the alienation of these securities, the National Depository Centre will provide this information to the corresponding executive body within three working days.

A temporary residence permit will be issued to foreigners and stateless people in Azerbaijan if they own state securities worth at least 100,000 manats.

Thus, temporary residence permits will be issued to foreigners as a result of the amendment if they have state securities with a nominal value of at least 100,000 manats or investment securities of legal entities whose shares are by 51 per cent or more owned by the state.

A work permit will not be required for a foreign founder who owns at least 51 per cent of the company's authorised capital in Azerbaijan.

Thus, a work permit will not be required for the heads of legal entities established in the Republic of Azerbaijan, the founder or at least one of the founders should be a foreign legal entity or individual, as well as the founder (working in an established legal entity) should own at least 51 per cent of shares of this legal entity.