In paragraph 4.3 of the decision of the Board of the Central Bank of the Republic of Azerbaijan dated November 28, 2016 on the "Rules for transactions of residents of the Republic of Azerbaijan in foreign currency, as well as non-residents in national and foreign currency", transactions in which transfers are made in foreign currency from bank accounts outside the Republic of Azerbaijan has been noted. Sub-paragraph 4.3.4 of the same paragraph stipulates that one of these operations includes transfers made with the purpose of declaring the purpose to branches and representative offices of resident legal entities located abroad, as well as to their subsidiary and subordinate institutions.
In paragraph 4.3 of the decision of the Board of the Central Bank of the Republic of Azerbaijan dated November 28, 2016 on the "Rules for transactions of residents of the Republic of Azerbaijan in foreign currency, as well as non-residents in national and foreign currency", transactions in which transfers are made in foreign currency from bank accounts outside the Republic of Azerbaijan has been noted. Sub-paragraph 4.3.4 of the same paragraph stipulates that one of these operations includes transfers made with the purpose of declaring the purpose to branches and representative offices of resident legal entities located abroad, as well as to their subsidiary and subordinate institutions.
According to the official response to the inquiry of Caspian Legal Center addressed to the Central Bank of the Republic of Azerbaijan, this article includes the transfer of loan funds to subsidiaries of resident legal entities on the basis of a loan agreement. Thus different interpretations are officially negated, payments to foreign subsidiary companies and branches are not limited to the contribution in cash for the shared capital and remuneration for the expenses of the branches respectively. The Central Bank officially confirmed that loan transfers to foreign subsidiaries under proper loan agreements are also allowed under this provision.
If you have any questions about foreign currency and transactions with it, you can contact us via:
email: office@caspianlegalcenter.az; and mobile: +994502898973.
Entering the Azerbaijani market and establishing a legal entity are relatively easy. But business...
Consulting companies are usually companies that provide consulting services. Consulting companies...
Decision of the Constitutional Court regarding mortgage
Payroll services, HR documentation, paying payroll taxes, payroll consultancy are among our servi...
Here we explain certain legal and practical aspects of using bank guarantees in Azerbaijan. Use o...