BAKU, July 22 — Individuals conducting business in Azerbaijan without establishing a legal entity (i.e., sole proprietors) will now be required to notify tax authorities within 15 days of declaring bankruptcy and again upon the conclusion of the bankruptcy process. The new rules aim to increase transparency and protect the interests of debtors and creditors.
President Ilham Aliyev has signed amendments to Azerbaijan’s Tax Code and the Law “On State Registration and the State Registry of Legal Entities.” The legislation introduces stricter procedures for tracking bankruptcy declarations among both individual entrepreneurs and legal entities.
The amendments ensure that tax authorities and state registries maintain up-to-date records on the financial status of individuals and companies undergoing bankruptcy proceedings. For legal entities, any such changes must be reflected in the official state registry within 15 days, down from the previous 40-day window.
Officials say these reforms will enhance risk management, promote financial transparency, and strengthen the legal protection of assets during bankruptcy. Accurate and timely information will also help tax authorities better monitor changes in taxpayer status and align registry data with real-time business operations.
Additionally, under the revised Tax Code, taxpayers must now inform the tax authority of changes to their address or other registration details within 15 days — a significant reduction from the previous 40-day deadline. Legal entities must also submit updated documentation to the state registry within the same 15-day period for any amendments to their founding documents or other key details.
Because taxpayer identification numbers are issued to legal entities at the time of state registration, officials believe these tighter timelines will lead to greater accuracy in official records and streamline administrative processes.
The government sees the amendments as part of a broader strategy to modernize business regulations, improve the efficiency of financial oversight, and ensure better protection for all stakeholders involved in insolvency cases.
