Increased fines for failure to update   registered information on legal entities  

Significant amendments concerning legal entities have been made to the Administrative Offences Code of the Republic of Azerbaijan.  The fine for failure to submit an application to the relevant executive authority for registration of changes to incorporation documents and registered information on legal entities and the branches and representative offices of foreign legal entities in Azerbaijan within 40 days after the change has been substantially increased.  Previously the fine for missing the deadline was AZN 40, now officials will be subject to a fine of AZN 1,000 to 2,000 and legal entities of AZN 2,500 to 3,000. The relevant executive authority is the Ministry of Taxes of the Republic of Azerbaijan for commercial legal entities and the Ministry of Justice of the Republic of Azerbaijan for non-commercial legal entities (i.e. foundations and public associations).

For instance, if the name of a founder of a limited liability company has been changed the company will be subject to the fine mentioned above unless it submits an application to the Ministry of Taxes within 40 days after the resolution on the change of name has been passed.

Additional requirements on updating the registered information on legal entities

Pursuant to the amendments made to the Law on State Registration and the State Register of Legal Entities of the Republic of Azerbaijan, no business can be carried out by legal entities and the branches and representative offices of foreign legal entities on the basis of unregistered changes.

Any failure to apply for registration of previous changes revealed during a review of documents for registration of subsequent changes to incorporation documents and registered information on legal entities and the branches and representative offices of foreign legal entities will be rectified with the relevant entity being fined as discussed above.

In accordance with another amendment, in cases of state registration of a change of name of a legal entity or the branch or representative office of a foreign legal entity, the seal of that entity must be submitted to the relevant executive authority. Otherwise, documents confirming changes to the incorporation documents and registered information will not be issued.