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Guide to doing business in Azerbaijan – Civil Legislation and Language Policy

Guide to doing business in Azerbaijan – Civil Legislation and Language Policy

On the previous article, we took a general look at doing business in Azerbaijan. Let’s take further sights on its civil code and language requirements.

The Civil Code constitutes the basis of civil law in Azerbaijan which was adopted in 1999. The Constitutional Law possesses its supremacy over the civil code and other normative legal acts, the state acts, agreements, transactions. Civil Code establishes its general supremacy over other legal acts adopted in furtherance of laws regulating civil law relations.

The purpose of the Code is to secure the freedom of civil relationships based upon the equality of the parties without prejudice to affecting the rights of other persons as it has been defined in Article 1.

The goals of the Civil Code are to:

  • Regulate the property and personal non-property relationships of the subjects of civil law legislation;
  • Protect the rights and lawful interests of the subjects of civil law legislation;
  • Protect the honor, dignity, business reputation, private and family life, personal
  • Security of natural persons;
  • Secure civil relationships;
  • Support entrepreneurial activity;
  • Establish conditions for the development of a free market economy.

There are two parts in the Civil Code:

  1. The General Part
  2. The Special Part.

The provisions applicable to persons (both individual and legal entities), the general framework of property and property rights (based on movable and immovable properties), creation occurrence of civil rights and obligations stems from unilateral and mutual acts, agreements. Moreover, this Part introduces provisions-in-detail applicable to legal entities, regulating various types of legal entities and their organizational forms. Main principles of a legal entity’s establishment, state registration, management, activity, liquidation, and reorganization have also been included accordingly.

The Special Part of the Civil Code defines specific rules governing particular types of contracts. Apart from contracts such as sale and purchase, lease, loan, commission, transportation, storage and supply, franchises, concessions are being regulated by the Civil Code too. General provisions of different forms of security transactions, inheritance, and damage caused by non-contractual relations and its reimbursement rules are regulated by the Special Part of the Civil Code and other legal acts those are compatible to International legal liabilities taken by the state, Constitutional Law and others.

 

Although, in many jurisdictions, this has been excluded, however in Azerbaijan and in its legal system the choice of law is being respected. In a case of civil transactions where a foreign element occurs (e.g., one side of the mutual contract is a foreign legal or natural person), the parties are free to choose foreign law as the governing law.

Under the Constitution, Azerbaijani language is the official language of the Azerbaijan Republic and it ensures free to use and development of other languages spoken by the people.

Azerbaijani language is being officially used at any pillars of the administration, legislation, court proceedings (member of minorities could use interpretation service provided by the court where all dues and fees under this service are completely paid by the state) organizations, business enterprises and all other entities in their official interactions. Any form of legal documents transacted within Azerbaijani law, such as notarization, legalization, registration, or another form of formalization of a foreign-language document requires translation into Azerbaijani with subsequent notarization of the translation.

People applying for a permanent residence permit way forward to stay in Azerbaijan are required to pass language exam-interview.

Letterheads, signs, and any kind of other items of official paperwork as well as announcements, advertisements, price tags, labels, and all certifications shall be in Azerbaijani language whereas foreign language description is possibly available.

 

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