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TurkeyNikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the CBAR licence, including banking and payment rails.
Forex license in Azerbaijan: CBAR investment-company licence.
A forex license in Azerbaijan is a Central Bank of the Republic of Azerbaijan (CBAR) licence for an investment company, which alone may offer margin trading in CFDs. Own-account dealing must be in the licence, so charter capital is AZN 300,000, yet for two years the firm must pass every client order to a liquidity provider. We plan for 9-12 months, with the file run from our Baku office.
27 yrs
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Licenses obtainedlicenses obtained
Updated · Reviewed by the Prifinance team
Azerbaijan in brief
Forex license in Azerbaijan: margin trading on the CBAR's rules, agency first.
Azerbaijan has no licence called forex. Margin trading, which the Rules on margin trading (CBAR Board Decision No. 23/2 of 31 August 2021) apply to CFDs on currency pairs, indices, commodities, shares and crypto, is an investment service that only an investment company licensed under the Law on the Securities Market (Law No. 1284-IVQ of 2015) may provide. The CBAR licenses and supervises those companies, a role the abolished Financial Markets Supervisory Chamber held before it. The company is a joint-stock company with "investisiya şirkəti" in its name, and point 3.1.1 of the Rules requires three services in its licence: Arts. 30.3.1, 30.3.7 and 30.4.1 of the Law. Art. 30.3.7, own-account dealing, puts it in category A of the 2015 capital rules (decision 10-q): AZN 300,000 of charter capital, paid in cash, against AZN 75,000 for agency-type services alone. We confirm the current amounts with the CBAR before budgeting.
The Rules then write the product. Retail leverage stops at 50:1 on major currency pairs, 20:1 on other pairs, gold and indices, 10:1 on other commodities and shares and 2:1 on crypto, while professional and institutional clients may reach 100:1. A margin call comes at a 100% margin level, positions are closed at 20%, and a loss beyond the deposit may not be claimed from the client. The awkward rule sits in point 6.3. A firm may be its clients' counterparty (Model B) only after two years of margin-trading experience, so a new licensee starts on Model A and passes every order to a liquidity provider supervised at least as strictly as in Azerbaijan. Client money stays in a separate account at a bank operating in Azerbaijan. Profit tax is 20%, and dividends have carried 5% withholding since 1 January 2024.
Margin trading in CFDs on currency pairs, indices, commodities, shares and crypto needs a CBAR-licensed investment company: a joint-stock company with AZN 300,000 of charter capital in cash.
Retail leverage runs from 50:1 down to 2:1, and a new firm passes orders to a liquidity provider for two years before Model B. Profit tax 20%, dividends 5%.
The two models
Model A from the first day, Model B after two years.
The same three licensed services carry both execution models of point 6.1, and the model in use is the one stated in the firm's business plan (point 11.2.3); how the CBAR handles the switch is confirmed per case. Under Model A the firm passes all client orders to liquidity providers under contract; under Model B it is the client's counterparty and executes at its own expense, at prices it sets. The capital is AZN 300,000 either way. Two years of experience decide the switch.
Model A from launch; Model B, the firm as counterparty, after two years.
01 - MODEL A · INVESTMENT COMPANY
The agency start under a full licence
A newly licensed investment company passes every client order to a liquidity provider under contract and bears full responsibility for execution (point 6.2). The provider must be established in a country whose margin-trading supervision is equal to or stricter than Azerbaijan's, with at least two years of CFD margin-trading experience.
A newly licensed investment company passes every client order to a liquidity provider under contract and bears full responsibility for execution (point 6.2). The provider must be established in a country whose margin-trading supervision is equal to or stricter than Azerbaijan's, with at least two years of CFD margin-trading experience.
- ✓Joint-stock company, investisiya şirkəti in the name
- ✓Licence for Arts. 30.3.1, 30.3.7 and 30.4.1
- ✓AZN 300,000 charter capital, in cash
- ✓Provider under equal or stricter supervision
- ✓Provider with two years of CFD experience
- ✓Client money at a bank in Azerbaijan
02 - MODEL B · COUNTERPARTY
After two yearsThe firm as its clients' counterparty
After at least two years of experience in margin-trading services and in client-account and risk-management systems, the firm may execute at its own expense and at prices it sets (point 6.3). Model B carries the heaviest IT duties in the Rules: an off-site backup centre whose yearly live run is reported to the CBAR within 7 working days, and penetration and restore tests every year (point 8.5).
Two years of margin trading, then execution at the firm's own prices, with a backup centre and yearly tests.
- ✓Two years of margin-trading services
- ✓Execution at prices the firm sets
- ✓Off-site backup centre, yearly live run
- ✓Penetration and restore tests yearly
- ✓UPS, generator, recovery plans
- ✓Passwords changed every 90 days
Costs and timelines are confirmed for your case before any work begins. The licensing stages and state duty are confirmed in the quote, and the liquidity-provider contract and the IT build are itemised beside the AZN 300,000.
Why Azerbaijan
A full CFD shelf in written rules, and a two-year wait for market making.
The CBAR's 2021 Rules answer most product questions in writing, from leverage to the demo account, and set one hard limit for a newcomer.
✓
Five asset classes, one rulebook
The Rules cover CFDs on currency pairs, indices, commodities, shares and crypto, with a retail cap set for every class. Adding an underlying beyond the list in point 7.2 takes written notice to the CBAR at least 3 working days before it is admitted (point 6.4).Currency pairs, indices, commodities, shares, crypto.
✓
100:1 for professional clients
Institutional and professional investors may trade at up to 100:1 (point 7.3). A client becomes professional on a written request with a risk declaration and two of three tests: 10 trades a quarter over the last year, a bank statement of AZN 20,000, or a year of investment work in finance.Written request and two of three tests.
✓
Onboarding by video
Under the CBAR's Rules 23/1 on investment services, an individual can open a margin account remotely, by enhanced electronic signature or by video identification, and the video route covers accounts for trades totalling up to AZN 15,000 in the first year (point 15.1). Legal persons sign electronically.Up to AZN 15,000 in year one.
✓
5% on dividends
The State Tax Service announced on 28 December 2023 that dividend withholding was cut from 10% to 5%, and the lower rate has applied since 1 January 2024. Profit tax stays at 20%.Since 1 January 2024; profit tax 20%.
✓
Our Baku office
The file runs through our Baku office: the joint-stock company and its share issue, the CBAR application, the liquidity-provider contract and the client-money account at a bank in Azerbaijan.Company, CBAR file, provider, bank account.
✓
Warning: no market making for two years
Point 6.3 lets a firm be its clients' counterparty only after two years of margin-trading experience. A newly licensed company runs on Model A, so a business plan that needs B-book revenue from launch does not fit Azerbaijan.No counterparty dealing for two years.
How it compares
How Azerbaijan differs from other routes.
The AFSA in Kazakhstan's AIFC licenses principal dealing at USD 500,000 of base capital, the DFSA in the DIFC at US$2 million, and Georgia's NBG asks GEL 500,000 of a broker that trades currency or derivatives. Azerbaijan asks AZN 300,000 but keeps a new firm off the counterparty side for two years.
Azerbaijan vs other jurisdictions
| Feature |  Azerbaijan | Other jurisdictions |
|---|---|---|
| Principal dealing | Model B after 2 years · AZN 300,000 | USD 500,000 AIFC · US$2M DIFC Cat 2 · GEL 500k Georgia |
| Margin close-out | Call at 100% · close-out at 20% | 50% of margin · AIFC (COB 5.7) |
| Profit tax | 20% · 5% on dividends | Exempt to 2066 AIFC · 9% DIFC · 0% retained Georgia |
| Timeline | 9-12 months planned | 6-9 AIFC · 8-14 DIFC 3A · 3-6 Georgia (months) |
Principal dealing
AzerbaijanModel B after 2 years · AZN 300,000
Other jurisdictionsUSD 500,000 AIFC · US$2M DIFC Cat 2 · GEL 500k Georgia
Margin close-out
AzerbaijanCall at 100% · close-out at 20%
Other jurisdictions50% of margin · AIFC (COB 5.7)
Profit tax
Azerbaijan20% · 5% on dividends
Other jurisdictionsExempt to 2066 AIFC · 9% DIFC · 0% retained Georgia
Timeline
Azerbaijan9-12 months planned
Other jurisdictions6-9 AIFC · 8-14 DIFC 3A · 3-6 Georgia (months)
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Azerbaijan | CBAR investment company | 20% profit tax · 5% dividends | AZN 300k capital, Model A first |
 Kazakhstan · AIFC | AFSA licence · Dealing as Principal | CIT exempt to 2066, VAT exempt · substance | USD 500k base capital, USD 14,000 fee |
 Georgia | NBG brokerage company | 0% · 15% distributed | GEL 500k capital · 45 working days |
 UAE · DIFC | DFSA Cat 3A/2 | 9% · 0% qualifying | US$500k-2M, common law |
AzerbaijanLicense typeCBAR investment company
Taxation20% profit tax · 5% dividends
RequirementsAZN 300k capital, Model A first
Kazakhstan · AIFCLicense typeAFSA licence · Dealing as Principal
TaxationCIT exempt to 2066, VAT exempt · substance
RequirementsUSD 500k base capital, USD 14,000 fee
GeorgiaLicense typeNBG brokerage company
Taxation0% · 15% distributed
RequirementsGEL 500k capital · 45 working days
UAE · DIFCLicense typeDFSA Cat 3A/2
Taxation9% · 0% qualifying
RequirementsUS$500k-2M, common law
Rest of Europe
Forex licences in neighbouring jurisdictions
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Before you apply
Forex license requirements in Azerbaijan: what the CBAR checks.Azerbaijan forex license requirements.
The CBAR checks the company and its licensed services first, then the margin-trading machinery the Rules describe point by point. The list follows the order in which we build the file.
01
Joint-stock company - an investment company formed as a joint-stock company with "investisiya şirkəti" in its name and licensed by the CBAR under the Law on the Securities Market.
02
Licensed services - Arts. 30.3.1, 30.3.7 and 30.4.1 of the Law in one licence (point 3.1.1 of the Rules); for margin trading on foreign-listed instruments, membership of that exchange or a contract with a member (3.1.3).
03
Charter capital - AZN 300,000 once Art. 30.3.7 is in the licence (10-q Rules 2.5), paid in cash only (3.1), with the share-placement proceeds kept in a special account at a clearing-member bank (3.2).
04
Owners and managers - no conviction for an intentional crime for anyone holding 10% or more; for board and executive members, no conviction, no prosecution for serious property or economic crimes and no court ban on the post (Art. 1.0.27).
05
Certified staff - employees with qualification certificates in the number Art. 43.2 of the Law sets (point 3.1.2), with order execution kept apart from own-account dealing and own-account dealing apart from advice (Rules 23/1 points 12.1-12.2).
06
Internal rules - approved by the supervisory board and covering know-your-client and acceptance, beneficial-owner checks, client risk categories, best-price execution, records, complaints and conflicts of interest (Rules 23/1 points 17.1-17.3).
07
Margin systems - risk-control and margin-calculation software that warns clients of sudden price moves (point 3.1.4), and internal margin-trading rules on collateral, fees, staff duties, IT security and access (3.1.5, 3.2).
08
Liquidity provider - for Model A, a contract with a provider established where margin-trading supervision is equal to or stricter than Azerbaijan's, with at least two years of CFD experience (point 6.2).
09
Client money - a separate account only in a bank operating in Azerbaijan (point 3.8), never used for other clients or for the firm's own purposes (3.9).
10
Onboarding and disclosure - a signed risk notice (Annex 1), the demo requirement of 30 trades over 5 working days for non-professional clients (6.9-6.10), the advertising warning (3.12) and the website disclosures of point 11.2.
01
Joint-stock company, investisiya şirkəti.
02
Arts. 30.3.1, 30.3.7, 30.4.1 licensed.
03
AZN 300,000 charter capital in cash.
04
Clean owners from 10%, clean managers.
05
Certified staff, roles kept apart.
06
Internal rules from the supervisory board.
07
Margin software with price-move alerts.
08
Liquidity provider for Model A.
09
Client money at a local bank.
10
Risk notice, demo, website disclosures.
Reflects Law No. 1284-IVQ on the Securities Market, the CBAR's Rules 23/1 and 23/2 of 31 August 2021, in force since 14 September 2021, and the 2015 capital rules (decision 10-q), as of October 2026.Law No. 1284-IVQ, CBAR Rules 23/1 and 23/2, decision 10-q, as of October 2026.
Verify it yourself
Official sources
Regulator pages, legal texts and public registers the figures on this page are based on.
- LawRules on margin trading (Marja ticarəti Qaydası), CBAR Board Decision No. 23/2 of 31.08.2021 - e-qanun.aze-qanun.az
- RegulatorCentral Bank of the Republic of Azerbaijan - Regulations on margin trading (English)cbar.az
- LawLaw on the Securities Market (Qiymətli kağızlar bazarı haqqında) - president.azpresident.az
- GuidanceState Tax Service - Dividend tax rate cut to 5% (28.12.2023)taxes.gov.az
How it works
From the joint-stock company to the first margin client.
01
Model and scope
Model A from launch, the three licensed services and the product list under point 7.2, fixed in writing before the company is formed.Model A, three services, product list.
02
Company and capital
The joint-stock company and its share issue, with AZN 300,000 paid in as cash.Share issue, AZN 300,000 in cash.
03
CBAR licence
The investment-company application, filed with the internal rules, the certified staff and the owners' papers. We map the CBAR's licensing stages for you in the quote.Application, rules, staff, owners.
04
Systems and provider
Margin software that warns clients of sudden price moves, the liquidity-provider contract and the client-money account at a bank in Azerbaijan.Margin software, provider, bank.
05
Launch on Model A
Risk notices signed, demo trades on file, website disclosures live. Two years of margin trading later, the Model B file can start.Model B file after two years.
Quick facts
RegulatorCBAR · Baku
RulesBoard Decision No. 23/2 · 31 Aug 2021
Charter capitalAZN 300,000 · in cash
Retail leverage50:1 · 20:1 · 10:1 · 2:1
Professional clientsUp to 100:1
Margin call · close-out100% · 20%
Model BAfter 2 years of margin trading
Plan for9-12 months to a licence
Once the firm is live, the Rules run their own clocks: fee changes notified 15 calendar days ahead, new assets notified 3 working days ahead, the monthly CFD report filed within 7 working days of the next month. For the licence itself we plan for 9-12 months on Model A.
On the ground in Azerbaijan
Run from our Baku office.
Prifinance - Azerbaijan
Baku · Azerbaijan
Baku, Azerbaijan
01
The joint-stock company
Formed with investisiya şirkəti in its name, its shares placed and AZN 300,000 paid in cash into a special account at a clearing-member bank.Shares placed, AZN 300,000 in cash.
02
The CBAR file
The licence application for Arts. 30.3.1, 30.3.7 and 30.4.1, internal rules approved by the supervisory board, certified staff and the fit-and-proper papers of every 10% owner.Three services, internal rules, staff.
03
Liquidity and banking
A Model A contract with a provider supervised at least as strictly as in Azerbaijan, and the separate client-money account at a bank operating in the country.Provider contract, client-money account.
04
Launch and reporting
The signed risk notice, the 30-trade demo, the home-page chart of profitable and losing accounts and the monthly CFD report to the CBAR within 7 working days.Demo, chart, monthly CFD report.
We also have offices in
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London
United Kingdom
7 Bell Yard
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Rua da Alegria 31, 1F
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Korányi Sándor u. 4
Good to know
Taxation of forex brokers in Azerbaijan.
An Azerbaijani investment company is taxed on profit at 20%, and its dividends carry 5% at source.
Profit tax 20%
Art. 105.1 of the Tax Code of the Republic of Azerbaijan sets profit tax at 20%, the rate we model for an investment company.Tax Code Art. 105.1.
Dividend withholding 5%
Dividends paid since 1 January 2024 carry 5% withholding at source, half the earlier 10%, after the Tax Code amendment the State Tax Service reported on 28 December 2023.Since 1 January 2024, down from 10%.
Listed securities relief
For five years from 1 February 2023, dividends and interest on publicly offered shares and bonds admitted to a regulated market are exempt from income tax.Five years from 1 February 2023.
Capital paid in cash
Charter capital is paid only in cash (10-q Rules 3.1). Until the share-issue report is approved, the proceeds may be held only as deposits or in short-term government securities (3.2); after that they are spent under the business plan.Deposits or short-term government securities.
Fee changes on notice
Point 3.7 of the Rules has fee changes notified 15 calendar days ahead, and point 9.5 has every cost disclosed in writing within one business day of a client's request.15 calendar days' notice.
VAT confirmed per structure
The VAT treatment of spreads, commissions and swaps is confirmed per structure before the first invoice. Pillar Two top-up taxes reach only groups with EUR 750 million of revenue.Confirmed per structure.
Tax summary
Profit tax20% · Tax Code Art. 105.1
Dividend withholding5% · since 1 Jan 2024
Listed shares and bondsExempt · 5 years from 1 Feb 2023
Charter capitalCash only · 10-q Rules 3.1
VAT on dealingConfirmed per structure
*As of 2026 per the Tax Code of the Republic of Azerbaijan and the State Tax Service (news of 28 December 2023). Group and founder-level outcomes are modelled per structure.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: Azerbaijani joint-stock company, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, licensed broker.
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Azerbaijan · CBAR
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Full-service assistance - from the joint-stock company and its AZN 300,000 to the CBAR licence, the liquidity-provider contract and the Model A launch - run through our Baku office.
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Request a free conclusion →FAQ
What founders ask about margin trading under the CBAR.
Is forex trading legal in Azerbaijan?+
Yes, as margin trading through a licensed investment company. The CBAR's Rules state that margin trading in Azerbaijan may be carried out only by investment companies licensed under the Law on the Securities Market, and they cover CFDs on currency pairs, indices, commodities, shares and crypto.
Can a new broker in Azerbaijan be its clients' counterparty?+
Not for its first two years. Point 6.3 of the Rules allows Model B, where the firm executes at its own expense and at prices it sets, only after at least two years of margin-trading services; until then it passes every order to a liquidity provider under Model A.
How long does a forex license in Azerbaijan take?+
We plan for 9-12 months to a licence on Model A, from forming the joint-stock company and issuing its shares to the CBAR's decision, and we confirm the CBAR's licensing stages in the quote. Counterparty dealing under Model B comes after two years of margin trading.
What does a forex license in Azerbaijan cost?+
AZN 300,000 of charter capital, paid in cash, for an investment company whose licence includes own-account dealing: the category A figure of the 2015 capital rules, which we confirm with the CBAR before budgeting. The state duty and the CBAR's licensing steps are confirmed in the quote, together with our fees and the cost of the liquidity-provider contract.
What leverage can a broker in Azerbaijan offer retail clients?+
Up to 50:1 on CFDs on major currency pairs (EUR, JPY, GBP, AUD, CAD, CHF and NZD against USD), 20:1 on other pairs, gold and indices, 10:1 on other commodities and shares and 2:1 on crypto. Professional and institutional clients may trade at up to 100:1.
What happens when a client's margin runs out?+
The firm makes a margin call at a 100% margin level and closes positions at 20% (points 7.4 and 7.6). A loss that still exceeds the deposit may not be claimed from the client (point 7.7). The minimum deposit is the firm's own choice (point 7.1).
Who counts as a professional client in Azerbaijan?+
A client who asks in writing, signs a risk declaration and meets two of three tests: at least 10 trades in each quarter of the last year on a CFD margin account, a bank statement of at least AZN 20,000, or a year of investment work in the financial sector.
What must a broker in Azerbaijan publish on its website?+
Its platform features, execution model, margin-call and credit limits per CFD, close-out levels, lot sizes, quotation rules, commissions and swaps, the model client contract and the risk notice (point 11.2), plus a home-page chart of profitable and losing client accounts by number and amount, updated quarterly.
Azerbaijan or Kazakhstan for a CFD market maker?+
Kazakhstan, if principal dealing is the plan: the AFSA licenses it in the AIFC at USD 500,000 of base capital, and dealer income there is exempt from corporate income tax until 1 January 2066 for firms with substance. Azerbaijan needs AZN 300,000 and allows 50:1 on major pairs, but a new firm waits two years for Model B.
Why Prifinance for Azerbaijan?+
We build the joint-stock company, the CBAR application and the Model A set-up as one programme: liquidity-provider contract, client-money account, demo flow and website disclosures. The work runs through our Baku office, and the Model B file is prepared for the end of the two years.
Legal?+
Yes, through a licensed investment company.
Counterparty?+
Only after two years (Model B).
How long?+
9-12 months planned to a licence.
Cost?+
AZN 300,000 capital; duty in the quote.
Leverage?+
50:1 majors down to 2:1 crypto.
Margin out?+
Call at 100%, close-out at 20%.
Professional?+
Two of three tests; 100:1.
Website?+
Model, limits, quarterly accounts chart.
Or Kazakhstan?+
AIFC if principal dealing comes first.
Why you?+
Baku office, Model A to Model B.
Client notes
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Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of the Central Bank of the Republic of Azerbaijan (CBAR) or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.