Azerbaijan - Due DiligenceAzerbaijan - Due Diligence
Accurate financial documentation and credit history can be difficult to obtain for some potential buyers and partners. A 2013 commercial secrecy law complicates due diligence efforts, because it limits the information banks and other financial institutions can share with third parties about Azerbaijani companies. Additionally, understanding the corporate structure of a company or discovering who the beneficial owners, major partners, or shareholders are can be difficult. Failure to perform a careful survey of former partners, clients, and competitors jeopardizes investments and commercial deals. Recourse in such instances is limited, and even where arbitration clauses are respected they can take a long time to resolve. Despite these difficulties, many Azerbaijani firms have established track records of positive work with international firms. Companies may contact the U.S. Embassy to discuss their plans in Azerbaijan. The Commercial Section can help U.S. clients determine the bona fides of prospective foreign business representatives or partners.