LAW ON CROWDFUNDING
Azerbaijan adopted Law No. 450-VIIQ of 14 July 2026, On Crowdfunding, effective 24 January 2027, establishing a dedicated legal framework for raising capital through regulated crowdfunding platforms. The regime is primarily aimed at startups and micro, small, and medium-sized enterprises seeking alternate sources of financing.
The Law recognizes two forms of crowdfunding: equity-based crowdfunding, where investors receive shares in a project company, and debt-based crowdfunding, where investors purchase debt securities (bonds). As a result, crowdfunding is regulated as a securities-based investment mechanism rather than unrestricted online fundraising.
Crowdfunding may be conducted only through a licensed platform operated by a limited liability company or joint-stock company included in the register maintained by the Central Bank of the Republic of Azerbaijan. The Central Bank is responsible for regulating the sector, including platform requirements,
