Local incorporation requirement for credit unions and for operating non-bank credit institutions entitled to accept pledge deposits.
"Chapter I GENERAL PROVISIONS
Article 1.What is acredit union?
1.    A credit union is defined as a non-bank credit institution established for mutual crediting of members collecting free cash of voluntarily joined individuals and (or) legal entities, that are small entrepreneurs, united on the community of interests.
[...]
Article 5.Government and credit unions
1.    Government shall take measures on establishment and stimulation of activitiesof credit unions.
2.    A credit union shall bestate registered as a legal entity under the legislation of the Republic of Azerbaijan upon a constituent assembly. [...]" (Law of the Republic of Azerbaijan on Credit Unions, dated May 2, 2000 No. 876-IQ)
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"Chapter 1. General Provisions Article 1. Main Definitions
1.0.    Definitions used herein shall have the following meanings:
1.0.1.    Non-Bank Credit Institution (hereinafter referred to as NBCI) – a specialized credit organization that issues loans and carries out other operations in accordance with this Law based on a special permit (license); [...]
1.0.3.    Pledged deposit – lump-sum funds or funds gradually paid to NBCIs as one of the guarantee forms for repayment of loans by a borrower or a group of borrowers during the effective period of a loan agreement;
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Chapter 2. Establishment and management of NBCIs
Article 5. Organizational-legal form and types of NBCIs
5.1.    NBCIs may be established by legal entities and individuals of the Republic of Azerbaijan and (or) foreign countries, as well as by international organizations in the organizational-legal form implied for legal entities in the Civil Code of the Republic of Azerbaijan. Non-commercial NBCIs may be established only in the form of a foundation by international organizations in accordance with agreements signed by the Republic of Azerbaijan, as well as non-governmental organizations funded from state budgets of foreign countries. Non-commercial NBCIs may not establish or participate in commercial organizations.
5.2.    NBCIs shall be divided into two groups – those entitled and not entitled to accept pledged deposits.
5.3.    NBCIs operating in the territory of foreign countries may establish only branches in the Republic of Azerbaijan without the right to accept pledged deposit. Such branches shall be licensed, regulated and supervised pursuant to the rules applied to NBCIs not entitled to take pledged deposits as defined herein. [...]" (Law of the Republic of Azerbaijan on Non-Bank Credit Institutions, dated December 25, 2009 No. 933-IIIQ)
Law of the Republic of Azerbaijan on Credit Unions May 2, 2000 No. 876-IQ
Law of the Republic of Azerbaijan on Non-Bank Credit Institutions, dated December 25, 2009 No. 933-IIIQ
[<a href="https://e-qanun.az/framework/625">Law</a>],[<a href="https://e-qanun.az/framework/19197">Law</a>]