The structural formation of Azerbaijan's political system was completed by way of the acceptance of the new Constitution of Azerbaijan on November 12th, 1995. The constitution established Azerbaijan as a democratic, constitutional, secular and unitary republic. The Republic of Azerbaijan is ruled by the people. The sovereign duty of the people of the Republic of Azerbaijan is to determine its future fate and the form of independent and free ruling. The power in Azerbaijan is divided into the legislative, executive and judicial powers. Each of them acts in accordance with the constitution and legislative acts. The president is the head of the state.

The legislative power is held by Milli Majlis. Executive power is carried out by the president, while the judicial power is held by the courts of the Republic of Azerbaijan.

The Republic of Azerbaijan has a specific unitarity due to the status of the state authority in the autonomous republic of Nakhchevan. The constitution defines the autonomous Republic of Nakhchyvan as an autonomous state within the Republic of Azerbaijan. Its legislative power is held by the Supreme Mejlis of the Nakhchevan Autonomous Republic, executive power - by the Cabinet of Ministers of the Nakhchevan Autonomous Republic, and the judicial power is vested in the courts of the autonomous republic of Nakhchevan. The chair of the Supreme Medjis of Nakhichevan AR is the senior official of the autonomous republic.

Self-governing municipalities also play an important role in the political system of Azerbaijan. These are newly established, yet highly prospective institutions.

Like all contemporary political systems, the political system of Azerbaijan is characterized by pluralism - the existence of more than one political party. The political parties participate in political life through representatives in the legislative and local self-governing bodies.