Facilitation of business registration is going on

On June 11, 2024, an online meeting dedicated to innovations in the field of state registration of commercial legal entities for startups, micro and small business entities was held under the joint organization of the State Tax Service (STS) and the Small and Medium Business Development Agency (KOBIA) under the Ministry of Economy.

Within the event, Leyla Huseyn-zadeh, head of division of the Main Department on Taxpayer Registration and Accounting of the State Tax Service submitted detailed information on reforms and new opportunities implemented in the field of state registration. L. Huseyn-zade dintinguished measures implemented within the "Road Map for the years 2022-2023 on the implementation of improvements in the relevant field related to the indicator of "Business Entry" of the project "Business Enabling Environment (rebranding to Business Ready)" of the World Bank Group”. It was accented that more than 30 measures were implemented towards the process of improving business entry following the advanced international experience. Within the framework of simplifying the business registration process, draft laws on amendments to the Law "On State Registration and State Register of Legal Entities", as well as to the Labour, Civil and Administrative Codes of the Republic of Azerbaijan have been prepared, which are currently being considered by the National Parliament (Milli Majlis).

When boosting business registration, the face recognition system (SIMA) has been applied to the online registration of commercial legal entities, and during the past period of the current year, 9 limited liability companies with local investments registered using SIMA. The relevant activities for the creating technical opportunities towards electronic data change of commercial legal entities, are done.

Discussing activities implemented on registration of legal entities, the head of division cited, 5,230 commercial legal entities were registered within 5 months of 2024, of which 4,673 are LLCs with local investments. 79.8 percent of commercial entities were registered electronically, and the share of e-registered LLCs with local investments accounted 89.3 percent. 756 limited liability companies with local investments were registered via PIN code and mobile number registration method, the specific weight of which accounted 14.5 percent in the total registration, and 16.2 percent in the registration of LLCs with local investments.

L. Huseyn-zadeh informed on the "Road Map for the year 2024 on the implementation and communication of improvements in the relevant field related to the indicator of "Business Entry". It was noted that the implementation of 16 different measures within the framework of 4 components on 2 sub-indicators is envisaged in the new Road Map. Moreover, a number of innovations related to the registration of foreign-invested commercial entities will be implemented. The future activities are provided for expanding the scope of the process of coordinating the databases of state bodies involved in the registration process, creating a technical possibility related to the maintenance of the beneficial owner register, the possibility of proactively registering subsequent changes in the registered data on commercial legal entities (change of the founder and manager) by the registration authority.

The questions of participants on business registration were clarified at the meeting.

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