Activities implemented on state registration was discussed with consulting companies

On September 30, 2024, the State Tax Service (STS) under the Ministry of Economy held another online meeting with legal and consulting companies. The event was related to the activities implemented in the field of state registration of commercial legal entities and applied innovations.

Leyla Huseyn-zadeh, head of STS Taxpayers' Registration and Accounting Main Department submitted participants detailed information on reforms carried out. It was noted that the practice of establishing a business has been improved within the framework of the Road Map implemented for 2022-2023, and a number of changes have been made to the Law "On State Registration and State Register of Legal Entities" and the Codes of Labor, Civil and Administrative Offences towards simplification of registration. According to the changes, electronic state registration procedures of domestic and foreign-invested LLCs have been aligned. This innovation has simplified the process of starting a business by making the electronic registration service fully available for foreign entities in the country.

Within reforms carried out in the field of "business entry", "SIMA" (face recognition) digital signature was applied during the online registration of a commercial legal entity, as well as  measures towards identification of sanctioned persons for the registration process and restricting access of the head of a commercial legal entity to use the e-cabinet upon the head's term expired.

L. Huseyn-zadeh provided information 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" of the World Bank Group’s “Business Ready” Report. She accented on related reforms to be going on. One of them is the expansion of the scope of coordinating the databases of state bodies involved in the pre-registration and post-registration process. The creating technical opportunity towards keeping the register of the beneficial owner and the possibility of proactively registering the subsequent change in the existing information on commercial legal entities (founder change) is also on the agenda.

Then the participants of the meeting discussed the existing difficulties in the field of registration and the possibilities of improving the process. Director of "Bizcon Audit" LLC Anar Bayramov, head of "Caspian Energy Club" LLC Telman Aliyev, representative of "Ekvita" company Abbas Ismayilov, independent expert Hikmet Babayev discussed the difficulties encountered in the field of state registration of legal entities, including non-payment of authorized capital and, thus, responsibility of officials at a legal entity, the application of sanctions and other related issues.

The questions of participants on business registration were clarified at the meeting. It should be noted that the State Tax Service heads the "Business Entry" working group of the Commission on Business Environment and International Rankings of the Republic of Azerbaijan.

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