Business Reforms

Business reforms have been implemented in Azerbaijan Republic

"Doing Business 2020" Business reforms 

Starting a business (registration), business reforms

Dealing with construction permits, business reforms

Getting electricity, business reforms

Enforcing contracts (e-court), business reforms

Trading across borders (import-export), business reforms

Public Procurement, business reforms

No.

Indicator name

Reforms expected to be adopted in the "Doing Business 2020" Report

 

 

 

 

 

 

 

 

 

1.

 

 

 

 

 

 

 

Starting a Business

Within the framework of the amendments on the State registration of legal entities, the following reforms are likely to be adopted in the "Doing Business 2020" Report:

  1. The number of procedures is expected to decrease from 3 procedures to 1 procedure;
  2. The number of days is expected to decrease from 3.5 to 0.5 days;
  3. The cost is expected to decrease from 18 AZN (90 AZN in general) to 0 AZN.

 

Legal basis:

  • Law No.1447-VQD of December 28, 2018 of the Republic of Azerbaijan on "Making amendments to the Law of the Republic of Azerbaijan on “State Registration of Legal entities and State Registry”";
  • Law No.1448-VQD of December 28, 2018 of the Republic of Azerbaijan on "Making amendments to the Labour Code of the Republic of Azerbaijan";
  • Law No.1448-VQD of December 28, 2018 of the Republic of Azerbaijan on "Making amendments to the Law of the Republic of Azerbaijan on “Administrative proceedings”";

 

 

 

 

 

 

 

2.

 

 

 

 

 

 

 

Obtaining permits for construction

Within the framework of the amendments on Obtaining permits for the construction and operation of construction facilities, the following reforms are likely to be adopted in the "Doing Business 2020" Report:

  1. The number of procedures is expected to decrease from 18 to 7 procedures;
  2. The number of days is expected to decrease from 116 to 38 days;
  3. The cost is expected to decrease from 6566 AZN to 3345 AZN.

 

Legal basis:

  • Law No.1451-VQD of December 28, 2018 of the Republic of Azerbaijan on "Making amendments to the Urban Planning and Construction Code of the Republic of Azerbaijan";
  • Decree of the President of the Republic of Azerbaijan of December 28, 2018 on "Measures to simplify the issuance of permits for the construction and operation of construction facilities";
  • The Procedure for the issuance of permits for the construction and operation of construction facilities.

 

 

 

 

 

 

 

3.

 

 

 

 

 

 

Connection to power supply networks

Within the framework of the amendments on Connection to power supply networks, the following reforms are likely to be adopted in the "Doing Business 2020" Report:

  1. The number of procedures is expected to decrease from 7 to 2 procedures;
  2. The number of days is expected to decrease from 41 to 20 days;
  3. More application opportunities for entrepreneurs have been created.

 

Legal basis:

  • Decree of the President of the Republic of Azerbaijan dated December 25, 2018 on "Making amendments the Decree of the President of the Republic of Azerbaijan No. 1313 of April 4, 2017 "On simplifying the procedure for electric power supply to existing or constructed construction facilities for entrepreneurs"";
  • Decree of the President of the Republic of Azerbaijan of December 25, 2018 on "Simplifying the process of connection to utility services of micro, small, and medium-sized enterprises.

 

 

 

 

 

 

 

 

 

 

 

4.

 

 

 

 

 

 

 

 

Real estate registration

Within the framework of the amendments on the State Registration of real estate ownership rights, the following reforms are likely to be adopted in the "Doing Business 2020" Report:

  1. The number of procedures is expected to decrease from 3 to 2 procedures;
  2. The number of days is expected to decrease from 5.5 to 2.5 days;
  3. More application opportunities for entrepreneurs have been created.

 

Legal basis:

  • Decision No. 134 of April 6, 2018 of the Cabinet of Ministers of the Republic of Azerbaijan on "Making amendments to the Decision No. 319 of October 5, 2015 of the Cabinet of Ministers of the Republic of Azerbaijan on "Approval of "Guidelines for Receipt, Verification, and Issuance of Documents for State Registration of Real Estate Ownership Rights" and "Guidelines for Description of real estate, state registration of real estate ownership rights and their limitation (encumbrance)"";
  • Decision No. 453 of October 16, 2018 of the Cabinet of Ministers of the Republic of Azerbaijan on "Making amendments to some decisions of the Cabinet of Ministers of the Republic of Azerbaijan concerning the implementation of the Decree No. 148 of June 26, 2018 of the President of the Republic of Azerbaijan on "Ensuring the activity of the Agency for Development of Small and Medium-Sized Enterprises (SMEs) of the Republic of Azerbaijan".

 

 

 

 

 

 

5.

 

 

 

 

 

 

Getting loans

Within the framework of the amendments on Credit Information Index and Rule of Law Index, the following reforms are likely to be adopted in the "Doing Business 2020" Report:

  1. Compliance with normative legal acts has been ensured, and thus, a positive assessment is expected on 4 questions negatively assessed on the Rule of Law Index based on the ”Doing Business" methodology.

 

Legal basis:

  • Law No.1429-VQD of December 28, 2018 of the Republic of Azerbaijan on "Making amendments to the Law of the Republic of Azerbaijan on “Real Estate Encumbrance”";
  • Law No.1428-VQD of December 28, 2018 of the Republic of Azerbaijan on "Making amendments to the Civil Code of the Republic of Azerbaijan";

 

 

 

 

 

 

6.

 

 

 

 

Protection of Small Investor Rights

Within the framework of the amendments on the Protection of small investor rights, the following reforms are likely to be adopted in the "Doing Business 2020" Report:

  1. Compliance with normative legal acts has been ensured, and thus, a positive assessment is expected on 5 out of 10 questions negatively assessed based on the ”Doing Business" methodology.

 

Legal basis:

  • Law No.1449-VQD of December 28, 2018 of the Republic of Azerbaijan on "Making amendments to the Civil Code of the Republic of Azerbaijan";
  • Law No.1450-VQD of December 28, 2018 of the Republic of Azerbaijan on "Making amendments to the Procedural Code of the Republic of Azerbaijan";

 

 

 

 

 

7.

 

 

 

 

 

Tax Payment

Within the framework of the amendments on Tax Payment, the following reforms are likely to be adopted in the "Doing Business 2020" Report:

  1. Tax rate is expected to decrease;
  2. It is expected to save time by electronic submission of applications.

 

Legal basis:

  • Law No.1413-VQD of December 28, 2018 of the Republic of Azerbaijan on "Making amendments to the Tax Code of the Republic of Azerbaijan";

 

 

 

 

 

 

8.

 

 

 

 

 

 

Cross-border trade (CBT)

Within the framework of the amendments on Cross-border trade (CBT), the following reforms are likely to be adopted in the "Doing Business 2020" Report:

  1. With the reduction of control tools and the formation of a single control tool, the entrepreneur is expected to save time and the time needed is expected to reduce.

 

Legal basis:

  • Decree No. 920 of December 21, 2018 of the President of the Republic of Azerbaijan on "Making amendments to User Guidelines for "Green Corridor" and other release systems for the release of goods and means of transport into the customs territory", approved by Decree No. 920 of May 21, 2016 of the President of the Republic of Azerbaijan;
  • Decree of the President of the Republic of Azerbaijan of December 21, 2018 on "Approval of the Procedure for foreign trade participants to avail the permanent right of use of the "Green Corridor" release system, termination, liquidation, and recovery of the right".

 

 

 

 

 

 

 

 

9.

 

 

 

 

 

Ensuring Contract Execution

Within the framework of the amendments on Contract Execution, the following reforms are likely to be adopted in the "Doing Business 2020" Report:

  1. Time standards for Court Case Management have been established and progress is expected in the Time Index based on the ”Doing Business" methodology;
  2. According to the ”Doing Business" methodology, 8.5 points are expected to be achieved in the Quality Index of judicial proceedings.

 

Legal basis:

  • Law No.1436-VQD of December 28, 2018 of the Republic of Azerbaijan on "Making amendments to the Procedural Code of the Republic of Azerbaijan";
  • Law No.1437-VQD of December 28, 2018 of the Republic of Azerbaijan on "Making amendments to the Law of the Republic of Azerbaijan on “Courts and Judges”";

 

 

 

 

 

 

 

 

 

10.

 

 

 

 

 

Enterprise Bankruptcy

Within the framework of the amendments on Enterprise Bankruptcy, the following reforms are likely to be adopted in the "Doing Business 2020" Report:

  1. Allows save time for holding auctions and the indicator is expected to make progress in the Time Index;
  2. Of the two questions negatively assessed in the Quality Index of the Legislation on Bankruptcy, 1 is expected to have a positive assessment.

 

Legal basis:

  • Law No.1445-VQD of December 28, 2018 of the Republic of Azerbaijan on "Making amendments to the Law of the Republic of Azerbaijan on “Bankruptcy and Insolvency”";
  • Law No.1439-VQD of December 28, 2018 of the Republic of Azerbaijan on "Making amendments to the Law of the Republic of Azerbaijan on “Mortgage”";

 

 

 

 

 

 

11.

 

 

 

 

 

Public Procurement

Within the framework of the amendments on Public Procurement, the following reforms are likely to be adopted in the "Doing Business 2020" Report:

  1. By ensuring compliance with the ”Doing Business" methodology, a single Internet portal on Public Procurement will be developed and an electronic procurement model will be created.

 

Legal basis:

  • Law No. 1433-VQD of the Republic of Azerbaijan on "Making amendments to the Law of the Republic of Azerbaijan on "Public Procurement";

 

 AZERBAİJAN TOP REFORMER" DOİNG BUSİNESS 2019 REPORT