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Ease of Doing Business in

Azerbaijan

Azerbaijan Download Profile (1751.1KB, pdf)
Region Europe & Central Asia
Income Category Upper middle income
Population 9,651,349
GNI Per Capita (US$) 6,560
City covered Baku

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 65 61 down
4
67.99 67.84 down
0.15
Starting a Business 5 5
-
97.74 97.75 down
0.01
Dealing with Construction Permits 127 121 down
6
63.63 64.13 down
0.50
Getting Electricity 105 104 down
1
64.83 64.10 up
0.73
Registering Property 22 21 down
1
82.52 82.55 down
0.03
Getting Credit 118 109 down
9
40.00 40.00
-
Protecting Minority Investors 32 30 down
2
65.00 65.00
-
Paying Taxes 40 41 up
1
83.52 83.08 up
0.44
Trading across Borders 83 85 up
2
72.28 71.48 up
0.80
Enforcing Contracts 44 43 down
1
65.66 65.66
-
Resolving Insolvency 86 82 down
4
44.77 44.68 up
0.09

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

127

DB 2016 Rank:

121

Change in Rank:

down6

DB 2017 DTF (% points):

63.63

DB 2016 DTF (% points):

64.13

Change in DTF (% points):

down0.50

STANDARDIZED WAREHOUSE
Estimated value of warehouse AZN 271,906
City Baku
Indicator Azerbaijan Europe & Central Asia OECD high income
Procedures (number) info_outline 18 15.1 12.1
Time (days) info_outline 203 160.7 152.1
Cost (% of warehouse value) info_outline 4.5 4.2 1.6
Building quality control index (0-15) info_outline 12 11.3 11.3
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Apply and obtain the allotment of land for construction from the Baku City Executive Authority

    Agency: Baku City Executive Authority

    An application is required for the allotment of land for the construction only if that land is already owned by a builder. A preliminary permit for the project is granted and eligibility of the land plot for construction is determined.

    The application for the allotment of land must include the following information, as applicable to BuildCo:
    • Architectural peculiarities of the planned construction.
    • Scope and terms of the planned construction.
    • Dimensions of the land.
    • Land ownership documents.

    Note that these informational requirements are based on the assumption that the land is already legally owned by and registered in BuildCo’s name.

    The application must also include an attestation to BuildCo’s legal status and to its land plot ownership -- the “certificate of state registration.”

    30 days AZN 1,100
    2

    Obtain engineering-geological opinion from the Ministry of Emergencies

    Agency: Ministry for Emergency Situations

    The engineering/geological opinion is a prerequisite for preparing the project design and for submitting the project for approval. This can be done in parallel with obtaining technical conditions.

    15 days no charge
    * 3

    Obtain technical conditions from the Baku City Sanitation and Epidemiology Center

    Agency: Baku City Sanitation and Epidemiology Center

    Technical conditions from the Baku City Sanitation and Epidemiology Center are required for the preparation of the project.

    According to the new Building Code, the Baku city executive authority will have to obtain all technical conditions and approvals on behalf of BuildCo. However, in practice building companies obtain the technical conditions directly from the issuing authorities.

    15 days no charge
    * 4

    Obtain technical conditions from the State Fire Control Service of the Ministry for Emergency Situations (MES)

    Agency: Fire Department (Ministry for Emergency Situations)

    Under the law “On Fire Safety” and according to other norms of Azerbaijan, the authorities (taking into account prohibitions and limitations) shall grant a permit and, if necessary, present specific guidelines for the construction design and implementation phases. A fire inspection must be carried out.

    According to the new Building Code, the Baku city executive authority will have to obtain all technical conditions and approvals on behalf of BuildCo. However, in practice building companies obtain the technical conditions and project approvals directly from the issuing authorities.

    15 days no charge
    * 5

    Obtain technical conditions from the Ministry of Ecology and Natural Resources

    Agency: Ministry of Ecology and Natural Resources

    According to the law “On Environmental Protection”, a permit shall be granted and the conditions adjusted to meet environmental protection regulations, land reclamation, rehabilitation and efficient use of natural resources, improvement of territories, and enhancement of the environment.

    According to the new Building Code, the Baku city executive authority will have to obtain all technical conditions and approvals on behalf of BuildCo. However, in practice building companies obtain the technical conditions and project approvals directly from the issuing authorities.

    15 days no charge
    * 6

    Obtain technical conditions from the water and sewage authority (Azersu OJSC)

    Agency: Azersu OJSC

    Under the law “On Water Supply and Waste Waters”, the water and sewage authority will grant a permit and issue guidelines for the construction design and implementation phases. In doing so, the authorities must consider prohibitions and limitations for the water system and wastes. Connection to the main lines is permitted after construction is done.

    According to the new Building Code, the Baku city executive authority will have to obtain all technical conditions and approvals on behalf of BuildCo. However, in practice building companies obtain the technical conditions and project approvals directly from the issuing authorities.

    10 days no charge
    7

    Obtain building permit from the Department of Architecture and City Building of the Baku City Executive Authority

    Agency: Baku City Executive Authority (Department of Architecture and City Building)

    The building permit passport application includes the following:
    • An evaluation of the construction work. BuildCo inquires with different local executive authorities and supply and supervisory organizations to assess their opinions and conclusions.
    • Architectural and planning instructions, including information on land surface, existing buildings, plants, communication and utilities lines, scope of the project, and other construction specifications.
    • The drawing of the land plot, indicating adjacent streets and crossroads. The drawing must be extracted from the city’s General Plan and from the district’s Development Plan.
    • The locations and directions of the engineering communication lines (utilities and the like), indicating their marking and placement on existing buildings, streets, crossroads, and so forth
    • A topographic plan of the land plot

    BuildCo gets the building permit together with a mark for construction (i.e. signing board with all the relevant information about construction: the name of the construction company, the duration of construction, the area of construction, etc) which will be placed at the site to inform the neighbors and public about the construction.

    90 days AZN 10,000
    * 8

    Submit the project documentation to the single-window for a comprehensive project expertise

    Agency: Single window for construction permitting at the Ministry of Emergency Situations

    The project documentation is submitted to the Single Window for approval from various agencies. The Single Window was established in order to streamline evaluation of construction projects in accordance with the requirements of “Rules on Examination of construction projects” based on the President’s Decree dated November 17, 2014. 6 services relevant to the evaluation of the construction projects are represented under the Ministry of Emergency Situation Single Window for Construction Permitting: State Examination Head Office, State Fire Control Service, Mining Control State Agency, Engineering Geological Center, Ministry of Ecology and Natural resources, Ecological safety service and Ministry of Public Health Hygiene and Epidemiology Center.

    30 days no charge
    9

    Receive inspection of foundation works

    Agency: Chief Agency for Construction Supervision and Safety

    According to the Article 96.2.1 of the Building Code of the Republic of Azerbaijan, the competent state bodies have to conduct supervision of construction. State supervision of construction is carried out in the order stipulated in the "Rules of state supervision of construction", approved by Presidential Decree of November 17, 2014, № 349". The inspections are conducted in all major phases of the construction and inspection results are recorded in the Registry of State Supervision in Construction.

    1 day no charge
    10

    Receive inspection of structural works

    Agency: Chief Agency for Construction Supervision and Safety

    According to the Article 96.2.1 of the Building Code of the Republic of Azerbaijan, the competent state bodies have to conduct supervision of construction. State supervision of construction is carried out in the order stipulated in the "Rules of state supervision of construction", approved by Presidential Decree of November 17, 2014, № 349". The inspections are conducted in all major phases of the construction and inspection results are recorded in the Registry of State Supervision in Construction.

    1 day no charge
    11

    Receive inspection of plumbing works

    Agency: Chief Agency for Construction Supervision and Safety

    According to the Article 96.2.1 of the Building Code of the Republic of Azerbaijan, the competent state bodies have to conduct supervision of construction. State supervision of construction is carried out in the order stipulated in the "Rules of state supervision of construction", approved by Presidential Decree of November 17, 2014, № 349". The inspections are conducted in all major phases of the construction and inspection results are recorded in the Registry of State Supervision in Construction.

    1 day no charge
    12

    Receive inspection of roofing works

    Agency: Chief Agency for Construction Supervision and Safety

    According to the Article 96.2.1 of the Building Code of the Republic of Azerbaijan, the competent state bodies have to conduct supervision of construction. State supervision of construction is carried out in the order stipulated in the "Rules of state supervision of construction", approved by Presidential Decree of November 17, 2014, № 349. The inspections are conducted in all major phases of the construction and inspection results are recorded in the Registry of State Supervision in Construction.

    1 day no charge
    13

    Receive examination from Labor Inspection and other state authorities during construction works

    Agency: Ministry of Economic Development

    All examinations, except for tax, may be carried out only with the participation of a representative from the Azerbaijan Republic Ministry of Economic Development. Pursuant to the Labor Code and its implementing rules and regulations, the state labor authorities may examine the workplace and labor protection and technical security policies. A report is issued with the examination results.

    1 day no charge
    * 14

    Receive inspection from Ministry of Ecology and Natural Resources

    Agency: Ministry of Ecology and Natural Resources

    If environmental standards were not in full compliance during construction, the Ministry of Ecology and Natural Resources could inspect the site. An act or statement is issued with the examination results. This procedure involves facilitation fees.

    1 day no charge
    15

    Receive inspection from State Fire Control Service of the Ministry of Emergency Situations

    Agency: Ministry for Emergency Situations (Chief Agency of Supervision on Safety at Construction)

    Fire inspections could be conducted to check if fire prevention measures are in order. A report is issued with the examination results.

    1 day no charge
    16

    Obtain water and sewage connection

    Agency: AzerSu (State Water Agency)

    Connecting to the water supply and sewage systems is done in accordance with the "Rules of issuing of technical specifications and connection of consumers to the water supply and sewage", approved by the Cabinet of Ministers of Azerbaijan Republic dated August 13, 2014, № 275.

    The fee to obtain a water and sewage connection is AZN 2.00 multiplied by the water volume to be delivered in 24 hours (based on the connected pipe’s diameter). In this case, it is assumed that 100 cubic meters can be delivered in 24 hours.

    7 days AZN 200
    17

    Request and obtain occupancy permit

    Agency: State control authorities: Architecture and City Building Department and ecology, energy, sanitation, fire inspection, and supply organizations

    After BuildCo completes construction, a commission will examine the building quality and determine the feasibility of putting the building into operation. The commission consists of representatives from the state control authorities, especially the Architecture and City Building Department, and representatives of organizations for ecology, energy, sanitation, supply, and fire inspection.

    30 days no charge
    18

    Register building with Real Estate Registry

    Agency: Real Estate Registry

    This procedure is governed by the Civil Code of the Azerbaijan Republic and the Law of the Azerbaijan Republic on State Registry of Real Estate. Attached to the application must be the documents defining the company status, construction documents, and a copy of the act or the statement on the operation license. Relevant fees must also be paid. The State Registry of Real Estate registers the building (warehouse) within 20 days and provides the company with a private property right certificate. BuildCo will obtain the complete property right (ownership, order, and use) over the building (warehouse) from the date the certificate is registered.

    21 days AZN 930

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 12.0
    Quality of building regulations index (0-2) 2.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge; In official gazette. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals. 1.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in-house engineer; Inspections at various phases. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency; Yes, in-house engineer submits report for final inspection. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 0.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  No party is held liable under the law. 0.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0
    Professional certifications index (0-4) 4.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) Minimum number of years of experience; University degree in architecture or engineering; Passing a certification exam. 2.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) Minimum number of years of experience; University degree in engineering, construction or construction management; Passing a certification exam. 2.0