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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:

22

DB 2016 Rank:

21

Change in Rank:

down1

DB 2017 DTF (% points):

82.52

DB 2016 DTF (% points):

82.55

Change in DTF (% points):

down0.03

STANDARD PROPERTY TRANSFER
Property value AZN 271,906
City Baku
Indicator Azerbaijan Europe & Central Asia OECD high income
Procedures (number) info_outline 3 5.3 4.7
Time (days) info_outline 8.5 20.6 22.4
Cost (% of property value) info_outline 0.2 2.5 4.2
Quality of the land administration index (0-30) info_outline 15.5 19.8 22.7
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Verification of title and obtaining non-encumbrance certificate

    Agency: Notary

    According to the Law of the Republic of Azerbaijan "On introduction of changes into the Civil Code of the Republic of Azerbaijan" and the Law of the Republic of Azerbaijan "On introduction of changes into the Law on the State Registry of Real estate" (both dated December 27, 2013) starting from March 3, 2014, notaries in Azerbaijan are now responsible for checking against encumbrances. Notaries now have an access to the database of SSRRE under SCPI and can get information about encumbrances on real estate and issue non-encumbrance certificates online.

    The new online service provided by the State Property Committee is available at www. e-emdk.gov.az. The cost of online procedure is AZN 31.

    Territorial offices of SSRRE under SCPI provide this services to applicants via electronic system connected with electronic system of notaries. "

    Less than a day (online procedure) AZN 31
    2

    Notarization of sale-purchase agreement

    Agency: State Notary

    Under the law, the sale-purchase agreement and the transfer and acceptance act duly signed by both parties must be notarized. In order to get the agreement notarized the seller must provide evidence of his title to the property, i.e. registration certificates . In addition to the above, both the seller and the buyer must provide the notary public with other documents certifying their powers to enter into the sale-purchase agreement (e.g. corporate documents, powers of attorney). There is no legal requirement for the agreement to be prepared by a lawyer. Accordingly, the parties are free to prepare the agreement themselves. The stamp duty is paid to the notary, which in turn he shall transfer to the Treasury within two banking days since the date of receipt of the duty. However, in practice the stamp duty can be paid at a commercial bank. If the parties pay at the bank, receipt of payment should be submitted.
    The documentation shall include:
    • Sale-purchase agreement and transfer and acceptance act
    • Registration certificates
    • Seller’s cadastral package of documents
    • Corporate documents of the parties (e.g. charters, foundation agreements, powers of attorney)
    • Technical passport of the property (according to Article 144.2 of the Civil Code, amended by the law of the Republic of Azerbaijan No. 201-IVQD dated September 30, 2011 "On Making Amendments to the Civil Code of the Republic of Azerbaijan", the notary certifies the agreement, which transfers immovable property in accordance with the technical specifications of such immovable property as recorded in the Real Estate State Registrar Service) • Deposit slip (the buyer presents the deposit slip from the bank, confirming that the funds were properly deposited before notary notarizes the transfer agreement. After the completion of transaction, the notary write a cheque payable to the seller to be presented to the bank to collect the purchase price for the property)

    1 day AZN 200 (notary fee) + AZN 30 (official serves fee)

    3

    The buyer applies to the state register service to register property

    Agency: Real Estate State Register Service under State Committee on Property Issues

    Registration of the land as well as the property takes place simultaneously at the State Committee on Property Issues of the Republic of Azerbaijan.

    In accordance with Resolution of Cabinet of Ministers of the Republic of Azerbaijan No. 266 dated 31 July 2014, the electronic service on "receipt of applications and documents for issuance of technical documents (passport and plan) regarding real estate registered in state registry of real estate at the discretion of owner" added to the list of electronic services provided by State Registry Service of Real Estate.

    Collegium of State Committee on Property Issues approved on 18 November 2014 the administrative regulation on receipt of applications and documents for issue of technical documents (passport and plan) regarding real estate registered in state registry of real estate at the discretion of owner. On basis of these documents, it has become possible to apply for technical documents (passport and plan) via online procedure.

    20 days (regular Procedure),
    14 days (faster Procedure) or
    7 days (fastest expedited Procedure)
    AZN 277.88, whereas:

    - AZN 159.48 payable for the registration of a title transfer for the warehouse of 929 square meters of the total area;
    - AZN 18.4 payable for the registration of a title transfer for the land of 557.4 square meters of the total land area;
    - AZN state duty for technical passport;
    - AZN 30 state duty for an extract;
    - AZN 20 official service fee

  • Measure of quality
    Answer Score
    Quality of the land administration index (0-30) 15.5
    Reliability of infrastructure index (0-8) 6.0
    What is the institution in charge of immovable property registration? Baku City Territorial Office of SSRRE under SCPI
    In what format are the majority of title or deed records kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Scanned 1.0
    Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? Yes 1.0
    In what format are the majority of maps of land plots kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Scanned 1.0
    Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? Yes 1.0
    Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases? Different databases but linked 1.0
    Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? Yes 1.0
    Transparency of information index (0–6) 3.0
    Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city? Only intermediaries and interested parties 0.0
    Is the list of documents that are required to complete any type of property transaction made publicly available–and if so, how? Yes, online 0.5
    Link for online access: http://e-emdk.gov.az/home/instructions
    Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how? Yes, online 0.5
    Link for online access: http://www.e-emdk.gov.az/Home/Tariff2 
    Does the agency in charge of immovable property registration commit to delivering a legally binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Yes, online 0.5
    Link for online access: http://www.e-emdk.gov.az/Home/Reqlament
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? No 0.0
    Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? Yes 0.5
    Number of property transfers in the largest business city in 2015: 258406
    Who is able to consult maps of land plots in the largest business city? Only intermediaries and interested parties 0.0
    Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, online 0.5
    Link for online access: http://e-emdk.gov.az/Home/Customs, and  http://e-emdk.gov.az/Home/Tariff
    Does the cadastral or mapping agency commit to delivering an updated map within a specific time frame—and if so, how does it communicate the service standard? Yes, online 0.5
    Link for online access: http://www.e-emdk.gov.az/Home/Reqlament
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? No 0.0
    Geographic coverage index (0–8) 0.0
    Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the largest business city formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the economy mapped? No 0.0
    Are all privately held land plots in the largest business city mapped? No 0.0
    Land dispute resolution index (0–8) 6.5
    Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? Yes 1.5
    Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
    Is there a specific compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? No 0.0
    Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)? Yes 0.5
    If yes, who is responsible for checking the legality of the documents? Notary.
    Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
    If yes, who is responsible for verifying the identity of the parties? Notary.
    Is there a national database to verify the accuracy of identity documents? No 0.0
    For a standard land dispute between two local businesses over tenure rights of a property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the first instance? Baku Administrative-Economic Court No1 or No2 (depending on territorial jurisdiction)
    How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? Less than a year 3.0
    Are there any statistics on the number of land disputes in the first instance? Yes 0.5
    Number of land disputes in the largest business city in 2015: The territorial offices of SSRRE were involved approximately in 6,000 immovable property disputes in 2015.
    Equal access to property rights index (-2–0) 0.0
    Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
    Do married men and married women have equal ownership rights to property? Yes 0.0