Business Reforms in Azerbaijan
= Doing Business reform making it easier to do business. = Change making it more difficult to do business.
Getting Credit: Azerbaijan improved access to credit information by adopting a law allowing the establishment of credit bureaus.
Protecting Minority Investors: Azerbaijan strengthened minority investor protections by increasing shareholder rights and role in major corporate decisions, clarifying ownership and control structures and requiring greater corporate transparency.
Enforcing Contracts: Azerbaijan made enforcing contracts easier by introducing a system that allows users to pay court fees electronically.
Resolving Insolvency: Azerbaijan made resolving insolvency easier by making insolvency proceedings more accessible for creditors and granting them greater participation in the proceedings, improving provisions on the treatment of contracts during insolvency and introducing the possibility to obtain post-commencement financing.
Getting Electricity: Azerbaijan streamlined the process of obtaining a new electricity connection by introducing an electronic capacity/availability of connection map, which reduced the time needed to determine new customer connection points.
Paying Taxes: Azerbaijan made paying taxes easier by abolishing vehicle tax for residents.
Trading across Borders: Azerbaijan facilitated international trade processes by introducing an electronic system for submitting export and import declarations.
Starting a Business: Azerbaijan made starting a business easier by abolishing the requirement to use a corporate seal.
Dealing with Construction Permits: Azerbaijan made dealing with construction permits easier by establishing a one-stop shop for issuing preapprovals for project documentation.
Protecting Minority Investors: Azerbaijan strengthened minority investor protections by introducing requirements that related-party transactions undergo external review and be voted on by disinterested shareholders.
Starting a Business: Azerbaijan made starting a business easier by reducing the time to obtain an electronic signature for online tax registration.
Registering Property: Azerbaijan made transferring property easier by introducing an online procedure for obtaining the nonencumbrance certificate.
Paying Taxes: Azerbaijan made paying taxes easier for companies by introducing an electronic system for filing and paying social insurance contributions.
Starting a Business: Azerbaijan made starting a business easier by introducing free online registration services and eliminating preregistration formalities.
Dealing with Construction Permits: Azerbaijan adopted a new construction code that streamlined procedures relating to the issuance of building permits and established official time limits for some procedures.
Trading across Borders: Azerbaijan made trading across borders easier by streamlining internal customs procedures.
Getting Credit: Azerbaijan improved access to credit by establishing an online platform allowing financial institutions to provide information to, and retrieve it from, the public credit registry.
Paying Taxes: A revision of Azerbaijan’s tax code lowered several tax rates, including the profit tax rate, and simplified the process of paying corporate income tax and value added tax.
Getting Credit: Azerbaijan’s public credit registry improved the credit information system by providing banks with online access to its database, increasing the data available on borrowers and introducing penalties for banks that send information that is late or incorrect.
Trading across Borders: Azerbaijan reduced the clearance and border crossing time for goods by streamlining and regrouping agencies behind a single customs service window.
Starting a Business: Azerbaijan reduced the time, cost and number of procedures to start a business by establishing a one-stop shop for completing registration requirements.
Registering Property: Azerbaijan made registering property easier and less time consuming by introducing a unified property registry.
Getting Credit: Azerbaijan improved access to credit information by eliminating the minimum threshold for loans reported to the public credit registry.
Protecting Minority Investors: Azerbaijan strengthened investor protections by introducing requirements on the approval of related-party transactions and expanding remedies available against liable directors.
Paying Taxes: Azerbaijan made paying taxes easier for companies by introducing an online filing and payment system with advanced accounting software and providing computer stations for users without computer facilities.
Enforcing Contracts: Azerbaijan speeded up contract enforcement by creating a second commercial court in Baku, thereby increasing the number of specialized judges from 5 to 9.
Labor Market Regulation: Azerbaijan allowed fixed-term contracts to be concluded for permanent tasks, eliminated the requirements to notify third parties in cases of redundancy dismissals, and repealed a retraining or reassignment obligation before an employer can make a worker redundant.
Starting a Business: Azerbaijan made starting a business easier by abolishing the requirement to obtain approval from the Ministry of Justice for the company seal design.
Paying Taxes: Azerbaijan made paying taxes easier and less costly for companies by introducing electronic filing and payment and by reducing the corporate income tax rate.