Investments

  • Updated 14.09.2020 12:29
  • Created 24.09.2012 07:50

About the investment climate in the Republic of Azerbaijan 

 

In order to attract investment in the country’s economy, the government is implementing an “open door” policy. At present, the Government of Azerbaijan takes measures to continue economic reforms in the country, further improve the business environment, and develop non-oil sector.

 

Legislation
The investment climate of the Republic of Azerbaijan is regulated by the laws of the Republic of Azerbaijan on the protection of rights and interests of investors, inviolability of property, creation of equal conditions for domestic and foreign entrepreneurs, organization of Appeal Councils, “On investment activity”, “On the protection of foreign investments”, “On the suspension of inspections in the field of entrepreneurship” and by a number of normative documents.

 

Licenses
According to the Decree No. 650 dated October 19, 2015 of the President of the Republic of Azerbaijan “On decreasing the number of types of entrepreneurial activities requiring special permit (license), the simplification and ensuring transparency of the procedures for the issuance of special permit (license)”, the issuance of licenses had been started by the Ministry of Economy since November 2, 2015 through “ASAN service” centers except for the cases related to the state security. Also, according to the Decree No. 713 of December 21, 2015 of the President of the Republic of Azerbaijan “On some measures in the field of licensing”, the number of types of activities requiring license was reduced from 59 to 37, valid term - licenses issued so far were declared termless, and newly issued licenses were determined to be termless, the amount of state duty for the issuance of licenses was decreased about 2 times and 4 times for regions (except for regional television and radio broadcasting), the number of state bodies issuing licenses were decreased from 23 to 4 and the term for the issuance of licenses from 15 days to 10 working days and the procedures required for issuing licenses were simplified.

 

 

"One window" system

As a result of the application of electronic services, modern technologies and progressive international experience in the country, the registration of entrepreneurship subjects in Azerbaijan has been simplified with the introduction of “one window” system. As a result of the application of e-services, online registration of entrepreneurship  activities of individuals and legal entities and electronic acceptance of tax declarations have been started.

According to the Decision of the Cabinet of Ministers of the Republic of Azerbaijan No. 300, dated September 8, 2014, the period for the receipt of electronic signature has been reduced from 2 days to 1 day.

Also, according to the requirements of the “Rules for the expertise of construction projects”, it has been started to implement the expertise of construction projects  with the principle of "one window".

As a continuation of the reforms carried out, in October 2015, the   Coordination Council for Transit Freight was established, the Regulations and composition of the Council were approved. It is envisaged to apply the principle of "one window" for the transportation of transit cargoes through the railways, sea transport, sea ports and sea terminals from the territory of the Republic of Azerbaijan and the implementation of the duties of the single state agency for the application of the principle of "one window" has been entrusted to the Coordination Council.

Customs regime and taxation

By the Decree No 745 dated January 18, 2016 of the President of the Republic of Azerbaijan, the "Rules for the issuance of the Investment Promotion Document" has been approved, which provides grounds for obtaining concessions defined in the Tax Code of the Republic of Azerbaijan and the Law on Customs Tariff. Accordingly, in compliance with the amendments to the Tax Code of the Republic of Azerbaijan on January 19, 2016, legal entities and individual entrepreneurs, having received investment promotion documents, have been exempted for 7 years from paying 50percent of profit and income tax, property tax for relevant property and land tax for lands under their ownership or use, as well as, value added tax in import for machinery, technological equipment and plants imported by them. Also, legal entities and individual entrepreneurs, as well as the residents of industrial or technology parks who have received investment promotion documents in accordance with the amendments made to the Law of the Republic of Azerbaijan "On Customs Tariff" dated January 19, 2016, have been exempted from import duties for 7 years for the import of machinery, technological equipment and plants, or also the managing organizations and operators of technology parks from import duties for imported machinery, technological equipment and plants.

Also, according to the Decree No 811 dated March 1, 2016 of the President of the Republic of Azerbaijan "On additional measures to promote non-oil export", the persons engaged in export of non-oil products will be paid investment incentive amounting to 3% of the value specified in the export customs declaration as a basis  (depending on the type of products, applying rates for the basic amount of export incentives).

At the same time, according to the Order No 1853 dated March 4, 2016 of the President of the Republic of Azerbaijan "On additional measures to continue reforms in the customs system", tasks were set related to the solution of complex issues regarding the further expansion of electronic customs services, minimizing the number of documents and procedures required for customs clearance, establishment of "Green Corridor" for the conveyance of goods and vehicles through the introduction of a short electronic import declaration in advance to the customs authorities and other systems existing in international practice, etc.

 

Azerbaijan in international reports

As a result of the reforms implemented for the improvements in the state regulation of entrepreneurship activity and the formation of favorable business environment, Azerbaijan has been steadily strengthening its position in leading reputable international reports year by year. So, every year, Azerbaijan, has risen to 57th position among 190 countries moving 8 steps forward in the report “Doing Business 2018” published by the World Bank, and has been one of the three countries in Europe and Central Asia which implements four or more reformers. Also, the position of our country in the "Global Competitiveness Report", published by the World Economic Forum and being considered as the most wide evaluation,  has approached 2 steps forward in comparison with the previous year and went up to the 35th position and has maintained its leadership position in the CIS since 2009.

 

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