Simplification of Licensing System in Azerbaijan to Reduce Expenditures by One Third

Azerbaijan, Baku, 20 August / Trend corr. I.Khalilova / Simplification of licensing system in Azerbaijan will enable to reduce expenditures by one third, said Lars Tunel, the general executive secretary of the International Finance Cooperation (IFC) and executive vice president of the World Bank group on private sector.

"Improving of licensing system does not mean removal of control, but improvement of procedure on issuing license, which will be fully changed within a year," Tunel said.

" IFC is prepared to support reforms in improvement of administrative procedures and removal of main regulating obstacles for the beginning of entrepreneurial activity. Particularly, the corporation will assist government in use of (after improvement) legislation, which regulates licensing system and granting of permissions.

According to Heydar Babayev, the Azerbaijani Economic Development Minister, this issue requires complex examination - from cost of licensing, terms of permission granting to number of licensed kind of activities. The leading countries use in practice unlimited licensing, he said. At present Azerbaijan uses one, two, three and five-year term of permission. The IFC officials consider five-year term licensing to be a good practice.

However, in accordance with the Law on Insurance, which came into force in March 2008, for the first time, unlimited licensing was introduced for insurance activities.

Payment scale on getting of licensing changes depending on kinds of activity. The Minister said that the payment would be high on profitable kinds of activity, such as telecommunication. Currently, the Economic Development Ministry is realizing work with the relevant economic departments and intends to coordinate measures with the IFC.

Work is also conducted to delimitate areas, which can be granted urgent permissions.

In accordance with the Azerbaijani President Ilham Aliyev's decree, dated 29 December 2006, on Kinds of Commercial Activities Requiring Special Permission (License), the list, size of tariffs and organizations, which issue licenses, was specified. The list includes 50 kinds of commercial activities. Earlier this list included 37 kinds, more earlier - 204 kinds.

In 2007, one more kind of activity - from sale to manufacturing of gold products was included in this list.

The amount of the state tariff for getting of licensing differs depending on kinds of activities and varies within the limit from AZN 220 to AZN 25,000.

Work on improvement of licensing system was included in action plan within the framework of the State program on Development of Entrepreneurship for 2008-2013. The draft of the state program was submitted for consideration of the President's Administration.

The Government is also prepared to simplify the registration system for construction companies, to improve systems of single window, tax system and to liberalize foreign trade. All these measures will positively influence on improvement of the country's rating on Doing Business, joint report of the IFC and the WB.

The exchange rate for US dollar is AZN 0.81381 on 20 August.

The correspondent can be contacted at:

Audit services in Azerbaijan improving step by step
Audit services in Azerbaijan improving step by step
Turkish president makes phone call to Azerbaijani president
Turkish president makes phone call to Azerbaijani president
Valentina Matviyenko: Azerbaijan has been and remains strategic partner for Russia
Valentina Matviyenko: Azerbaijan has been and remains strategic partner for Russia
Loading Bars
Tamar Gabunia: No new decision has been made regarding school resumption
France's Macron says U.S. maximum pressure on Iran not working
Israeli PM, Bahraini crown prince discuss cooperation over phone
Audit services in Azerbaijan improving step by step
Mayor urges holidaymakers to 'stay permanently' amid population boom in Bodrum
Iran purchases additional wheat from farmers
Turkish president makes phone call to Azerbaijani president
President of Uzbekistan to deliver speech at 75th UN GA session
28 Kazakhstanis died from COVID-19 on Sep 14-20
Valentina Matviyenko: Azerbaijan has been and remains strategic partner for Russia
U.S. COVID-19 deaths top 200,000 -- Johns Hopkins University
MP: Azerbaijan to give worthy response to any provocations of Armenia
Azerbaijani finance ministry’s securities in great demand
Cargo transportation volume through "Middle Corridor" by late 2020 disclosed
China's exports of flat-rolled products of non-alloy steel to Georgia down
Georgian expert: Azerbaijan harmoniously combines three world religions
Geostat reveals volume of Russian export to Georgia
Speaker of Azerbaijani parliament meets chairperson of Federation Council of Russian Federal Assembly (PHOTO)
Georgia reveals volume of processed grapes by regions
Georgia reveals export statistics of major goods to Russia
Israeli city vice-mayor: Azerbaijan highly appreciates tolerance
Baku Port: New transport corridors of Caspian Sea increases Middle Corridor's role
Iranian Energy Exchange announces products to be on sale September 23
French Development Agency to fund construction of Uzbek hydropower plants
Review of Georgian exports to China
Red Cross representatives visit Dilgam Asgarov, Shahbaz Guliyev
Turkish president: Armenia - biggest obstacle to peace in South Caucasus
Kazakhstan to greatly increase level of automation of public services
Azerbaijan's AzInTelecom supports creation of new mobile app
Purchase of wheat in Iran's Sistan and Baluchestan Province completed
Uzbekistan permits flights for Abu Dhabi low-cost airline
Georgian company AgroKartli expect to increase apple crop
New ambassador of Netherlands to Azerbaijan arrives in Baku
Azerbaijan eyes to open two more DOST Centers till late 2020
Azerbaijan's ADY Express reveals cargo handling volumes via BTK railway
Georgian Railway sees increase in cargo transportation
Germany increases export volumes to Kazakhstan despite COVID-19
Industrial production to be increased in Uzbek regions
Uzbekistan boosts import of grain, legumes from Turkey
Azerbaijani First VP Mehriban Aliyeva attends opening of new kindergarten (PHOTO)
ADIF discloses amount of сompensations made to clients of closed banks
Kazakhstan Air Astana to resume direct flights to Russia
IRI's International Assessment Team Arrives Ahead of Georgia’s Parliamentary Elections
Iran’s NISOC can increase extraction coefficient
Kazakhstan's progress on cereals and legumes harvesting revealed as of Sept.22
Bahar Azadi gold coin price climbs
Azercosmos begins cooperation with ViewMedia
National Bank of Georgia to sell funds at foreign exchange auction
COVID-19 pandemic negatively affects Georgian Sarajishvili's company
Ceramic plant being prepared to launch in Turkmenistan’s Lebap region
Iran Customs Administration to facilitate release of imported goods
Azerbaijan to upgrade local hydrological networks
Construction of new apartments across Iran's towns going full speed
Int'l community must stop terror carried out by Armenia against Azerbaijan - Lebanese lawyer
Review of Georgian livestock export to Azerbaijan
More Kazakh citizens sent back home from Azerbaijan by sea
Azerbaijani First VP Mehriban Aliyeva attends opening of new building of Children’s Art School in Bulbula settlement (PHOTO)
Georgia plans to create low-cost airline
Volume of cotton fiber exports from Azerbaijan revealed
Turkmengas to purchase chemical products via tender
Iran discloses number of small mines restored
Uzbekistan considers joining research of vaccine for COVID-19
Iran increases amount of foreign currency assigned to importers
Siemens sees market value of energy spin-off above $20 billion
Produce in Georgia agency to begin accepting applications for its Micro and Small Business Support Program
Uzbekistan increases electric cars import
Iran’s Khouzestan Steel Company reaches new production level record
“Protect the Caspian Sea” with support of Bakcell and its partners (PHOTO)
Updates on Uzbekistan’s nuclear progress
EY Azerbaijan officially announces the start of the ‘EY Entrepreneur Of The Year™’ 2020-2021 competition
Subsidiary of KazMunayGas to buy diesel fuel via tender
Cement imports by US from Turkey slightly up amid COVID-19 pandemic
IMF: Economic growth in Uzbekistan to be positive due to growth in construction sector
Azerbaijan's CBA discloses amount of foreign currency bought by local banks
Russia lowers import of Turkish clothes
Geostat reveals volume of citrus fruits exported by Georgia to Azerbaijan
Romanian WEVO company implementing state projects in Azerbaijan (PHOTO)
WTL ready to implement new project in Turkmenistan
Review of Georgian corn export to Azerbaijan
Azerbaijan has right to liberate its lands by military means - Turkish general
Azerbaijan confirms 113 more COVID-19 recoveries
Value of exports from Iran's Maragheh County revealed
Georgian corn oil to enter local market
ROMGAZ moves towards becoming active player on natural gas distribution market
Azerbaijan's Energy Ministry reveals data on gas production, export
Iran reveals its COVID-19 data for September 22
Youth Union of New Azerbaijan Party issues appeal regarding Armenian provocation
PACE rapporteurs welcome decision to release Tofig Yagublu to house arrest
Oil rises on expectations demand can survive new lockdowns
Azerbaijan reveals oil production, export figures for ACG, Shah Deniz field
Electricity potential of Iran's thermal power plants up
Demand for Turkish electrical goods in China down
Turkmenistan, France's MEDEF considering priorities for infrastructure dev't in country
Greece plans to properly exploit fact of receiving natural gas from Azerbaijan
Iran inaugurates new healthcare centers
Kazakhstan's postal service operator to buy spares via tender
Documents on archiving pension files to be in e-format in Azerbaijan
Kazakhstan, France trade down twofold amid COVID-19
Iran’s Tehran Oil Refining Company to boost its capital
Microsoft Azerbaijan talks about cybersecurity within country
All news