WB Director for Doing Business Department to Visit Azerbaijan

Business Materials 9 September 2008 14:01 (UTC +04:00)

Azerbaijan, Baku, 9 September / Trend corr. I.Khalilova / On 11 September, Penelope Bruck, the director of the World Bank (WB) Doing Business Department will visit Baku to publicize results of the WB and the International Financial Corporation's (IFC) joint report on Doing Business 2009: How to hold reforms and to discuss the further steps with the Azerbaijani Government, the IFC Baku Office said on 8 September. Earlier Semion Dyankov, one of authors of the report, who left this position at the WB, visited Azerbaijan.

The visit will be held within the framework of road-show of countries, where simplicity of doing business was assessed. The report will be publicized on 10 September.

The Government expects considerable improvement of the country's position in the WB's rating, which assesses simplicity of doing business. The President's decree on Some measures to develop entrepreneurship dated 30 April 2007 played an important role to improve business climate in the country, the WB representative said. Business registration system was simplified, tax policy was improved and measures were realized on registration of real estate within the framework of the decree. It is expected to make a decision in connection with development of certificates for construction, allocation of lands, simplification of procedures to examine construction and reforms.

In connection with these measures it is expected that Azerbaijan can be included in top ten reformer-countries.                                                                                                      

Entrepreneurs' activity has been registered on single window principle since 1 January 2008. Moreover, the government continues lax loaning through the National Entrepreneurship Support Fund and privileges for farmers play the most important role in development of private sector.

Period of new enterprises' registration was reduced from 72 days to three days as maximum, as well as number of steps from 15 to five as a result of introduction of single window principle (the Taxes Ministry has become the only registration body since 1 January 2008).

Under the international practice, in conformity with requirements of reports on business-climate, opening and bank account and notary registration should be realized within one day. Georgia advanced from the 112th place to the 37th and to the 18th due the last report as a result of reforms held in the system of registration and in other fields. Azerbaijan ranks the 96th place improving its position only by three places due the last report.

As a result of simplification of procedures, it is expected that number of the registered juridical figures will rise to 10,000-15,000 a year, while so far, their number has not exceeded 4,000-5,000 and 20,000-30,000 fell on individuals.

A different situation is observed in the world practice because of liberalization of registration procedures. A total of 17mln of 25mln annually registered entrepreneurs fall on juridical figures in the United States.

At present, more than 70,000 entrepreneurial entities and more than 200,000 individual entrepreneurs operate in the country.

Researches by Doing Business 2008, rating of 178 countries was held in line with figure of improvement in doing business taking into consideration data in ten fields of entrepreneurship activity regulation.

The correspondent can be contacted at - [email protected]