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Reforms in business registration system in Azerbaijan save 20 million manat

Business Materials 3 December 2010 17:36 (UTC +04:00)
Creating a business registration system in Azerbaijan through the "single-window" principle has helped Azerbaijani businessmen save 19 million manat, Fakhriyar Jabbarov, a lawyer at the International Finance Corporation (IFC) Baku Office, said today during training on preparation methodology of the Doing Business report.
Reforms in business registration system in Azerbaijan save 20 million manat

Azerbaijan, Baku, Dec. 3 / Trend N. Ismayilova /

Creating a business registration system in Azerbaijan through the "single-window" principle has helped Azerbaijani businessmen save 19 million manat, Fakhriyar Jabbarov, a lawyer at the International Finance Corporation (IFC) Baku Office, said today during training on preparation methodology of the Doing Business report.

"After creating the 'single-window' system at the Tax Ministry in 2008, which cost the Azerbaijani government 5 million manat, the private sector could save 19 million manat on reducing procedures and time spent on businesses registration," Jabbarov said.

He added that the country has also implemented an integrated standard for preparing business statutes, as well as a single ID number, which have increased the number of entrepreneurs in the country by 30 percent. Banks operating online can now open accounts and about 17 banks cooperate with the Tax Ministry in this direction.

According to co-author of the Doing Business report Svetlana Bagaudinova, it would also be reasonable to create bank branches alongside notary offices, which would even further accelerate this process. The IFC's recommendations also include increasing the amount of information on registered enterprises in a state registry. This would improve interaction between businessmen and facilitate finding partners. The IFC has suggested that the Tax Ministry also provide information on business registration before 2008 on its website, as these procedures were earlier conducted by the Justice Ministry.

"The 'single-window' system in Azerbaijan is one of the best practices in the region and, as a result, Tajikistan and Kazakhstan have adopted Azerbaijan's experience in this sphere," Bagaudinova said.

Azerbaijan ranked 54th this year in an international rating of improving entrepreneurial conditions by country. The report was compiled by the World Bank and the IFC under the title, "Doing Business 2011: Making a Difference for Entrepreneurs." The research involved 183 countries.

Bagaudinova added that Azerbaijan's position has fallen in the Doing Business ranking due to changes in the rating methodology. Nine indexes were used this year compared to 10 indexes last year, as the final hiring and labor force index is being improved.

According to Doing Business-2011, "Improving Terms for Entrepreneurship," Azerbaijan has held efficient reforms in 2009-2010 in issuing loans and tax payment. In particular, Azerbaijan improved access to loans by creating an online platform - a state loan register enabling financial institutes to offer and receive data about loans. At the same time, changes to the tax code promoted cuts in some tax rates, including profit tax, and also facilitated paying corporate income tax and VAT.

The top 10 leading reformers were Singapore, Hong Kong, New Zealand, the UK, the United States, Canada, Denmark, Norway, Ireland and Australia.

From the CIS, Kazakhstan ranked 59th, Belarus - 68th, and Russia - 123rd.

The Doing Business Report has been published since 2004, annually adding to the list of criteria based on which a country's rating is compiled. If in 2004 they were only five, the latest research was carried out in nine directions.

In Doing Business-2009, Azerbaijan was recognized as a leader in economic reforms.

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