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Azerbaijan creates system of online registration of business entities

Business Materials 3 December 2010 19:11 (UTC +04:00)

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

International Finance Corporation (IFC) recommends introducing a principle of e-registration of business entities in Azerbaijan, one of the authors of the Doing Business report Svetlana Bagaudinova said in Baku on the training on the methodology for the preparation of the Doing Business report.

"The Taxes Ministry is already working to introduce online registration of physical entities, and this process is nearing its completion," Bagaudinova said.

According to her, the organization of this process towards legal entities is not so easy because there is no body, certifying e-signature, despite the fact that the legislative base in this direction is already in force.

"There is no need for physical entities to use e-signature. According to Georgia's experience, it is possible to avoid the use of e-signatures, in this case entrepreneurs are registered by indicating a special bar code and a single number. Azerbaijani Taxes Ministry is interested in Georgia's experience and assesses its compliance with Azerbaijan's realities," Bagaudinova said.

In addition, IFC has also recommended Azerbaijan to introduce the principle of "tacit consent", which implies approval in the case of lack of responses, confirming the reactions to the submitted documents. "Introduction of this principle will avoid delays in consideration of applications," Bagaudinova said.

IFC also recommends eliminating the necessity in providing confirmation of the legal address and signature of witness.

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 International Finance Corporation under the titled, "Doing Business 2011: Making a Difference for Entrepreneurs." The research involved 183 countries.

According to Doing Business 2011 "Improving terms for entrepreneurship", Azerbaijan has efficiently held reforms in 2009-2010 in the fields such as issuing loans and tax payment.

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 10 directions - starting a business, building permits, hiring and dismissal from work, property registration, getting loans, protecting investors' interests, payment of taxes, registration of export- import operations, ensuring execution of contracts, and closing a business.

In the report Doing Business-2009 Azerbaijan was recognized leader in the sphere of reforms in economy.

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