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Doing Business in Azerbaijan 2009 - Azerbaijan Export ...

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government agency entrusted to exercise overall control <strong>in</strong> the field<br />

of licens<strong>in</strong>g and to ma<strong>in</strong>ta<strong>in</strong> a s<strong>in</strong>gle register of licenses.<br />

However, the right to issue a specific license is given to respective<br />

state authorities who control the licensed activity (the M<strong>in</strong>istry of<br />

Transportation, the M<strong>in</strong>istry of Emergency Situations, the M<strong>in</strong>istry<br />

of Economic Development, etc).<br />

Regulations on procedures for the licens<strong>in</strong>g of specific types of<br />

activities are generally issued by the Cab<strong>in</strong>et of M<strong>in</strong>isters. An<br />

applicant is required to submit all documents specified <strong>in</strong> the<br />

regulations and pay the required fee, upon which (subject to the<br />

application meet<strong>in</strong>g all requirements) a license is issued with<strong>in</strong> 15<br />

days. The basic term of most licenses is five years (for production<br />

of alcoholic beverages and ethyl (dr<strong>in</strong>k<strong>in</strong>g) alcohol - 3 years, for<br />

import - 1 year). The <strong>Azerbaijan</strong>i licens<strong>in</strong>g system was reformed <strong>in</strong><br />

2002. The number of bus<strong>in</strong>ess activities requir<strong>in</strong>g a license was<br />

reduced from more than 200 to 57.<br />

As the result of the reform, the licens<strong>in</strong>g system <strong>in</strong> <strong>Azerbaijan</strong> was<br />

liberalized. Licens<strong>in</strong>g differs from the permitt<strong>in</strong>g procedure related<br />

to special “hazardous” activities such arm trade or nuclear<br />

materials storage. In <strong>Azerbaijan</strong>i terms this type of permits is called<br />

“special permit”.<br />

A person who wishes to obta<strong>in</strong> a license to carry out specified<br />

entrepreneurial activity should either create a legal entity or<br />

register as an <strong>in</strong>dividual entrepreneur, i.e. become a “sole<br />

proprietor”.<br />

In Annex 3 you may see the list of bus<strong>in</strong>ess activities requir<strong>in</strong>g a<br />

license. No other bus<strong>in</strong>ess activities require special permits as of<br />

the date this publication went to press. The list of documents<br />

BUSINESS CLIMATE<br />

45

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