Study of Small and Medium Enterprises in Azerbaijan - IFC

Policy Recommendations
Business Registration
Problems Sources of Problem Recommendations Expected Effect
Inconsistent
practices detected
in the registration
process particularly
in the offices other
than Baku
1. Lack of external and independent
monitoring mechanisms ensuring
same standards of operations of all
the registrations offices.
• Introduce the “silence is consent” principle in the law at
the end of the three-day consideration period for automatic
granting of the registration certificate;
• Introduce internal sanctions for non-observance of deadlines
by officials.
• Fewer possible delays in the
application reviewing process
and reduced opportunities for
possible informal settlements
as well.
Remaining shortfalls
in the new
registration system
result in a more
expensive and
longer registration
process
1. Remaining excessive requirements
in the law adding to the registration
cost and the time associated with it;
2. Lack of a top-class software solution
enabling e-registration;
3. Lack of simplified and
comprehensive business registry for
consultative purposes;
4. Lack of simplified liquidation
procedure during bankruptcy of
legal entities;
5. Excessive requirements in the rules
for opening, operation, and closing
of bank accounts;
6. Requiring individual entrepreneurs
to provide a separate document
(reference) confirming the place of
their residence.
• Simplify the pre-registration process by removing the
requirement to obtain confirmation of the legal address
of the company from the proposed landlord and notarize
relevant registration documents;
• Introduce an electronic registration framework that will
provide a unified approach for transferring information
from the applicant to the regional registration office, cutting
out unnecessary paper forms and introducing a modern,
user-friendly internet-based application;
• Introduce the possibility to open a bank account through
the registration offices in on-line regime – access offered at
the same terms to all interested banks;
• Update the Ministry of Taxes’ internet site by providing a
centralized information service so the entrepreneurs can get
on-line access to information on other existing business,
as well as their certain financial reports (after appropriate
legislative changes);
• Simplify the liquidation procedure for legal entities by completing
the process through the “one-stop-shop”, except in
the cases of claims by third parties which call for a judicial
intervention;
• Make appropriate amendments to the Rules on opening,
operation, and closing of bank accounts to further simplify
the registration process.
• Reduced time and costs for the
entrepreneurs to register their
business;
• Improved quality and
correctness of filed information;
• Verified consistency with other
register data;
• Improved legal and validity
controls;
• Less manual input;
• Operational single-pointregistration;
• Immediate detection of, and
feedback on errors provided;
• Pre-registration procedures
simplified by referrals to
specific articles of the law
instead of providing notarized
memorandum of incorporation
and articles of association;
• Reduced number of steps
required: no need to obtain
and return the notification
form to registration office.
Aze r b a i j a n Bu s i n e s s En a b l i n g En v i r o n m e n t Pr o j e c t 11