Study of Small and Medium Enterprises in Azerbaijan - IFC

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References 1. APA news agency 2008. “Khalq” newspaper, 13 February 2008, http://www. elibrary.az/docs/metn-08/17x.htm. 2. FIAS 2007. Report on Azerbaijan Licensing and Permits System, FIAS, Washington D.C., April 2007. 3. Heritage Foundation 2008. Index of Economic Freedom 2008. Also available online at http://www.heritage.org/Index/country.cfm?id=Azerbaijan. 4. IFC 2006. Business Enterprises in Tajikistan as Seen by Small and Medium Enterprises, Tajikistan IFC BEE Project, Dushanbe, 2006. Also available online at http:// www.ifc.org/tajikistan/sme. 5. IFC 2006. Central Asia and Azerbaijan Primary Mortgage Market Development Project Report. Baku, July 2006. 6. IFC 2008. Azerbaijani Business Permit Reform Strategy. Azerbaijan IFC BEE Project, Baku, October 2008. 7. IFC 2008. Tajikistan Business Permit Reform Strategy. Tajikistan IFC BEE Project, Dushanbe, August 2008. 8. Materials of the conference on Permits and Approvals in Entrepreneurship Activity, Minsk, December 20, 2006. 9. National Bank of Azerbaijan 2007-2008. Monthly reports for January 2007 №1 (83) and January 2008 №1 (95). Also available online at http://www.nba.az/ default.aspx?go=687&lng=az 10. Norway Registers Development 2008. The Report on Business Registration Assessment in Azerbaijan, prepared for AZ BEE project, April 6, 2008. 11. Official Statistics for 2004-2008 provided by the State Statistical Committee of the Republic of Azerbaijan. Also available online at http://www.azstat.org/ 12. Transparency International 2008. Corruption Perception Index 2008. Also available online at http://www.transparency.org/policy_research/surveys_indices/cpi. 13. US-Azerbaijani Chamber of Commerce 2007. Investment Guide to Azerbaijan 2007. Also available online at http://www.usacc.org/downloads/IG2007_2008/ investment_guide_2007_web.pdf. 14. World Bank 2008. Contestability of Domestic Markets: Turning Business Climate into Lever of Economic Diversification and Growth 2008. Background paper for Country Economic Memorandum: Azerbaijan, Washington D.C., 2008. 15. World Bank (in collaboration with DFID) 2007. Designing a Tax System for Micro and Small Businesses: Guide for Practitioners, Washington D.C., 2007. 16. World Bank 2004. Doing Business 2005. Country Profile for Azerbaijan. 17. World Bank 2008. Doing Business 2009. Country Profile for Azerbaijan. Also available online at http://www.doingbusiness.org/Documents/CountryProfiles/ AZE.pdf. 18. World Bank Group, Small and Medium Enterprise Department 2006. A Business Licensing Reform: A Toolkit for Development Practitioners, Washington D.C., November 2006. 19. World Bank 2005. Investment Climate Reports 2005. Country Profile for Azerbaijan. Also available online at https://www.enterprisesurveys.org/ExploreEconomies /?economyid=19&year=2005. 20. IFC 2007. Business Environment in Ukraine. Also available online at http://www. ifc.org/ukraine/sme. 166 St u d y o f Sma l l a n d Me d i u m Ent e r p r i s es in Az e r b a i j a n
List of Laws 1. The Tax Code of the Republic of Azerbaijan, approved by Law No. 905-IQ, dated July 11, 2000 and effective from January 1, 2001. 2. The Customs Code of the Republic of Azerbaijan, approved by Law No. 311- IQ, June 10, 1997 and effective from August 5, 1997. 3. Presidential Decree No. 609 on Further Liberalization of Foreign Trade in the Republic of Azerbaijan dated June 24, 1997. 4. Law No. 772-IIQ on Export Control dated October 24, 2004. 5. Law No. 1064 on Customs Tariffs dated June 20, 1995. 6. Resolution of the Cabinet of Ministers No. 91 on Import-Export Duty Rates dated April 22, 1998. 7. Resolution of the Cabinet of Ministers No. 11 on the List of Imported Goods Exempt from Value Added Tax dated January 31, 2005. 8. Resolution of the Cabinet of Ministers No. 20 on Approval of Excise Tax Rates Applicable to Goods Imported into Azerbaijan dated January 19, 2001. 9. Resolution of the Cabinet of Ministers No. 80 on Import Export Duty Rates and the Fees for Customs Clearance Operations dated April 12, 2001. 10. Resolution of the Cabinet of Ministers No. 135 on Rules for Issuing Quality Certificates for Foodstuffs Exported to the EU Countries dated July 13, 2005. 11. Resolution of the Cabinet of Ministers No. 185 on Stimulation of Export in Certain Business Activities dated July 26, 2006. 12. Law No. 430-IQ on Culture dated February 6, 1998. 13. Presidential Decree No. 782 on Improvement of Regulations for Issuing Special Permits (Licenses) for Certain Types of Activities dated September 2, 2002. 14. Presidential Decree No. 218 on Regulation of Export of Foodstuffs to the EU Countries dated April 1, 2005. 15. Presidential Decree No. 567 on Certain Measures Regarding the Development of Entrepreneurship in the Republic of Azerbaijan dated April 30, 2007. 16. Presidential Order No. 2458 on Measures for Organization of “One-Stop- Shop” Registration of Businesses dated October 25, 2007. 17. Law No. 560-IIQ on State Registration and State Registry of Legal Entities dated February 7, 2008. 18. NBA Rules No. 3093 on Opening, Operation, and Closing of Bank Accounts dated November 16, 2004. 19. Presidential Decree No. 310 on Improvement of Regulations of Granting Special Permissions (Licenses) for Certain Types of Activities dated March 28, 2000. 20. Resolution of the Cabinet of Ministers No. 174 On Additional Conditions For Issuance Of Special Permits (Licenses) For Certain Types Of Activities dated November 7, 2002. 21. Law No. 1036-IIQ on Administrative Procedure dated October 21, 2005. 22. The Civil Code of the Republic of Azerbaijan approved by Law No. 779-IQ, dated December 28, 1999 and effective from September 1, 2000. 23. Law No. 883-IIQ on Mortgages dated April 15, 2005. 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 167
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Study of Small and Medium Enterpris
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Study of Small and Medium Enterpris
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5. Business Permits................
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Foreword and Acknowledgements IFC,
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critically examines all areas of op
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of each formality. Special attentio
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Policy Recommendations Business Reg
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Problems Sources of Problem Recomme
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Business Taxation Problems Sources
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Capital: Baku Country’s populatio
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The state, ultimately responsible f
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1. Methodology 1.1 Background The s
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the share of economically active co
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Scope of activity Official statisti
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2. SMEs in Azerbaijan The aim of th
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Meanwhile, the number of small and
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Table 2.2 Statistical information o
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The “typical” small enterprise
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According to the IFC survey, more t
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2.5.3 Legal disputes Most entrepren
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3. Business Registration In January
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According to the law previously in
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3.4 Economic impact estimate Accord
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tion duplicate is addressed to the
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the local tax inspectorate for regi
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3.10.3 Introduce the electronic reg
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3.10.7 Simplify the liquidation pro
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Business registration before ‘one
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Process map of one-stop-shop busine
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Registration for individual entrepr
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4.1 Licensing: the legal framework
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Chart 4.1 Number of activities requ
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While the Rules specify limits for
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Chart 4.6 Economic impact of licens
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Annex 4.1 Checklist of issues for d
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Based on the IFC survey estimates,
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5.2 Permits coverage The Azerbaijan
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Box 5.4 An example of overlapping p
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5.4 Permit expenses Azerbaijani leg
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Chart 5.9 40% Average percentage of
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2.4. Specifying in the law a unifor
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Annex 5.1 Procedure for obtaining c
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Annex 5.2 Checklist of issues for d
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The most significant legal act in i
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6.1.2 There is no effective mechani
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6.1.4 Entrepreneurs are not aware o
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IFC’s analysis showed that only h
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6.2.2.1 The inspections process and
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View from an entrepreneur: “The s
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Chart 6.11 Average registration in
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going in the opposite direction. In
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clearly defined circumstances, or a
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Annex 6.2 Presidential Decree No. 7
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The bulk of individual entrepreneur
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Items 1-9 are collected at the firs
Page 117 and 118: The IFC survey reveals that one in
Page 119 and 120: Table 7.5 Main tax obligations of a
Page 121 and 122: Chart 7.3 IFC Survey: Complexity of
Page 123 and 124: 7.3.2 Tax inspections negatively af
Page 125 and 126: 7.3.5 The cumbersome VAT administra
Page 127 and 128: • Introducing clearer and more el
Page 129 and 130: Chart 8.1 Development of Credit Ins
Page 131 and 132: More than 90 percent of entrepreneu
Page 133 and 134: Chart 8.9 The loan interest rates o
Page 135 and 136: Case study of a Baku-based glass an
Page 137 and 138: View from a bank employee: “One p
Page 139 and 140: Box 8.2 Examples of a successful cr
Page 141 and 142: Box 8.3 Examples of alternative mec
Page 143 and 144: 9. Foreign Trade The volume of fore
Page 145 and 146: Box 9.1 Customs regimes under the C
Page 147 and 148: As Chart 9.1 illustrates, 98 percen
Page 149 and 150: Table 9.1 A comparison of the proce
Page 151 and 152: The comprehensive system of mandato
Page 153 and 154: Table 9.2 Average costs for imports
Page 155 and 156: Box 9.5 Customs payments The Custom
Page 157 and 158: Box 9.8 An excessive number of docu
Page 159 and 160: Moreover, due to the underdeveloped
Page 161 and 162: Expected impact More comprehensible
Page 163 and 164: 9.5.6 Accelerate WTO accession of A
Page 165 and 166: Chart 9.5 Goods importable upon app
Page 167: Azerbaijan has been long pending a
Page 171 and 172: Statistical Annexes Aze r b a i j a
Page 173 and 174: Chart A1.3 Individual Entrepreneurs
Page 175 and 176: Chart A1.7 Individual Entrepreneurs
Page 177 and 178: Chart A1.14 Three Major Types of Ob
Page 179 and 180: Registration Chart A2.1 Entrepreneu
Page 181 and 182: Chart A2.8 Three Major Problems Occ
Page 183 and 184: Chart A3.3 Existence of Licenses by
Page 185 and 186: Chart A3.9 Three Major Obstacles to
Page 187 and 188: Chart A4.4 Obtaining of Any Permits
Page 189 and 190: Chart A4.10 Time Required to Obtain
Page 191 and 192: Chart A5.4 Application for Credit o
Page 193 and 194: Chart A5.12 Average Interest Rate (
Page 195 and 196: Chart A6.3 Entrepreneurs That Under
Page 197 and 198: Chart A6.8 Authorities That Made In
Page 199 and 200: Chart A6.13 Breakdown of Number of
Page 201 and 202: Chart A6.19 Average Duration of One
Page 203 and 204: Chart A6.25 Small and Medium Enterp
Page 205 and 206: Chart A7.3 Small and Medium Enterpr
Page 207 and 208: Chart A7.8 Reported Share of Busine
Page 209 and 210: Chart A8.3 Usage of Optional (not c
Page 212: Azerbaijan Business Enabling Enviro
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Study of Small and Medium Enterprises in Azerbaijan - IFC

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