Study of Small and Medium Enterprises in Azerbaijan - IFC

Annex 4.1 Checklist of issues for drafting the Law on Granting Licenses 26
General Issues:
• What law governs licensing?
• Who issues these regulations and how are they issued?
• Is the purpose of the law clearly stated?
• Does the law state who is subject to it (e.g., business entities, individuals, NGOs)?
• Does the law contain all necessary definitions? (e.g., definitions of license, licensing, violation, etc.)
• Does the law state the objectives of licensing (e.g., a limited list of legitimate regulatory purposes)?
• Does the law prohibit the use of licensing for certain purposes (e.g., fiscal policy/revenue generation)?
• Does the law state the principles of licensing (e.g., simplicity, impartiality, transparency)?
• Does the law contain a list of all activities that shall be subject to licensing?
• Does the law specify the licensing body responsible for issuing each license?
• Does the law categorize activities subject for licensing according to level of potential impact on health, safety, and the environment?
• Does the law specify terms of validity for the licenses?
• Under what circumstances may the government establish new licenses?
• Does the law provide for mechanisms for review and evaluation of existing or new licenses?
Application Procedure:
• Does the law specify procedures for obtaining extensions to validity periods?
• What are the rights and duties of the licensing authorities?
• What are the rights and duties of an applicant?
• Does the law provide an exhaustive list of documents required for each license?
• Does the law contain a disclaimer stating that the licensing agency may not ask the applicant to submit other documents other than
those specified in the law?
• Does the law specify reasons for which the licensing authorities may deny applications for licenses and their extensions?
• Does the law specify limits for the amount of time agencies may take to process applications?
• Are the procedures for application and fees publicly accessible?
• Is there a one-stop-shop application process or web-based application system?
Costs:
• Does the law clearly indicate the cost of each license?
• Do licenses have fixed costs or do costs depend on the lengths for which the licenses are valid?
• If the law does not precisely specify license fees, does it contain a “cost-only” provision?
• If licensing fees are to be fixed in lesser legal instruments, does the law include a provision limiting the number of times fees may be
changed within a one year period?
• Does the law specify whether fees will go to the state budget or to individual licensing agencies?
Decision Making:
• Who is the authorized person / body to decide on the application?
• Are there legally set deadlines / timeframes to respond to the applicant?
• Does the law establish the “silence is consent” principle?
• Does the law provide the reasons for denying or suspending a license?
Appeals:
• Does the law specify procedures by which applicants may appeal the decisions of licensing authorities?
• Does the law specify detailed hearing procedures?
• What kind of authority is responsible for examining appeals cases?
• What is the time limit for hearing cases?
• In what cases may the appellate authority reject appeal requests?
• What forms of legal redress does the appeals process offer successful appellants?
26
Source: “Business Licensing Reform: A Toolkit for Development Practitioners”, IFC 2006.
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 73