7,111 legal entities registered in Azerbaijan in the first 6 months: Official data
The number of legal entities is increasing in Azerbaijan. 85.7% of newly registered legal entities use e-registration.
According to the Ministry of Taxes, in the last 6 months of 2019, 7,111 legal entities were registered in our country, while the vast majority of registered legal entities used the electronic registration service. The analysis shows that one of the reasons for this is the simplification of e-registration of legal entities by 2019. As a result of e-registration of a limited liability company with a local investment without electronic signatures, the number of users using this service is growing rapidly. For 6 months of 2019, the number of registered legal entities increased by 18% compared to the same period of 2018, while the share of e-registration increased from 79.6% to 85.7%.
As it is known, as a result of amendments to the Law on State Registration and State Register of Legal Entities, since the beginning of this year, the state registration of a legal entity, VAT registration and opening of a bank account have been completed in one procedure. The need for electronic signature confirmation for registration has been eliminated, and all pre-existing registration procedures have been abolished. Users who have access to the new service, without having to sign up for electronic sign-on, go to “Internet Tax Office” and authenticate with the PIN code and mobile number in the electronic registration system.
The registration application information is entered into the online system and the registration of the legal entity is completed with the approval of the documents by one procedure.
Information on employment contract notifications in the new electronic registration system is automatically sent to the Ministry of Labor and Social Protection. It is also provided for registration of the taxpayer for VAT, issuance of a duplicate certificate to open a bank account, and submitting an application to the certificate services center for a business certificate. In other words, with the completion of one procedure, four more different processes are accomplished. Under the new electronic registration system, registration documents are sent online only to the taxpayer’s e-mail, and entrepreneurs do not need to have these documents on paper. Registration documents sent to e-cabinets are encrypted with a special barcode and their electronic filing as an official document is provided to be electronically received by all government agencies, banks, notaries and other organizations.
In order to assist the users of this service, the e-government portal has posted appropriate administrative regulations, and The Internet Tax Administration has the Instruction for e-registration of a limited liability limited liability company (without electronic signatures).
The reforms carried out also have a positive impact on our country’s position on the Doing Business report. Currently, Azerbaijan is ranked 9th among 190 countries for Start a Business” indicator in the Doing Business 2019 report. The Doing Business 2019 report provides 3 procedures, 3 and a half days and 18 AZN for the “Start a Business” indicator for Azerbaijan. As a result of these changes, the number of funds and documentation to start a business has dropped to zero, and a limited liability company with a local investment will be registered online within half a day by one procedure.