Azernews.Az

By Aynur Karimova

Azerbaijan, which has set a goal to form economic growth through the non-oil sector in the period up to 2020-2030, has recently taken a number of steps towards protecting and promoting local entrepreneurship in a bid to develop the non-oil sector of the economy.

The government has improved the legal base to encourage investment activities, improve business environment, and increase industrial production.

Sahib Mammadov, Deputy Economy and Industry Minister, believes that the decree signed by President Ilham Aliyev on additional measures to promote the non-oil export is a bright example of state support to export of domestic products.

He told journalists on March 2 that stimulating the export is a part of the economic development strategy pursued by the president.

“Very important decisions were made in this sphere and the decree on additional measures to promote the export of non-oil products, signed on March 1, clearly shows the state support to the export of goods produced domestically,” he said.

Additional measures on promoting the export of non-oil goods produced in Azerbaijan entered into force on March 1, 2016 in accordance with the relevant presidential decree. The decree will be effective until December 31, 2020.

The document says the export will be promoted through the funds of the state budget depending on the types of exported products, local ingredients used in the manufacturing process, and etc.

Mammadov noted that what is important is that three percent of customs value of the declared export goods will constitute the base amount of promoting the export.

“This amount will be paid to the entrepreneurs from the state budget, which is another stimulus for them,” the deputy minister added.

Licenses

Another major step taken to stimulate business activity in Azerbaijan was simplification of business activity licensing procedures.

In February, the parliament approved a draft law "On licensing and permits", which envisions issuing electronic licenses, as well as automatic issuance of a license if the governmental body leaves unanswered request for licensing within a certain period.

With regards to including a list of permissions in the law "On licensing and permits", Mammadov said this will ensure a common approach in this field in Azerbaijan.

He also noted that a single list approved in 2002 exists in the licensing sphere in Azerbaijan.

"We did not have such a list regarding the permits. Each local and central executive body issued different permissions, certificates, documents on accreditation and so on. In accordance with the instruction of the head of state, a list of permissions on various activities has also been prepared and issued," he noted.

There are several differences between a permit and a license. If a license is issued permanently and for a specific type of activity, a permit is issued for a specified period, after which it should be renewed.

Mammadov also stressed that the list of permits, included in the law "On licensing and permits," is much shorter than the initial version.

"This list, which initially included around 400 types of activities, has been significantly shortened and now it comprises just 199 types of permits," he added.

The draft law "On licensing and permits" provides for shortening the licensing period from 15 to 10 days, and granting permission up to 7 days. It also envisions introducing so-called ‘single window’ system, which means that provision of any services for getting a license will be concentrated in one place.

Azerbaijan began taking the measures for simplifying licensing procedures in the past year. It was decided in December 2015 to cancel 22 types of licenses, and narrowed a list of the licenses required for doing business in the country from 59 to 37 to improve the economic situation in the country and to attract entrepreneurs to the doing business.

Also, in early October 2015, licensing procedures for entrepreneurship were simplified, paving the way for encouraging business transparency in the country. Moreover, the number of inspections among entrepreneurs was also reduced for two years.

The simplification of the licensing procedure, decrease of their number, application of online license portals offering issuing licenses, reduced amount of duties, issuance of perpetual licenses, and most important - online issuance of licenses have allowed to get licenses without making any illegal payments and avoid illegal procedures.

It is expected that the number of licenses required for doing business in the country will be decreased from 37 to 36.

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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova

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