Azer­bai­jan up­grades its po­si­tion in WB Do­ing Busi­ness re­port

Azer News - - Front Page - By Narmina Mam­madova

Azer­bai­jan has sig­nif­i­cantly im­proved its po­si­tions in the World Bank Group's Do­ing Busi­ness rank­ing pub­lished on Novem­ber 1.

Thus, Azer­bai­jan ranked 25th among 190 coun­tries in Do­ing Busi­ness 2019, while it was 57th in Do­ing Busi­ness 2018.

Ac­cord­ing to Do­ing Busi­ness 2019, Azer­bai­jan ranks 9th in "Busi­ness reg­is­tra­tion", 17th in "Reg­is­ter­ing prop­erty", 22nd in "Get­ting credit", 2nd in "Pro­tect­ing mi­nor­ity in­vestors", 28th in "Tax­a­tion".

Azer­bai­jan has entered the list of coun­tries with the most no­tice­able im­prove­ment in the econ­omy, ac­cord­ing to Do­ing Busi­ness 2019.

Do­ing Busi­ness au­thors said that Azer­bai­jan has car­ried out a record num­ber of re­forms aimed at sim­pli­fy­ing do­ing busi­ness in 20172018 among 10 economies that have shown sig­nif­i­cant im­prove­ment.

In par­tic­u­lar, the au­thors stressed that Azer­bai­jan has sim­pli­fied the process of ob­tain­ing build­ing per­mits, con­nect­ing to power grids, reg­is­ter­ing prop­erty, get­ting credit, tax­a­tion, in­ter­na­tional trade.

The au­thors also stressed labor mar­ket re­forms and re­forms aimed at pro­tect­ing mi­nor­ity in­vestors.

Some of these re­forms in­clude in­sti­tu­tional changes, the au­thors said.

Azer­bai­jan has cre­ated a "sin­gle win­dow" for is­su­ing build­ing per­mits, which re­duces the time to ob­tain a per­mit to 80 days. Azer­bai­jan has also im­proved ac­cess to loans by cre­at­ing the first credit bureau and a mov­able prop­erty registry.

More­over, the au­thors em­pha­size that the process of con­nect­ing to the elec­tric­ity grids has also been sim­pli­fied thanks to the ASAN Kom­mu­nal cen­ters in Azer­bai­jan.

The Do­ing Busi­ness Re­port is an an­nual study of the World Bank Group, which as­sesses in 190 coun­tries the ease of do­ing busi­ness based on 10 in­di­ca­tors. The re­port is de­voted to the as­sess­ment of reg­u­la­tions and to the or­der of their ap­pli­ca­tion in prac­tice (en­force­ment).

They reg­u­late gov­ern­ing the ac­tiv­i­ties of small and medium-sized en­ter­prises through­out the life cy­cle.

The re­port has been com­piled since 2003 and is usu­ally pub­lished in the au­tumn. Since 2005 (Do­ing Busi­ness 2006), the re­port has a rating of states on the ease of do­ing busi­ness, and since 2006 (DB 2007), coun­tries are also ranked by in­di­ca­tors.

In ad­di­tion, Do­ing Busi­ness stud­ies not only point out prob­lems that hin­der the de­vel­op­ment of en­trepreneur­ship, but also de­ter­mine their causes and pro­vide rec­om­men­da­tions for the nec­es­sary re­forms.

De­spite fall in oil prices, since the end of 2015, the re­forms in Azer­bai­jan have been fur­ther deep­ened and they in fact reached a new level. As a re­sult of the coun­try's eco­nomic re­forms, the fi­nan­cial sta­bil­ity and eco­nomic growth in many ar­eas were re­stored, es­pe­cially a sig­nif­i­cant progress has been made in the agri­cul­tural, nonoil and other sec­tors. The po­si­tion of Azer­bai­jan in the re­port shows that the on­go­ing re­forms re­flect the in­ter­ests of all sec­tors of so­ci­ety, in­clud­ing busi­ness en­ti­ties.

The coun­try takes great steps in its in­ten­tion to di­ver­sify the na­tional econ­omy on the ba­sis of fur­ther de­vel­op­ment of the non-oil sec­tor.

To put into ef­fect this plan, the gov­ern­ment does its best to en­cour­age busi­ness do­ing in the coun­try and to sup­port entrepreneurs through cre­at­ing nec­es­sary con­di­tions for the de­vel­op­ment of a healthy busi­ness en­vi­ron­ment.

In or­der to stim­u­late the busi­ness de­vel­op­ment in the coun­try, the Azer­bai­jani gov­ern­ment cre­ates fa­vor­able con­di­tions for entrepreneurs.

One of these steps is the suspension of in­spec­tions. Dur­ing the va­lid­ity pe­riod of the law, only tax au­dits, qual­ity con­trol of medicines by rel­e­vant ex­ec­u­tive au­thor­i­ties, ver­i­fi­ca­tion of com­pli­ance with safety reg­u­la­tions and safety con­trol of food prod­ucts, as well as checks on cases that threaten the health and life of peo­ple, na­tional se­cu­rity and eco­nomic in­ter­ests may be car­ried out.

More­over, the gov­ern­ment cre­ates many other fa­vor­able con­di­tions such as is­suance of the in­vest­ment in­cen­tives doc­u­ments fol­low­ing the ap­proval of amend­ments pro­posed to the Tax Code of the coun­try.

Un­der the in­vest­ment in­cen­tives doc­u­ment, half of the rev­enue of an in­di­vid­ual en­trepreneur, prof­its of le­gal en­tity are ex­empted from in­come tax for seven years. Im­port of equip­ment for the im­ple­men­ta­tion of the projects is also ex­empt of VAT and cus­toms du­ties.

Also, the state re­funds 3-6 per­cent of the cus­toms value of goods to non-oil ex­porters within the frame­work of mech­a­nisms on pro­mot­ing ex­ports of non-oil prod­ucts.

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