New Digital System for Company Registration and Legislative Reforms

1. MINISTRY OF LABOURAND SOCIAL PROTECTION OF POPULATIONOF THE REPUBLIC OFAZERBAIJAN CENTER FOR ANALYSIS OF ECONOMIC REFORMS AND COMMUNICATIONOF THE REPUBLIC OFAZERBAIJAN MINISTRY OFTAXES OF THE REPUBLIC OFAZERBAIJAN A new digital electronic system on company registration and recent legislative reforms STARTING BUSINESS

2. MINISTRY OF TAXES OF THE REPUBLIC OFAZERBAIJAN MINISTRY OF LABOUR AND SOCIAL PROTECTION OF POPULATION OF THE REPUBLIC OFAZERBAIJAN CENTER FOR ANALYSIS OF ECONOMIC REFORMS AND COMMUNICATION OF THE REPUBLICOF AZERBAIJAN STARTlNG BUSINESS CONTENTS www.taxes.gov.az

3. MINISTRY OF TAXES OF THE REPUBLIC OFAZERBAIJAN MINISTRY OF LABOUR AND SOCIAL PROTECTION OF POPULATION OF THE REPUBLIC OFAZERBAIJAN CENTER FOR ANALYSIS OF ECONOMIC REFORMS AND COMMUNICATION OF THE REPUBLICOF AZERBAIJAN STARTlNG BUSINESS WAYS OF GOAL ACHİVEMENT Replacement of starting businessproceduresbysingleone Entirely digitalregistration process Sharingregistrationdataon-line with stakeholders (including state authorities Full simplification oftheregistration system www.taxes.gov.az

4. Electronic circulation of registration documents (certificate, charter, extract from registry) MINISTRY OF TAXES OF THE REPUBLIC OFAZERBAIJAN MINISTRY OF LABOUR AND SOCIAL PROTECTION OF POPULATION OF THE REPUBLIC OFAZERBAIJAN CENTER FOR ANALYSIS OF ECONOMIC REFORMS AND COMMUNICATION OF THE REPUBLICOF AZERBAIJAN STARTING BUSINESS NEW APPROACH (28.12.2018) • SİNGLE PROCEDURE • Barcode encrypted certificate on state registration • Simple method – state registration by PIN code, VAT registration and opening of a bank account (via a single procedure) • Sharing of data on labour contracts to the information system of the Ministry of Labour and Social Protection of Populationduring the registrationprocess without e-signature www.taxes.gov.az

5. MINISTRY OF TAXES OF THE REPUBLIC OFAZERBAIJAN MINISTRY OF LABOUR AND SOCIAL PROTECTION OF POPULATION OF THE REPUBLIC OFAZERBAIJAN CENTER FOR ANALYSIS OF ECONOMIC REFORMS AND COMMUNICATION OF THE REPUBLICOF AZERBAIJAN STARTING BUSINESS Procedures 1 2 3 For online application e- signature is compulsory and charter is required to be submitted. Electronic signature, ASAN Imza can be activated through a sim-card. Employees can instantly start actual employment. BEFORE NOW Apply for registration,obtain TIN and VAT registration Obtain electronic signature for online registration Register employees with the Ministry of Labor and Social Protection 1 Information about the employees to be employed should be included in the online registration application. By entering PIN number at the website of the Ministry of Taxes, online registration will be enabled through single platform. ASAN Imza is not a pre-requisite for online registration anymore. http://www.taxes.gov.az 050******* www.taxes.gov.az

6. MINISTRY OF TAXES OF THE REPUBLIC OFAZERBAIJAN MINISTRY OF LABOUR AND SOCIAL PROTECTION OF POPULATION OF THE REPUBLIC OFAZERBAIJAN CENTER FOR ANALYSIS OF ECONOMIC REFORMS AND COMMUNICATION OF THE REPUBLICOF AZERBAIJAN STARTING BUSINESS 3,5days 3 90 Before PROCEDURES, COST AND TIME DIMINISHEDAFTER NEW REFORMS Procedures Time Cost 0,5day 1 OAZN Now Procedures Time Cost Impact of the reform For Electronic registration of company the number of procedures is reduced from 3 to 1 procedure, the number of days is decreased from 3, 5 to 0, 5 days and cost is cut off from 90 AZN to 0 Azn. As a result of implementation of the new digital electronic system, procedure for registration of employee contracts at the “Electronic Government” web portal has been eliminated. Procedure for obtaining ASAN Signature certificate, for electronic registration of legal entities, has been canceled. www.taxes.gov.az

7. E-documentsrecieved as theresult of onlineregistration Completing of e-registration procedure (having a registration number - TIN) is sufficient to start operation (the Civil Code, art. 44.1.). Extract from registry Registration certificate Charter of LLC

8. MINISTRY OF TAXES OF THE REPUBLIC OFAZERBAIJAN MINISTRY OF LABOUR AND SOCIAL PROTECTION OF POPULATION OF THE REPUBLIC OFAZERBAIJAN CENTER FOR ANALYSIS OF ECONOMIC REFORMS AND COMMUNICATION OF THE REPUBLICOF AZERBAIJAN STARTING BUSINESS OFFICIAL RECOGNITION OF REGISTRATION PAPERS SENT TO ELECTRONIC OFFICE Law of the Republic ofAzerbaijan “On administrativeproceedings”,Article 30.5 NOTARIES Certificate(e.doca.doc) BANKS Charter(e.doc a.doc) STAKEHOLDERS (STATEAUTHORITIES) OTHER Extract from registry(e.doc a.doc) www.taxes.gov.az

9. MINISTRY OF TAXES OF THE REPUBLIC OFAZERBAIJAN MINISTRY OF LABOUR AND SOCIAL PROTECTION OF POPULATION OF THE REPUBLIC OFAZERBAIJAN CENTER FOR ANALYSIS OF ECONOMIC REFORMS AND COMMUNICATION OF THE REPUBLICOF AZERBAIJAN STARTING BUSINESS ADVANTAGES FOR ENTERPRENEUR All information iscentralized www.taxes.gov.az

10. MINISTRY OF TAXES OF THE REPUBLIC OFAZERBAIJAN MINISTRY OF LABOUR AND SOCIAL PROTECTION OF POPULATION OF THE REPUBLIC OFAZERBAIJAN CENTER FOR ANALYSIS OF ECONOMIC REFORMS AND COMMUNICATION OF THE REPUBLICOF AZERBAIJAN STARTING BUSINESS INDICATORS OF E-REGISTRATION INCLUDED BRANCH, REPRESENTATIVE, OPEN JOIN STOCK COMPANY, CLOSED STOCK COMPANY, PUBLIC LEGAL ENTITY WHICH ARE NOT CASE OF STARTING A BUSINESS. www.taxes.gov.az

11. MINISTRY OF TAXES OF THE REPUBLIC OFAZERBAIJAN MINISTRY OF LABOUR AND SOCIAL PROTECTION OF POPULATION OF THE REPUBLIC OFAZERBAIJAN CENTER FOR ANALYSIS OF ECONOMIC REFORMS AND COMMUNICATION OF THE REPUBLICOF AZERBAIJAN STARTİNG BUSINESS APPENDIX: LEGAL BASIS OF RECENT REFORMS www.taxes.gov.az

12. THANK YOU FOR YOUR ATTENTION!