New Law On Licenses And Permits Is Signed

On 21 April 2016, the President of the Republic of Azerbaijan signed a new Law On Licenses and permits. The new Law, which aims to protect and promote local entrepreneurship and to encourage business transparency, is noteworthy due to newly defined provisions for the simplification of the process of issuing licenses and permits.

The Law sets out criteria for types of activities requiring licenses and permits (except in financial markets), an exhaustive list of licenses and permits, state supervision over such licenses and permits, regulations for the issuance replacement and amendment of licenses (permits), the re-registration, suspension, resumption and cancellation of a license (permit), the responsibilities of the authorities granting licenses and permits and the responsibilities of the holders of licenses (permits).

The Law is applicable to all legal entities, including branches and representative offices of foreign legal entities, as well as to private entrepreneurs (except in financial markets), as well as to the authorities granting license and permits.

The Law, which is dated 15 March 2016, shall come into force on 1 June 2016.

Permits which were granted prior to the effective day of the Law shall be valid until the expiration of their term.

Features of the new Law

The Law refers to an Electronic Licenses and Permits Portal, as well as to a Single Registry for Licenses and Permits. The Law also contains a list of information which shall be included on the portal and in the registry.

A new chapter on principles of the state supervision of the license and permit system includes a list of principles for (i) issuing licenses and permits on the basis of a "single window" principle (ii), implicit consent for the issuance, re-issuance, suspension, resumption and cancellation of licenses and permits, (iii) the proportionality of the interests of entrepreneurs, society and the state in the implementation of the licenses and permits system, and (iv) analyses of the regulatory influence. Regulations on the issuance of licenses and permits also have been amended and changed.

According to the Law the issuance of licenses and permits, duplicates of such licenses and permits and amendments thereto, and the re-issuance, suspension, resumption and cancellation of licenses and permits shall be made through the Electronic Licenses and Permits Portal. Licenses now shall be issued within 10 days from the date of application (the previous regulations...