We believe Azerbaijan’s socio-economic development is closely linked with entrepreneurship and its future development!
KOBİA-nın özünüməşğulluğa dəstəyi Özünüməşğulluq proqramına cəlb edilən şəxslərə biznes planların hazırlanmasında dəstək göstərilir Azərbaycanın nümayəndəsi BMT-nin İqtisadi, Sosial və Mədəni Hüquqlar Komitəsinə üzv seçilib “Kazan Digital Week” onlayn forumu keçiriləcək “Sahibkarların I beynəlxalq onlayn forumu - Bakı 2020” keçiriləcək
FAQ

What was the purpose for establishing the Agency for Development of Small and Medium Businesses of the Republic of Azerbaijan?

Answer: The Agency for Development of Small and Medium Businesses was established under the Decree of the President of the Republic of Azerbaijan dated 28 December 2017. The Agency’s objective is to support micro, small and medium businesses development in the country, strengthen role of small and medium businesses in the national economy, increase their competitiveness and contribution to the national development indicators, participate in protection of SMEs interests and problems resolution, facilitate SMEs institutional support mechanisms, coordinate activities of government agencies and private institutions in this area. The Agency provides government-to-business and business-to-business platform, performs coordinating, supervision, monitoring and evaluation functions. The Agency’s mission is to be the friend of entrepreneurs.

What kind of services does the Agency for Development of Small and Medium Businesses of the Republic of Azerbaijan provide to entrepreneurs?

Answer: the Agency for Development of Small and Medium Businesses of the Republic of Azerbaijan provides support to micro, small and medium businesses in the form of information, advisory, training, education and legal services, coordination with other government agencies, protection of the entrepreneurs rights to ensure launch of new businesses, management of existing ones and their enhancement with innovative methods.

Who is “Friend of small and medium businesses”?

Answer: Friend of small and medium businesses, in short, SMEs Friend, is the support model of the Agency for Development of Small and Medium Businesses of the Republic of Azerbaijan for micro, small, medium businesses. SMEs Friend keeps direct contacts with the micro, small and medium businesses operating in its area of responsibility, explores their development initiatives, capacity, provides a range of support activities to establish new small and medium businesses and development of current businesses, protects lawful rights of entrepreneurs. SMEs Friend also learns the needs of micro, small and medium businesses through surveys and other researches and monitors services provided by the government agencies and private entities. Currently, 14 SMEs Friends operate in 12 cities and regions of the country.

How to apply to Friend of Small and Medium Businesses?

Answer: SMEs Friend, which is one of the main support models of the Agency for Development of Small and Medium Businesses of the Republic of Azerbaijan to micro, small and medium businesses, currently operates in Masalli, Khachmaz, Siyazan-Shabran, Guba, Gusar, Yevlakh, Fuzuli, Gabala, Absheron, Ganja, Sumgayit and Baku. Operations of SMEs Friend in other regions and cities are also envisaged. Micro, small and medium businesses can apply to SMEs Friend operating in their area or to the geographically closest one to address issues like business startup and development and rights protection. More detailed information about SMEs Friends and their contact details are available on the web site of the Agency for Development of Small and Medium Businesses of the Republic of Azerbaijan – www.smb.gov.az

What is House of Small and Medium Businesses?

Answer: House of Small and Medium Businesses, in short, SMEs House, which is one of the important support mechanisms of the Agency for Development of Small and Medium Businesses of the Republic of Azerbaijan for micro, small and medium businesses, is a single platform for provision of necessary government-to-business and business-to-business services under rapid response, transparency and citizens satisfaction principles. SMEs House will offer over 30 government, 100 G2B (government-to-business) and B2B (business-to-business) interconnected services ranging from business planning to business development. Currently, the Agency for Development of Small and Medium Businesses of the Republic of Azerbaijan works to establish Houses of Small and Medium Businesses.

What kind of entrepreneurs are considered to be micro, small and medium ones?

Answer: the Decision of the Cabinet of Ministers of the Republic of Azerbaijan dated 21 December 2018 approved new classification criteria for micro, small and medium businesses. According to these criteria, a micro business shall have up to 10 employees and up to AZN 200,000 of yearly profit, a small business shall have 11-50 employees and up to AZN 3mln. of yearly profit and a medium business shall have 21-150 employees and AZN 3-30mln. of yearly profit

What privileges are envisaged for micro, small and medium businesses in the Tax Code?

Answer: according to the Tax Code of the Republic of Azerbaijan, 75% of the micro business’ income and profit are exempt from taxation. Also, these businesses are exempt from property tax. Upon receiving Startup Certificate, new micro and small businesses are exempt from income and profit taxes for a three-year period. Accelerated depreciation can be applied for small businesses on the basis of yearly amortization of fixed assets multiplied by 1.5 as a ratio. According to the Tax Code of the Republic of Azerbaijan, SMEs cluster companies that operate within SMEs clusters are exempt from profit, land and property taxes as well as from VAT on imported equipment for a seven-year period.

Are there any changes regarding the access of micro, small and medium businesses to utility services?

Answer: based on the Decree of the President of the Republic of Azerbaijan dated 25 December 2018, access of micro, small and medium businesses to utility services has been simplified. From now on, micro, small and medium businesses can request SMEs House, ASAN Utilities Centers or ASAN Services Centers to prepare and deliver technical specifications and project documents for accessing gas, water supplies, wastewater systems as well as to provide a physical connection to these systems. The entrepreneurs shall get access to the utility services no later than 20 days upon making the request. Technical specifications shall be provided for free.

What is a startup? What kind of support will the Agency for Development of Small and Medium Businesses of the Republic of Azerbaijan provide to startups?

Answer: a startup is an innovative entrepreneurial activity that corresponds to relevant criteria and is carried out by entities that received Startup Certificate. According to its Charter, the Agency for Development of Small and Medium Businesses of the Republic of Azerbaijan will support startups registration, provision of patents for innovative ideas, enhanced access to financial resources and coordinate startups collaboration with universities, scientific and research institutions, industrial and technological parks, technological business incubators to promote innovative entrepreneurship. The Agency for Development of Small and Medium Businesses of the Republic of Azerbaijan is an authorized body to issue Startup Certificates.

What are public procurement conditions for small and medium businesses?

Answer: based on changes to the Public Procurements Law of the Republic of Azerbaijan, micro, small and medium businesses involvement in public procurement process has been expanded. For example, public procurement of the goods (works, services) that cost USD 3m. equivalent or less shall be carried out only with participation of micro, small and medium businesses and with open electronic bidding method.

What is a small and medium businesses cluster?

Answer: a small and medium businesses cluster is a cooperation model between SMEs cluster company and SMEs cluster members that are established in the same or similar sector, located in the same geographical area with the connected or complementing operations, have common infrastructure, technologies, market, workforce and business relations based on shared services and capacity sharing. Tax Code of the Republic of Azerbaijan envisages a number of tax privileges for SMEs cluster companies and SMEs cluster members. The Agency for Development of Small and Medium Businesses of the Republic of Azerbaijan is an authorized body to issue SME Cluster Company Certificate and SME Cluster Member Certificate.

What kind of soft loans can micro, small and medium businesses benefit from?

Answer: micro, small and medium businesses can benefit from government loans on business startups and development in various areas. The entrepreneurs can apply for government loans on industry, agriculture, ICT, tourism, services to authorized lending institutions that collaborate with the National Fund for Entrepreneurship Support of the Ministry of Economy, State Fund for Development of Information Technologies under the Ministry of Transport, Communication and High Technologies and Agro Credit and Development Agency under the Ministry of Agriculture.

Where can persons apply, if they wish to establish their own business or develop the existing one?

Answer: persons who wish to establish their own business or develop the existing one can apply to the Agency for Development of Small and Medium Businesses of the Republic of Azerbaijan or its Friends of Small and Medium Businesses that currently operate in 12 cities and regions of the country. The Agency provides micro, small and medium businesses with information, advisory, training, education and legal assistance services, coordination with other government agencies, protection of the entrepreneurs’ rights to start a new business or develop the existing one.

Who are SMEs volunteers?

Answer: the Agency for Development of Small and Medium Businesses of the Republic of Azerbaijan implements Volunteers of Small and Medium Businesses Program for the youth. Volunteers Council operates under the Agency. Currently, about 30 young individuals are SMEs volunteers at the Agency and its SMEs Friend offices throughout the country. SMEs volunteers closely participate in the daily work of the Agency obtaining work experience and improving their knowledge and skills. After this three-month volunteering program, SMEs volunteers receive their certificates of completion. A few volunteers that successfully completed the program at the Agency for Development of Small and Medium Businesses have already been employed in various areas.

What is the suspension period for inspections of entrepreneurs?

Answer: based on the Law of the Republic of Azerbaijan on Suspension Period for Inspections of Entrepreneurs, inspections of entrepreneurial activities within the country are suspended till 1 January 2021. Only incidents that impose significant threats to tax, financial markets and customs audit, medicines quality, and safety standards compliance, food safety supervision as well as human health and life, national security and economic interests can be inspected.

What is an investment promotion document?

Answer: As of 2016, the Ministry of Economy issues investment promotion document to entrepreneurs to expand, promote, and encourage investments in the country. Investment promotion document provides a legal basis for privileges stipulated in the Tax Code of the Republic of Azerbaijan and the Customs Law of the Republic of Azerbaijan. Holders of investment promotion document get tax exemption for 50% of profit and income, exemptions from property and land taxes as well as from VAT and import duties for imported technological equipment, machinery, and installations.

What kind of government support is envisaged for entrepreneurs engaged in export operations?

Answer: Azerbaijani entrepreneurs that export non-oil products can benefit from such mechanisms as export missions, national booth at international fairs and exhibitions, market research support measures approved by the Decree of the President of the Republic of Azerbaijan dated 5 October 2016 on the promotion of “Made in Azerbaijan” brand. These support mechanisms are covered from the state budget in full or in part.

What privileges are envisaged for SMEs cluster companies and SMEs cluster members?

Answer: Tax Code of the Republic of Azerbaijan envisages a number of tax privileges for SMEs cluster companies and SMEs cluster members. SMEs cluster companies are exempt from profit, land and property taxes and from VAT on imported technological equipment, machinery, and installations for a seven-year period. SMEs cluster members are exempt from the income tax on the portion of the profit that is used to cover capital expenditures for a seven-year period. The Agency for Development of Small and Medium Businesses of the Republic of Azerbaijan is an authorized body to issue SME Cluster Company and SME Cluster Member Certificates.

Powered by Froala Editor