EKVITA Legal Updates | March
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EKVITA Legal Updates | March
Legal Act: Amendments to the Law "On Suspension of Inspections related to entrepreneurial activity"
Authority: Milli Majlis (Parliament)
Effective date: 19 March 2021
Source: https://president.az/articles/50920
As per the amendments, period of suspension of inspections in the field of entrepreneurship in Azerbaijan has been extended until 1 January 2022 (previously it was 1 January 2021) and it is prohibited to conduct regular and extraordinary inspections (excluding the ones provided for by the law) related to the activities carried out within the suspension period upon expiration date.
Legal Act: Amendments to the Law "On Copyright and Related Rights"
Authority: Milli Majlis (Parliament)
Effective date: 19 March 2021
Source: https://president.az/articles/50914
According to the amendments, expressions of Azerbaijani folklore (cultural heritage) and traditional knowledge of Azerbaijan, which are considered within the public domain shall be duly registered and provided with a certificate.
Additionally, the fees charged for the use of works declared to be state property are used to implement the state policy in respect of copyright and related rights.
Legal Act: Amendments to the “Rules for the implementation by investors of investment projects related to construction and infrastructure facilities within the framework of the model, requirements for investors in accordance with the types of construction and infrastructure facilities, the specifics and conditions of contracts to be concluded, the procedure for determining the cost of goods and services that will be received as a result of investment.
Authority: President of the Republic of Azerbaijan
Effective date: 20 March 2020
Source: https://president.az/articles/50934
According to the changes, investors in the implementation of investment projects based on BOT (biuld-operate-transfer) model is now extended not only to legal entities (including branches and representative offices), but also individual entrepreneurs.
Additionally, the investor may be assigned without a tender announcement in the following cases:
- an urgent need for the implementation of any investment project associated with human health or the environment, significant material losses and disruption of the living conditions of people;
- the possibility of implementing an investment project only by a specific investor or if he / she has exclusive rights to it.
Legal Act: “Decree On Amendments to the ”Procedure for Subsidizing the Production of Agricultural Products”.
Authority: President of the Republic of Azerbaijan
Effective date: 13 March 2020
Source: https://president.az/articles/50866
According to the amendment, if the subsidy funds provided to the farmer were not used within 2 years, and the farmer had also failed to use the subsidy funds within 3 months after being notified of this, he will not be paid the subsidy for the following year.
Legal Act: Amendments to the Decisions "On approval of the amount of fees for the provision of mediation services and other expenses during the initial mediation session", "On approval" of the procedure for payment of mediation costs from the state budget" and "On approval" of the Procedure for the implementation of the mediation process”
Authority: President of the Republic of Azerbaijan
Effective date: 20 March 2021
Source: https://nk.gov.az/az/document/5220/
The effective date of the Decisions mentioned in the title has been postponed to 1 July 2021.
EKVITA Legal Updates | March
Legal Act: Amendments to the Law "On Suspension of Inspections related to entrepreneurial activity"Authority: Milli Majlis (Parliament) Effective date: 19 March 2021Source: https://president.az/articles/50920 As per the amendments, period of suspension of inspections in the field of entrepreneurship in Azerbaijan has been extended until 1 January 2022 (previously it was 1 January 2021) and it is prohibited to conduct regular and extraordinary inspections (excluding the ones provided for by the law) related to the activities carried out within the suspension period upon expiration date. Legal Act: Amendments to the Law "On Copyright and Related Rights"Authority: Milli Majlis (Parliament) Effective date: 19 March 2021Source: https://president.az/articles/50914According to the amendments, expressions of Azerbaijani folklore (cultural heritage) and traditional knowledge of Azerbaijan, which are considered within the public domain shall be duly registered and provided with a certificate. Additionally, the fees charged for the use of works declared to be state property are used to implement the state policy in respect of copyright and related rights. Legal Act: Amendments to the “Rules for the implementation by investors of investment projects related to construction and infrastructure facilities within the framework of the model, requirements for investors in accordance with the types of construction and infrastructure facilities, the specifics and conditions of contracts to be concluded, the procedure for determining the cost of goods and services that will be received as a result of investment.Authority: President of the Republic of Azerbaijan Effective date: 20 March 2020Source: https://president.az/articles/50934According to the changes, investors in the implementation of investment projects based on BOT (biuld-operate-transfer) model is now extended not only to legal entities (including branches and representative offices), but also individual entrepreneurs.Additionally, the investor may be assigned without a tender announcement in the following cases:an urgent need for the implementation of any investment project associated with human health or the environment, significant material losses and disruption of the living conditions of people;the possibility of implementing an investment project only by a specific investor or if he / she has exclusive rights to it. Legal Act: “Decree On Amendments to the ”Procedure for Subsidizing the Production of Agricultural Products”.Authority: President of the Republic of Azerbaijan Effective date: 13 March 2020Source: https://president.az/articles/50866According to the amendment, if the subsidy funds provided to the farmer were not used within 2 years, and the farmer had also failed to use the subsidy funds within 3 months after being notified of this, he will not be paid the subsidy for the following year. Legal Act: Amendments to the Decisions "On approval of the amount of fees for the provision of mediation services and other expenses during the initial mediation session", "On approval" of the procedure for payment of mediation costs from the state budget" and "On approval" of the Procedure for the implementation of the mediation process”Authority: President of the Republic of AzerbaijanEffective date: 20 March 2021Source: https://nk.gov.az/az/document/5220/The effective date of the Decisions mentioned in the title has been postponed to 1 July 2021.Powered by Froala Editor
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Company (LLC) registration in Azerbaijan (Innovation in registration of an LLC)
As EKVITA, we provide services in multiple areas of law (corporate, labor, migration, tax, litigation, etc.), as well as accounting, audit, business development and accompany our clients starting from early stages of their businesses. In this regard, putting it simply, I would like to speak about “opening the company”. That is, what is the most appropriate organizational form for starting a business in Azerbaijan, its advantages, necessary procedures in the registration process and etc. As you know, there are several organizational forms for the establishment of a company in the legislation. However, today I would like to tell you about the Limited Liability Company (LLC), which is the most acceptable and simple one among the rest in terms of procedural and legal requirements. If we refer to the definition of LLC – a limited liability company means company established by one or more persons (natural persons and (or) legal entity), the charter capital of which is divided into shares, the sizes of which are specified by the charter. As can be seen from mentioned definition, the legislation does not set limits regarding the number of founders of the LLC. In other words, the founder can be one or more persons, including a foreign citizen. It should be noted that in the case of foreign citizens, the legislative or documentation requirements are the same as for Azerbaijani citizens, i.e. there are no additional or special requirements. Another benefit of the LLC is the absence of any restrictions regarding its charter capital in the legislation. In other words, there is no minimum or maximum limit, the charter capital may be settled in any amount. Therefore, in many cases, when establishing the LLC, the charter capital is formed in the amount of 10-100 manats. It also should be noted that the registration process of the LLC is notable for its simplicity, and it would be appropriate to emphasize the innovative policy pursued by the Ministry of Taxes in this sphere. Thanks to it, Azerbaijan has established itself in 9th place in terms of the “Starting a Business” indicator among 190 countries this year, according to the annual Doing Business Report of the World Bank.Powered by Froala Editor
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