Techno (science) parks in Azerbaijan. Advantages for IT!
- Emil Khudiyev (Lawyer)
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A techno park (abb. technology park) is a place where high-tech projects are created and developed. Of course, to create new breakthrough technologies, a certain base is required: technical, scientific, territorial, etc., and technoparks create all the conditions for this.
The first technoparks were created in the USA in the 50s of the 20th century, having received wide recognition among developed countries and are still actively opening and developing around the world.
Technoparks have an official status and provide residents with various preferential conditions – for example, tax or rent. Technoparks also consult residents and provide them with access to equipment. So, what kind of technoparks are there in Azerbaijan?
Techno parks in Azerbaijan
First techno parks in Azerbaijan first appeared in the early 2010s, but their popularity rapidly increased in the late 2010s.
On December 30, 2022 President of the Republic of Azerbaijan Mr. Ilham Aliyev signed a number of documents on making a number of progressive amendments to the law on IT sphere in Azerbaijan. Those amendments were mainly affecting businessmen (companies and entrepreneurs) who got residence in techno parks.
Development of techno parks, as well as providing residence in techno parks in Azerbaijan is held by IDDA (Innovation and Digital Development Agency) under the Ministry of Digital Development and Transportof Azerbaijan.
How to become resident of techno park in Azerbaijan?
To obtain residency in a techno park in Azerbaijan, you must open a company or be registered as an individual entrepreneur. Depending on the type of registration (company or individual), you must submit the following documents to the IDDA (Innovation and Digital Development Agency).
List of documents required for a company:
1. Copy of an extract from the state register of legal entities.
2. Copy of a document confirming the identity of the director.
3. Copy of the charter.
4. Notarized copy of the relevant license or permit.
5. Certificate of affiliation with small, medium or large businesses.
6. Certificate of absence of tax arrears and other mandatory payments.
7. Certificate of non-filing of bankruptcy claims, absence of seizure of property and absence of security deposit.
8. Certificate of absence of a ban on the right to engage in the relevant activity.
9. Copies of documents of specialists with an education in the field of IT, including graduation from additional educational institutions, or at least 1 year of work experience.
10. Must have at least 1 year of experience in the field of system integration and software development.
11. At least one product must be sold during the company’s activity.
List of documents required for individualw entrepreneurs:
1. Copy of identity document.
2. Copy of TIN (tax registration certificate).
3. Notarized copy of the relevant license or permit.
4. Certificate of affiliation with small, medium or large businesses.
5. Certificate of absence of tax arrears and other mandatory payments.
6. Certificate of non-filing of bankruptcy claims, absence of seizure of property and absence of security deposit.
7. Certificate of absence of ban on the right to engage in relevant activities.
8. Copies of documents of specialists with education in IT, including graduation from additional educational institutions, or at least 1 year of work experience.
9. Must have at least 1 year of experience in the field of system integration and software development.
10. At least one product must be implemented during the period of activity.
Advantages for techno parks’ residents
Companies and individuals who become residents of tecnho parks automatically obtain the following advantages for 10 years:
– Residents operating outside the technopark in the field of system integration or software development are exempt from a number of taxes (profit and income tax, dividends, property, land);
– Benefits on personal income tax for residents of technoparks working outside the territory of technoparks:
• from January 1, 2023 for 3 years, with a monthly income of up to 8,000 AZN, the tax is 0%, and with an income above 8,000 AZN – 5% of the amount above;
• from January 1, 2026 for 7 years, a tax of 5% will be levied on monthly income.
– Foreign IT specialists do not need to obtain a work permit.
– from January 1, 2023, for a period of 10 years from the date of registration, an exemption from personal income tax, corporate income tax, property tax, land tax and dividend tax is provided.
– Residents of technology parks, their contractors and subcontractors who have entered into direct contracts with contractors will be required to provide mandatory state social insurance for foreign citizens and stateless persons attracted to perform activities from January 1, 2023 for a period of 10 years. When hiring local employees, a resident for 10 years (from 01.01.2023) can:
* pay contributions for mandatory state social insurance in the amount of four times the minimum wage (minimum wage);
* from income from paid work.
FAQ
Should I open company to become a resident of techno park?
Yes. To become resident of a techno park you need to open a company or register yourself as a private entrepreneur.
How EMZE can help you?
Just finished reading this article, but still not sure that you can go through the process of obtaining of residence in the techno parks in Azerbaijan yourself? No problem! I am always ready to provide you with legal assistance, advise you on the company registration obtaining of licenses in Azerbaijan and help you at all stages of the above mentioned procedures.
Need a Lawyer in Azerbaijan? Just Call Emil!
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