Startup Certificate in Azerbaijan
- Emil Khudiyev (Lawyer)
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Startup Certificate – is a document presented for the production of a product based on an innovative initiative, competitive, and is not identical to another products.
So, it’s a relatively new and progressive form of influence on business development.
It was first approved by decree No. 20 (“Startup Determination Criteria”) of Cabinet of Ministers, dated 29.01.2021.
In Azerbaijan Startup Certificate is issued by SMBDA (Small and Medium Business Development Agency).
Advantages of Startup Certificate
According to the Azerbaijani Tax Code, entrepreneurs engaged in micro and small businesses are exempt from income tax and tax on income from innovation activity for 3 years from the date of receiving the Startup Certificate.
How to get a Startup Certificate?
In general, there are 2 strictly defined criterias to apply:
1. Criterias for applicant.
2. Criterias for goods (services).
Criterias for applicant
– Being a micro or small business entity;
– That the share of founders who are medium and (or) large business subjects in the legal entity does not exceed 49 percent;
– Being a resident taxpayer.
Criterias for goods (services)
– production of the product (service) for the purpose of obtaining income or profit;
– being based on an innovative initiative:
* creating additional value by organizing existing production or service processes in a new form;
* formation of added value by the application of new technology;
– to be competitive;
– forecasting a justified increase in the demand for the product (service) created in the short-term (up to 3 years) perspective;
– non-identity with other startup product (service).
What documents are required to apply for Startup Certificate?
To apply for Startup Certificate you need to submit the following documents to SMBDA:
1. Application form.
2. Copies of the applicant’s taxpayer registration;
3. If the applicant is represented by an authorized representative, the original power of attorney confirming his/her powers;
4. Presentation prepared using the appropriate software to obtain a Startup Certificate, reflecting the name and detailed description of the project (hereinafter – the project);
5. Commercial or product design;
6. Business plan containing the following information:
– market research and marketing plan related to the product (service) share in the market, its market potential;
– export or import substitution potential of the product (justified);
– the product (service) uniqueness and competitiveness (justified);
– investment plan.
7. Following HR information, if any:
– background of the management members;
– employees ensuring the product (service) designing, its release to the market, and further development;
– consultants;
– shareholders (stakeholders) and (or) investors.
8. Grants, investments, or loans attracted to the startup if any.
9. Patent or patent application for a startup product if any.
10. Technology business incubator registration certificate if any.
Note: Application and other documents should be submitted to Agency directly (134, Ataturk Avenue, Baku, AZ1069) or electronically (info@smb.gov.az).
Terms & Results
SMBDA considers the application and the documents attached within 30 days and submits it to the Expert Council for consideration.
Based on the Expert Council conclusion, the Agency decides to issue or refuse to issue a Startup Certificate.
How EMZE can help you?
Always ready to help you in obtaining Startup Certificate in Azerbaijan, provide you legal consultancy and:
– Check the legality of your startup idea and help you to identify risks;
– Prepare Partnership Agreement, User Agreement, Privacy Policy, Cookie Policy, User Manual & other relevant documents for web based startups.
Got an innovative idea and want to implement it legally? It’s simple. Just Call Emil!
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