Permission to operate: Licenses and rules for obtaining them

The word license itself means permission. In the legal sense, a license is a document that allows individuals (natural persons and legal entities) to engage in any type of entrepreneurial activity.

Legal regulation of licenses is carried out based on the Constitution of the Republic of Azerbaijan, as well as the Law of the Republic of Azerbaijan “On Licenses and Permits” dated March 15, 2016, the Law of the Republic of Azerbaijan “On Entrepreneurship”, the Law of the Republic of Azerbaijan “On Administrative Proceedings”.

I. Determination of the types of activities requiring a license, the validity of them

As we have mentioned above, a license is a document of permission. The question is, why do certain activities require such a permit? To answer this question, let’s refer to the Law on Licenses and Permits. Thus, licenses and permits for activities are determined based on certain criteria. These criteria are as follows:

• the type of activity affects state security;
• the type of activity involves the use of limited natural resources;
• the type of activity may hurt the environmental situation;
• the type of activity poses a threat to the life, health, and property of an unlimited number of persons.

Taking into account these criteria, a license is required for the implementation of several activities, such as private medical activities, pharmaceutical activities, educational activities, etc. To obtain a complete list of areas requiring a license, you can refer to Annex 1 to the Law of the Republic of Azerbaijan “On Licenses and Permits” dated March 15, 2016, No. 176-VQ.

It should be noted that the license and permit issued in the Republic of Azerbaijan are valid throughout its territory.

II. Procedure for applying for licenses and grounds for refusal of issuance of a license

Persons wishing to obtain a license shall apply to the relevant authority by the type of activity they wish to carry out. For example, if a person wants to engage in pharmaceutical activities, he must apply to the Ministry of Health of the Republic of Azerbaijan with the application form. In addition, the following documents are attached to the application:

1. The applicant is a legal entity, a branch or representative office of a foreign legal entity, a copy of the extract from the state register of legal entities;
2. a copy of the ID card if the applicant is a sole proprietor;
3. a copy of the applicant’s certificate of registration as a taxpayer;
4. a copy of the document confirming the applicant’s right of ownership, use, or lease on each of the objects mentioned in the application (if the implementation of the activity requiring a license and the performance of the action requiring a permit is related to the object);
5. Documents confirming compliance with the terms of the license and permit (if required by law).

Based on the results of consideration of the submitted application and attached documents, the state body issuing the license shall decide on issuance or refusal to issue a license no later than 10 working days from the date of registration of the application and inform the applicant (the applied periods are not included in the specified period if deficiencies are found in the application and attached documents if the licensing state body deems it necessary to apply to the relevant state bodies for an opinion depending on the characteristics of a particular type of activity if the licensing state body applies to the relevant state body to involve an expert or specialist). It should be noted that licenses are issued for an indefinite period.

The issuance of a license and permit is denied in the following cases:

• if the application and attached documents contain information that does not comply with the law;
• if the applicant does not comply with the terms of the license and permit.

The administrative act on refusal to issue a license and permit must be substantiated concerning the cases of refusal. The applicant may appeal against this administrative act in an administrative manner and court.

ACON LLC is always ready to provide you with professional services in obtaining licenses and permits for the activities required by the Law of the Republic of Azerbaijan on Licenses and Permits

1. ACON – LAW AND INVESTMENT, Establishment of representative offices and branches of foreign companies, https://acon.az/establishment-of-representative-offices-and-branches-of-foreign-companies/ (2022).
2. ACON – LAW, AND INVESTMENT, Points to pay attention to in connection with the state registration of companies, https://acon.az/points-to-pay-attention-to-in-connection-with-the-state-registration-of-companies/  (2022)