By the Decision of the Cabinet of Ministers of the Republic of Azerbaijan dated December 21, 2018, "Criteria for the new division of micro, small, medium and large business entities" was approved. According to these criteria, it is determined whether the entrepreneur is a micro, small, medium or large entrepreneur based on the average number of employees and annual income. A micro-entrepreneur is an entrepreneur with up to 10 employees and an annual income of up to 200,000 manats. An entrepreneur whose number of employees is between 11-50 and whose annual income is up to 3 million manats is considered a small entrepreneur. An average entrepreneur is an entrepreneur whose number of employees is between 51-250, and whose annual income is between 3-30 million manats. The category of an SME entity is determined based on whichever of these criteria is higher. For example, the number of employees of the business entity is 5, and the annual income is 250 thousand manats. Here, the number of employees corresponds to a micro-enterprise, and the annual income corresponds to a small enterprise. In this case, the business entity is considered a small entrepreneur based on the annual income.
Small and Medium Business Development Agency (SMB) By the Decree of the President of the Republic of Azerbaijan dated December 28, 2017, further improvement of the investment and business environment in the country, improvement of the system of regulation of entrepreneurial activity and implementation of effective coordination, role of small and medium entrepreneurship in the country's economy and competitiveness It was created for the purpose of increasing, adapting the management system in this field to modern requirements, expanding access opportunities for SMEs to financial resources, forming institutional support mechanisms, and strengthening the legal protection of entrepreneurship.
KOBIA provides support and services to micro, small and medium-sized enterprises, as well as those who want to start their own business, in the following directions: ), provides information and consulting services, supports the preparation of a business plan, the participation of SMEs in the international training program; br />
- In order to support the access of SMEs to the markets, it supports the free display of products and services of SMEs at specialized exhibitions (in local and foreign countries), the sale of products of SMEs in trade networks and through the kobmarket.az platform ;
- allocates grants (up to 20,000 manats) for educational, scientific, research and support projects of SMEs in order to support their access to financial resources, finances internal market research, provides tax benefits for micro and small entrepreneurs issues a "Startup" certificate, informs SMEs about the available financial instruments of the state and supports them in their exit;
Entrepreneurs who want to establish their own business and expand their existing entrepreneurial activities can apply to KOBIA or the Agency's SME friends operating in different cities and regions. The agency provides various support and services to entrepreneurs at the stages of planning a business, starting a business, operating a business and developing a business, such as information, advice, training to increase business knowledge, coordination with state and private institutions, legal assistance, protection of interests, access to markets and financial resources. is displayed.
KOB friends are local representatives of KOBIA. KOB friends support the realization of business initiatives of entrepreneurs in the areas where they operate, protection of entrepreneurial interests, creation and development of new SME subjects, informing about state support mechanisms for entrepreneurs, coordinating with state institutions. SMEs can contact the closest SME-friendly office in their area or geographically for issues related to entrepreneurial activity. Addresses and contact details of SME-friendly offices are posted on the website of KOBIA at www.smb.gov.az.
The SME houses included in the structure of KOBIA are a single space where necessary services are provided to entrepreneurs by state and private institutions. The main advantage of SME houses is that entrepreneurs receive business services promptly in a single location, thus saving time and operating costs, and the level of service provided to entrepreneurs can be measured. Currently, there are 3 SME houses operating in the cities of Baku, Yevlakh and Khachmaz. More than 300 services are offered to entrepreneurs by about 50 state and private institutions in SME houses. Entrepreneurs need business registration, documents necessary for business activity (license, permits, certificate of origin, investment promotion document, permission form for carrying out cargo transportation, distinction badge, tachograph cards, etc.), tax, customs, connection to public utilities, food safety, banking, insurance, transportation, notary, etc. they can apply to SME houses for such services. The services provided to entrepreneurs in SME houses can be found on the website of KOBIA www.smb.gov.az.
SME development centers are the structural divisions of the SME Development Agency. In these centers, SMEs who want to establish and expand their business are given business training on various topics by professional trainers-experts, information and consulting services, and support in the preparation of a business plan. All services provided by SME development centers are free of charge.
Informational and financial support is provided to micro, small and medium-sized enterprises in order to stimulate competitive production in the country and conduct internal market research for the creation of new products and services. 80% of the cost of each internal market research conducted on the basis of the application of a micro-entrepreneurial subject, 50% of the cost of the research carried out at the request of a small entrepreneurial subject is covered by the state. Medium business entities can take advantage of free training and seminars, and informational support within the framework of this support. The amount of support paid for each internal market research is up to 20,000 manats. Support measures for conducting internal market research are carried out by KOBIA.
"Startup" certificate is issued by KOBIA to legal entities and individual entrepreneurs who are subjects of micro and small entrepreneurship. The "Startup" certificate exempts micro and small business entities that carry out entrepreneurial activity based on an innovative initiative from profit and income tax for a period of 3 years.<br><br>Startap Development operating in "Baku SME House" In the center, a shared workspace with various equipment has been created for startups whose projects are in the idea stage. Meetings of start-ups and investors, trainings, mentoring and consulting services are regularly organized in the center.
"Startup" certificate is a document that exempts micro and small business subjects from profit and income tax on the income they get from innovation activity for a period of 3 years from the date of receiving the certificate in accordance with the Tax Code of the Republic of Azerbaijan. SMEs wishing to receive a "Startup" certificate can apply to KOBIA in writing.
In connection with the development of micro, small and medium entrepreneurship, grant funds are allocated for the financing of projects of business subjects in the fields of education, science, research and support. Funding is carried out on the basis of competitions organized by KOBIA throughout the year. The amount of financing for each project is up to 20 thousand manats.
In order to promote the products and services of micro, small and medium-sized enterprises and thus expand their sales opportunities, KOBIA supports the free participation of SMEs in various specialized exhibitions held in our country and abroad. SMEs who wish to present their products and services at the exhibitions and fairs held with the support and participation of KOBIA can apply electronically by filling out the form posted on the Agency's official website. support is also given to the sale of non-food products in trade networks. For this purpose, within the framework of the support mechanism for the access of SMEs to trade networks, 8 sales places have been allocated in the large shopping centers operating in Baku. Micro and small business subjects who want to sell food and non-food products in large trade networks can apply to KOBIA.
A model enterprise is a training and practice center based on cost-effective management methods that will enable small and medium-sized industrial enterprises to be efficient and competitive. Entrepreneurs who want to use the services of the model enterprise should be engaged in industrial production, should be willing to acquire and apply modern knowledge in production and production management. Entrepreneurs who want to benefit from the opportunities of the SME Model Enterprise can apply to KOBIA. All services provided by KOB Model Enterprise to entrepreneurs are free of charge.
The video training platform was created by KOBIA in order to increase the knowledge and awareness of micro, small and medium business entities, those who want to start entrepreneurial activities and startups in the field of business, and to meet the training needs. On this platform, 180 training videos, training materials and self-assessment tests on each subject are placed on the directions of organizing a business, corporate law, project management, finance, sales, marketing, tourism and export process. Using the platform is free of charge. SMEs who want to improve their knowledge in the field of business and people who want to start entrepreneurship can benefit from video materials by registering in the "Video training platform" section of the www.kobim.az website.
A business cooperation program with Germany is being implemented in order for Azerbaijani entrepreneurs and managers to gain international experience in the field of business, to increase their business knowledge and skills. Within the framework of the program, Azerbaijani entrepreneurs and managers take part in online and offline trainings at leading educational centers in Germany, and experience in companies. The selection of participants is made by German experts on the basis of a competition. Entrepreneurs and managers who successfully complete the program are awarded an international certificate. Entrepreneurs and managers who want to benefit from the program can apply to KOBIA.
SME cluster - an SME cluster formed by the location of related and complementary activities in the same or similar sector in a certain geographical region, sharing common infrastructure, technology, a single market, workforce and services, establishing mutual economic relations, and having opportunities for joint activities is a cooperation model of the company and its participants. KOBIA has been identified as an authorized institution issuing certificates of "SME cluster company" and "Participant of SME cluster". In order to create an SME cluster, a commercial legal entity must apply to the SME cluster in written form or electronically with the relevant application and attached documents.<br><br>In the Tax Code of the Republic of Azerbaijan, "SME cluster company" and "Participant of SME cluster" a number of tax benefits have been determined for Thus, for a period of 7 years from the date of entry of the SME cluster company into the register of SME cluster companies, profit, land for the land used in the SME cluster activity and property tax for the properties used in the SME cluster activity, machinery, technological equipment for production or processing purposes based on a confirmation document and is exempt from VAT for the import of equipment. A person who is a participant of the SME cluster is exempted from profit or income tax on the part of the profit or income obtained on the goods provided by him on the basis of the contract concluded with the SME cluster company for a period of 7 years.
The investment promotion document is a document that gives legal entities and individual entrepreneurs the basis to obtain the benefits specified in the Tax Code of the Republic of Azerbaijan and the Law "On Customs Tariff". Entrepreneurs who have received an investment promotion document are exempted from tax of 50 percent of profits and income, property and land tax, as well as from VAT and import duties on imported machinery, technological equipment and devices for a period of 7 years. Entrepreneurs can apply for an investment promotion document to the Ministry of Economy, as well as to the ministry's service window operating in SME houses. Detailed information about the investment promotion document can be obtained from the 131 Call Center of KOBIA.
Investment portal www.invest.smb.gov.az was created by KOBIA in order to expand the investment opportunities of small and medium business entities in Azerbaijan. Various investment projects and business ideas are posted on the portal. Entrepreneurs and start-ups who have a business project, are looking for investors and want to sell their existing business, and investors who want to invest in various projects can use the portal. You need to register to use the portal. Posting information on the portal is free of charge.
Mediation is an alternative way of resolving disputes before court by neutral, impartial and disinterested third parties. Mediation is also an effective method for resolving commercial disputes. Mediation of business disputes prevents loss of time, additional costs and disclosure of trade secrets. In order to resolve disputes between the parties during entrepreneurial activities without going to court, business entities can apply to the Mediation Council or to mediators operating in "Baku SME House".
"SME Volunteers" Program is being implemented in KOBIA in order to support the improvement of knowledge and skills of young people, to acquire work habits, as well as to contribute to the volunteer movement successfully implemented in our country. "SME volunteers" gather experience, improve their knowledge and skills by closely participating in the daily work process of the Agency. The program consists of "KOB Master 1" and "KOB Master 2" stages, each lasting 3 months. The participants who have completed the program are evaluated and those whose activity is deemed acceptable are presented with "SME Master 1" and "SME Master 2" certificates, respectively. In order to apply for the "KOB Master 2" stage, it is necessary to have a certificate for the "KOB Master 1" stage. Certificates are given to "SME volunteers" at the end of their 3-month volunteer activity.
To become a volunteer at KOBIA, you need to register in the "Become a SME volunteer" section on www.smb.gov.az. Applications received through this section are evaluated and candidates who meet the requirements of the Agency are invited to the interview phase in a phased manner according to the volunteer need.
