License – an official document issued for carrying out a specific type of entrepreneurial activity. According to the law, types of activities requiring a license and the related permits are determined based on one of the following criteria:
· if the type of activity may affect state security;
· if the type of activity involves the use of limited natural resources;
· if the type of activity may have a negative impact on the ecological condition of the environment;
· if the type of activity may pose a threat to the life, health, or property of an unlimited number of people.
The list of types of activities requiring a license is determined by the Law “On Licenses and Permits.” Except for cases related to state security, activities in the financial markets, and licenses issued in the Alat Free Economic Zone, licenses for 23 types of entrepreneurial activities are issued by the Ministry of Economy. According to the legislation, licenses are currently issued for an indefinite period, except for mobile communication services.
Entrepreneurs can apply for a license to the Ministry of Economy electronically through the Small and Medium Business Development Agency’s SME Houses (Baku SME House, Khachmaz SME House, Yevlakh SME House), ASAN Service centers (No. 5 Baku, Sumgait, Ganja, Masalli, and Shaki), as well as via the “Licenses and Permits” portal. The portal allows for the submission of applications for electronic issuance of licenses for 23 types of activities, including obtaining opinions from 8 relevant authorities and formalizing the results.
To obtain a license, the relevant application form must be completed and the accompanying documents submitted. If the applicant is an individual entrepreneur, a copy of the identity card, a copy of the certificate of registration as a taxpayer, a copy of the document confirming the applicant’s ownership, usage, or lease rights over each of the objects specified in the application, and documents confirming compliance with the license conditions must be attached. If 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 must also be submitted.
When issuing a license, the Ministry of Economy takes into account the opinions of the relevant state authorities depending on the specifics of the entrepreneurial activity. If the license concerns a particular facility, the suitability of the facility is assessed on-site, and a decision is made based on the opinion of the relevant state authority.
The rates and payment procedures for the state fee for issuing a license are determined by Articles 22 and 23 of the Law of the Republic of Azerbaijan “On State Duty.” If the entrepreneurial activity is carried out exclusively in the regions, 50% of the state fee established for that type of activity is paid. After the document confirming the payment of the state fee is submitted to the licensing authority, the license is issued to the applicant.
It should be noted that in the first seven months of 2025, the Ministry of Economy issued a total of 1,049 licenses, of which 769 were issued electronically. The “Licenses and Permits” portal has been operating since 2018, and during this period, 6,556 electronic licenses have been issued through the portal.
The majority of licenses issued in the first seven months of 2025 were registered in the following areas:
