Permits

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Permits
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Obtaining license

License is a document given by the competent authority (the relevant Ministry) for performance of the relevant type of the entrepreneurial activity. An entrepreneur may apply for special license (or) general license. Special license allows to perform solely one or several sub-types of activity; whereas, general license covers all sub-types of the defined activity. To the contrary, for performance of certain actions an entrepreneur shall obtain authorization from the competent authority.
The license/authorization is required for those types of activity which meet one of the following criteria:

Affecting the national security/safety;
Consider using/consuming the restricted natural resources;
Affecting negatively the environment;
Putting in danger the lives, health and property of an unlimited number of persons;

The Law No. 176-VQ, as of 15 March 2016, On Licenses and Authorizations, provides for the main list of activities for which the license or authorization is required.

EXTRACT OF LIST
	Type of activity
1.	Toxic industrial wastes
2.	Private medical activity
3.	Pharmaceutical activity (production/retail sale/wholesale of medicine)
4.	Material (production, import, export, transportation)
5.	Education (kinder-gardens, facilities of general studies (high schools, gymnasiums), private facilities of professional studies, facilities of graduate studies (universities etc.), facilities of additional studies)
6.	Facilities of religious secondary professional studies
7.	Facilities of religious graduate studies
8.	Telecommunication and postal services (cell phone, phones without sim, IP-phone, organization of (inter)national telecommunication channels, transmission of data, storage of wastes from products producing radioactive/eonalised rays etc.)
9.	Transportation of dangerous loads
16.	Fire protection activity
17.	Research works on dwellings and facilities for which the construction permit is required
18.	Construction(repair) of dwellings and facilities for which the construction permit is required
19.	Design works on dwellings and facilities for which the construction permit is required

The licenses granted in the Republic of Azerbaijan are effective in its whole territory; whereas, those granted in the Nakhchivan Autonomous Republic (NAR) may be solely used in NAR.
The matters relating to recognition of licenses granted in Azerbaijan, as well as foreign licenses are governed by international agreements which Azerbaijan is a signatory party to.
The holder of license/authorization must use it personally and can’t assign it to the third parties. All issued licenses/authorizations shall be recorded within the e-State Register.
The license/authorizations are granted with respect to the principle of “one window”. Under the said principle, the issuance, provision of duplicates, suspension, termination of licenses is fulfilled by (obtaining legal opinions/documents for obtaining/suspending/restoring/terminating the licenses from) the same authority.
A legal entity, a branch/RO of non-resident legal entity shall apply to the competent authority for obtaining the license/authorization after registration. An applicant must submit e.g. the document certifying the payment of the state duty, otherwise the license is terminated by the issuing authority. The former decides whether to issue or not the license/authorization. An applicant is entitled to submit the claim to the court against the act of the issuing authority.
The license/authorization contains the following information:

License

Date of issuance and Registration number:
Name and address of the issuing authority:
Information about holder of license/authorization (such as, name/and legal address of the legal entity (or) branch/RO of the foreign legal entity, surname/name/father’s name of the individual entrepreneur, and business address, TIN(VOEN));
Term/Duration of license/authorization (starts: […] ends: […])
Type of activity:

Signature/Stamp

An addendum to license/authorization is made in the case where the activity is performed in separate facilities from territorial perspective, (or) the license/authorization is obtained in relation to certain types of activity.
The issuance of licenses/authorizations can’t lead to restriction of competition in the area of performance of entrepreneurial activity.
The licenses are granted for an undetermined term; whereas, the authorizations – for undetermined term solely under condition that no term is set out by applicable laws. The expired licenses/authorizations are ineffective.

Suspension/Termination of license

The holder of license/authorization may request that a duplicate be communicated by the issuing authority in the case where the original is lost (or) damaged.
The licenses/authorizations are suspended in the following cases:

Upon request;
- Failure to perform the instructions given by the issuing authority for taking over the breach of terms of licenses/authorization.
- Other cases specified by applicable laws.

The licenses/authorizations are suspended on basis of an act adopted by the issuing authority. The act shall contain grounds for suspension of licenses/authorizations, as well as the “suspension” term.
The suspension of one or several sub-types of activity outlined in general license does not cause the suspension of other sub-types of activity.
The license/authorization suspended upon request is restored by an act of the issuing authority (a) on the basis of the holder’s application; (b) in the other cases, on the basis of written information on remedy of defects provided by the holder of license/authorization.
The act on suspension/restoration of licenses/authorizations shall be presented to the holder of license/authorization within 2 business days from the date of adoption.
The license (authorization) is terminated (a) upon request or in the event of/that (b) expiration of term of license (authorization); (c) liquidation of the legal entity, branches/RO of foreign legal entities – holder of license (authorization) (d) the holder of license (authorization) ceases business, (e) the false information is revealed in the documents presented for obtaining the license (authorization); (f) the defined type of activity is removed from the list of licensed activities (e) by a court order, or in the other cases specified by laws.
Certain types of activity are performed on the basis of the special license.
The officials of issuing authority are liable for infringement of legal requirements and damages sustained by holder of licenses (authorizations).

Banking & Financial sector

Investment companies

Investment companies, branches/RO of foreign investment companies, stock exchange, investment funds depositaries, “kleerinq” organizations operate on the basis of license/authorization issued by the CBA.
The license is granted for an undetermined term. It may be solely used by the holder and may not be assigned to the third parties. It enters into force on the date of delivery.
The license shall contain information on investment services (transactions) (such as, e.g. acceptance and execution of clients’ orders in connection with transactions on securities or financial instruments, asset management, providing investment related advises, placement of securities and underwriting, carrying out transactions on securities or financial instructions as a member of central depositary and stock exchange); whereas, the license issued for the benefit of a stock exchange shall specify the types of markets (i.e. state securities market; corporate securities market; financial instruments market)
The license can’t be granted to investment company for performance of additional/supplementary services (transactions) (such as, operating “securities” account of a customer, including performance of transactions in connection with encumbrances; issuing loans in favor of investors for conclusion of agreements relating to securities or financial instruments; investment related research in connection with securities or financial instruments; performance of guarantee management services on guaranteed securities; performance of the main investment services in connection with the foreign currency exchange)
The investment companies needing license to operate shall apply to the CBA for obtaining license. The former may reject the application in the following cases:

some documents are missing (or) if an inconsistency/non-conformity is revealed;
- thresholds in relation to the charter capital are not met;
- major shareholders do not meet the legal requirements (i.e. good citizen/ shareholding related requirements, compliance with norms on financial stability; an applicant shall not be on the list of sanctioned countries; danger of breaching the rights of investors; ensuring the normal rhythm of activity/payment capacity/financial stability of applicants; internal policy of stock exchange organizations shall conform with legal requirements)

Bank licenses

CBA has an exclusive competence in providing and terminating bank licenses, as well as, in issuing authorizations for establishment of branches/divisions/RO of banks and terminating the issued authorizations.
The license is granted upon request. While reviewing the application, the issuing authority may obtain information on the financial situation/professional activity/criminal conviction of major shareholders (in the case where the major shareholder is a legal entity – of the head of executive body) and administrators from financial, tax, legal security institutions. An applicant shall pay the state duty for obtaining license.
The review of applications is fulfilled in 2 steps:

submission of the application for obtaining the license by the bank and review prior to registration;
submission of the application after registration and review.

The CBA is in charge of publishing/making public the resolution on termination of bank licenses (or) local RO of foreign banks (/through mass media).

Foreign currency exchange

The holders of license may engage in activity relating to the foreign currency exchange.

The public officials are liable for damages sustained by the holder of license in relation to infringement of applicable laws.