Innovations on registration of commercial legal entities were discussed

On February 24, 2025, the State Tax Service (STS) under the Ministry of Economy held an online meeting with representatives of law and consulting companies dedicated to innovations in the state registration of commercial legal entities. 

Leyla Huseyn-zadeh, Head of Division within Taxpayers Registration and Compliance Main Department of the State Tax Service, made a presentation on "State registration of commercial legal entities, reforms carried out in this area". She accented on measures taken by the "Business Entry" Working Group, operated within the framework of the Commission on Business Environment and International Rankings and led by the State Tax Service, to further improve business registration. It was reported that, at the initiative of the "Business Entry" Working Group, relevant amendments were made to the Law "On State Registration of Legal Entities and the State Register", as well as the Labor, Civil and Administrative Offenses Codes. According to the legislation, the procedures for electronic state registration of LLCs with local and foreign investments have been identified. 

The innovation has simplified the process of starting a business by making electronic registration fully accessible to foreign entities in the country. As part of the reforms implemented in this area, the “face recognition” digital signature was introduced during the online registration of a commercial legal entity, measures were taken to consideration of persons subject to sanctions during the registration process, and to restrict the use of the electronic cabinet when the term of office of the head of a commercial legal entity had expired. At the same time, a service was activated to send a notification to the electronic cabinet of commercial entities once a quarter on the need to apply for registration of changes in information. Moreover, when selecting the types of activities for which a license or permit is required, a link to the “Licenses and Permits” portal was created after the electronic registration process of commercial legal entities is completed. 

It was noted at the meeting that reforms are continuing to improve the business environment. In this regard, a "Road Map for the year 2025 on the implementation and communication of improvements in the relevant field related to the indicator of "Business Entry" of the "Business Ready” report of the World Bank Group” has been approved. 

The meeting participants were also informed on the expected digital innovations in this area. There accented on future plans to coordinate the activities of state bodies participating in the registration process, create a technical opportunity for maintaining the register of beneficial owners, and create the opportunity for the registration authority to proactively register subsequent changes in registered information on commercial legal entities (changes in the founder). 

The related issues were discussed at the meeting, as well as the participants' suggestions were considered and their questions were reacted.

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