Micro and small business entities can apply to the Small Business Development Agency of the Republic of Azerbaijan (SMBDA) for a "Startup" certificate.

Micro and small business entities that have received the "Startup" certificate are exempt from profit and income tax on about there income from innovation activities for a period of three years from the date of receipt, according to the Tax Code of the Republic of Azerbaijan.

Applications should be submitted in writing (AZ1069, Baku city, Atatürk avenue, 134) or electronically (info@smb.gov.az). This section contains the relevant application form and other documents required to apply.

The "Startup" certificate is issued to micro or small business entities that are tax payers, according to the "Startup Determination Criteria" approved by the Cabinet of Ministers Decision dated January 29, 2021. If the applicant is the founder of a medium or large business entity, his or her share of the legal entity cannot be more than 49 percent.

The "Startup" certificate is awarded for the creation of a product (service) based on an innovative initiative that is competitive and not identical to another startup product (service) and is created for the purpose of generating income or profit.

The application for the "Startup" certificate submitted to SMBDA is registered on the same day. The Agency reviews the application and the documents attached to it for a total of 30 days before submitting it to the Council of Experts for evaluation. The Agency decides whether or not to issue a "Startup" certificate based on the advice of the Council of Experts.