Business Licences in Azerbaijan: Which Activities Require a Licence

One of the first questions a foreign entrepreneur asks is whether their business needs a licence. In Azerbaijan, the answer comes from a single law with a closed list — and many activities, such as trade, consulting, tourism and cleaning services, need no separate licence at all.

Short answer: In Azerbaijan, licensed activities and permits are defined only by the Law on Licences and Permits No. 176-VQ (financial markets are regulated separately). Licences are needed, for example, for private healthcare, pharmacies, private education, construction and installation work, and dangerous goods transport. As a rule, licences have no expiry date, and applications are filed online at lisenziya.gov.az.

Which law governs licences and permits?

The core legislation is the Law on Licences and Permits No. 176-VQ of 15 March 2016. It sets a closed list: activities requiring a licence, and permits (except in financial markets), may be established only by this law (Article 4.1). Licensing applies to activities that affect state security, involve the use of limited natural resources, may harm the environment or may endanger an indefinite number of people (Article 4.2). Licences and permits in the financial markets are issued separately by the Central Bank.

Which activities require a licence?

Sector Examples of licensed activities Issued by
Healthcare and pharmacy Private medical practice; manufacture, wholesale and retail sale of medicines Ministry of Economy
Education Private pre-school, general, vocational, higher and supplementary education institutions Ministry of Economy
Construction Engineering surveys, construction and installation work and design for projects requiring a construction permit; lift installation; fire protection Ministry of Economy
Transport and communications Dangerous goods transport; telecommunication services; express post Ministry of Economy
Agriculture and veterinary Private veterinary services; veterinary drugs; plant protection products and agrochemicals Ministry of Economy
Other Handling toxic waste; making seals and stamps Ministry of Economy
Digital technologies Biometric technologies; personal data information systems; mobile communications Ministry of Digital Development and Transport
Financial markets Activities of financial market participants Central Bank

Through its “Licences and Permits” portal (lisenziya.gov.az), the Ministry of Economy accepts applications for 23 types of activity.

How does a licence differ from a permit, and how long is the wait?

A licence grants the right to carry out a certain type of business activity, while a permit covers a specific action or facility (Articles 1.0.8 and 1.0.11 of the law). Examples of permits: construction and commissioning permits, “İcazə” forms for international road haulage, and phytosanitary certificates for exporting plant products.

A decision on a licence must be made within 10 working days of the application being registered, and on a permit, as a rule, within 7 working days (Articles 19.8 and 19.9). If the authority does not decide within the deadline, the licence or permit is deemed granted and the applicant may start operating (Article 14.1). As a general rule, licences are issued with no expiry date (Article 22.1). Applications are filed electronically with an enhanced electronic signature.

What do you need to open a business if no licence is required?

If your activity is not on the list, you don’t need a licence. But some basic requirements apply to everyone:

  • Registration as a sole trader or company and a tax number (VÖEN) with the State Tax Service.
  • E-kassa: since 1 January 2023, retail, catering, hotels, medical facilities, barbershops and beauty salons process payments from the public through an online cash register.
  • Food businesses: since 1 January 2023, food facilities handling low-risk products are registered with AQTA automatically, while those handling high-risk products are approved after a compliance assessment.
  • Work permits for foreign staff — the employer obtains them.
  • Sector rules: for example, the tourism licence was abolished in 2015, but mandatory insurance and the Tourism Register apply.

— SME: Before registering a company, we check whether the planned activity falls under the licence or permit lists. That lets you choose the right legal form from the start, prepare staff and facilities to meet the requirements, and avoid starting operations without the documents you need.

Frequently asked questions

How long is a licence valid in Azerbaijan?
As a general rule, licences are issued with no expiry date (Article 22.1 of the Law on Licences and Permits).

What happens if the authority doesn’t respond in time?
If no decision is made within the statutory deadline, the licence or permit is deemed granted and the applicant may start operating (Article 14.1).

Do I need a licence for a shop or a tourism company?
No: retail trade is not on the list of licensed activities, and tourism licensing was abolished in 2015. However, e-kassa rules apply, and in tourism, insurance and the Tourism Register.

How do I apply for a licence?
Electronically via the “Licences and Permits” portal (lisenziya.gov.az) with an enhanced electronic signature; by law, a decision is due within 10 working days.

This article is for general information and does not replace individual advice. Laws and requirements can change — confirm current conditions or talk to SME.

Not sure whether your business needs a licence? The check, company registration and licence preparation can be handled by SME.

Full overview: How to Register a Company in Azerbaijan: Step-by-Step Guide (2026)

Sources

Law of the Republic of Azerbaijan on Licences and Permits No. 176-VQ of 15.03.2016 (Articles 1.0.8, 1.0.11, 4.1, 4.2, 14.1, 19.8, 19.9, 22.1) — FAOLEX; list of permits — president.az, 20.04.2016.
Ministry of Economy — 23 activity types licensed by the ministry, economy.gov.az; announcement on the lisenziya.gov.az portal, 14.08.2025; electronic application procedure — economy.gov.az, 23.08.2023.
Ministry of Digital Development and Transport — licensing, mincom.gov.az.
Central Bank of the Republic of Azerbaijan — documents for licences and permits in the financial markets, cbar.az.
State Tax Service — “Onlayn kassanın tətbiqi” booklet, 2026, taxes.gov.az.
AQTA — notice to businesses on the law in force from 01.01.2023 (December 2022), afsa.gov.az.
Dentons, Mondaq, 05.01.2016 — abolition of tourism services licensing.
Law of the Republic of Azerbaijan on Tourism No. 448-VIQ of 27.12.2021 — meclis.gov.az.
State Migration Service — migration.gov.az (work permits).
Last reviewed: October 2026.

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Ali Abdullayev

Head of Sales Department

Ali Abdullayev is a specialist with strong expertise in sales, logistics, and business management. He graduated from the Azerbaijan State Technical University and started his career in hospitality (2012–2020), progressing to lead roles in a foreign transport company, where he oversaw accounting and logistics for over five years. He also served as Head of Sales in an automotive firm. Today, he leads the sales department, drives the company’s external sales direction, and builds long-term relationships with international partners.

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Rimma Zeynalova

Chief legal lawyer

Rimma holds a master’s degree in law from the Moscow State Industrial University, which she obtained in 2017. With over 7 years of experience in the legal field, Rimma specializes in corporate law, commercial law, dispute resolution, and legal consultations in tax and labor law. She has extensive experience in client work, negotiations, and representing company interests in court.

Subhan Namazov

Founder and director of the company

Subhan has many years of experience in business management and development. He holds a master’s degree in management from Western University of Azerbaijan.
His specialization includes corporate law, where he helps companies establish a legal foundation for effective management and growth. In tax law, Subhan ensures the optimization of tax strategies and compliance with legislation, facilitating successful business financial planning. In financial and banking law, he provides consulting on legal aspects of financing and banking operations, which strengthens the financial stability of the company’s clients and partners.
With his expert support in these areas, Subhan successfully helps companies achieve their goals by solving complex legal and managerial tasks.

Panfyorova Sofya

Accountant - specialist

She obtained a bachelor’s degree in world economics from the Azerbaijan State University of Economics. Sofya has experience in accounting and specializes in maintaining records, preparing tax reports, analyzing financial data, and drafting budgets. Her professional practice includes client interaction, financial audits, and ensuring compliance with tax laws.

Yelena Ismailova

Lead human resources accountant

She obtained a bachelor’s degree in Finance and Credit from the Azerbaijan State University of Economics in 2006.
Yelena has more than 15 years of experience in accounting and HR administration. She is skilled in payroll accounting, HR documentation preparation, personnel calculations, and ensuring compliance with labor laws. Her specialization includes drafting employment contracts, calculating leave and benefits, maintaining time records, and liaising with regulatory authorities.

Ismail Ismailov

Client manager

Ismail has experience in client management and support. He obtained a bachelor’s degree from the Academy of Public Administration under the President of the Republic of Azerbaijan.
Ismail specializes in identifying and attracting new clients, building long-term relationships with corporate partners, and developing and implementing strategies to improve client experience. His skills include negotiations, contract conclusion, and market data analysis to enhance customer service quality.

Gulustan Isaeva

Junior lawyer

Gulustan graduated with a bachelor’s degree in law from Baku State University in 2024.
Gulustan specializes in preparing legal documents, conducting legal research, organizing meetings, and supporting transactions. She is skilled in business correspondence, client consultations, and assisting the chief legal officer in corporate and commercial law matters.

Nazrin Hajiyeva

Director’s assistant

Nazrin obtained a bachelor’s degree in Accounting and Auditing from the Azerbaijan State University of Economics in 2018.
Nazrin has over 5 years of experience in administrative support. She specializes in coordinating work schedules, organizing meetings and events, handling business correspondence, and preparing reports and documentation. Nazrin possesses excellent project management and interpersonal communication skills, which help her effectively collaborate with employees and clients.

Gunel Bayramzade

Business Partner and Executive Director.

Gunel Bayramzade holds a Bachelor’s degree in English from the Azerbaijan University of Languages. With extensive leadership experience, Gunel Bayramzade serves as the Executive Director and Business Partner at SME. Known for her strategic vision and commitment to improving operational efficiency, Gunel Bayramzade has played a key role in shaping the company’s direction and driving its growth. Her focus on fostering innovation and creating a dynamic work environment has helped SME achieve significant success. Through her keen insight into identifying opportunities and dedication to talent development, Gunel Bayramzade ensures that each team member contributes meaningfully to the company’s success. She strives to maintain a forward-thinking approach while achieving both short-term and long-term goals.

Jafar Alizade

Chief financial director

Jafar received a master’s degree in auditing from the Azerbaijan State University of Economics in 2009. Jafar Alizade has over 15 years of experience in financial management and tax matters. He specializes in budget management, financial analysis, investment planning, and tax expense optimization. Jafar has extensive experience in developing and implementing financial strategies to improve company profitability and sustainable growth, as well as in tax accounting and planning. He is responsible for preparing tax reports, optimizing tax obligations, and interacting with tax authorities. Jafar possesses in-depth knowledge of Azerbaijani law and international tax agreements, allowing him to successfully advise clients on taxation matters.

Ilgar Namazov

Honorary Founder

Ilgar Namazov is one of Azerbaijan’s leading experts in business consulting and business planning, Doctor of Economics, and a lawyer. He has developed over 3,600 business plans and helped attract more than 8 billion manats in investments. He holds an international award and EBRD accreditation under the Small Business Support Programme.

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