BAKU, Azerbaijan, September 1. A legislative package for the development of the innovation and startup ecosystem in Azerbaijan has been prepared and properly submitted, Head of the Legal Department of the Innovation and Digital Development Agency (IDDA), Sabina Humbatzade, said, Trend's correspondent reports from the event.
She made the remark during her speech on the topic "Development of the digital and innovation ecosystem in Azerbaijan: new legislative opportunities" organized within the framework of the educational session "Digital skills for the media".
According to her, digital and innovation development in Azerbaijan is receiving great support both at the legislative and executive levels.
"On February 21, 2026, by decree No. 455 of the President of Azerbaijan, an Action plan for the acceleration of digital development was adopted. The main basis for the formation of the projects prepared within the framework of the legislative package we are presenting today, and a number of normative legal acts that have already been adopted, was precisely that action plan," Humbatzade noted.
She pointed out that within the framework of the implementation of the tasks set out in the action plan, legislative projects were prepared, coordinated with a number of state institutions and relevant bodies, and submitted in the appropriate manner.
According to Humbatzade, a number of main goals have been identified in the action plan. These include the development of the innovation and startup ecosystem, expanding the scope of technology parks, forming the legal framework for secure and digital border warehouses, and developing investment and venture mechanisms.
"This is not just about venture financing. We have also formed the legislative basis for the application of crowdfunding and other international financial instruments in the future," the head of the department emphasized.
She noted that important changes have also been made in the field of public procurement. The goal is to support innovative products within the framework of public procurement and expand their application opportunities.
"We have also formed the legal basis for the Sandbox mechanism. Here we are talking about the "Sandbox" mechanism, which is mainly implemented by private entities. At the same time, we have created the legal basis for a specific mechanism related to the financing of state and digital projects," Humbatzade explained.
The head of the department said that the presented legislative package includes a total of 26 laws, 5 presidential decrees, and 2 decisions of the Cabinet of Ministers.
"There may be certain changes in these figures within the framework of the current harmonization process. However, in general, our legislative package consists of 26 laws, 5 presidential decrees, and 2 decisions of the Cabinet of Ministers," she said.
Humbatzade emphasized that the main goal is not only the application of tax breaks, but also the reduction of legal and other obstacles faced by entrepreneurs and innovation entities from the formation of an idea to the launch of a product on the market.
"Our main goal is to reduce the obstacles faced by an individual entrepreneur, individual or company in Azerbaijan from the moment an idea is formed to the moment its product is launched on the market," she noted.
According to her, five main directions have been identified for this purpose. These are clarification of existing legal regulations, reduction of the tax burden, promotion of investment, protection of intellectual property and copyright, as well as talent and personnel development.
"First of all, a startup should know what activities are considered innovation activities in the legislation and what benefits and exemptions apply to innovation activities," said Humbatzade.
She also highlighted that reducing the tax burden will allow entrepreneurs to direct the funds they receive to developing their businesses and improving their products.
"We tried to eliminate obstacles to startups getting to know investors and attracting investment," added the head of the department.
Humbatzade noted that mechanisms supporting the creation of IT and innovation products have also been formed in the field of intellectual property and copyright.
She further underscored that improving the legislative framework in the direction of strengthening human capital and potential is one of the main priorities.
The head of the department also touched upon the package of benefits. According to her, the package envisages the application of various benefits in the areas of taxation, migration, customs, public procurement, and social insurance.
"Some legislative acts have already been adopted within the framework of this package. Draft laws and decrees on venture, crowdfunding, and other financial instruments have already been approved," Humbatzade said.
She added that proposals on benefits have also been adopted by the Azerbaijani Parliament and submitted for the President's signature.
"They are also expected to be approved in the coming days," Humbatzade concluded.
