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.