Criteria for Business Entities 

According to the decision of the Cabinet of Ministers of the Republic of Azerbaijan dated December 21, 2018, "Criteria of business entities" are defined. These criteria are divided into 4 categories. 

  • Micro entrepreneurship
  • Small business
  • Medium business
  • Large business

Two indicators are taken into account when determining these business categories:

  • The number of employees
  • Annual turnover

Criteria for categorization of business entities are defined as follows:

Categories by size of business entities
Average number of employees
(people)
Annual income (ai) (thousand manats)

Micro entrepreneurship

1 - 10

ai ≤ 200

Small business

11 - 50

200 < ai ≤ 3 000

Medium business

51 - 250

3 000 < ai ≤ 30 000

Large business

more than 251 

30 000 <ai


Note:
1. Annual income includes the cost of goods, works and services provided during the reporting year, as well as non-sales income.
2. In order to identify entrepreneurs as micro, small, medium or large entrepreneurs, the “average number of employees” and “annual income” higher than the criteria are taken as a basis.
3. Identification of newly established business entities as micro, small, medium or large business entities on the basis of income indicator, if income indicator is not determined, in case of increasing income indicator for the period from the date of their state registration or tax registration to the end of the reporting year and based on the number of employees. Based on the results of the calendar year covering the period from the date of state registration or tax registration of these business entities to the end of the first reporting year, the average list of income and employees is specified and the taxpayer's criteria are re-determined based on the higher ones. .
4. Assignment of entrepreneurs to micro, small, medium or large entrepreneurs is determined by the Ministry of Taxes of the Azerbaijan Republic and the Ministry of Labor and Social Protection of the Azerbaijan Republic on the basis of information on those business entities transmitted to the State Statistics Committee of the Azerbaijan Republic. 

Source: Decision No. 556 of the Cabinet of Ministers of the Republic of Azerbaijan dated December 21, 2018