Audit requirements over small businesses eliminated
Audit requirements over small businesses eliminated

The amendments to the Civil Code that is enforceable from 24 May 2019 eliminate several requirements regarding the external financial audit and public dsiclosure of financial statements.

Under the amendments, micro businesses and small businesses are exempted from mandatory external audit. Moreover, these exempted businesses who operate in the form of joint stock companies, are further relieved from publicly publishing their annual reports and financial statements. Previously, by law, all businesses had to invite external auditor and open audit opinion annually for the annual financial statements; in addition, all joint stock companies had to publicly disclose and publish their annual reports and financial statements.  

To remind, the criteria of businesses in Azerbaijan are as follows:

Categories of businesses

Average number of employees

Annual income (AI)

(1000 AZN)

Micro Businesses

1-10

AI ≤ 200

Small Businesses

11-50

200 < AI>

Medium Businesses

51-250

3 000 < AI>

Large Businesses

251 and more

30 000 < AI>

Related Posts

Covid-19 Tax Reliefs Approved in Azerbaijan

Covid-19 Tax Reliefs Approved in Azerbaijan

Amendments to the to the Tax Code and the Law on Social Insurance related to the spread of the co...

Jul 09, 2020
Update on the medical certificate procedures

Update on the medical certificate procedures

With the new changes, medical certificates are obtained by insured persons and insurers through t...

May 07, 2024
Advertising on Digital Platforms: A New Stage in Azerbaijan’s Legislation

Advertising on Digital Platforms: A New Stage in Azerbaijan’s Legislation

Recent amendments to the Law of the Republic of Azerbaijan "On Advertising" are aimed at comprehe...

May 29, 2025
Payment Systems and Services Law of Azerbaijan: Payment gateways licensed

Payment Systems and Services Law of Azerbaijan: Payment gateways licensed

Effective from 10 November 2023, Azerbaijani Law on Payment Systems and Payment Services (" the L...

Oct 02, 2023