A new financing mechanism is being created in Azerbaijan.
“Elchi” reports that in this regard, a new draft law “On Crowdfunding” was submitted for discussion at today’s meeting of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship.
This Law, in accordance with clauses 10-13 and 15 of Part I of Article 94 of the Constitution, regulates the legal, organizational, and economic foundations for the implementation of equity and debt-based crowdfunding in the Republic of Azerbaijan, requirements for the activities of crowdfunding platform operators, as well as issues of state regulation and control over their activities.
The purpose of this Law is to create favorable access to operational and sustainable alternative financing channels for economic entities, especially startups, micro, small, and medium-sized enterprises, by using information resources and systems, as well as capital market opportunities to increase their business activity, and to ensure the protection of the rights of investors participating in financing. This Law does not apply to legal entities created by the state for the purpose of implementing the state’s investment policy and the institutions established by them.