Business Formation in Uzbekistan. Licensing and Dissolution. ​

​Business Formation in Uzbekistan​. Licensing, and Dissolution

Uzbekistan has become an attractive destination for global investors due to its strategic location, favorable tax policies, and ongoing economic reforms. This guide provides an overview of the key legal and procedural aspects of establishing, operating, and dissolving a business in Uzbekistan.​

Uzbekistan’s evolving legal landscape offers a conducive environment for entrepreneurs and investors. Recent reforms have streamlined business formation, licensing, and dissolution processes, aligning with international standards and fostering economic growth.​

Business Formation in Uzbekistan

Establishing a business in Uzbekistan has become more accessible due to regulatory simplifications:​

  • Simplified Registration: The requirement for state registration of the foundation agreement for Limited Liability Companies (LLCs) has been removed, reducing bureaucratic hurdles.

  • Internal Audit Exemptions: LLCs (excluding those with significant state ownership or substantial assets) are no longer mandated to establish internal audit services.

  • Postal Address Flexibility: Founders can now use their residential address as the company’s postal address during registration or re-registration. ​

Common Legal Structures

  • Limited Liability Company (LLC): The most popular form for both local and foreign investors. LLCs can have 1–50 shareholders, and liability is limited to the value of their contributions.

  • Joint Stock Company (JSC): Required for certain sectors like banking and insurance.​

  • Private Enterprise (PE): Suitable for sole proprietors.​

  • Joint Venture LLC (JV LLC): A partnership between Uzbek and foreign entities, requiring a minimum charter capital of 400 million UZS, with at least 15% foreign ownership.

Registration Process

  1. Choose Legal Structure: Decide on the appropriate legal form based on business needs.​

  2. Prepare Documents: Draft the company charter and, if applicable, a foundation agreement.

  3. State Registration: Register with the Ministry of Justice through the Unified Portal of Interactive Public Services (new.birdarcha.uz). Registration is typically completed within one business day. ​

  4. Obtain Tax Identification Number (TIN): Register with the State Tax Committee.​

  5. Open Bank Account: Establish a corporate bank account in Uzbekistan.​

  6. Obtain Digital Signature: Required for electronic tax reporting and other official communications.​

Capital Requirements

  • LLCs: No minimum capital requirement, unless specified by licensing regulations.​

  • Foreign-Invested Companies: Minimum charter capital of 400 million UZS (approximately $31,200 USD).

 Licensing and Permits

Depending on the business activity, specific licenses and permits may be required:

  • Health and Safety Permits: For food establishments and businesses affecting public health.​

  • Construction Permits: Required for construction projects.​

  • Environmental Permits: For businesses impacting the environment.

  • Tourism License: For hotels, travel agencies, and tour operators.​

  • Financial Services License: Mandatory for banks, insurance companies, and other financial institutions.​

  • Retail and Trading License: Needed for businesses selling alcohol, tobacco, or food products.​

  • Entertainment License: For cinemas, theaters, and nightclubs.​

Business Dissolution

Uzbekistan has streamlined the process for voluntarily dissolving a business:​

  • Simplified Procedures: As of January 1, 2020, the requirement to publish liquidation announcements in periodicals has been removed.​

  • Electronic Information Exchange: Government agencies now share information electronically, reducing paperwork.​

  • Inspection Limitations: The State Tax Service may inspect financial activities of liquidated enterprises only within the last three years.​

  • Timeframe: The entire voluntary liquidation process should not exceed six months from the date of notification. ​

Additionally, as of August 2023, businesses are no longer required to submit official stamps, seals, or account closure certificates to the registering authority.

 Why Choose Our Law Firm?

Our international law firm specializes in guiding foreign investors through the complexities of establishing and operating businesses in Uzbekistan. We offer comprehensive services, including:​

  • Company registration and structuring​

  • Licensing and permit acquisition​

  • Tax and legal compliance​

  • Business dissolution and restructuring​

Our team of experienced attorneys ensures that your business ventures in Uzbekistan are legally sound and strategically positioned for success.​

For personalized assistance and to learn more about how we can support your business endeavors in Uzbekistan, please contact us.

Note: This information is provided for general guidance and should not be considered as legal advice. For specific legal assistance, please consult with our legal professionals.