Why Uzbekistan

Political and economic stability

First of all, Uzbekistan is political stability, confidence in tomorrow and consistency of reforms in all fields of public and political life. It’s the state, where representatives of more than a hundred ethnic groups and dozens of religions live in peace and concord.

From the very day of Independence, Uzbekistan selected own course of development, own, Uzbek Model of transition to socially oriented market economy based on five key principles developed by the President of Uzbekistan H.E. Ilsam Karimov at the beginning of Independence of our state: the priority of economics over politics; the state is the main reformer; the rule of law in all areas of life of the society; strong social policy; step-by-step transition to market relations.

Thanks to successful implementation of this model, today, Uzbekistan has achieved and provided:
- macroeconomic stability, equilibrium of domestic and foreign sectors of economy, growth of currency reserves;
- framework for maintaining steady high rates of annual economic growth by 8% at average, predominantly, thanks to internal factors;
-reduction of aggregate tax burden almost 3 times, while the State is providing additional packages of concessions and preferences to exporting enterprises, small businesses and entities, making investments and introducing new production;
- creation of sustainable banking and finance systems with strict observance of Basel principles of banking supervision. In particular, the degree of sufficiency of banking capital is more than 23%, which is almost 3 times higher of international standards;
- development of new high tech industries through intensive investment policy, technological modernization of industrial facilities and production infrastructures.

The issued strategy of struggle against crisis and neutralization of its consequences allowed the country among few states of the world to ensure for the past period steady growth rates of economic development. Growth rate of GDP in 2008 comprised 9%, in 2009 – 8.1%, in 2010- 8.5%, which is according IFIs is one of the highest indicators in the world. Structural transformations taking place in the economy of Uzbekistan deserve special attention.

Thus, if ten years ago, in 2000, the share of industrial production in GDP of the country comprised totally 14.2%, in 2010, this indicator reached 24%, share of transport and communications accordingly 7.7 and 12.4%, share of services increased from 37 up to 49%. While share of agriculture reduced from 30.1 down to 17.5%. Meanwhile, reduction of the share of agriculture in GDP took place despite high growth rates of agricultural products, which in 2010 comprised 6.8% versus 2009 and increased against 2000 almost 1.8 times.

Raising share of small business and private enterprise in GDP and its role in development of economy of the country became serious achievement. While in 2000, share of this actively developing sector of economy in GDP was about 31%, in 2010 it comprised 52.5%.

Active implementation of State Investment and Localization Programs is facilitating steady growth of industrial production which in 2010 reached 8.3%. For the last several years, the country is fulfilling State budget with steady surplus. As of the 1 January, 2011, foreign debt towards GDP did not exceed 10%.

Favorable Investment Environment and Tax Policy

For the years of Independence, Uzbekistan created broad spectrum of legal guarantees and preferences for foreign investors, developed integral system of measures on encouragement of activity of enterprises with foreign investments.

The state guarantees and protects the rights of foreign investors which carry out investment activity within the Republic of Uzbekistan. In the event, the consequent legislation of Uzbekistan makes investment environment less favorable, then, within 10 years from the moment of investment, foreign investors will apply the legislation, which was in effect as of the date of investment. Upon its discretion, after notifying the authorities, the foreign investor is entitled to apply those provisions of new legislation which make the investment environment more favorable.

Moreover, in some cases, foreign investors could be provided with additional guarantees and measures of protection of rights in case of investment into priority industries or projects, which ensure sustainable economic growth, strengthening and enhancing export potential of the country, projects in the field of small enterprises.

On 1 October, 2001, the country established «one stop shop», simplified system of state registration of legal entities. In other words, for the newly established enterprises, all approval procedures are provided with only one instance within 3 business days.

For the last years, the Government has pursued consistent policy on significant reduction of tax burden for both legal entities and individuals. In particular, versus 1992, income tax rate imposed on legal entities reduced 5 times and is now 9%.

Representatives of small businesses and private enterprises are provided with the series of advantages and preferences on taxation and loans. According to statistics for 1996-2010, tax rates for small businesses and private enterprises reduced from 38% down to 7%, i.e. 5.4 times. In compliance with the Tax Code of the Republic of Uzbekistan, micro-firms and small enterprises are entitled to choose simplified system of taxation, which entitles to pay unified tax instead of generally established taxes and other mandatory charges. For reduction of the tax burden for small businesses and private enterprises and with aim of their financial support, for the past 5 years, the rate of unified tax was reduced by 6 per cent items from 13% in 2005 to 6% in 2011.

Unprecedented tax incentives are provided to enterprises which carry out production activity within Navoi Free Industrial Economic Zone, recently established upon the initiative of the President of the Republic of Uzbekistan, provided, they are registered as the participants of this Zone. These incentives include exemption practically from all types of taxes and customs duties imposed in the Republic of Uzbekistan, which makes Free Industrial Economic Zone in Navoi province one of the most liberal and attractive free economic zones in the world.

Measures, introduced by the Government for improvement of investment environment fostered significant increase of FDI attracted to the economy of the country.
For years of independent development, the economy of the country attracted more than US$ 100 billion of investments, out of which more than US$ 35 billion are resources of foreign investors.

In 2010, the volume of attracted foreign investments increased by 10.6% and constituted US $ 3.77 billion.

Rich Minerals and Natural Resources Base and Energy Self-Sufficiency

Uzbekistan is one of the leading countries of the world on reserves of gold, uranium, copper, silver, zinc, tungsten, rare metals, natural gas, coal and fossil minerals. It’s the country, which for many years ahead ensured its energy security.

Access to broad spectrum of commodities maximum optimizes the production costs through significant reduction of transportation costs for commodities and raw materials, creates capabilities for deep processing with production of products with high value added and the level of localization of more than 50%.

Uzbekistan discovered more than 2,800 deposits and prospective depositions of minerals, with total mineral-feed potential of the country to be about US$ 3.5 trillions.
On many categories, including non-ore and metallic minerals, agricultural commodities, Uzbekistan is one of the leading countries in the world. In particular, on copper reserves it’s 11th largest, on gold production – 7th, uranium – 7th, production of cotton fiber – 5th.

The most important advantage of Uzbekistan under energy shortage, which many developed and developing countries are facing today, is that, Uzbekistan is one of small group of countries of the world, the economy of which is characterized by energy self-sufficiency.

The Republic of Uzbekistan, is among TOP 10 countries of the world on reserves of gas, coal, uranium and is exporting them. Aggregate reserves of energy carriers of Uzbekistan are sufficient to satisfy demands of the economy at least for 100 years.

Electrical power generated in Uzbekistan fully covers growing needs of the country and on its cost is 4 times lower of average price paid by the industrial consumers in developed countries.

Unlimited potential of alternative sources of energy creates additional capacities. This includes solar, wind, derived as a result of recycling of solid household wastes, which allows generation of more than 51 billion tons of oil equivalent p.a..

Favorable Geographic Situation

Uzbekistan is the crossroads of Central Asia, which creates favorable environment for development of regional cooperation, participation in regional and transnational projects on development of transport corridors. It’sfreetradezonewiththeCIScountries.

Proximity to broad customer markets and developed transport infrastructure of Uzbekistan, integrated into multimodal system of communications of Eurasia, predetermines perspectives of investment, trade and economic cooperation. Foreign companies investing in Uzbekistan, get access to the 5 largest and the most dynamically developing markets: CIS with the customer market of more than 300 million people, Central and Eastern Europe, South and South East Asia, Middle East.

Favorable geographic location on the intersection of all trade routes among above regions, developed multimodal network, covering the markets, located far outside of Central Asia, including Eastern part of the Middle East, Northern part of India and Western part of China, is an important competitive advantage, which allows to significantly reduce the time and costs of delivery of cargoes through the territory of Uzbekistan.

Today, Uzbekistan is creating all necessary conditions for further development and increase of transit potential. The country is constructing new main railway line and highway inside the country, renovating international main transit railway lines and highways, modernizing international airports, creating specialized international transport terminals, developing corresponding legal framework.

The treaties on creation of the MFN in trade with 45 countries of the world including Japan, China, USA, Korea, EU and Free Trade Zone established among the CIS signatory states, allows to significantly increase the competitiveness of Uzbekistan’s products on foreign markets.

Skilled Labor and Intellectual Potential

100% literacy of population of Uzbekistan and the education system meeting modern international educational standards stand for significant intellectual potential. Unique in its essence and contents the National Human Resource Development Program envisages continuing education, permanent deepening and renewal of general educational and professional training. Uzbekistan has 65 higher educational institutions, 139 academic lyceums, 1368 vocational colleges, which educate more than 300,000 students in 850 areas and specialties. In particular, in Uzbekistan there are branches of such leading European, Asian and Russian higher educational institutions as: Westminster International University, Singapore Management and Development School, Moscow State University, Institute of Oil and Gas named after Gubkin, Torino Polytechnic University and others.

The Best Place for Living

Uzbekistanis wonderful climate, natural scenery, hospitality, multiculturalism, tourism and recreation infrastructure (hotels and international class airports). It’s the country where high quality of life is provided by minimum costs of living.

Uzbekistan, which has huge potential in the field of tourism, has something to surprise and delight its guests. The Great Silk Road left rich legacy for this country.

Uzbekistan is the country of the greatest towns with hundreds of architectural monuments of different epochs. Samarqand, Bukhoro, Khiva, Shahrisabz, Termez and Quqon are known to the entire world. These towns are of the same age with Rome and Babylon, in old times, they were the largest centers of science and culture. They gathered the best brains and hands of that time. The world was amazed of magnificence and splendor of palaces, minarahs, mosques, mausoleums, created by the famous architects of the past. The world known monuments of ancient architecture still remember times of the conquests of the Alexander the Great andGenghiskhan.

The visitors get a chance to take a closer look at the motherland of outstanding statesman and the warlord Amir Temur (Tamerlane), the land glorified by the world known poet and the statesman Zahiriddin Muhammad Bobur, to walk across the flourishing oasis in steppe and in the expanses of the Golden Valley, to see ever-burning light of ancient fortresses and many other things. This, in return, will allow the visitors to get inspired of distinctiveness of every corner of our country and to see single wonderful image of this ancient and renovated land, to evaluate its contribution into development of world civilization. Of course, travel to Uzbekistan cannot be imagined without introducing to the national cuisine of our country, which will for sure leave with the visitors indelible impressions.

The nature of Uzbekistan is extremely diverse. Here you could find rocky mountains and burning deserts, deep rivers and drought steppes.

The majority of the territory of Uzbekistan is located on Turon Plain and does not differ in sharp contrasts of heights. Turon plate was formed as the result of Paleozoic orogeny. For a long time, it was covered by the sea. Mountain systems were finally formed in Phase of Alpine orogeny: it’s Than-Shang and Pamir-Oloy; products of destruction of rising mountains were brought out to the plains and were deposited on the surface of sea depositions.

Conventionally, the landscape could be split into three parts: mountains and foothills on the East and South-East; semi-deserts and deserts on the West; plains on South-West and North-West, within the boundaries of which come forth rocky deserted Plateau Ustyurt, alluvial plain of lower reaches of Amudaryo river and Qyzylqum sands with mountain hills. The edge of the North-West of the sands of Qyzylqum borders with mountain ridge of Bukantau, to the South from it – internal drainage hollow Mingbuloq, on the bottom of which is the lowest point of the country – 12m below sea level.

Flora and Fauna of Uzbekistan are also unique. For lovers of flora of mountains, the Western Than-Shang is an attractive place due to the great diversity of flora. At least 2,200 varieties of plants grow here: from Turon desert flora to high-mountain flora of Pamir-Oloy. The majority of them is related to angiosperm: 2,150 varieties.

The fauna of the wildlife of Uzbekistan’s part of Western Than-Shang includes about 280 varieties:
- mammals - 44 varieties;
- birds – more than 200 varieties
- reptiles – 16varieties;
- amphibian – 2 varieties;
- fishes – 20 varieties.

Twenty minutes drive from the capital of Uzbekistan is located World Class Tashkent Golf Club, one of the first among the CIS countries, with ideal climate, cleanest air, fabulous looks, natural landscapes – hilly plains, fields, intersected by the rows of trees, lakes and plants.

Here, the fields with length of 7,015 yards challenge experienced players, while newcomers are given a chance to perfect their skills. Picturesque lakes, surrounding fields, attach special feature to each of the 18 holes. Meandering among lakes and waterfalls, the fields create atmosphere of oasis on internal plains of Central Asia.|

Great historical and cultural heritage, unique nature and climate of Uzbekistan represent inexhaustible potential for development of tourism.
Moreover, recreational resources of Uzbekistan allow to welcome the visitors all-the-year-round. Uzbekistan can offer broad spectrum of services both for the lovers of cultural-cognitive, active recreation, and the lovers of extreme tourism. Today, Uzbekistan is developing business, eco, mountain, medical-sanitary, folk-ethnographic, historical-architectural, religious-pilgrimage and other types of tourism.

Investment Guide

Tax System

In the latest review of changes in the legislative framework of the Republic of Uzbekistan would like to note about the effective tax rate applicable on the territory of the Republic of Uzbekistan.

The tax system of Uzbekistan consists of two modes: the single tax and general tax regime. Single tax payers are micro and small enterprises, and enterprises of trade and catering, legal entities in the implementation of the lottery, sweepstakes and other games based on risk.

According Law of the Republic of Uzbekistan “On guarantees of freedom of entrepreneurial activity“ Subjects of small enterprises are as follows:
individual entrepreneurs;
micro-firms which annual average number of workers employed (i) in production sector - is not more than twenty persons, (ii) in the sphere of services and other non-production sectors - not more than ten persons, (iii) involved in wholesale, retail trade and catering - not more than five persons;
small enterprises which annual average number of workers involved in: light and food industry, metal-processing and instrument-making industry, woodworking industry, furniture industry and industry of building materials - not more than one hundred persons; machine- building, metallurgy, fuel-energy and chemical industry, production and processing of agricultural products, construction and other production domain - not more than fifty persons;
science, science servicing, transport, communication, sphere of services (with the exception on insurance companies), commerce, catering and other non-production domain - not more than twenty persons.

Other companies fall under the general tax regime. Also, there are taxes that are paid actors both tax regimes. Below is invoked schematic table of the tax system of the Republic of Uzbekistan, as well as tax rates.

Flat tax

General Taxation Scheme

Taxes paid in both schemes

6%

Corporate Tax (all companies excluded mentioned below:

9%

Excise tax

from 5% and more

Commercial banks

15%

Legal entities collecting revenues from conducting auctions, mass entertainment events by attracting of legal and physical entities (including non-residents), having a license to engage in tour-concert activity

35%

Value-added Tax

20%

Mineral Resource Development Tax

from 2,6% up to 30%

Water Resource Tax

1m 3groundwater – 37,9; surface water- 29,8 soum

Flat Social Fee

25%

Property Tax

3,5%

Taxes on Non-Residents’ Income at the Source of Payment

10%

Land Tax

depending on lands

Tax on Dividends

10% 

Social Infrastructure Development Tax

8%

Value-added Tax on Imported Goods

20%

Contributions to the Extrabudgetary School Development Fund

0,5%

Contributions to the Republican Road Fund

1% up to 2,5%

Contributions to the Pension Fund

0,7%

Investment Policy of the Republic of Uzbekistan

During the years of Independence, Uzbekistan formed favorable investment environment, broad system of legal guarantees and privileges for foreign investors, developed integral system of measures on encouragement of activity of the enterprises with the foreign investments.

The investment legislation of Uzbekistan is one of advanced amongst legislations of the CIS countries, and it incorporated major provisions of the international investment law, in particular, regulations on guarantees of the rights of foreign investors, certain preferences for investors and others.

The following laws form the basis of investment environment in Uzbekistan:
• On Foreign Investments;
• On Investment Activities;
• On Guarantees and Measures of Protection of Rights of Foreign Investors.
In addition there is number of legislative normative acts issued in the form of Decrees of the President and/or Resolutions of the Government of Uzbekistan.
In accordance with current legislation the concept of foreign direct investment includes:
• investing by foreign investors of material and non-material welfares and rights for them including IPR;
• any income from foreign investments in facilities of enterprise and other types of activities.

Foreign investments in Uzbekistan could be made in different forms, and in particular:
• equity participation in charter funds and other property of business entities, banks, insurance institutions and other enterprises established together with legal entities and/or with natural persons of Uzbekistan;
• creation and development of business entities, banks, insurance institutions and other enterprises completely belonging to foreign investors;
• purchase of property, shares and other securities, including the promissory notes emitted by residents of Uzbekistan; • investment of intellectual property rights, including copyrights, patents, trade marks, useful model, industrial samples, company names and a know-how, and also business reputation (goodwill);
• purchase of concessions, including concessions on prospecting, exploration, extraction or use of natural resources;
• purchase of the rights for property for facilities of trade and sphere of services, for premises together with the land plots on which they are located, and also the rights of possession and using the land (including on the basis of rent) and natural resources.
The Republic of Uzbekistan has no restrictions concerning the form of capital investment. Foreign investors are entitled to create within the county the enterprise in any organizational-legal form allowed by the legislation.

As of today, the most different forms of capital investment are offered to potential foreign investors:
• creation of joint venture;
• creation of the enterprise with 100 % foreign capital;
• purchase of a part or full package of shares of privatized enterprises.

The enterprises with foreign investments are newly created enterprises meeting the following terms and conditions:
• the size of the charter capital of the enterprise not less than the sum, equivalent to US $ 150 thousand; • one of participants of the enterprise is the foreign legal entity;
• the share of foreign investments makes not less than 30 % of the charter capital of the enterprise.

Guarantees and Measures of Protection of Foreign Investors

Foreign investments in the Republic of Uzbekistan enjoy the national treatment which provides foreign investors with conditions not less favorable, than corresponding conditions for investments, made by legal entities and natural persons of the Republic of Uzbekistan.

Also, the state guarantees and protects the rights of the foreign investors carrying out investment activity within the Republic of Uzbekistan.
In case the subsequent legislation of the Republic of Uzbekistan deteriorates investment environment to foreign investors, within ten years from the moment of investment, the legislation acted on date of investment shall apply. The foreign investor is entitled to apply at own discretion those provisions of the new legislation which improve investment environment.

The legislation stipulates the notifying order of use of a ten years' guarantee. Thus, at approach of deterioration investment environment, the foreign investor notifies the corresponding authorized body on application of a guarantee.

The authorized bodies which shall be notified on application by the foreign investor of a guarantee, are the public organizations carrying out the state registration of legal entities, the Ministry for Foreign Affairs, the Ministry for Internal Affairs, the Ministry for Foreign Economic Relations, Investments and Trade, the State Tax Committee of the Republic of Uzbekistan and servicing banks.

The notice of the foreign investor is the basis for application by the authorized body concerning the foreign investor of the legislation acted on date of investment. The notice, irrespective of date of its direction to the authorized body, operates from coming into force of the act. The legislation, alongside with the general guarantees and measures of protection of foreign investors, may envisage additional guarantees and measures of protection, including providing unconditional performance by partners.

In some cases on the basis of concluding investment agreement additional guarantees and measures of protection can be given to foreign investors at investment in:
-the priority sectors providing steady economic growth, progressive structural changes of a national economy;
-the priority projects providing strengthening and expansion of an export potential of the country, its integration into world economic relations;
-projects in sphere of small business oriented at processing of raw material and materials, production of consumer goods and services, providing population with employment.
In case the Government of the Republic of Uzbekistan provides the foreign investor with additional guarantees and measures of protection (privileges and preferences), without fail, the investment agreement shall be concluded.
The investment agreement shall be concluded on behalf of the Government of the Republic of Uzbekistan between the Ministry for Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan and the foreign investor.

Privileges and Preferences

Taxed profit for legal entities is reduced for the amount of:

- means addressed to expanding of major production in the form of a new construction, reconstruction of buildings and erections used for production needs and payment of credits received for these purposes with deduction of depreciations calculated in a corresponding tax period, but not more than thirty (30) percents of taxed profit;

- means addressed for modernization and technological reequipping of production, obtaining of new technologic equipment, payment of credits issued for the above purposes, compensation of the cost of a leased object with deduction of imposed depreciation in a corresponding tax period. Reduction of taxed base in carried out within five (5) years starting from a taxed period in which the above expenses were carried out and on technologic equipment from the moment of putting it into operation. In case of realization and gratis transfer of new technological equipment within three (3) years from the moment of its obtaining, this privilege is annulled with the rehabilitation of duties on payment of income tax for the whole period of application of the privilege.

Moreover, the enterprises - domestic manufactures who export the produced goods (works, services) for the foreign currency, except raw materials, independently of the origin of production, are granted with:

-50 % reduction in the income (profit) tax – if the company exports not less than 30 % of total amount of sales of produced goods (works, services);

-30 % reduction in the income (profit) tax – if the company exports from 15 % up to 30 % of total amount of sales of produced goods (works, services);

From Value Added Tax (VAT) are exempted:

- turnover on realization of property realized in the order of privatization of public property;
- turnover on realization of goods (works, services) obtained by legal entities at the cost of loans (credits) provided by international and foreign representation financial organizations on contracts (agreements) signed with the Republic of Uzbekistan and received at the expense of grants;

- turnover on realization of property transferred as investment obligations in accordance with the contract between investor and authorized public agency on management of public property;

- provision of services on contract for financial lease (leasing), with regards to interest income of the tenant in life (leaser);
- import of the technological equipment, imported to the territory of the Republic of Uzbekistan along with the list approved in accordance with the with the legislation and spare parts under conditions if their delivery is envisaged by conditions of contracts for delivery of technological equipment. In case of realization and gratis transfer of imported technological equipment for export within three (3) years from the moment of its import, this privilege is annulled with the rehabilitation of duties on payment of value added tax for the whole period of application of the privilege;

- import of goods imported as investment obligations in accordance with the contract between investor and authorized public agency on management of public property;

- import of raw products, materials and half-finished products imported for use in domestic production by the enterprises with foreign investments, specialized on the manufacture of child footwear.

When estimating the property tax for legal entities, the tax base shall be reduced by the cost of:

- equipment obtained for 5-year credit from the moment of putting it into practice, but not more than the term established for the reimbursement of the credit;
- leased property for the period of lease contract duration;
- new technological equipment reinstalled for implementation for the period of five (5) years. In case of realization and gratis transfer of new technological equipment within three (3) years from the moment of its obtaining (import), this privilege is annulled with the rehabilitation of duties on payment of property tax for the whole period of application of the privilege;

Moreover, the enterprises - domestic manufactures who export the produced goods (works, services) for the foreign currency, except raw materials, independently of the origin of production, are granted with:
- 50% reduction in the property tax – if the company exports not less than 30% of total amount of sales of produced goods (works, services);
-30% reduction in the property tax – if the company exports from 15% up to 30% of total amount of sales of produced goods (works, services).

From property tax for legal entities are exempted:

- newly established undertakings within two years from the moment of registration. The mentioned incentive is not applied to the enterprises, created on the basis of manufacturing capacities and capital assets of the liquidated (re-organized) enterprises, their separated divisions, and legal entities created under the existing enterprises, in case if they are working on the rented equipment.

From the customs duties also are exempted:

- the property imported by foreign investors and enterprises with foreign investments in the Republic of Uzbekistan for own industrial needs;
- the goods imported by foreign legal entities, which made direct investments into economy of the Republic of Uzbekistan for a total sum of more than USD 50 million provided that the imported goods are goods of their own production;
- the goods, works and the services intended for work under the Production Sharing Agreement and imported into the Republic of Uzbekistan according to project documentation by the foreign investor or other entities, participating in performance of works under the Production Sharing Agreement, and also goods exported by the investor belonging to him/her according to the Production Sharing Agreement;
- technological equipment imported to the territory of the Republic of Uzbekistan along with the list approved in accordance with the with the legislation and spare parts under conditions if their delivery is envisaged by conditions of contracts for delivery of technological equipment. In case of realization and gratis transfer of imported technological equipment for export within three (3) years from the moment of its import, this privilege is annulled with the rehabilitation of duties on payment of value added tax for the whole period of application of the privilege.

Enterprises attracting direct foreign investment and specializing in the production of radio electronic devices, computers' components, ready-made cotton fabric and woolen cloth, ready-made garments, knitwear, socks and stockings and textile, processing of leather, production of footwear and ready-made leather and haberdashery goods, production of silk cloth and ready-made products made of silk, production of new kinds of building materials, industrial production of poultry meat and eggs, production of finished products undergone industrial processing produced from local raw materials (with the exception of alcoholic and soft drinks and tobacco products), production of finished meat, milk products, cheese and animal oil, production of medicines, synthetic detergents, and household chemical goods are exempted from payment of profit tax, property tax, tax imposed on improvement and development of social infrastructure, unified tax payment or unified tax, imposed on microcompanies and small enterprises deriving their income from main line of their activity, as well as from mandatory deductions to the Republic Road Fund.

FDI notification and registration

FDI notification and registration In Uzbekistan an EPFC (Enterprises with Participation of Foreign Capital) can be established in any legal form that does not contradict Legislation of the Republic of Uzbekistan. In particular, they may be established in different forms of partnerships, limited/additional liability companies, open/closed joint-stock companies, subsidiaries, and unitary enterprises and in other forms that do not contradict Legislation of the Republic of Uzbekistan.

Moreover, legislation of the Republic of Uzbekistan fixes minimal amount of the charter capital for each form of legal entities. Thus, for:
- Open joint-stock companies and Closed joint-stock companies the minimal charter capital should make not less than the sum equivalent to USD 400,000 (calculated at the official Central Bank exchange rate on the date of the state registration)
- Limited or additional liability companies charter capital should be not less than 40 MMW fixed on the date of presenting of foundation documents to the state registration; In addition, it should be noted that while establishing of an EFI it is necessary to meet requirements in respect to the minimal size of the charter capital (USD 150,000) and the share of foreign investment must comprise not less than 30% of the charter capital.

Besides, according to the current Legislation of the Republic of Uzbekistan legal entities are subject to the state registration with their subsequent inclusion in the unified state register of legal entities, and are considered to be established from the moment of carrying out this procedure.

Effective from 1 October 2001, a new simplified procedure that provides a one-window registration of enterprises for state registration applies in respect to enterprises operating in the Republic of Uzbekistan. On the other words, all correspondence by newly established enterprises is carried out within the framework of one instance that registers enterprises in accordance with legislation of the Republic of Uzbekistan. It also should be noted that the authorized state bodies come to a decision on the state registration of a business entity as a legal entity or refusal in registration within 3 working days.

Depending on the corporate form of an establishing legal entity the state registration with concurrent registering in tax and statistical bodies is carried out by:
the Ministry of Justice of the Republic of Uzbekistan – for EFIs;
Inspectorates on registration of business entities at district and city khokimiyats – for all business entities, including EPFCs, except for EFIs.

Preparation of a necessary package of documents for the state registration can be carried out by founders of a legal entity, as well as on a contractual basis by Chamber of Commerce and Industry of the Republic of Uzbekistan or other consulting firms or persons.

In order to register an EFI with the Ministry of Justice or an EPFC with a local khokimiyat, the following documents must be presented (by presence or mail) and enclosed to an Application for the state registration:

- two notarized originals of the foundation documents in state language (only Uzbek language is recognized to be an state language in Uzbekistan), notarized in accordance with established procedures (the foundation document for the state register of legal entities can be either the charter and/or the foundation agreement, subject to the corporate form of the company (for limited/additional liability companies the foundation agreement and the charter, for partnerships just the foundation agreement, and for joint stock companies only the charter should be presented);
- Bank Warranty on payment of a state due or a registration fee fixed by Legislation of the Republic of Uzbekistan. Furthermore, EFIs are subject to 5 MMW plus USD 500 state due for the state registration with the Ministry of Justice;
- original inquiry on absence of identical or similar company name validated by district (city) statistics authority within 2 workdays; - sketches of the company’s stamp and seal in triplicate;
- extract from the Trade Register of the foreign founder in a place of registration of a legal entity, notarized and legalized in the country of origin by the consulate of the local Uzbek Embassy or (if there is no Uzbek Embassy) by the Ministry of Foreign Affairs of the country of origin and by the Embassy or Consulate of the country of origin in Uzbekistan, with further approval by the consulate department of the Uzbek Ministry of Foreign Affairs, unless the founder is registered in the country with which Uzbekistan has a special juridical cooperation treaty. The extract should contain a name of foreign legal entity, its location, the amount of the charter capital, a corporate form, registration date, business period and data on individuals entitled to sign on behalf of a foreign legal entity. The extract is valid for a year from the issued time. These documents should be submitted with the translation into Uzbek, notarized in accordance with established procedure. If the initial payment to the charter capital is made in the form of an intellectual property contribution, an independent evaluation of the intellectual property to be contributed to the charter capital must be furnished in accordance with Legislation of the Republic of Uzbekistan;
- documents confirming that each founder deposits not less than 30% of the charter capital as an initial payment (Bank Warrant on receipt for a deposit into Soum and hard currency temporary savings accounts, Customs Document on Import of Property to the Republic of Uzbekistan, Property Acceptance Certificate, Document on the Right to the Importing Property and etc).

After the state registration a business entity should without fail turn to a bank to open necessary accounts for its activity.
In order to open a bank account a business entity should provide with the following documents to a bank:

- a letter from the landlord or a certificate of ownership confirming the office address of the foreign enterprise and types of opened accounts;
- a copy of the Certificate of registration of the company’s name, issued by the relevant statistic agency departments;
- notarized samples of signatures of a company executive and a chief accountant;
- two copies of a company’s official seal.

Furthermore, period of consideration of the application and the opening of accounts by bank does not exceed 2 bank workdays from the date of receipt of the specified documents, the amount of payment for opening of accounts not more than 1 MMW.