Doing Business in Uzbekistan

1. Introduction: Uzbekistan — A Growing Business Destination

Uzbekistan is rapidly becoming a regional business hub in Central Asia, offering political stability, a growing economy, and ongoing reforms aimed at enhancing the investment climate. Government initiatives prioritize digitalization, infrastructure development, and support for entrepreneurs, making Uzbekistan attractive to both local and foreign investors.

2. Legal Business Structures

Businesses in Uzbekistan can be established in the following forms:

• Limited Liability Company (LLC)
• Joint-Stock Company (JSC)
• Representative Office or Branch
• Private Enterprise
• Individual Entrepreneur

Foreign nationals can own up to 100% of shares in Uzbek companies. Company formation usually takes 1–3 days online via the Single Portal for Interactive State Services.

3. Registration and Licensing

Registration is streamlined:

• Online registration throughy single window
• No minimal charter capital for most LLCs
• Certain activities (banking, insurance, medical, etc.) require licenses

4. Taxation Overview

Uzbekistan has implemented significant tax reforms. Key taxes include:

• Corporate Income Tax: Standard rate – 15% (as of 2025)
• Personal Income Tax: Flat 12%
• Value Added Tax (VAT): Standard rate – 12%
• Social Contributions: Usually 12% (employer),
• Tax incentives available in Free Economic Zones and IT Park for resident companies.

Detailed information — Tax Code of the Republic of Uzbekistan

5. Currency Control and Banking

• The Uzbek Sum (UZS) is freely convertible.
• Repatriation of profits for foreign investors is allowed.
• Non-resident and foreign currency accounts can be opened.
• All payments over ~100 USD (1.2 million UZS) for goods/services must be cashless.

6. Labor and Employment

• Labor Code updated in 2025
• Fixed-term and permanent contracts available.
• Minimum wage regularly updated (1,271,000 UZS as of August 2025).
• No restrictions on hiring foreign staff, but work permits required.

7. Investment Protection and Dispute Resolution

• Foreign investments protected by law (guarantee against nationalization, expropriation, etc.).
• Membership in major international investment conventions.
• Commercial disputes resolved in national economic courts or via international arbitration (e.g. ICC, UNCITRAL).

8. Special Economic and IT Zones

• Free Economic Zones (Navoi, Angren, Jizzakh, etc.) offer tax and customs incentives.
• IT Park Uzbekistan: Residents enjoy 0% CIT, VAT exemptions, and simplified currency regulations.

9. Business Culture and Practices

• Hierarchical, relationship-oriented business culture.
• Russian and Uzbek languages are commonly used in business.
• Government interaction increasingly digitalized.

10. Conclusion

Uzbekistan offers ample opportunities for doing business across diverse sectors — from agriculture and textiles to IT, construction, and renewables. Regulatory reforms, investment guarantees, and competitive labor costs make it an attractive emerging market for both local and foreign entrepreneurs.