Company Formation in Uzbekistan
Updated on Wednesday 18th September 2024
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Many foreign investors opt to open a business in Uzbekistan as the country benefits from political and economic stability and many attractive industries. Uzbekistan’s fast-growing economy is based on both agriculture and manufacturing industries. It is also a major exporter and producer of cotton and gold, having the biggest gold mine in the whole world. If you need assistance or further information, our company registration experts can help in matters of establishing a company in this country.
Types of companies in Uzbekistan
One of the first steps in forming companies in Uzbekistan is deciding which type of legal entity is more recommended to establish in your field of interest. There are various types a foreign entrepreneur can choose from, namely: the limited liability company and additional liability companies, the general or the limited business partnership, the production cooperative, the joint stock company.
An investor can also decide on creating a branch or a representative office, dependent on the head office overseas. The requirements for a limited liability company (which is the most commonly type established by foreign investors) are:
- minimum one director (chief executive officer);
- between 1 and 50 shareholders (the nationality has no importance).
How to register a company in Uzbekistan
The first step is registering the name of the company, which has to be done with the State Statistic Committee Agency. The investor must submit the application and then receive an answer about the company name’s uniqueness. Then, he or she needs to make a company seal at the specialized unit. For this procedure, it is necessary to acquire a design from a seal company.
The third step for the company registration in Uzbekistan is to obtain the certificate of state registration from the Inspectorate for Registration of Entrepreneurial Entities. A few documents must be submitted, such as the standard application form and a bank receipt for payment of the state registration fee. With this procedure our company formation specialists can assist investors and provide any necessary information.
Then, businessmen have to open a permanent bank account at a commercial bank agency. Some of the papers that need to be filed are a copy of the registration deed and a copy of the founding documents of the legal entity.
Last, but not least, the business needs to be registered with the National Bank. Amongst the documents needed for completion of this process is the certificate of the company director’s nomination, information about the bank account and the registration certificate.
How long does it take to open a company in Uzbekistan?
The time allocated to open a company in Uzbekistan varies from one legal entity to another, as in certain cases the procedure is more complex (for example, the joint stock company). While a limited liability company or a representative office can be ready for business in a period of around 5 weeks, the incorporation of a joint stock company can take up to 8 weeks.
It must also be noted that foreign investors have to open a corporate bank account and this procedure takes around 4 weeks, regardless of the company type selected for incorporation. The amount of time varies from one country to another, depending on the legislation implemented by each jurisdiction.
Typically, a bank account can be set up in a shorter amount of time in offshore jurisdictions, where investors can open an offshore bank account in maximum 1-2 weeks. This is possible due to the relaxed regulations applied in these countries, where offshore incorporation is done following simpler procedures.
Taxation obligations for companies in Uzbekistan
Local and foreign investors alike are required to pay a variety of taxes when engaging in commercial activities. Some of the most common taxes charged to businesses are the corporate income tax, the value added tax, employment taxes, etc. In the list below, our team of consultants in company formation in Uzbekistan present you the current taxes rates charged to local businesses:
- the standard corporate income tax is charged at a rate of 15%, and it applies to the majority of business operations carried out here;
- the tax system available here applies withholding taxes charged for the payments made to non-residents entities and the tax rates are 6%, 10% or 20%, depending on the nature of the taxable income;
- the value added tax is applied at a standard rate of 12%;
- please mind that companies importing certain categories of goods will also be charged with the excise tax, which can vary from 15% to 70%, depending on the nature of the product (alcohol, cigarettes, petrol, etc.).
Companies that need to register for the payment of value added tax can initiate the procedure with the Tax Committee working under the Cabinet of the Ministers of the Republic of Uzbekistan. Of course, our consultants can provide the necessary assistance during these formalities.
We also invite foreign investors to address our team for any other information concerning tax registration and tax reporting (which is done following the calendar year, 1st of January – 31st of December). We also provide tax minimization services and accounting services, tailored to the needs of your business.
In case you need further information on how to open a company in Uzbekistan, our experts in company registration can guide you through all the required steps and can also assist you in legal issues you may encounter, so feel free to contact us.