Jurisdictional Prerequisites & Company Formation – Uzbekistan
Uzbekistan occupies a landlocked area in Central Asia and has a population of more than 34 million people. It enjoys a mixed economy, and the World Bank predicts a growth of 5.3% by the end of 2022. In particular, private sector expansion is looking healthy and riding high on the back of current economic developments. The timing is hence just right for savvy entrepreneurs to consider Uzbekistan company formation.
The Republic of Uzbekistan is a leading producer of cotton and machinery and exports minerals, natural gas, silk, and coal. With a gross domestic product (GDP) of USD69.24 billion in 2021, the robust economy reflects a positive investor outlook. 3E Accounting United Kingdom is ready to assist with the relevant jurisdictional concerns in setting up a company in Uzbekistan.
Types of Business Entities – Uzbekistan
Entrepreneurs looking to start a company in Uzbekistan have a variety of business entities to choose from. The following are the most common and popular types amongst foreign and local investors:
- Limited Liability Company (LLC): a business company that requires at least one director, who must be a resident of Uzbekistan and one shareholder.
- Representative Office: the authorized agent must be a resident of Uzbekistan.
- Joint Stock Company (JSC): an economic entity that needs a minimum of one shareholder.
LLCs and JSCs have different minimum share capital requirements and take approximately five to eight weeks to set up. New legislation is also in force that facilitates the Representative Office to engage in activities that generate income. In such an instance, the Representative Office will be subject to a corporate tax of 8%, similar to LLCs and JSCs. Both residents and non-residents are subject to personal income tax.
Other types of business entities include:
- Company with Additional Liability (CAL)
- Economic Partnership
- Private Enterprise (PE)
- Individual Entrepreneur (Sole Trader)
- Company with Foreign Investment
All business entities must have a corporate bank account and may hire expatriate staff to run their offices. The company will need a locally registered business address and must be present at this legal address. Business, investment, or work visas are available, while Uzbekistan company formation does not require a visit to the country.
Starting the Entrepreneurial Journey – Uzbekistan
Generally, business entities in Uzbekistan need either registration or accreditation with the relevant government authorities. Entrepreneurs must submit all necessary documents to the appropriate centre or via an e-government portal for state registration. Simultaneous registration must also occur with the justice, tax, and statistics agencies.
Some processes may require an electronic digital key, which is currently unavailable to foreign legal entities. Further, statutory documents must be in the Uzbek language, while accreditation is a completely separate procedure entirely. Clearly, Uzbekistan company formation requires a professional touch to ensure that the registration or accreditation procedure is successful.
Entrepreneurs can streamline the process by engaging enterprise solution experts such as 3E Accounting United Kingdom. We offer comprehensive and customizable packages with a professional touch for that personalized experience. Contact us today to speak to our team of specialists.
