Uzbkistan

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DOING BUSINESS

 


Local business incentives - Legal forms of companies - Registration and licensing procedures - Legal framework - Foreign exchange control - Regulations concerning equity investment - FDI inflows - Expertise of the political risk

Local business incentives

The legal framework is increasingly favourable to foreign investments. The government tries to encourage the arrival of foreign investors, but investors are reluctant due to the complexity and limits concerning administrative procedures. However, a foreign investment promotion agency has been created in 1995. Indeed, the Foreign Investment Agency, based in Tashkent, tries to help foreign investors by trying to lighten administrative procedures and to inform investors of the different aids they can benefit from. Furthermore, there is a national insurance company which covers political and commercial risks in order to protect foreign investments.

 

Legal forms of companies

Form Number of partners/shareholders Minimum and/or maximum capital Liability Registration fee Release of financial documents
Private Limited Company No minimum. Minimum RUR 50,000.
Each partner has to release 30% of his contribution.
Liability is limited to the amount contributed. Yes
Complementary Limited Company No minimum. Minimum RUR 50,000.
Each partner has to release 30% of his contribution.
Liability involves the company's commitment on personal assets. Yes
Close Public Limited Company
No minimum.
RUR 500,000 Liability is limited to the amount contributed. Yes
Open Public Limited Company
No minimum.
RUR 1,000,000 Liability is limited to the amount contributed. Yes
General Partnership. No minimum. No minimum.
25% of the contribution must be paid by each partner at the registration.
Liability is joint and several. No
Limited Partnership. No minimum. No minimum.
25% of the contribution must be paid by each partner at the registration.
Liability is unlimited for some partners and limited to the amount contributed for others. No

Registration and licensing procedures
The registration process of foreign participation companies is complicated and bureaucratic. It starts with a registration with the Ministry of Justice (5 days are needed), then an accreditation with the Ministry of Foreign Economic Relations (from 7 to 15 days at least are needed).

Foreign exchange control
As for profits and capital repatriation, law stipulates that they can be carried out by foreign investors, as well as other funds, with no limitation. They can possess foreign or national currencies bank accounts in the Uzbek Republic's banks.
Investors can use their accounts in national currency to get foreign currencies. Companies can keep the currencies resulting from the export of their production after payment of taxes and levies. Foreign investors who operate in certain sectors and export, can also be exempted from the obligation of currencies transfer.

Regulations concerning equity investment
A majority holding interest in the capital of a local company is legal. Minimum is fixed at a 10% and there is no maximal limitation.  


Foreign Direct Investment inflows in Uzbkistan

FDI inflows 2003 2004 2005 World rank (*)
2005
FDI inflows (USD million) 70 1 45 128/141
Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.

 

Last modified in 2006 - ongoing update
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