How to Start a Business in Uzbekistan: A Guide for Foreign Businesses

Why Do Foreign Businesses Choose Uzbekistan?

Uzbekistan offers Central Asia’s largest market, deep post-2017 reforms, flat low taxes, and aggressive IT export incentives. Its permanent population reached 38.5 million as of July 1, 2026, the largest in the region, per the World Bank country page. The median age was 29.5 years on January 1, 2026, per Uzbekistan’s Statistics Agency. Since 2017 the country has delivered currency convertibility, a 2020 Tax Code, and visa liberalization.

Ignore the old “69th for ease of doing business” claim that older guides still repeat. The World Bank discontinued its Doing Business report on September 16, 2021, so the 69th-of-190 rank is a frozen 2020 figure. The current replacement is the World Bank’s Business Ready (B-READY) report. In B-READY 2025, Uzbekistan scores 91/100 on Business Entry (top 20% of economies), 70/100 on Regulatory Framework, and 72/100 on Operational Efficiency. Be honest on logistics: Uzbekistan is double-landlocked, so it is a labor and IT-export base, not a sea-freight hub.

Which Sectors Are Open to Foreign Investment in Uzbekistan?

Most sectors allow 100% foreign ownership with no screening, while a short list needs licenses and a few are state-reserved. IT, manufacturing, logistics, agriculture, and services are fully open. Telecoms, energy, and financial services are open but require sector-specific licenses. Defense, strategic utilities, and tobacco and alcohol production face state reservation or ownership caps.

B-READY 2025 confirms no ownership or participation restrictions and no nationality restrictions on directors for foreign firms in open sectors.

What Is the Best Business Structure for Foreigners in Uzbekistan?

The LLC (MChJ) is the default for nearly every foreign founder. A Joint Stock Company (JSC) suits large, capital-intensive, or public-facing projects. A branch or representative office suits market testing without forming a full entity, though a branch is taxed as a permanent establishment and a representative office cannot trade.

Source: Uzbekistan Civil Code and Law on LLCs, lex.uz.

Can Foreigners Own 100% of an LLC in Uzbekistan?

Yes. Foreigners can own and run an Uzbek LLC fully, with no local partner and no resident-director requirement in open sectors. B-READY 2025 records no ownership or participation restrictions and no restriction on the nationality of directors for foreign firms. Non-resident shareholders still need a local registered address and an Electronic Digital Signature (EDS) to file.

The exceptions are the licensed and restricted sectors above: telecoms, energy, and finance need a license first, and defense, strategic utilities, and tobacco and alcohol carry ownership caps.

What Is the Minimum Capital to Start a Company in Uzbekistan?

A standard Uzbek LLC has no minimum charter capital. B-READY 2025 confirms no paid-in minimum capital requirement for either domestic or foreign-owned LLCs. This keeps incorporation costs low: founders pay a nominal state fee plus notary, translation, and EDS costs rather than a mandated capital injection.

Two caveats apply. Regulated sectors such as banking and insurance carry regulator-set capital minimums. Companies seeking formal “enterprise with foreign investment” status have historically needed a higher charter capital, so confirm the current threshold with the registry before you file.

How Do You Register an LLC in Uzbekistan as a Foreigner?

Registration runs through the One-Stop Shop portal at my.gov.uz and completes in 1 to 2 business days, per B-READY 2025, which scores Uzbekistan 91/100 on Business Entry. The full setup, including banking and tax activation, realistically takes 1 to 3 weeks. The Electronic Digital Signature (EDS) is the certificate that authenticates your online filings and tax portal access.

Steps for a foreign founder:

1. Reserve the company name online.
2. Prepare the charter and founders’ resolution, with notarized Uzbek or Russian translations.
3. Obtain an EDS for the director (foreign directors first get a personal identification number, the PINFL).
4. File the registration application through the One-Stop Shop portal.
5. Receive the taxpayer identification number (TIN) issued with registration.
6. Complete post-registration steps: open a bank account and register for VAT if required.

State fees for online filing are nominal; the real cost sits in notarization, translation, EDS issuance, and a registered address.

What Are the Permanent Establishment Rules in Uzbekistan?

A foreign company triggers permanent establishment (PE) status when its activity in Uzbekistan exceeds 183 days in a 12-month period or involves a fixed place of business or an on-ground project. A PE pays 20% corporate income tax on Uzbek-source income, with relief available under an applicable treaty. This is how a foreign company becomes taxable without forming an LLC.

Use the PE test to judge on-ground work. Advisory from abroad usually stays below the threshold; staff, sites, or a dependent agent on the ground can cross it.

What Taxes Do Businesses Pay in Uzbekistan?

Uzbekistan runs flat, low rates: 15% corporate income tax (CIT), 12% VAT, and 12% flat personal income tax (PIT). VAT fell from 20% before 2019 to 15%, then to 12% from January 1, 2023, strong evidence of the reform trajectory. Older competitor pages still quote 15%, which is wrong. A presidential decree bars any VAT or CIT rate rise until January 1, 2028.

Non-resident dividends, interest, and royalties face withholding tax that a double taxation treaty can reduce.

When Do You Need to Register for VAT in Uzbekistan?

VAT registration becomes mandatory once annual turnover exceeds the general-regime threshold, with voluntary registration available below it and exports zero-rated. That threshold rose from 1 billion UZS to roughly 5 billion UZS (about $417,000) from June 1, 2026, per Gazeta.uz reporting Presidential Decree PD-100. Businesses under it can stay on turnover tax instead.

Digital services carry their own rule. Non-resident providers of digital services to Uzbek consumers must register and remit 12% VAT, Uzbekistan’s version of a “Google tax.”

Does Uzbekistan Have a Simplified Tax Regime for Small Businesses?

Yes. Businesses under the turnover threshold can pay turnover tax at a 4% base rate instead of CIT plus VAT, under Article 467 of the Tax Code. This cuts both the rate and the filing burden for small foreign founders. The threshold that gates the regime rose to roughly 5 billion UZS from June 1, 2026, per Gazeta.uz, widening eligibility.

Rates vary by activity around the 4% base, and a company must switch to the standard VAT-plus-CIT regime once its turnover crosses the threshold in the prior or current year.

Does Uzbekistan Have Double Taxation Treaties?

Yes. Uzbekistan maintains a network of more than 50 double taxation treaties (DTTs) in force, per the State Tax Committee’s treaty register, covering Russia, China, India, the United Kingdom, Germany, France, Turkey, Kazakhstan, the United Arab Emirates, and South Korea. These treaties reduce withholding tax on cross-border dividends, interest, and royalties.

One gap matters for US founders: there is no US-Uzbekistan income tax treaty. US owners get no treaty rate reduction on Uzbek withholding and should model foreign tax credits instead.

What Are the IT Park Uzbekistan Tax Incentives?

IT Park residents pay 0% corporate income tax and 0% social tax, are exempt from VAT on qualifying activity, and their employees pay a reduced 7.5% personal income tax. Residents also skip customs duties on own-use imports. Core profit and VAT reliefs run until January 1, 2028, while the 5% dividend cap and export-resident benefits are locked in until 2040.

Export-oriented residents earning over 50% of revenue abroad keep tax and customs relief through January 1, 2040, a stability horizon few jurisdictions match.

How Do You Register with IT Park Uzbekistan?

Apply directly to IT Park Uzbekistan with evidence that the required majority of revenue comes from qualifying IT activity such as software development, business process outsourcing (BPO), and data processing. Export orientation is encouraged, and residency unlocks the 0% CIT and 7.5% employee PIT regime. Confirm the current qualifying-revenue threshold with IT Park before applying.

For relocating founders, Uzbekistan’s IT Visa runs up to 3 years, is extendable, and covers foreign IT founders, specialists, and investors, with a pathway to residency.

What Is the IT Park Zero Risk Program?

Zero Risk is IT Park’s relocation package for foreign IT companies. It offers 12 months of free office space, reimbursement of recruitment costs, compensation of up to around 15% of payroll costs, plus visa and relocation support. The program is administered by IT Park Uzbekistan directly as a soft-landing scheme for firms moving operations in.

Terms change, so verify the current office period and payroll percentage on IT Park’s site before you budget a move.

What Incentives Exist for Renewable Energy Investment in Uzbekistan?

Solar and wind projects access auction-based procurement, tax preferences, and customs duty exemptions on imported equipment, backed by large public investment programs. Uzbekistan’s Ministry of Energy runs competitive auctions with multilateral and international developer participation, and awards include power purchase agreements with sovereign-backed structures.

Treat headline capacity targets with care and check current auction results against the Ministry of Energy before relying on any single figure.

How Do You Open a Corporate Bank Account in Uzbekistan as a Foreigner?

Foreign-owned companies can open accounts, but they face extended know-your-customer (KYC) and anti-money-laundering (AML) review, and most banks want the director present for verification. Remote opening is difficult for non-resident owners, so prepare documents early and expect delays.

Documents banks typically request:

• Business registration decision and taxpayer identification number (TIN)
• Company charter and EDS details
• Proof of a local registered address, such as a lease
• Passports and appointment documents for directors and beneficial owners
• Evidence of foreign-entity registration for corporate shareholders

Multi-currency UZS, USD, and EUR accounts are available and common for exporters.

What Are the Ongoing Tax Filing and Compliance Requirements in Uzbekistan?

Standard-regime companies file monthly VAT returns and CIT prepayments, plus an annual CIT return and financial statements. Electronic VAT invoicing is mandatory. IT Park and incentive-regime companies carry additional reporting, and regulated-sector licenses need periodic renewal.

Keep the operational basics in place: a registered address, a valid EDS, and a local accountant to manage the filing calendar. Missed deadlines trigger penalties and interest, and non-compliance can disqualify a company from IT Park and renewable-energy incentives. A shared compliance calendar keeps every Uzbek and cross-border deadline in one place.

What Do Employers Need to Know About Hiring and Payroll in Uzbekistan?

Employers pay about 12% social tax plus a 0.1% pension fund contribution, while employees contribute roughly 4% in total. Salaries must meet the statutory minimum wage, which a presidential decree updates annually, so check the current figure before contracting. The Labor Code mandates paid leave, sick leave, and severance.

IT Park changes the payroll math. Resident employees pay 7.5% personal income tax instead of 12%, and resident employers are exempt from social tax, which materially lowers the cost of hiring local engineers.

How We Help You Start a Business in Uzbekistan

Commenda is the global compliance and entity management platform for companies operating across borders. Its incorporation service handles Uzbek entity formation end to end, from name reservation and charter documents to the EDS and tax registration, with filings completed by local experts rather than left to you. Its global indirect tax software tracks your Uzbek VAT alongside US sales tax and EU VAT registrations and deadlines in one dashboard.

Pair the entity with the tools you need at setup: the company name checker confirms availability before you file, the entity vs EOR calculator weighs a full entity against an employer of record, and the compliance calendar keeps every filing date in view. Commenda supports 100+ ERP, API, and custom integrations, so your Uzbek entity reports into the same stack as the rest of your group.

Book a demo to map your Uzbekistan entity setup and global tax calendar in one plan: schedule a demo.