Company Formationin Uzbekistan

Through the economic reforms and investment incentives carried out in recent years, Uzbekistan has become one of Central Asia's fastest-developing investment hubs. The country's GDP continues to grow steadily, and the government offers various tax advantages and administrative facilitations to encourage foreign investment.

The tax incentives provided particularly for newly established companies and technology startups enable investors to enter the market at lower cost. Uzbekistan is also a strategic trade location providing access to CIS and Asian markets.

Thanks to regional trade agreements and logistical connections, companies can operate across a wide geographic area. Lower labor costs compared to neighboring countries and the large workforce potential created by a young population are also significant advantages for investors.

When setting up a company in Uzbekistan, the first step is deciding the field of activity and company type. The required documents are then prepared via a digital platform and submitted for registration. Once a legal commercial address is determined, the company is registered; tax registration, bank account opening and other license applications can also be carried out in parallel at this stage.

Different company structures are available for investors. The most widely used structure is the LLC, preferred by both domestic and foreign investors. In this structure, the company's capital is divided into shares and shareholders' liability is limited to the capital they contribute.

For large-scale projects, JSC may be preferred. Foreign companies can also operate via a representative office or a permanent establishment model. Generally, for foreign investors entering the Uzbekistan market, the LLC model is the most preferred structure due to operational flexibility and simpler tax/accounting processes.

Companies operating in Uzbekistan are subject to various obligations in line with tax legislation. Corporate income tax is 15%, value-added tax is 12%, social security tax is 12% and employee income tax is 12%. Import and export duties may vary depending on product type and trade regulations.

Tax reports are typically filed monthly or quarterly, while financial reports are prepared annually. For companies employing staff, social security and pension fund declarations must be made monthly. Independent audit obligations may also apply to large-scale companies.

Within the scope of digitalization policies carried out by the state in recent years, most tax returns can be submitted automatically or pre-filled via electronic platforms and accounting processes are largely handled through digital systems.