DOING BUSINESS IN TAJIKISTAN
Since 2003, Healy Consultants has assisted our Clients with business registration in Tajikistan. Our services include i) Tajikistan company incorporation ii) government license registration iii) corporate bank account opening services in Tajikistan iv) employee recruitment v) visa strategies and vi) office rental solutions.
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Advantages and disadvantages
Advantages of Tajikistan company registration
- Tajikistan has a rapidly expanding economy, with growth rates ranging between 9 and 22% since 2001. While Tajikistan was hit hard by recessions in 2006 and during the global downturn in 2008, it has recovered quickly to grow by 8% over the past year. The manufacturing industry, in particular, is capable of explosive growth, with a lack of modern infrastructure currently holding it back;
- Tajikistan has plentiful deposits of gold, silver and coal. The mining industry is heavily reliant on joint ventures with foreign-owned companies to exploit such industry;
- Compared to countries of the western world, Tajikistan is very cheap, including food, transport, utilities, rent, wages, etc. Specifically, office rental and employee wages tend to be a fraction of what they are in most western cities;
- While Tajikistan is landlocked, it is very close to two major markets – China and Russia. It is beneficial to have Tajikistan company incorporation as it has established strong trade relationships with both of these countries, as well as other important markets in Asia such as Japan and Turkey;
- As foreign direct investment was low in the 1990s, due to corruption and political and economic instability, the government has created Tajikistan free economic zones, which grant certain companies lower taxes, fees, and customs;
- The republic of Tajikistan is currently a member of the World Trade Organization (WTO) having gained accession in 2013 and enjoys of the benefits of the WTO trading system.
Disadvantages of Tajikistan company registration
- Tajikistan has a corporate tax rate of 15% for most companies, with a 25% rate applying to companies in the transportation, telecommunications, service, and banking industries. An additional 8% tax rate applies to the net profit of non-resident entities;
- Tajikistan suffers from high corruption which can act as a barrier to completing many standard business practices. Tajikistan is ranked 136th in the 2015 Corruption Perceptions Index by Transparency International. Entrepreneurs should expect under-the-table dealings in order to expedite business operations;
- Trade in Tajikistan is made difficult due to high tariffs, especially on consumer goods. In addition, exporting goods often requires stiff bribes to be paid to border guards and custom officers on a regular basis;
- English is spoken by only a small percentage of Tajiks, with Tajik being the most common spoken language and Russian the most common language in business. Most official documents must be translated in to Russian to be accepted;
- Tajikistan’s court system is still underdeveloped with property ownership being a particular area of weakness. Tajikistan considers all land to be the property of the government, with land use rights granted to individuals. The judiciary lacks transparency and there is little respect for due process;
- Tajikistan lacks investment and financial freedom, being ranked 149th in the 2016 Index of Economic Freedom by Heritage Foundation. Investments are screened and require government approval, while the laws that govern investment are applied inconsistently;
- In accordance with the Law on Limited Liability Companies, every Tajikistan company director must have a Tajikistan work permit and Personal Identification Number. It takes at least 3 months to secure work permit approval. To efficiently and effectively secure company registration in a timely manner, most of our Clients request Healy Consultants to appoint a temporary professional, passive nominee resident director (click link). Our resident director service fee amounts to US$7,600 per annum;
- Furthermore, every bank signatory of a Tajikistan corporate bank account must hold a Tajikistan work visa. We recommend our Clients to appoint a director who will also be the temporary bank signatory. Thereafter, Healy Consultants will help our Client secure a Tajikistan work visa for our Client.
Best uses for a Tajikistan company
Mining expertise and natural resource exploitation
- Tajikistan is rich in natural resources but is short on expertise on the best ways to extract and sell the gold, silver and coal lying under the Central Asian nation. Foreign engineering and mining firms therefore have an opportunity to gain access to precious resources in exchange for sharing knowledge.
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- Time to incorporate: Seven weeks
- Cost to set up: US$13,850
- Minimum capital: US$105
- Physical office required: No
- Shareholders: 1
- Directors: 1
- Company secretary: No
- Resident director: No
- Corporate tax rate: 15%
- Corporate tax base: Worldwide
- Shelf companies: No
- Main company type: Joint Stock
Useful links for Tajikistan
Government and public authority websites:
- Ministry of Finance
- Ministry of Foreign Affairs
- National Bank of Tajikistan
- Chamber of Commerce
- Tajikistan airport
- Visiting Tajikistan