For over a decade, Healy Consultants Group efficiently and effectively assists our Clients on Uzbekistan company incorporation:

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Uzbekistan business setup summary

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• Advantages and disadvantages

  Advantages of Uzbekistan company registration

  

  1. Our Clients may enjoy certain benefits when registering their businesses in Uzbekistan including:
     • Uzbekistan has seen consistently high growth over the past decade, with annual growth rates between 7-10% every year since 2004. Demand for foreign expertise to help manage the rapidly expanding manufacturing and resource-processing industries is at an all-time high;
     • Uzbekistan has a corporate tax rate of just 15%, with no capital duty or capital acquisitions tax. A withholding tax rate of 10% on dividends and interest exists, but may be significantly reduced thanks to existing tax treaties. Capital gains are only taxed if income is derived through commercial activity;
     • Compared to countries of the western world, Uzbekistan is very cheap, including food, transport, utilities, rent, wages, etc. Specifically, office rental and utility costs tend to be a fraction of what they are in most western cities;
     • While Uzbekistan is landlocked, it is very close to two major markets – China and Russia. Uzbekistan has established strong trade relationships with both of these countries, as well as other emerging markets in Asia such as South Korea and Kazakhstan;
     • The government of Uzbekistan has declared attracting foreign direct investment a priority and is especially welcoming of investments in line with its export-oriented industrialization policies. Uzbekistan company formation processes have been sped up such that incorporation can be completed in just two weeks and minimum share capital has been reduced to under US$400.

  Disadvantages of Uzbekistan company registration

  1. Each Uzbek company must have a resident director. Only the resident director may be the bank signatory.
  2. Uzbekistan suffers from high corruption which can act as a barrier to completing many standard business practices. Uzbekistan is ranked 158^th in the 2018 Corruption Perceptions Index by Transparency International. Entrepreneurs should expect under-the-table bribes in order to expedite business operations;
  3. Trade in Uzbekistan is made difficult due to high tariffs that are unfairly distributed to certain companies at the government’s discretion. In addition, exporting goods often requires stiff bribes to be paid to border guards and custom officers on a regular basis;
  4. English is spoken by only a small minority of locals, with Uzbek and Tajik being the most common languages. Though more than half of the country speaks Russian as either a first or second language, most government documents must be translated into Uzbek;
  5. Uzbekistan’s court system is still underdeveloped with property ownership being one of the few widely respected legal rights. The judiciary in Uzbekistan is highly inefficient and entrepreneurs run the risk of dealing with expropriation by public figures that act with impunity;
  6. Uzbekistan lacks investment and financial freedom, being ranked 166^th in the 2019 Index of Economic Freedom by Heritage Foundation. The Uzbekistan investment policies fail to allow for efficiency or transparency and the financial sector restricts private sector growth through the limited banking sector;
  7. While utilities are cheap, access to electricity is limited to only the most populated areas of Uzbekistan. Setting up electricity in more rural areas of Uzbekistan can cost in excess of US$30,000 and would be an extra cost for starting a company in Uzbekistan.

• Best uses for an Uzbekistan company

  1. Uzbekistan has a wealth of natural resources. Uzbekistan is the 7^th largest gold produce in the world, and deposits of, copper, lead, zinc, tungsten, and uranium are also abundant. The mining industry represents nearly one third of Uzbekistan’s exports and the burgeoning industry offers plenty of opportunity for foreign investment and encourage Uzbekistan business formation.