A business entity with participation of a foreign investor can be incorporated as:
1. An enterprise with foreign investment;
2. An enterprise with participation of foreign capital.
According to paragraph 1 of Article 6 of the Law “On Foreign Investments”, in the Republic of Uzbekistan as an enterprise with foreign investments shall be deemed an enterprise in which foreign investments constitute at least thirty percent of shares (contributions) or the statutory fund.
In accordance with the Decree of the President of the Republic of Uzbekistan “On the Benefits Provided to Enterprises with Foreign Investments” #UP-1652 dated 11.30.1996, newly created enterprises with foreign investments must meet the following criteria:
The size of the statutory fund of the enterprise may not be less than 400 million soums;
The share of foreign investment shall be at least 15 percent of the statutory fund of the enterprise.
The statutory fund of an enterprise with foreign capital must be at least the size established for the respective legal form.
Both types of legal entities can be set up (registered) in the following legal forms:
1. LLC (Limited Liability Company);
2. JSC (Joint-Stock Company), etc.
The state registration of a newly created legal entity can be carried out in the following ways:
1. Through the Internet in the Single Portal using the automated system of state registration and registration of business entities;
2. Personal appearance.
If the state registration (setting up) of a legal entity is carried out without prior arrangement, then the originals of the following documents shall be submitted to the registration authority:
1. Constituent documents in the official language, that is, the charter of the future company and the memorandum of association.
2. Power of attorney for the representative
If the documents are provided by the representative of the applicant, then it is necessary to submit documents proving the identity of the representative and confirming the powers of the representative of the applicant (that is, a power of attorney).
For consideration of an application for registration of a company with foreign capital, a state duty in the amount of in the amount of 1 time the minimum wage is paid, and for registration of an enterprise with foreign investment a state duty in the amount of one third of the minimum wage is paid.
Then the registering body’s employee after receiving the necessary documents fills out the application form, scans the submitted documents and returns the originals to the applicant.
If registration is carried out in the Single Portal through the automated system of state registration of business entities, then the followings should be done:
1. Create a personal user account or personal “account of a business entity” in the Single Portal;
2. Choose a state service — “business registration”;
3. Form an application for state registration;
4. Attach the necessary documents to the application in the “PDF” format (portable document format);
5. Pay the state fee in the amount of 0.5% of the minimum wage for an enterprise with foreign capital, and in the amount of one third of 16 times the minimum wage for an enterprise with foreign investment.
After collecting the package of documents, the generated application is automatically sent to the personal office of the responsible employee of the registering authority, which verifies the information provided by the applicant and, if it complies with the data, performs state registration in the database.
The time set for the state registration of a business entity does not exceed 30 minutes.
It should be noted that enterprises with foreign investments are provided with certain benefits and preferences.
According to the Law “On Customs Tariff”, the followings are exempted from customs duties:
— Property imported into the Republic of Uzbekistan by enterprises with foreign investment with a share of foreign investments in the statutory fund amounting to at least thirty-three percent for their own production needs, within two years from the date of their state registration;
— Property imported for personal needs of foreign investors, citizens of foreign states and stateless persons permanently residing outside the Republic of Uzbekistan, located in the Republic of Uzbekistan in accordance with labor contracts concluded with foreign investors;
— Goods imported by foreign legal entities that have made direct investments in the economy of the Republic of Uzbekistan totaling to over 50 million US dollars, provided that the imported goods are of their own production;
— Goods, works and services intended for performing works based on a production sharing agreement and imported into the Republic of Uzbekistan in accordance with the project documentation by a foreign investor or other persons participating in the performance of work on a production sharing agreement, as well as products exported by the investor in accordance with the production sharing agreement.
Also, when implementing the foreign trade policy of the Republic of Uzbekistan within its customs territory it is allowed to provide tariff benefits in the form of return of the previously paid duty, reduction of the duty rate and exemption in exceptional cases of duty on goods imported into the customs territory of the Republic of Uzbekistan as a contribution to the authorized capital of enterprises foreign investments and foreign enterprises, as well as certain types of goods of own production exported by these enterprises in the cases provided by production sharing agreements, in accordance with the law.
Enterprises with the participation of foreign capital do not have such wide tax and customs privileges as enterprises with foreign investment. They operate within the framework of a national business climate.