Uzbekistan

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Operating a Business in Uzbekistan

Setting up a company | Working conditions | Cost of labor | Social partners

Setting up a company

Legal business entities

Types of companies and capital (max/min)	Number of partners/shareholders and liability	Registration fees
Private Limited Company Minimum share capital of 150 000 USD if the company benefits from foreign investments . Each partner has to release 30% of the statutory share capital on the day of the registration of the company and the remaining within a period of one calendar year.	Minimum 1 shareholder and maximum 50.	Notarize the company’s founding documents: UZS 23,590. Register with the local authority (khokimiyat) and obtain the certificate of state registration: UZS 55,890. Make a company seal: UZS 12,000 to 25,000. Notarize samples of signatures of the company’s general director and chief accountant: UZS 1,242 per signature.
Close Public Limited Company	Minimum 3 shareholders. Liability is limited to the amount contributed.	Notarize the company’s founding documents: UZS 23,590. Register with the local authority (khokimiyat) and obtain the certificate of state registration: UZS 55,890. Make a company seal: UZS 12,000 to 25,000. Notarize samples of signatures of the company’s general director and chief accountant: UZS 1,242 per signature.
Open Public Limited Company The minimum share capital is 50 000 USD if the company benefits from foreign investments.	Minimum 1 shareholder. Liability is limited to the amount of secured contribution.	Notarize the company’s founding documents: UZS 23,590. Register with the local authority (khokimiyat) and obtain the certificate of state registration: UZS 55,890. Make a company seal: UZS 12,000 to 25,000. Notarize samples of signatures of the company’s general director and chief accountant: UZS 1,242 per signature.

Business setup procedures: The registration process of foreign investment companies is complicated and bureaucratic. It starts with a registration at the Ministry of Justice (a duration of 5 days in principle), then with the local municipalities, ie. an accreditation with the Ministry of Foreign Economic Relations (a duration from 7 to 15 days in principle).
The competent organization: The Ministry of Justice.

Working conditions

Legal weekly duration: The legal duration of work is 40 hours per week. Supplementary hours should be less than 4 hours for every 2 days or 120 hours per year. They are paid double the hourly salary.
Retirement age: Men can claim their service pension from the age of 60 years after a minimum of 25 years of working.
Women can claim their service pension from the age of 55 years after a minimum period of 20 years of working.
Working contracts: The Uzbek Employment Law that came into force in 1996, is available in Russian.
The work contract should be in writing. It is generally a permanent contract, but one for a period less than 5 years can also be signed. The probation period is of 3 months.

Cost of labor

Minimum wage: The minimum salary is 15 525 UZS (12.2 USD) as of 1st August 2007. But on an average, an employee in Tashkent is paid 150 USD.
Social contributions: Social security contributions paid by employers: Employer's contribution is upto 25% of the salary and is broken down as under:

24.2% towards Pension Fund ;
0.5% towards Unemployment Fund ;
0.3% towards the Trade Union Committee.
Social security contributions paid by employees: Employee contribution is 2.5%.

Social partners

Social dialogue and involvement of social partners: The law gives the right to collective bargaining. In practice, the Government does not respect its laws. The Trade Unions which are government institutions have little power except in the health and industrial safety domain.
Unionization rate: According to the Uzbek legislation, there exists a right to create Trade Unions. But in reality, this right cannot be exercised by workers. The existing trade unions are dependent on the government.
Labor regulation bodies: Ministry of Employment and Social Protection

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