Register IE and SE
The enterprises with foreign investment and foreign participation
- The concept of an enterprise with foreign investment and foreign participation;
- Creation of an enterprise with foreign investment and foreign participation;
- Benefits and preferences provided to the enterprises with foreign investment and foreign participation.
According to the current legislation the enterprises with foreign investments in the territory of the Republic of Uzbekistan are understood as the enterprises (Ltd., double liability company (DLC), the joint-stock company, partnerships, etc.) in which foreign investment is not less than thirty percent of shares (a share, shares) or authorized capital. They act in any organizational and legal forms not contradicting the legislation of the Republic of Uzbekistan.
However, in this case one of the participants of the enterprise (company) with foreign investment (hereinafter — the «EFI») must be a foreign investor in one of the following form:
- foreign states, administrative or territorial authority of foreign states;
- an international organization established in accordance with the agreements or other agreements between States or the subject of public international law;
- or legal persons of any other form as association or organization founded and acting in accordance with the legislative acts of foreign states.
EFI is divided into 2 types:
1) the enterprises (companies) with foreign investments as FE (foreign enterprise).Criteria of EFI as FE:
- Authorized capital not less than 150 000 US dollars;
- All shareholders (investors) must be foreign, but at least one of them must be a legal entity;
- Authorized capital is completely owned by foreign investors (100%).
2) Enterprises with foreign investment as a JV (joint venture). Criteria of EFI as JV:
- Authorized capital not less than 150 000 US dollars;
- Here already among investors there is the Uzbek share (but at least one the foreign legal entity is obligatory);
- But at the same time not less than 30% of authorized capital have to belong to foreign investors (the share of the foreign legal entity is strictly not defined by the legislation).
Everything else that does not correspond to the above-stated criteria of the enterprise with foreign investments as the foreign enterprise and a joint venture is considered to be an enterprise (company) with foreign capital (EFC), which respectively can not be either FE or JV.
Companies with foreign capital (for example, write so Ltd on the form of EFC or JSC on the form of EFC) — a company which do not have at least one sign of enterprises with foreign investments.
Also, the distinction between EFI and EFC, is that EFI are registered in the Ministry of Justice of the Republic of Uzbekistan, and EFC are subject to state registration in the established order in the inspection on registration of business entities under Khokimiyats (City Hall) of districts and cities where the enterprise is located.
However, in accordance with the legislation, foreign shareholders can register these types of enterprises (companies) in the Republic of Karakalpakstan and Khorezm region with a share capital of not less than 75,000 USD dollars (the joint venture — not less than 22,500 USD dollars for foreigners, FE — 75,000 USD dollars). In this case, the place of incorporation), mailing address, registration with the tax authorities etc.) may be, for example, Urgench city, Nukus city or another.