Ministry of Justice of the Republic of Uzbekistan – Laws on M&A in Uzbekistan from the legal database

General Summary

Uzbekistan's M&A laws are primarily comprised of the following laws. To encourage the entry of foreign investors, the government aims for relatively liberal and transparent regulations, however, prior approval or notification may be required in certain areas (such as those related to strategic assets, monopolies, and national security).

The main features are as follows:

Equal treatment of foreign investors : Foreign investors enjoy the same rights and protections as domestic investors ("Foreign Investment Law").
Multiple acquisition methods are permitted : Internationally standard methods are available, including share acquisitions, mergers, demergers, and partial business transfers.
Competition (monopoly) regulations : If market share exceeds a certain level (e.g., 35%) or the transaction size exceeds a threshold, prior notification and approval from the Antitrust Authority (ACA) is required.
Sector-specific regulation : Sectors such as banking and finance, energy, and mining may require additional approvals from industry regulators.
National Security Review : A recently introduced system may review the impact of foreign investments on national security.

1. Basic Law of Civil Transactions: Civil Code

This is the basic law that stipulates the contractual aspects and basic rights and obligations of M&A transactions.

Link : https://lex.uz/act/3580767
Original text (excerpt) : Гражданский кодекс Республики Узбекистан. Раздел II. Право собственности и 18. другие вещные права. 202. 202. 202. 202. 202. собственности приобретается на основании… договора купли, мены, дарения или иной сделки об отчуждении имущества…
Translation : Civil Code of the Republic of Uzbekistan. Part II: Ownership and Other Real Rights. Chapter 18: General Provisions on Acquisition of Ownership. Article 202: Basis for Acquisition of Ownership Ownership may be acquired on the basis of a contract of sale, exchange, gift, or other property transfer transaction.
Content and relevance to M&A : The essence of M&A is the "transfer of ownership" of assets and shares. This Civil Code provision forms the basis of transactions, including the validity of contracts, the timing of transfer of risk, and the legal basis for acquiring ownership.

2. Basic Law of Corporate Organization and Stock Acquisition: Companies Act

It provides detailed procedures for the acquisition of shares (interests) in joint stock companies (JSCs) and limited liability companies (LLCs), shareholder rights, corporate governance, and major corporate actions (mergers, divisions, conversions).

Link : https://lex.uz/act/6219505 (About the Company)
Original text (excerpt) : Закон Республики Узбекистан "Об акционерных обществах и защите прав акционеров". Глава 12. сделка. стоимость имущества по которой составляет… двадцать пять и более процентов от стоимости активов общества…
Translation : Law of the Republic of Uzbekistan on the Protection of the Rights of Joint Stock Companies and Shareholders Chapter 12: Transfer of Important Assets and Transactions with Conflicts of Interest Article 79: Transfer of Important Assets A transfer of important assets is a transaction in which the value of the assets is equivalent to 25% or more of the value of the company's assets.
Content and relevance to M&A : Many M&A transactions fall under this category of "transfer of significant assets." When this occurs, strict internal procedures are required, such as the need for special resolutions of the board of directors and general shareholders meetings. This is one of the most important laws to comply with during the acquisition process.

3. Protecting and Promoting Foreign Investment: Foreign Investment Law

The law establishes the rights of foreign investors, the targets of investment, guarantees (compensation for nationalization, overseas remittance of profits, etc.), and preferential treatment, thereby creating an environment for foreign investors.

Link : https://lex.uz/act/6456593
Original text (excerpt) : Закон Республики Узбекистан "Об инвестициях инвестиционной деятельности". Статья 10. Гарантии защиты иностранных инвестиций. Республики Узбекистан не подлежат национализациии… Защита прав и законных интересов инвестора осуществляется… судами Республики Узбекистан…
Translation : Law of the Republic of Uzbekistan "On Investments and Investment Activities" Article 10 – Guarantee of Protection of Foreign Investments Foreign investments within the territory of the Republic of Uzbekistan shall not be subject to nationalization… The protection of the rights and legal interests of investors… shall be carried out by the courts of the Republic of Uzbekistan.
Content and relevance to M&A : Acquisitions of domestic companies in Uzbekistan by foreign companies are considered "foreign investments." This law clearly stipulates legal guarantees for the safety of investments, providing important reassurance when deciding whether to carry out M&A.

4. Restrictions on competition and anti-monopoly: competition law

This law examines the impact of M&A transactions on market competition and aims to prevent mergers that abuse market dominance or significantly restrict competition. It requires prior notification.

Link : https://lex.uz/act/5074697
Original text (excerpt) : Закон Республики Узбекистан "О конкуренции". Глава 5. Государственный 18. 18. 18. …приобретение лицом… прав, позволяющих определять условия осуществления предпринимательской деятельности… хозяйствующего субъекта…
Translation : The Law of the Republic of Uzbekistan "On Competition" Chapter 5 State Control of Economic Concentrations Article 18 Transactions and Other Activities Requiring Consultation with the Competition Control Body …when a natural person or legal entity acquires the right to determine the conditions for the business activities of an entity…
Content and relevance to M&A : If the acquisition would result in the parties' combined market share exceeding 35% or meet certain other requirements, prior application to and clearance from the Antimonopoly Committee is mandatory . Transactions completed without clearance may be void.

5. Securities Exchanges and Tender Offers: Securities Market Law

This law sets out the rules for acquiring shares of listed companies, including the obligation to report large shareholdings and procedures for tender offers (TOBs).

Link : https://lex.uz/act/3377602
Original text (excerpt) : Закон Республики Узбекистан "О рынке ценных бумаг". Статья 27. Обязательства при приобретении крупных пакетов акций. Лицо, которое намеревается прямо или косвенно приобрести… тридцать и более процентов голосующих акций эмитента… обязано направить эмитенту… предложение о приобретении его акций (добровольное предложение)…
Translation : Law of the Republic of Uzbekistan on the Securities Market Article 27 Obligations in the Acquisition of a Large Number of Shares…Any person who intends to acquire, directly or indirectly, 30% or more of the voting shares of an issuer must make a proposal (voluntary proposal) to the issuer to acquire those shares.
Content and relevance to M&A : When acquiring a listed company, a tender offer becomes mandatory when acquiring 30% or more of the shares. This is an important regulation to give minority shareholders an opportunity to sell their shares at a fair price.

6. Exchange Control and Settlement: Exchange Control Law

It sets out rules regarding payments by foreign investors and overseas remittance of profits earned.

Link : Due to frequent revisions, you should search for the latest version on lex.uz. Keywords: " Валютное регулирование ".
Content and relevance to M&A : When a foreign company acquires a domestic company, it must repatriate a large amount of capital from abroad into Uzbekistan. It will also need to repatriate future dividends and capital gains. These foreign currency transactions are subject to the Exchange Control Law and must comply with the procedures and reporting requirements set by the Central Bank.

Important Note

Stay up to date : The laws on lex.uz are frequently amended and updated. When considering any transaction, you should always review the latest legal text with your legal advisor .
Sector-specific regulations : Sectors such as banking, insurance, mining, energy, and telecommunications may require special approval from the ministry that oversees the respective industry (e.g., Central Bank, Geology and Mineral Resources Commission).
National Security Review : In recent years, foreign investments in strategic assets may be subject to national security review.

This summary is for informational purposes only and does not constitute legal advice. You should always seek professional advice from a local law firm regarding any actual M&A transaction.