There are several important points to note when establishing and operating a foreign-invested company in Uzbekistan. Please take a look at the table below to start with the main points.
| Points to note | Detailed contents/requirements | Main rationale/reason |
|---|---|---|
| Certification of foreign capital ratio | One of the conditions for a company to be considered a "foreign company" is that it has foreign investment of 15% or more . | Section 6 of the Foreign Investment Law (Republic Act No. 598). |
| Capital Requirements | The minimum capital required for a company to be considered foreign is 400 million soums (approximately $34,000), with the Republic of Karakalpakstan and Khorezm Oblast requiring a minimum of 200 million soums. | Foreign Investment Act (Republic Act No. 598), etc. |
| Restrictions on land ownership | Foreign companies cannot own land. Land leases are limited to a maximum of 25 years (extendable to a maximum of 49 years in special economic zones). | The Republic Land Code (Republic Act No. 598-I), etc. |
| Regulated and licensed industries | There are some industries that require permits and licenses, such as gambling (licensed), drug-related, and pyrotechnics. | Various presidential decrees and cabinet decisions. |
| Applying for tax benefits | There are preferential treatments available depending on the size of the investment and the contribution to the economy, but the treatment is not automatic and prior application is required . | Based on the Investment Law. |
| Use of special economic zones | Special Economic Zones (SEZs) may offer preferential tax and customs treatment . | Depends on the regulations of each special economic zone. |
| Visa and Registration | Japanese nationals do not need a visa for stays of up to 30 days. However, you must register your stay within three business days of entering the country (please note that this applies to non-hotels). | Immigration regulations. |
| Local labor laws | There are labor laws that differ from those in Japan, such as the obligation to pay salaries in local currency at least twice a month . | Labor Law of Uzbekistan. |
Below we will explain each item in a bit more detail.
🧾 Necessity of Permits and Licenses
Before starting your business, the first step is to find out whether your industry requires any licenses or permits .
- Gambling operations have been legal since January 2025 through individual licenses from government authorities, but are still heavily regulated.
- Other industries may be prohibited or restricted to state-owned enterprises, such as the production of narcotic painkillers and the development and production of certain pyrotechnic devices .
💰 Capital and investment ratio
- To be considered a "foreign company," a company must have foreign investment of 15% or more .
- To qualify as a foreign company, a minimum capital of 400 million soums (200 million soums for the Republic of Karakalpakstan and Khorezm Oblast) must be met. This means that even if you choose a common legal entity structure, such as a joint stock company or limited liability company, you must meet this standard to be considered a foreign company.
⚖️ Land ownership restrictions
Foreign companies cannot own land in Uzbekistan. If they need land for their business, they must lease it .
- Typically, leases are for a maximum of 25 years .
- For land within special economic zones (SEZs) , amendments to the law are being considered to extend this period to a maximum of 49 years .
📝 Tax Incentives and Special Economic Zones
In Uzbekistan, businesses that are recognized as having a large investment scale and a significant contribution to the local economy may be granted tax incentives . However, these incentives are not applied automatically and require prior application and approval . Locating a business in a special economic zone (SEZ) increases the chances of receiving further preferential tax and customs treatment .
🧳 Visa and Residence Registration
- Japanese nationals staying in Uzbekistan for up to 90 days do not need a visa, but they must complete their stay registration within three business days of entering the country .
- If you are staying at a hotel, the hotel will automatically register you, but if you are renting an apartment or other property, you will need to make the necessary arrangements yourself , so be careful not to forget. Failure to register could result in fines or even eviction.
👥 Local labor practices
When hiring local employees, you must comply with Uzbekistan's labor laws. For example, wages must be paid in the local currency (soum) and at least twice a month . Please note that these laws differ from those in Japan.
🔁 Antitrust Law Check
Large-scale mergers and acquisitions (M&A), or acquisitions of 25% or more of a company of a certain size, may require prior consent from antitrust authorities . If you are planning a transaction that may fall under this category, we recommend consulting with an antitrust expert at an early stage.
✅ Pre-implementation checklist
Careful preparation is essential to successfully enter Uzbekistan.
- Conduct thorough research beforehand : Reduce risk by conducting credit checks on local companies you plan to do business with and registering your company's intellectual property rights before entering the market.
- Utilizing experts : Local laws, tax systems, and licensing procedures are often complicated. Getting advice from local lawyers, consultants, and support organizations such as JETRO (Japan External Trade Organization) can help ensure a smooth expansion.
- Understanding culture and customs : There is a relatively strong pro-Japanese sentiment in Uzbekistan, and people tend to be friendly. However, there are also cultural and customary differences in subtle areas, such as the sense of time, commitment, and work approaches. Respecting the local culture and being flexible is the key to long-term success.
💎 Summary
Uzbekistan is a relatively stable country in Central Asia, and is proactive in improving its business environment, focusing on developing IT human resources and actively attracting foreign investment in areas such as renewable energy . However, there are certainly some points to be aware of when entering the country, such as restrictions on land ownership , the need for permits and licenses , and unique labor laws .
The most important thing is to have accurate and up-to-date local information and to proceed with your planning while seeking expert support if necessary . Investing in Uzbekistan has the potential to be a great opportunity if these considerations are managed properly.
(Note) Exchange rates and laws are subject to change. Please be sure to check the latest information with an expert before making any investments.
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