How to Register a Sole Proprietorship in Uzbekistan
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The country located in Central Asia is one of the developing countries with high GDP growth. In 2021, growth is projected at 6.6%. They are significant producers of gold, oil, and natural gas. This country has about 33.5 million inhabitants, while the capital Tashkent has about 2.4 million inhabitants. The primary industries in Uzbekistan are textile, machine building, metallurgy, and mining. If you seek a business opportunity in Uzbekistan and want to register as a sole proprietor in this country, this article can help you.
Disclaimer: This article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
The registration process of the sole proprietor in Uzbekistan
The registration process can be done online or in person. The institution in charge of the registration process is the Public Service Center. If your choice is in-person registration, all you need to do is submit an application form. If you prefer online registration, the first thing you need to do is create your EDS (Electronic digital signature). Then make your profile on the official website.
After that, you access your profile on the website and choose the online method of registration. After that, you will access your profile and click on the Business Registration tab, where your site will guide you step by step to register online and fill out all the necessary forms.
Keep in mind that all websites are in Russian or Uzbek.
After you have submitted the registration request, you need to make a business stamp. The cost of making a business stamp is UZS 50,000 - 100,000.
The last step is to open a bank account. To open a bank account, you will need a certificate of a registered business.
If you're not looking to become an independent contractor, but hire one - learn how you can do it compliantly in Uzbekistan.
The taxation system in Uzbekistan
From October 2019 in Uzbekistan, Value Added Tax (VAT) has been reduced from 20% to 15%. A calendar year is taken into account, and if your business has a turnover that does not exceed UZS 1 Billion, your registration is on a volunteer basis. The institution in charge of the registration process is the tax authority, and you must register in person. Local authorities have also announced the opening of online registration opportunities soon to enable a fully-online registration process.