All conflicts arising in legislation will now be interpreted in favor of entrepreneurs

In Uzbekistan, all conflicts in the legislation now serve the interests of entrepreneurs. According to the presidential decree, which came into force on August 28, the principle of the “presumption of the right of the business entity” was introduced in public legal relations between state bodies and business entities. This is aimed at strengthening the guarantees for the protection of entrepreneurial activity.

In accordance with the document, draft regulatory legal acts will be prepared by January 2027 to expand the mechanisms for the practical application of the “presumption of the right of the business entity”. These drafts establish mechanisms for suspending the effect of the impact measure and applying (or not applying) the impact measure based on the outcome of the case, if the supervisory body applies a fine or other legal measure to a business entity, if the entrepreneur is dissatisfied with this measure and appeals to a court or a higher body within the established period.

Also, a draft Cabinet of Ministers resolution will be developed to expand the principle of “silence is consent” in state services related to entrepreneurship by April 2027. The draft stipulates that when using state services where the principle of “silence is consent” does not apply, if the application is not considered within the established time, this application will automatically be considered resolved in favor of the entrepreneur. This procedure will apply to 50 percent of state services related to entrepreneurship where the principle of “silence is consent” does not apply.

The resolution stipulates that, until a state body proves otherwise, a business entity (its official) is considered to have acted in accordance with the law and duly fulfilled its obligations. In a court or other administrative body resolving a dispute, the state body shall bear the sole burden of proving the reasonableness, legality and proportionality of the legal measure or decision taken by the state body against the business entity (its official), as well as the fact that an offense has been committed.

All irresolvable contradictions, ambiguities and misunderstandings arising in the legislation, as well as any doubts arising from the insufficiency of the evidence provided by the state body within the framework of the dispute, shall be interpreted unconditionally and directly in favor of the entrepreneur.

A procedure shall be established according to which, when an administrative court imposes an obligation on the state body to reconsider its decision in its decisions, the court shall state its legal position, and this position shall be mandatory for the state body to take into account when reconsidering the decision.

The result of the review cannot worsen the situation of the business entity compared to the previous decision of the state body. The state body must review its decision within 30 days from the date of entry into force of the court decision. After the expiration of this period, it is prohibited for the state body to apply any legal measures of influence to the business entity in this case.

This decree also stipulates that from November 1, the advance payment for electricity and gas for entrepreneurs will be reduced by 15 percent, the “Second Chance” economic amnesty for entrepreneurs will be announced, a warning rule will be introduced for the first mistake when applying financial penalties to entrepreneurs, and a moratorium on inspections of small business entities will be introduced for 3 years.