Uzbekistan introduces a "presumption of rightness for businesses": key changes

Uzbekistan plans to introduce the principle of "presumption of correctness of business," which will significantly strengthen the protection of entrepreneurs in their interactions with government agencies. According to the new approach, a business's activities will be considered legal and its obligations will be considered properly fulfilled until the government agency proves otherwise.

In the event of legal or administrative disputes, the government agency will be obligated to prove the entrepreneur's violation. It will also be responsible for justifying the legality, necessity, and proportionality of its decisions and measures.

All unresolved contradictions, ambiguities, and disagreements in legislation will be interpreted in favor of the entrepreneur. This rule will also apply in situations where the available evidence is insufficient and doubts remain.

If an administrative court orders a government agency to reconsider its decision, the court will be required to clearly state its legal position, which the government agency must take into account during the retrial. The new decision must not worsen the entrepreneur's position compared to the original.

The government agency has 30 days from the date the court decision enters into force to reconsider the decision. After this period, any legal action against the entrepreneur will be prohibited.

The changes will also affect criminal cases.

The President approved proposals from the Prosecutor General's Office, the Ministry of Justice, and the Business Ombudsman aimed at strengthening guarantees for citizens and entrepreneurs in criminal proceedings.

In particular, the procedure for returning deposits made in criminal cases will be simplified. Court decisions on their return will be subject to immediate enforcement.

In the event of a late return of funds, a penalty will be charged for each day of delay, calculated based on the Central Bank's base rate, currently 14%.

The Ministry of Economy and Finance will return funds collected to the state budget as compensation for damages to citizens and entrepreneurs, if such a return is provided for by a court decision.

Furthermore, rehabilitated individuals will be compensated for material and moral damages from the Targeted Fund for Compensation of Property Damages.

Business protection from unfounded criminal prosecutions will be strengthened.

A bill aimed at protecting entrepreneurs from unfounded criminal prosecution has been tasked with developing within three months, by the end of November.

The Prosecutor General's Office, the State Security Service, the Ministry of Justice, and the Ministry of Internal Affairs are responsible for drafting the document.