Uzbekistan strengthens business protection guarantees

Uzbekistan will strengthen guarantees for protecting entrepreneurial activity. Amendments are being made to a number of legislative acts, enshrining seven key principles: the rule of law, freedom of enterprise, equality of subjects, protection of trust, freedom from corruption, the inviolability of private property, and the stability and predictability of legislation.

Businesses will be classified by annual income: sole proprietors, micro-firms (up to 1 billion soums), small businesses (1 to 10 billion soums), medium-sized businesses (10 to 100 billion soums), and large enterprises (100 billion soums and above). This classification is intended for the purposes of state support and statistical accounting.

According to the new document, reports will be submitted electronically through information systems. The state is obligated to provide free or discounted software for this purpose. Small businesses will submit reports to tax and statistical authorities, while sole proprietors will report only to tax authorities.

A unified list of all reporting requirements will be approved by the head of state. Government agencies will be prohibited from requiring reports not included in this list, nor from requesting information from businesses already provided to other agencies. This data will be required to be transferred between government agencies via electronic systems.

An open database—the Unified Register of Mandatory Requirements—is being introduced. The state will include all regulations for entrepreneurs, their validity periods, documents required for inspections, and penalties. Entrepreneurs will not be penalized for violating requirements not included in this register.

If a land plot is seized from an entrepreneur for state needs, they must receive full compensation, including:

* the market value of the property on the plot;

* the market value of the land title;

* the value of perennial plantings;

* moving and rent expenses;

* lost profits (profits not received due to the seizure, but for no more than one year).

Furthermore, government agencies, including courts and internal affairs agencies, are prohibited from initiating a review of privatization results. This is considered a violation of private property, and such cases will not be considered.

Inspections may only be initiated based on the results of the electronic Risk Analysis system or specific reports of violations threatening life, health, public safety, or the environment. The risk of violations in the system will be classified as low, medium, and high.

Only those agencies included in a special list approved by law will be allowed to conduct inspections. Other agencies are prohibited from doing so. Employees of regulatory agencies must have an official ID and a special certificate of access to inspections.

If an entrepreneur complies with the inspectors' orders and voluntarily compensates for the damage in full, financial penalties will not apply (with the exception of tax violations).

When a fine is imposed, the entrepreneur will have a choice:

1. Pay 50 percent of the fine within one month of receiving the decision; in this case, the remaining amount of the fine is waived.

2. Receive a six-month payment plan in equal installments. To do this, you must make the first payment of at least one-sixth of the fine within a month, and the installment plan will be applied automatically.

Business operations may be suspended:

* at the entrepreneur's own request;

* by regulatory authorities – for a period of no more than 10 business days;

* by a court – for a period exceeding 10 business days, but no more than 6 months.

Suspension by decision of regulatory authorities is only possible based on high-risk factors for human life and health included in a special register. If an entrepreneur submits an application for suspension of operations, they are automatically exempt from filing tax and statistical reports, as well as from assessing taxes for themselves and their employees.

The law stipulates that the following measures are applied to businesses only by court order:

* termination of operations;

* closure or repurposing of environmentally harmful facilities;

* suspension of operations (except in cases of up to 10 business days due to high-risk factors);

* restriction and prohibition of activities (except in cases of up to 10 business days due to the threat of emergency situations, epidemics, etc.);

* financial sanctions (except for penalties for late tax payments and cases of voluntary payment);

* suspension of bank account transactions (except in cases provided by law);

* confiscation of the objects of the violation;

* suspension of licenses for a period exceeding 10 days but not exceeding 6 months, or their revocation (except for licenses issued by the Cabinet of Ministers and the Central Bank).

All measures must be proportionate to the nature of the violation.

The law is scheduled to enter into force on November 18, 2026.