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This Law defines the legal basis and the procedure for making foreign investments in the territory of the Republic of Uzbekistan.
promotion of the development of the economy of the Republic of Uzbekistan and its integration into the world economic system by stimulating the inflow of foreign investment;
attraction and rational use of foreign financial, material, intellectual and other resources, modern foreign technologies and managerial experience.
The legislation on foreign investments consists of this Law, the Law of the Republic of Uzbekistan «On guarantees and measures to protect the rights of foreign investors», and other legislative acts.
Should other rules be established by international treaty of the Republic of Uzbekistan as oppose to those provided in the legislation on foreign investments, then the rules of the international treaty shall apply.
All types of tangible and intangible goods and rights to them, including intellectual property rights as well as reinvestments invested by foreign investors in objects of business and other activities not prohibited by law are recognized as foreign investments.
Any income from foreign investments received in the Republic of Uzbekistan and invested by foreign investors in the territory of the Republic of Uzbekistan in objects of business and other activities not prohibited by law, including profit, interest, dividends, royalties, license fees and fees for technical assistance, maintenance and other forms of rewards are recognized as reinvestment.
international organizations founded in accordance with agreements or other treaties between states or being subjects of public international law;
legal entities, any other partnerships, organizations or associations founded and operating in accordance with acts of legislation of foreign states;
citizens of a foreign state and stateless persons who permanently reside outside the Republic of Uzbekistan.
equity method in statutory funds and other property of business companies and partnerships, banks, insurance organizations and other enterprises established together with legal entities and (or) individuals of the Republic of Uzbekistan;
the creation and development of business entities and partnerships, banks, insurance companies and other enterprises fully owned by foreign investors;
investment of intellectual property rights, including copyrights, patents, trademarks, utility models, industrial designs, trade names and know-how as well as business reputation (goodwill);
acquisitions of concessions, including concessions for the exploration, development, extraction or use of natural resources;
the acquisition of ownership rights to objects of trade and services, residential properties together with the land plots on which they are located as well as the rights to own and use land (including on the basis of rent) and natural resources.
acquiring the rights to search, prospect for deposits and extract minerals in subsoil areas in accordance with production sharing agreements.
Foreign investors can make investments in the territory of the Republic of Uzbekistan and in other forms as well that do not contradict the current legislation.
Changes in the forms of foreign investment made initially or repeatedly will not result in change of its qualifications as an investment.
Foreign investors can create enterprises with foreign investments on the territory of the Republic of Uzbekistan and enjoy all the rights, guarantees and privileges granted to them by the legislation of the Republic of Uzbekistan.
Enterprises with foreign investments in the territory of the Republic of Uzbekistan are those enterprises which have as foreign investments at least thirty percent of shares (unit shares) or statutory fund. They operate in any organizational-and-legal structure that do not contradict the legislation of the Republic of Uzbekistan. One of the participants of an enterprise with foreign investments shall be a foreign investor specified in paragraphs two, three or four of Article 4 of this Law.
An enterprise with foreign investments can be establishment, or can be formed as a result of the acquisition by a foreign investor of a share (unit share, stocks) in a previously established enterprise that had no foreign investment or through the acquisition of such an enterprise completely, that could also occur as a result of privatization process.
State registration of enterprises with foreign investments, as well as the issue of relevant permits, is carried out by the relevant state authorityin accordance of «One stop shop» principle.
Article 7. Subsidiaries, Branches and Representative Offices of Enterprises with Foreign Investments
An enterprise with foreign investments may establish on the territory of the Republic of Uzbekistan in compliance with the requirements of the legislation of the Republic of Uzbekistan subsidiaries, branches with the rights of a legal entity as well as representative offices and other separate divisions that are not legal entities.
Subsidiaries, branches, representative offices and other separate divisions of enterprises with foreign investments can be established outside the Republic of Uzbekistan.
Enterprises with foreign investments in accordance with the legislation of the Republic of Uzbekistan may on a voluntary basis, create associations, concerns, corporations, consortia and other business associations on the territory of the Republic of Uzbekistan, as well as become a full member of the existing associations.
The state guarantees and protects all the rights of foreign investors in the implementation of investment activities on the territory of the Republic of Uzbekistan.
Foreign investors and foreign investments are provided with a fair and equitable regime, full and permanent protection and security. Such a regime shall not be less favorable than the regime defined in the international treaties of the Republic of Uzbekistan.
The legal regime for foreign investments shall not be less favorable than the corresponding regime for investments made by legal entities and individuals of the Republic of Uzbekistan.
The legislation of the Republic of Uzbekistan may contain in accordance with generally accepted norms of international law, restrictions or prohibitions on foreign investments in certain areas of the economy and activities in order to protect the interests of the national security of the Republic of Uzbekistan.
Restitution of violated rights and interests of foreign investors guaranteed by the laws of the Republic of Uzbekistan shall be regulated by law, including international treaties of the Republic of Uzbekistan.
A foreign investor, in accordance with the principles of international law and the legislation of the Republic of Uzbekistan, has the right to:
own, use and dispose of their investments and investment results. By decision of a foreign investor, the right of possession, use, disposal of investments, their results may be transferred to other legal entities and individuals in the manner established by the legislation of the Republic of Uzbekistan.The relationship of the parties in the transfer of rights is governed by them on the basis of contracts;
independently decide on patenting abroad and in the Republic of Uzbekistan of inventions, utility models and industrial designs belonging to him and obtained as a result of investment activities in the Republic of Uzbekistan;
independently and freely dispose of the income (including its unimpeded repatriation) received as a result of investment activity upon paying taxes and other obligatory payments;
use funds in national currency on their accounts to purchase foreign currency in the domestic foreign exchange market;
use property and any property rights owned as collateral for all types of obligations it has undertaken, including obligations resulting from loans in accordance with the legislation of the Republic of Uzbekistan;
receive compensation for losses caused as a result of illegal actions (inaction) and decisions of state administrative bodies, local authorities and their officials.
Foreign investors acting as individuals, as well officials representing foreign investors, an legal entities have the right to enter and remain for the entire period of availability of their shares (investments, stocks) in enterprises with foreign investments, and entitled for relevant multiple-entry visas on the territory of the Republic of Uzbekistan.
Foreign investors in the implementation of investment activities in the Republic of Uzbekistan are obliged to:
pay taxes and other obligatory payments in accordance with the legislation of the Republic of Uzbekistan;
obtain expert opinions on investment projects in terms of compliance with sanitary-hygienic, environmental and other requirements arising from the legislation of the Republic of Uzbekistan;
refrain from any form of direct and (or) indirect illegal influence on their investment partners or on state administrative bodies and local authorities in order to obtain additional benefits and advantages over their competitors.
A foreign investor is liable for violation of the legislation of the Republic of Uzbekistan on a common basis and is liable with his property belonging to him based on the right of ownership, whereas a penalty may be levied in accordance with the legislative acts of the Republic of Uzbekistan.
Business activities of foreign investors, including the creation, sale, reorganization or liquidation of enterprises with foreign investments, their subsidiaries, branches and other structures as well as business associations and cooperation, the formation of funds of enterprises with foreign investments, conclusion of lease and other contracts are regulated by the laws of the Republic of Uzbekistan.
Enterprises with foreign investments pay taxes and other obligatory payments in accordance with the legislation of the Republic of Uzbekistan.
Newly established enterprises with foreign investments in which a foreign investor’s monetary contribution is not less than five million US dollars, given that tax legislation changes, they have the right to apply taxes and other mandatory payments established in the list by the decision of the President of the Republic of Uzbekistan and were in effect on the date of their state registration, within ten years from the date of state registration of enterprise.
Newly established production enterprises with foreign investments are entitled to apply the rates of taxes and other obligatory payments that were in effect on the date of their state registration within five years from the date of their state registration. This right does not apply to customs payments, water use tax, land tax, taxes and special payments levied on subsurface users.
All expenses of enterprises with foreign investments in foreign currency should be provided at the expense of their own foreign exchange earnings as well as other permitted sources of foreign currency earnings allowed by the legislation of the Republic of Uzbekistan. Their currency self-sufficiency can also be provided within the framework of consortia, associations and other organizational structures being created.
Enterprises with foreign investments independently carry out export-and-import operations in compliance with the requirements of the legislation of the Republic of Uzbekistan. Export of products of own production is not imposed to licensing and quoting.
Enterprises with foreign investments are entitled to import products for their own production needs without a license in accordance with the legislation of the Republic of Uzbekistan. The procedure for determining products of own production, exported and products imported by enterprises for their own needs, is established by the Cabinet of Ministers of the Republic of Uzbekistan.
The property imported into the Republic of Uzbekistan by enterprises with foreign investments with a share of foreign investments in the charter capital of at least thirty-three percent for their own production needs is exempt from customs duty for the period of two years from the state registration in accordance with the law. The property imported for the personal needs of foreign investors, citizens of foreign states and stateless persons who permanently reside outside the Republic of Uzbekistan and are located in the Republic of Uzbekistan in accordance with labor contracts concluded with foreign investors is exempt from customs duty.
Patenting of inventions and the introduction of industrial designs belonging to foreign investors who invest them as investments and to enterprises with foreign investments are carried out in the manner established by the legislation of the Republic of Uzbekistan.
Enterprises with foreign investments independently establish a list, procedure for the formation and use of the funds of the enterprise.
Labor relations of employees of enterprises with foreign investments are regulated by the legislation of the Republic of Uzbekistan.
Pension provision for employees of an enterprise with foreign investments is regulated by the legislation of the Republic of Uzbekistan.
Should the ownership of buildings and structures be transferred along with these objects, the right to use land plots is transferred in the manner and on the terms established by the legislation of the Republic of Uzbekistan.
The property is leased to foreign investors by the lessor on the basis of contracts and in accordance with the law.
Enterprises with foreign investments carry out accounting and reporting in the manner prescribed by the legislation of the Republic of Uzbekistan. They keep books and records in the national currency of the Republic of Uzbekistan and at their discretion, in freely convertible currencies.
Granting concessions to foreign investors for the exploration, development and exploitation of natural resources and conducting other business activities is carried out on the basis of concession contracts concluded by foreign investors with the authorized state administrative bodies of the Republic of Uzbekistan in the manner determined by law.
Concessions are allowed in all spheres and activities, unless they are not prohibited by the legislation of the Republic of Uzbekistan and as long as they meet the objectives of the concession agreements being concluded.
Foreign investors and enterprises with foreign investments for the purpose of carrying out investment activities in accordance with the legislation of the Republic of Uzbekistan have the right to freely conclude employment contracts with citizens of any foreign state and stateless persons permanently residing outside the Republic of Uzbekistan. Such persons have the right to enter and remain on the territory of the Republic of Uzbekistan for the entire duration of the employment contract with the receipt of the relevant multiple-entry visas.
The issues of remuneration, vacations, and retirement benefits for foreign employees should be resolved in employment contracts with each of them. Wages of these employees and other incomes received legally can be transferred by them to other states without any restrictions after paying the statutory tax and other obligatory payments.
A foreign investor, an enterprise with foreign investments transfers the pension payments for a foreign employee to the corresponding funds in the country of his permanent residence.
Foreign investors, their representatives and foreign employeesbased in the Republic of Uzbekistan in connection with investment activities have the right to freely move throughout the territory of the Republic of Uzbekistan.
Certain restrictions may be applied solely for the purpose of ensuring national security, in such case restrictions on free movement are determined by the legislation of the Republic of Uzbekistan.
Foreign investors enjoy the right to insurance protection on a par with domestic investors in any insurance organization legally operating in the territory of the Republic of Uzbekistan. Foreign investment insurance against political and other risks can also be carried out by international organizations, foreign state export credit agencies and other insurance companies.
Insurance organizations that carry out insurance of foreign investments are not liable for the obligations of the Republic of Uzbekistan. The state is not liable for the obligations of insurance organizations except cases provided for in the agreement of the parties.
Foreign investment insurance provides insurance protection and guarantees against political and other risks, including:
expropriation of property as well as any legislative or administrative measures leading to the seizure of property or alienation from it, loss of control over it or over income derived from it;
interference by state administrative bodies, local authorities and their officials in contractual relations of investors;
The property and property rights of an enterprise with foreign investments can be used by it as collateral for all types of its obligations, including loans. Objects of trade and services owned can serve as a pledge for obligations, as well as residential premises with land plots where they are located, property rights to buildings, structures, equipment and other proprietary rights.
All properties and property rights owned by a foreign investor, regardless of their location, can be used as a pledge for their obligations.
An enterprise with foreign investments may be reorganized or liquidated in the manner prescribed by the legislation of the Republic of Uzbekistan.
An enterprise with foreign investments that has not formed within one year from the date of state registration its statutory fund in the amount stipulated by the constituent documents, unless otherwise provided by law, is liquidated in the prescribed manner. At the same time, an enterprise that has not formed its statutory fund within the specified period in the amount stipulated by the constituent documents can reduce it to the actually formed but not less than the minimum size established by legislation or be transformed into another organizational-and-legal form.
The assets of an enterprise with foreign investment in its liquidation are taxable in the prescribed manner. The remaining part is distributed among the participants of an enterprise with foreign investments proportionate to their share in the assets of the enterprise, unless otherwise provided by the constituent documents.
A foreign investor in the event of exit from a company with foreign investment or liquidation of this enterprise, acquires the right to return its share in the property of the enterprise in monetary or salable form in accordance with the market value.
During the reorganization and liquidation of an enterprise with foreign investment to employees whose employment contracts have been terminated, the observance of their rights and interests in accordance with the legislation is guaranteed.
The state, state administrative bodies and local authorities are responsible only for the obligations assumed in the relevant agreements with foreign investors, signed by persons whose powers are confirmed in the manner established by the legislation of the Republic of Uzbekistan.
The state is not responsible for the obligations of residents of the Republic of Uzbekistan, attracting foreign investment, except cases when these obligations are guaranteed by the state in the manner prescribed by law.
Ministries, state committees, institutions, local authorities, law enforcement and regulatory agencies and banks are prohibited to establish additional requirements and restrictions related to the activities of foreign investors and enterprises with foreign investments.
In order to attract, implement and protect foreign investment, the government authorized body, other state administrative bodies and local authorities as well as interested non-governmental organizations shall:
prepare and disseminate information about the possibilities and conditions of investment activities in the Republic of Uzbekistan;
advise potential investors on legal, economic and other issues of activity and provide them with the necessary assistance and support in resolving emerging issues;
represent the Republic of Uzbekistan in international relations on foreign investment issues within its jurisdiction;
Control over compliance by foreign investors and enterprises with foreign investments with the requirements of the legislation of the Republic of Uzbekistan is carried out by tax authorities and other administrative bodies authorized by the Government of the Republic of Uzbekistan within the authority established by the legislation of the Republic of Uzbekistan.
Should control functions be exercised, the supervisory body is obliged to ensure the safety of commercial secrets. Disclosure of commercial secrets is prosecuted under the laws of the Republic of Uzbekistan.