How to register your business in Uzbekistan: An employer’s guide

Uzbekistan: Your gateway to Central Asia

Uzbekistan stands out as a gateway to Central Asia, offering a growing economy and business-friendly reforms that make setting up a company easy and efficient. With low operational costs, a streamlined registration process through the Public Services Agency, and policies designed to attract investment, Uzbekistan provides a strong base for businesses looking to expand. Its supportive infrastructure and strategic location make it a prime destination for business growth in the region.

The business benefits of registering your company in Uzbekistan 

Uzbekistan offers numerous business benefits due to its strategic location and pro-business reforms. Let’s take a closer look at how these advantages can help your business thrive.

• Increase profitability with cost-efficient operations and competitive labor markets.
• Simplify company setup with Uzbekistan’s streamlined registration process through the Public Services Agency.
• Take advantage of government incentives designed to attract foreign investment and boost strategic industries.
• Leverage modernizing infrastructure and dedicated free economic zones tailored for businesses.
• Tap into a growing consumer market driven by a rapidly developing economy.
• Navigate compliance effortlessly with transparent and business-friendly legal frameworks.

Uzbekistan offers a unique combination of high-growth potential and affordability, making it a great option for companies looking to establish themselves in Central Asia.

Next, we’ll dive into the options—traditional company registration, licensing, and Employer of Record (EOR)—to help you choose the best approach for your business.

What are the options for setting up a business in Uzbekistan?

In Uzbekistan, businesses have two primary pathways to establish a presence, each designed to meet different operational needs and strategic goals:

1. Standard Company Registration through the Public Services Agency
   This option involves creating a legal entity within Uzbekistan’s regulatory framework, offering full operational control. However, it also requires navigating the complexities of compliance, tax filings, and legal obligations.
2. Employer of Record (EOR)
   An EOR simplifies the process by allowing companies to hire employees in Uzbekistan without needing to establish a legal entity. The EOR handles all compliance, contracts, and administrative tasks, offering a faster, more efficient solution for scaling teams without the bureaucratic hurdles.

   Here’s how these options compare:

Aspect	Public Services Agency Registration	Employer of Record (EOR)
Purpose	Establishes a local legal entity for full operational control.	Enables hiring employees in Uzbekistan without needing to set up an entity.
Control	Offers complete authority over finances and business decisions.	Transfers administrative management while retaining team oversight.
Compliance	Requires businesses to meet local tax, labor, and legal standards independently.	Handles all compliance obligations, including labor laws and tax filings.
Setup Time	Lengthy process due to extensive documentation and legal steps.	Rapid onboarding, allowing immediate workforce expansion.
Cost	Involves initial setup fees, operational expenses, and compliance costs.	Fixed service fees make it cost-effective for short-term or flexible operations.
Scalability	Ideal for businesses committed to long-term investment and growth.	Perfect for quickly testing new markets or scaling teams without local setup.

While the standard company registration is ideal for those seeking full autonomy, an EOR provides an agile and streamlined solution, like a fast lane to market entry, enabling quick team scaling without the weight of legal setup.

Next, we’ll dive deeper into how an EOR simplifies onboarding, payroll, and labor law compliance in Uzbekistan.

How an EOR simplifies company registration in Uzbekistan

Entering the Uzbek market can be simple and stress-free with expert assistance. An Employer of Record (EOR) provides an efficient way to hire local talent and handle compliance, removing the need for a legal entity and enabling you to focus on your core business objectives.

Here’s how an EOR makes it easier to expand into Uzbekistan:

1. Skip the time-consuming and complex process of setting up a legal entity. An EOR takes on the role of the official employer, letting you start operations immediately.
2. Transfer administrative responsibilities like payroll, tax reporting, and employment documentation to the EOR, freeing you to focus on business growth.
3. Stay fully compliant with Uzbekistan’s labor laws and regulations, minimizing risks and ensuring seamless operations.
4. Save on the costs of registering and maintaining a local entity, redirecting resources toward strategic initiatives.
5. Scale your workforce quickly to meet market demands without the burden of setting up long-term infrastructure.
6. Access Uzbekistan’s growing talent pool without navigating the complexities of local hiring laws and processes.
7. Provide regionally competitive employee benefits while the EOR handles all compliance and administrative tasks.
8. Depend on the EOR to navigate legal and regulatory challenges, giving you peace of mind as you expand.

Partnering with an EOR allows you to establish operations in Uzbekistan quickly and efficiently. With the legal and administrative complexities managed by experts, you can focus on growing your business and scaling your presence with confidence.

Next, we’ll walk you through the step-by-step process of registering a company in Uzbekistan.

Step-by-step guide to registering a company in Uzbekistan

Uzbekistan’s streamlined registration process makes launching a business straightforward. Follow these steps to ensure a smooth setup and compliance with local regulations.

Step 1: Choose the right business structure

Creating a local entity in Uzbekistan involves several steps, but an Employer of Record (EOR) simplifies the process.

An EOR acts as your legal employer, handling onboarding, payroll, tax filings, and labor law compliance—allowing you to focus on your core business while the EOR manages the administrative and legal tasks.

For those opting to establish a local entity, selecting the right structure is crucial as it defines your legal, financial, and operational obligations.

Common business structures in Uzbekistan:

• Limited Liability Company (LLC): Ideal for small and medium-sized enterprises, offering limited liability to the founders.
• Joint Stock Company (JSC): Suited for larger enterprises seeking to raise capital through public or private offerings.
• Representative Office or Branch: Best for foreign companies wishing to establish a presence without forming a separate legal entity.

Step 2: Reserve Your Company Name

Select a unique name for your company that aligns with Uzbekistan’s Public Services Agency guidelines. You can check the availability and reserve your desired name using the Agency’s online platform.

Step 3: Prepare and Submit Required Documents

Once you’ve chosen your business structure and secured your company name, gather the necessary documents for submission.

Required documents include:

• Articles of Association (AOA) or equivalent founding documents
• Identification and proof of address for company directors
• Proof of a registered office in Uzbekistan
• Name reservation certificate from the Public Services Agency

Submission options:

• Online: Submit your documents via the Public Services Agency portal.
• Offline: Alternatively, deliver your documents in person to the Agency’s offices.

Step 4: Open a business bank account

A corporate bank account is necessary for handling transactions, tax payments, and financial obligations in Uzbekistan if you take the standard registration route.

Documents needed to open a bank account include:

• Company registration certificate
• Founding documents (e.g., Articles of Association)
• Identification for directors and authorized signatories
• Proof of registered office address

Instead of dealing with the complexities of setting up a local bank account, an EOR simplifies the process by handling payroll and tax payments for you. It ensures seamless employee payments in Uzbekistani Som (UZS) or other currencies, while maintaining full compliance with local tax regulations.

This approach eliminates the need for banking logistics and streamlines global payroll management, letting you focus on scaling your business.

Step 5: Register for taxes

Complying with Uzbekistan’s tax requirements is essential for smooth operations.

Key tax registrations include:

• Corporate Tax: Mandatory for all businesses operating in Uzbekistan.
• VAT Registration: Required if your business exceeds the turnover threshold for taxable goods or services.
• Payroll Taxes: Necessary if you hire employees, covering social security contributions and other employment-related obligations.

By following these steps, you can ensure that your business is legally and efficiently established in Uzbekistan.

Next, we’ll explore the costs involved in company registration, helping you plan and budget effectively.

The real cost of registering a business in Uzbekistan

For businesses planning to set up operations in Uzbekistan, understanding the associated costs is crucial for effective budgeting. Here’s a breakdown of typical expenses:

1.Registration costs

• Public Services Agency filing fees: Filing fees with the Public Services Agency typically range from UZS 500,000 to UZS 1,000,000, depending on the type of entity.
• Legal and documentation fees: Drafting Articles of Association and other foundational documents can cost around UZS 1,500,000 to UZS 3,000,000.
• Name reservation fee: Securing a unique business name costs approximately UZS 200,000.
• Notary and stamp duty fees: Official documentation fees typically range from UZS 300,000 to UZS 700,000.

2.Annual maintenance costs

• Accounting and auditing services: Annual fees start at UZS 3,000,000 and vary depending on the size and complexity of the business.
• Tax filings: Professional services for preparing and submitting corporate and VAT tax returns usually cost between UZS 1,500,000 and UZS 2,500,000 per year.
• Registered office renewal: Maintaining a registered address costs approximately UZS 1,000,000 annually.

4.Additional considerations

• Banking services: Opening a corporate bank account may include a setup fee, which varies by financial institution.
• Compliance costs: Staying compliant with Uzbekistan’s labor laws and tax regulations often requires professional consultancy, which adds to ongoing operational costs.

Partnering with an Employer of Record (EOR) eliminates the costs of entity setup and maintenance. By consolidating payroll, tax compliance, and administrative tasks into a single fee, an EOR streamlines operations and reduces overhead.

Up next, we’ll compare the expenses and benefits of traditional entity registration versus the cost-saving advantages of using an EOR in Uzbekistan.

Cost comparison: standard registration vs. EOR

Here’s a straightforward breakdown of the cost differences between setting up a business through traditional registration and partnering with an Employer of Record (EOR) in Uzbekistan:

Traditional company registration requires a significant upfront investment and ongoing administrative duties, making it more suitable for long-term commitments. In contrast, an EOR provides a cost-effective, streamlined alternative with predictable monthly fees that cover payroll, compliance, and operational support.

Next, we’ll explore how partnering with an EOR can simplify your entry into Uzbekistan and accelerate your business growth.

Simplify your expansion into Uzbekistan with Multiplier

Expanding your business into Uzbekistan doesn’t need to involve complicated procedures or excessive paperwork. With Multiplier’s Employer of Record (EOR) solution, you can focus on scaling your operations while we manage the administrative complexities.

• Unlock Uzbekistan’s Talent Pool, No Strings Attached
  Tap into Uzbekistan’s skilled workforce without the hassle of navigating local registration processes. Our HR experts manage everything from compliant contracts to seamless onboarding, allowing you to build a local team with confidence.
• Payroll, Tax, and Compliance—Handled with Precision
  Stay fully compliant with Uzbekistan’s payroll, tax regulations, and social contributions. Multiplier ensures timely and accurate filings, payouts, and reporting—eliminating the risk of non-compliance and administrative delays.
• Effortless HR Management, at Your Fingertips
  Manage hiring, expenses, leave tracking, and more through our intuitive platform. You’ll have real-time oversight and full control of your team, with less effort.
• Compliance Without the Headaches
  Navigating Uzbekistan’s labor and tax laws can be a challenge. Multiplier handles all aspects of compliance, from employment contracts to payroll taxes, ensuring your business meets every regulatory requirement, every time.
• Competitive Benefits, Tailored for Uzbekistan’s Workforce
  Offer competitive, locally optimized benefits to attract and retain the best talent in Uzbekistan. Multiplier manages all the administrative details, so you don’t have to.
• 24/5 Support with a Human Touch
  With expert support available round the clock, GDPR compliance, and SOC 2-certified security, Multiplier ensures your business and employees are protected every step of the way.

Multiplier makes entering Uzbekistan simple and stress-free. From payroll and compliance to onboarding and tailored employee benefits, we provide everything your business needs to grow. Focus on what matters—unlocking your company’s potential in Uzbekistan—while we handle the complexities.

Book a Demo and see how easy expanding into Uzbekistan can be with Multiplier’s EOR services.