What benefits does the law signed by the President provide to entrepreneurs?
A significant historic step has been taken in Uzbekistan to protect entrepreneurial activity and provide financial and legal support to the private sector. The new law signed by President Shavkat Mirziyoyev reclassifies business categories based on revenue and sharply restricts the powers of government bodies to suspend business activities. What are the main benefits and advantages created for business owners?
New revenue criteria for classifying businesses
Under the new document, business entities are clearly divided into three categories based on their revenue:
“From now on, the category to which a business entity belongs will be determined based on its total income during the calendar year: small (individual entrepreneurs and microfirms), medium (from 10 billion soums to 100 billion soums), and large (more than 100 billion soums).”
Business categories and key criteria
Category | Types of businesses | Total income criterion for the calendar year |
Small business | Individual entrepreneurs (YATT), microfirms, small enterprises | Standards established in accordance with the relevant procedure |
Medium-sized business | Developing manufacturing and service enterprises | From 10 billion soums to 100 billion soums |
Large business | Corporations and large manufacturers | More than 100 billion soums |
State support, tax benefits and priority for local products
The law provides legal reinforcement for the types of assistance provided by the state:
Financial support: Providing grants, compensating part of loan interest, and offering preferential loans backed by state guarantees.
Property and infrastructure support: Leasing state facilities, connecting enterprises to external engineering and utility networks, and developing road infrastructure.
Priority for local products: Giving preference in public procurement to local manufacturers producing import-substituting goods.
The “Responsible Business” register and strict restrictions on suspending activities
The concepts of “Sustainability Rating” and “Responsible Business Conduct” have been introduced into the law for the first time. Entrepreneurs who do not harm the environment, take anti-corruption measures and pay taxes on time will be included in a special register and granted additional tax, customs and grant benefits.
Most importantly, supervisory bodies have been prohibited from unjustifiably suspending entrepreneurs’ activities:
“The suspension of a business entity’s activities may be imposed only by a court. Supervisory bodies may suspend activities for a short period only in emergency situations and must immediately apply to the court.”
This law will fully enter into force three months after the date of its official publication.
In your opinion, can requiring business activities to be suspended only through a court fully protect entrepreneurs from pressure by various inspectors?
Leave your opinions in the comments and immediately share this important legal update with your business partners and entrepreneur friends!
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