A separate legal regime for commercial leases proposed in Uzbekistan
Uzbekistan may introduce a separate legal regime that equally protects the interests of entrepreneurs who lease non-residential premises and commercial buildings, as well as property owners. The initiative, put forward by Zafar Hoshimov, founder of the «Korzinka» supermarket chain, is aimed at putting an end to unjustified rent increases and unilateral contract terminations—problems faced by many business owners.
The main pain points faced by entrepreneurs
A widespread problem in business practice is that a tenant rents an empty or run-down building, renovates it at their own expense, and builds up customer traffic through advertising and marketing. However, once the outlet begins generating revenue due to a short-term contract, the property owner sharply and unjustifiably raises the rent or evicts the tenant, taking over the ready-made business environment.
In addition, the practice of officially stating a smaller amount in the contract and paying the remainder in cash «in an envelope» leaves both parties without legal protection.
Key areas of the new commercial leasing initiative
Area | Proposed mechanisms and changes |
Contract terms | Increasing the duration and legal stability of commercial lease agreements |
Investment protection | Guaranteeing funds invested in renovating, equipping and developing the building |
Rent and termination controls | Legal protection against sharp rent increases and unjustified contract termination |
Transparency | Eliminating unofficial («envelope») payments and bringing the rental market fully out of the «shadow economy» |
Presidential instruction | The government was tasked with developing specific legislative proposals within 2 months |
Presidential support and a two-month deadline
President Shavkat Mirziyoyev approved the initiative and instructed the government to hold an extensive public discussion with representatives of the business community within two months and prepare a package of specific proposals to introduce a special legal regime for commercial leases. The issue is currently being discussed as a draft law.
Do you think adopting a separate law on commercial leases can truly make relations between landlord property owners and business owners fairer?
Share your experiences and suggestions in the comments, and immediately share this important initiative with all your business partners!
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