Saturday, 18, May, 2024

On November 9, President Shavkat Mirziyoyev signed a decree simplifying state regulation of business activities. According to the document state regulation shall be limited to the following:

  • business registration;
  • licensing, permitting and notification procedures for certain types of activities of business entities;
  • technical regulation;
  • tariff and non-tariff regulation;
  • compulsory liability insurance of business entities in the manner prescribed by law;
  • state control;
  • protection of competition;
  • establishing responsibility for business entities and their officials;
  • implementation of reports;
  • introduction of self-government based on membership (participation) in a self-regulatory organization.

Other laws may also establish other instruments for regulating business activity.

The Decree established that the instruments of state regulation of business activity shall be introduced solely on the basis of legal acts and regulations in the field of technical regulation in order to ensure the safety for human life and health of goods produced and sold by business entities, work performed, services provided, protection of its legal interests, environmental protection, as well as state security and the creation of favorable conditions for the development of entrepreneurship.

In addition, it is established that regulatory instruments established in documents that are not legal acts or legal documents in the field of technical regulation do not have legal consequences.

From January 1, 2023, the following requirements shall be abolished:

  • written notification of creditors when making a decision to reduce the authorized capital (charter capital) of a business entity and an announcement about this in the media;
  • sale of new imported cars only by legal entities - official dealers of manufacturing enterprises;
  • suspension of electricity supply to legal entities that have consumed electricity in excess of the volumes specified in the electricity supply agreement (monthly contractual volume);
  • separate registration with the state tax authorities of employees hired by an individual entrepreneur by registering them in the Unified National Labor System.

The decree introduces a procedure according to which, from March 1, 2023:

  • taxpayers shall be entitled to appeal directly in court the decisions taken by the tax authorities based on the results of on-site tax audits and tax audits;
  • all legal entities, regardless of their form of ownership, will be allowed to provide commercial services through the Single Portal of Interactive Public Services (SPIPS) subject to information security requirements;
  • it is not allowed to execute orders on the basis of direct public procurement contracts, the amount of one of which is 3,500 times the base settlement units (BSU) and more, implemented in accordance with the decisions of the Cabinet of Ministers;
  • it is prohibited to purchase goods (works, services), the cost of which is 3,500 times the BSU and more, under direct contracts between the ministry (department, institution) and its constituent organization (institution).

The Decree forms a working group to reduce the regulatory burden for business entities, headed by Deputy PM/Minister of Investments and Foreign Trade Jamshid Khodjaev.

Among the tasks of the working group is the formation of the Unified Electronic Register of Mandatory Requirements in the Field of Entrepreneurship. The registry operator will be the Ministry of Justice. The registry will be fully launched from July 1, 2025. At the first stage (2023), a list of mandatory requirements in the areas of construction, trade, public catering, education and transport will be formed, at the second stage (2024-2025), a list of mandatory requirements in all areas.

No liability shall be established for non-compliance with mandatory requirements not included in the Unified Register. State bodies and organizations are prohibited from checking compliance with mandatory requirements that are not included in the unified register.

The Decree also approved an Action Plan to facilitate doing business and reduce bureaucratic barriers. The plan itself has not yet been published.

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