Legal forms of ownership company registration taxes

1.

LEGAL FORMS OF OWNERSHIP
COMPANY REGISTRATION
TAXES
NVC 2023-2024
TW 9

2.

What is a Small Business
• A small business is a business that is independently owned
and operated, with a small number of employees and
relatively low volume of sales.
• In addition to number of employees, other methods used to
classify small companies include annual sales,
value of assets and net profit (balance sheet), alone or
mixed.

3.

Why does it matter to be a Small Business?
• - Tax;
• - Reporting and filing;
• - Other privileges (e.g. compulsory sale of foreign currency
proceeds)

4.

What is a Small Business in Uzbekistan?
• Under Law on Guarantees for Freedom of Entrepreneurship,
three categories (depending on the number of employees):
• 1. Individual entrepreneur – 1 person + up to 3;
• 2. Microfirms:
- manufacturing – up to 20;
- Services and non-manufacturing – up to 10;
- Wholesale, retail and catering – up to 5.

5.

What is a Small Business in Uzbekistan?
• 3. Small enterprises
Annual average number of employees – 25 to 200 – depending
on the industry.
• Up to 200 employees in:
- Light industries
- Food industry
- Construction materials industry

6.

What is a Small Business in Uzbekistan?
• Up to 100 employees:
- Metal-working and instrument-making industry
- Carpentry industry
- Furniture industry
- And others

7.

What is a Small Business in Uzbekistan?
• Up to 50 employees:
- Machinery
- Metallurgy
- Fuel
- Energy
- Chemical
- Agricultural
- Construction and others

8.

What is a Small Business in Uzbekistan?
• Up to 25 employees:
- Science
- Transport
- Communication
- Services (apart from insurance agencies)
- Sales and catering
- Other non-industrial sphere

9.

Which Business form to choose?
• Principal factors:
- Are you personally liable?
- How much do you need to invest?
- Can others invest?
- Can you hire employees?
- Can you do any business?
- How stringent is the regulation?
- Can you sell your business?

10.

Which Business Form to choose?
• Individual entrepreneur
• Private enterprise
• Limited liability company

11.

What is a Private Enterprise?
• Unlimited personal liability
• No minimum capital requirement
• Single investor
• Can employ
• Owner = director
• No dividend tax
• More info: law “On Private Enterprises”
• http://lex.uz/pages/getpage.aspx?lact_id=53152

12.

What is LLC?
• Limited liability;
• Minimum capital – 40 minimum wage;
• Up to 50 investors;
• Can employ;
• Dividend tax
• More info: Law on LLC http://lex.uz/pages/getpage.aspx?
• lact_id=18793

13.

How do I set an LLC company?
• Step 1. Choose Co name and check (firnam.stat.uz)
• Step 2. Prepare Co seal and reg docs
• http://minjust.uz/uz/interactive/documents/
• Step 3. Register with Single Window
• (https://my.gov.uz/ru/service/214)
• Step 4. Manufacture seal and stamp
• Step 5. Open a bank account

14.

Once LLC is set up
• Do business;
• File tax and statistics reports – electronically;
• Pay taxes (if any) – electronically;
• Do you need an accountant?
• And others.

15.

What is a JV?
• The minimum charter capital for foreign investments is $150,000 for
at least a 30% share in an enterprise.
• Enterprises with foreign investments must be registered at the
Ministry of Justice

16.

Do I need to get licenses and permits?
• Reasoning: public interest
• Licenses;
• Certification and standardization;
• Environmental;
• And other permits
• Before starting your business, carefully check

17.

Do I need to get licenses and permits?
• http://lex.uz/ru/docs/3676962
• List of permits:
http://lex.uz/pages/GetAct.aspx?
• Environmental:
http://lex.uz/pages/GetAct.aspx?lact_id=375711

18.

What is Certification?
• Certificate of Compliance
• Hygienically (Sanitary) Certificate
• Mandatory: http://www.lex.uz/pages/GetAct.aspx?
• lact_id=1787118#1787160
• From 2018 – electronically https://license.gov.uz/

19.

What taxes will I pay?
• Two regimes: simplified or general
• https://www.mf.uz/media/file/statebudget/obzori/obzor_nalor_rus.pdf

20.

Types of Taxes:
By generally established taxation system
• - Taxes on corporate income
• - VAT
• - Excise tax
• - Bonuses and dividends tax
• - Tax on using the water resources

21.

Types of Taxes:
• Property tax
• Land tax
• Income tax for the improvement and development of the social
infrastructure
• Income tax on the consumption of gasoline, diesel fuel and gas for
vehicles
• A single social payment
• Premiums citizens to the Pension Fund
• Mandatory contributions to the Pension Fund
• Mandatory contributions to the Republican Road Fund

22.

Tax privileges
• More info:
http://files.gov.uz/docs/Privileges%20and%20preferences_ru.pdf
https://my.soliq.uz/lgota/yur?user_type=2
http://businessinfo.uz/
https://www.mf.uz/

23.

About presentation
• You are going to be divided into two groups within your group. Some
of you are going to present on TW10, others on TW11.
• If you fail your presentation during TW10-TW11, you have a second
attempt on TW12
• Failing second attempt on TW12 means failing the module
• You must upload your slides by 13th of November 2023 23:59
• Failing to upload slides equals to failing the presentation

24.

About presentation
• Your presentation will last 10-12 minutes, including Q&A session.
• You shall get the result after your presentation (PASS or FAIL)
• You are strongly advised not to read from your notes, as questions
will be raised about authorship of your presentation and academic
integrity.
• Make sure to attach your business idea approval form to the
presentaion