Self-Employed Individuals Exempt from State Fees for Entrepreneur Registration
Medium and large businesses in Uzbekistan are set to benefit from an expedited VAT refund process, thanks to new measures approved by President Shavkat Mirziyoyev on March 19. The goal of these initiatives is to increase the participation of small and medium-sized businesses (SMEs) in the economy, as outlined in a presidential decree published by the Chamber of Commerce and Industry.
Following a meeting with SME representatives, President Mirziyoyev announced plans to raise the share of SMEs in GDP to 55%, in industrial production and exports to 34%, and in employment to 75%. To support this growth, new regulations will be implemented starting May 1 to encourage business expansion from self-employed individuals to large enterprises.
Self-employed individuals will now be exempt from state fees when registering as individual entrepreneurs (IE) or legal entities. As businesses scale up to become microfirms or small enterprises, they will be eligible for unsecured loans of up to 50 million UZS under the Family Entrepreneurship Program and 150 million UZS under the Comprehensive SME Support Program.
Once a company achieves medium or large business status, they will receive expedited VAT refunds for one year, with a tax reimbursement period of no longer than seven days. The Ministry of Economy and Finance, in collaboration with the Central Bank, has allocated 120 trillion UZS for SME development, with 22 trillion UZS to be provided under entrepreneurship programs.
In addition, SMEs in Karakalpakstan will receive additional support, including simplified access to loans under family business programs and online microloans by July 1. SMEs hiring unemployed individuals listed in the Unified Social Protection Registry will also be eligible for loans at 14% interest for three years, with a maximum of 100 million UZS.
These new measures aim to promote the growth and development of medium and large businesses in Uzbekistan, creating a more favorable environment for business expansion and economic success.
