Uzbekistan has introduced another set of major changes to the rules for running a business and launching startups. The recently adopted Presidential Decree No. PF-175 is not merely a set of formal provisions on paper — it introduces concrete benefits designed to address the real challenges faced by entrepreneurs and startup founders. So, what does this document actually mean for your business? We have summarized the key points in a short and easy-to-understand format.
For startup founders
- Up to UZS 5 billion in collateral-free, interest-free financing: Under the “Future Entrepreneur” program, the best projects will receive funding of up to UZS 5 billion for a period of 3 years without collateral or interest. The financing will be provided in the form of SAFE or a convertible loan.
- A safe exit from state ownership: The state’s share in a project will not exceed 49%, and founders will have the opportunity to buy out this share in the future.
- Special “Sandbox” regime: Up to 30 startups will be allowed to test their projects with minimal regulatory restrictions across 8 key areas, including robotics, agri-tech, drones, energy efficiency, and others.
- Support in entering the market: Ministries and government agencies will assist projects with pilot testing and securing their first orders.
For investors
There is also good news for angel investors looking to invest in startups:
- 100% tax exemption: Investors who invest in a startup’s charter capital and hold their stake for at least 3 years will be fully exempt from personal income tax on income received from the sale of that stake.
Inspections and taxes
Excessive interference and pressure from government authorities will be significantly reduced:
- 3-year moratorium: All inspections of small businesses will be suspended for a period of 3 years, except in cases involving serious risks to human health and labor rights.
- Tax amnesty (“Second Chance”): If you pay your principal tax debt by December 31, 2026, all accrued penalties will be waived. No penalties will be charged if you voluntarily correct your mistakes and submit an amended tax report.
- Old fines will be written off: Fines accumulated before January 1, 2026, for late submission of tax reports and turnover tax violations will be cancelled.
- No penalty for the first violation: Starting January 1, 2027, entrepreneurs who commit a minor violation for the first time will not be fined immediately. They will be given 10 days to correct the violation.
Presidential Decree PF-175 is more than just an official document. It creates opportunities for startups to access safer investment and gives existing businesses greater freedom to develop without routine inspections. Most importantly, entrepreneurs should make effective use of these benefits and resources while they are available.
