On March 19, 2025, during a meeting with entrepreneurs, President Shavkat Mirziyoyev announced new initiatives aimed at supporting small businesses and easing their entry into the market. One of the most notable reforms is the launch of the “First Opportunity” principle, which will come into force on July 1, 2025.
What is the “First Opportunity” principle?
Under this new approach, small business entities that commit an administrative offense for the first time during their first year of activity in the fields of trade or entrepreneurship will be exempt from administrative liability.
Instead of being fined, these businesses will be given the opportunity to correct their mistake and continue operating without penalties. This move shifts the focus from punishment to education and improvement.
As emphasized by President Mirziyoyev:
“New businesses are likely to make mistakes early on. What matters is that they correct them. The role of the government is to support and guide them, not punish them.”
Regulatory reform and legal predictability
According to the Ministry of Justice, starting from July 1, 2025, a moratorium will be introduced on any legal documents that impose new obligations on small and medium-sized businesses until January 1, 2028.
In addition, the government will implement the “single effective date” rule, meaning that any new regulatory acts or revisions must come into effect only on January 1 or July 1, helping entrepreneurs plan ahead with greater clarity.
Easier business closure for Low-Risk SMEs
From September 1, 2025, small and medium-sized enterprises that voluntarily choose to terminate their activities will be exempt from tax audits, provided they meet the following conditions:
- Revenue over the past three years does not exceed 10 billion UZS;
- No outstanding debts to the budget or creditors;
- Regular submission of tax reports;
- Classified as low-risk in the “Risk Assessment” system.
This reform will eliminate bureaucratic obstacles for entrepreneurs who want to close their businesses smoothly.
$50 Million foreign investment initiative
The Ministry of Economy and Finance, in partnership with state-majority-owned commercial banks and venture capital funds, is set to attract $50 million USD in foreign investment by April 1, 2026. The funds will be used to support start-ups and innovation-driven businesses.
Uzbekistan’s “First Opportunity” principle reflects a modern, supportive approach to developing its entrepreneurial landscape. By focusing on learning and growth instead of punishment, the government is building a business-friendly environment that encourages innovation, stability, and confidence among new entrepreneurs.
Combined with tax reforms, predictable legal frameworks, and international investment initiatives, these efforts signal a significant step forward in Uzbekistan’s economic liberalization journey.
