Registering a Sole Proprietor in Uzbekistan (2026): Steps, Taxes, Sole Proprietor vs LLC

As of October 2026, a sole proprietor (individual entrepreneur, in Uzbek "yakka tartibdagi tadbirkor" or YaTT) is registered in Uzbekistan through the my.gov.uz public services portal or at a Public Services Centre, in real time and within 30 minutes, for a state fee of 1 BRV (440,000 UZS), or 396,000 UZS online. Since 1 January 2026 a sole proprietor below the revenue threshold pays a 1% turnover tax, and social tax of at least 1 BRV a month on top. A sole proprietorship suits work within a closed list of activities with up to five employees; an LLC is the better fit when you need limited liability, partners, a bigger team or an activity outside that list.

For registering an LLC, including with a foreign founder, see our step-by-step guide.

In short

• Registration takes up to 30 minutes, online or at a Public Services Centre; an Uzbek citizen needs only a passport.
• The state fee is 1 BRV: 440,000 UZS, or 396,000 UZS online; anyone who has been self-employed for at least six months pays no fee.
• Turnover tax is 1%. Since 1 June 2026 the threshold for moving to VAT and profit tax has been 12,000 BRV (5.28 billion UZS) under Decree UP-100, as the Tax Committee has also announced; the Tax Code still says 1 billion UZS.
• Social tax starts at 440,000 UZS a month, even with no revenue.
• Listed activities only, five employees at most; an LLC has neither limit.
• A foreigner needs a document certifying identity and place of residence in Uzbekistan, such as the ID card of a foreigner permanently residing in the country.

Sole proprietor, self-employed or LLC: the differences

A sole proprietor is the individual doing business in person, without forming a legal entity (Art. 6 of Law No. 69-II on guarantees of freedom of entrepreneurial activity). The right to trade arises on registration, and the individual answers for business debts with everything they own, apart from property that the law shields from enforcement (Arts. 24 and 25 of the Civil Code). A self-employed person simply notifies the tax authority through its mobile app or the taxpayer's online account (para. 3 of Resolution PP-4742). An LLC is a separate legal entity: it answers with its own assets, and participants risk only the value of their contributions (Art. 4 of Law ZRU-1137).

Who can register as a sole proprietor

• Citizens of Uzbekistan, with a passport (para. 33 of the State Registration Regulation, Cabinet Resolution No. 66).
• Minors aged 16 or over, with the consent of a parent or guardian confirmed through the Unified Identification System or Face-ID; registering anyone under 16 is prohibited (para. 6-1, in force since July 2026).
• Foreign citizens and stateless persons, with a passport or another document certifying both identity and place of residence in Uzbekistan (para. 33).

Registration may be refused only on the grounds listed in para. 40, such as an unpaid fee or incomplete information, and a refusal on the ground that registration is "inexpedient" is prohibited (para. 45). Since 1 July 2026 para. 40 also lists grounds tied to the head of a business's management body, for example an unexpired court ban on doing business; those provisions do not mention sole proprietors expressly.

Can a foreigner become a sole proprietor in Uzbekistan?

Yes, if they live in the country. Para. 33 requires a document certifying identity and place of residence without naming it, and the register records the foreigner's residential address in Uzbekistan. Under Law ZRU-692, identity and permanent registration are certified by the ID card of a foreigner permanently residing in Uzbekistan (Arts. 3 and 7; a residence permit issued earlier stays valid until replaced, Art. 41), while foreigners on a temporary stay register at their place of stay (Art. 6). Plan the sole proprietorship once you hold that ID card; with only a temporary stay registration, check with a Public Services Centre before filing. The register lists expiry of the document confirming the right to reside as a ground for ending the sole proprietor's activity (para. 5 of the Register Regulation, Annex 2 to Cabinet Resolution No. 66).

Without such a document, the route is an LLC. Note that where the foreign share is 15% or more, the Regulation still lists a minimum charter capital of 400 million UZS (Annex 11; the requirement is contestable but still applied). See our guide to registering an LLC with a foreign founder.

Step by step: registering a sole proprietor in 2026

• Check your activity against the list in Cabinet Resolution No. 6 of 7 January 2011: retail trade, household services, crafts, tutoring, translation, design, software development, advertising, real estate brokerage, tourism and more. Individuals may not carry on unlisted activities (para. 2), and the application names one main activity and up to two additional ones.
• Set up access: a login to your account on the portal through the Unified Identification System, and an electronic digital signature, because the application is signed electronically (para. 7 and Annex 4).
• Fill in the application under the "Business registration" service on my.gov.uz (para. 8). Your personal data is pulled from state databases (para. 10); you add the activity and the place of business. The same form lets you order a digital signature key, a bank account, a licence application, registration of a lease and an online cash register.
• Pay the fee by card, at a bank counter or by transfer from a bank account (para. 14).
• Receive the certificate: an electronic document with your photo and a QR code, delivered to your portal account (paras. 16–17). Tax registration happens at the same time (para. 6, PP-4742).
• Open a bank account: the bank may do it remotely while registration is under way, and no company seal is needed (paras. 19–20).

At a Public Services Centre an officer fills in the form and you check and sign the printout; a representative files under a power of attorney (paras. 31, 35, 37).

Documents

• a passport, for Uzbek citizens;
• a passport or other document certifying identity and place of residence in Uzbekistan, for foreigners;
• proof of payment of the state fee (para. 33).

A sole proprietor needs no charter and no founders' resolutions.

Costs and timelines

The BRV (base calculation value) has been 440,000 UZS since 1 September 2026 (Decree UP-115).

Sole proprietor taxes in 2026

Since 1 January 2026, sole proprietors and self-employed persons whose sales income does not exceed 1 billion UZS a year pay turnover tax (Art. 461 of the Tax Code) at 1% (Art. 467), and that income is outside personal income tax (Art. 365). The fixed tax for sole proprietors is gone from the general regime: Law ZRU-1108 deleted Art. 383 of the Tax Code from 1 January 2026. Instead of turnover tax, a sole proprietor may opt for VAT and profit tax (Art. 462).

A new sole proprietor pays social tax from the month after registration; people entitled to an old-age pension and those with group I or II disability pay at least half the minimum (Art. 408). Buyers must get an invoice, usually electronic, unless a cash register receipt is issued (Art. 47).

The threshold: 1 billion UZS or 12,000 BRV

The Tax Code, as of October 2026, still says 1 billion UZS, while Decree UP-100 set the threshold for moving to the general tax regime at 12,000 BRV from 1 June 2026 (para. 2). The decree does not distinguish companies from sole proprietors, and the Tax Committee applied the new threshold expressly to sole proprietors and self-employed persons who import goods (press release of 27.05.2026). The Code has not been amended yet, so with income between 1 and 5.28 billion UZS it is worth getting the tax authority's position in writing.

Once over the threshold, VAT and profit tax apply from the day income reaches it, not from the next year (Art. 462). For a sole proprietor registered mid-year, the threshold is prorated to the days left in the year, and the general regime then starts on 1 January of the following year. Two rules soften the move:

• anyone moving from turnover tax to profit tax for the first time from 2026 is exempt from profit tax (except on dividends and interest) for the tax year after the year of transition; the relief is lost where income is split between several businesses (Art. 337);
• until 1 January 2030, catering, trade and service businesses may opt into a simplified 6% VAT on all sales with 0% profit tax and no input VAT credit, while their buyers can still credit that VAT (paras. 5–7, UP-100).

Imports. Under the Code, sole proprietors and self-employed persons who import goods move to VAT and profit tax from the date of the import contract or the import (Arts. 461, 462). Decree UP-100 abolished the automatic VAT registration of importers (para. 9), and according to the Tax Committee they may stay on turnover tax with income up to 12,000 BRV; the Code has not been amended yet, so confirm your regime before the first shipment.

Self-employment: when you can do without registration

• The list. From 2026 there are 72 activities instead of 112 (Annex 2 to Decree UP-50, Uzbek text), including software and website development, design, SMM, online consulting, selling on e-commerce platforms, delivery, and childcare and elderly care.
• What was dropped. According to the Tax Committee, the cuts include tutoring, sewing, hairdressing, furniture assembly and car repair; people in those trades were advised to switch activity or register as sole proprietors (gov.uz). Those activities are on the sole proprietor list.
• No staff. A self-employed person may not hire anyone; an employee under an employment contract (other than a civil servant) may also be self-employed on the side (para. 3, PP-4742 as amended on 5 February 2026).
• 1% tax. A paying company withholds it at source on notice from the tax authority, and for payments through payment companies' digital platforms the payment company does (Art. 465, Tax Code). Social tax is voluntary, from 1 BRV a year (Art. 408).
• Foreign clients. For services delivered online, foreign-currency payments from non-residents can be received without filing data in the foreign trade information system and without a separate contract (para. 4, PP-4742).

When to choose an LLC instead

• Liability. LLC participants are not liable for its debts beyond any unpaid contribution, unless they caused its insolvency (Art. 4, ZRU-1137); a sole proprietor puts personal assets at risk.
• Team size. A sole proprietor may hire no more than five people, and one with staff works from a single outlet (Cabinet Resolution No. 707).
• Activities. Wholesale trade is not on the sole proprietor list, and listed retail excludes, for example, alcohol, tobacco, medicines and building materials.
• VAT alone is no reason: a sole proprietor can also opt into VAT (Art. 237, Tax Code).
• Partners and an exit. An LLC can have up to 50 participants, and a share is sold by a written agreement that takes effect on entry in the register (Arts. 8, 21, ZRU-1137); a sole proprietor can sell the business assets but not the status itself, because the proprietor is the individual (Art. 6, Law No. 69-II). On drafting the charter, see our article on the new LLC law.

An illustrative example. A designer works alone and earns 600 million UZS a year. As a self-employed person she pays 6 million UZS of turnover tax, with social tax optional. As a sole proprietor she pays the same 6 million UZS plus at least 5.28 million UZS of social tax. An LLC on turnover tax pays 24 million UZS (4%), and another 5% on dividends paid to a resident participant (Art. 381, Tax Code). The answer changes once she needs a sixth employee, a co-founder or a large, risky contract.

How to close a sole proprietorship

• Settle tax debts and close your main bank account; the bank's certificate reaches the registering body through the electronic system (para. 41 of the Regulation approved by Cabinet Resolution No. 704).
• File an application to terminate the activity.
• The tax authority confirms within two working days that no taxes are owed (para. 42).
• The register entry is made within one working day, and the tax authority and any licensing body are notified within three working days (paras. 43–45).

Closing does not release you from debts to creditors (para. 46). Para. 40 of the Regulation reserves this route for sole proprietors paying the fixed tax and sends those who pay taxes on the rules for companies through the liquidation procedure for a commercial company. The fixed tax has been abolished, and the Regulation does not assign turnover-tax payers to either group, so we confirm the route with the registering body. You can suspend activity for up to a year instead (para. 17-1 of the State Registration Regulation), and no social tax accrues meanwhile (Art. 408, Tax Code). A sole proprietor moved by the tax authority to dormant status who does not resume within a year may be struck off by the registering body (Art. 24, Civil Code). For companies, see the step-by-step liquidation procedure.

Pitfalls when registering

• Registering "just in case". Social tax accrues with no revenue; if you are not trading, suspend the activity.
• An activity outside Resolution No. 6. You cannot carry it on as a sole proprietor.
• A sixth employee or a second outlet. Hire only after opening a bank account, and register each employee within three working days (Cabinet Resolution No. 707).
• The threshold and imports. The general regime starts on the day you cross the threshold, and for imports confirm your regime before the first shipment, because the Code and Decree UP-100 still differ.
• Signing as a private person. State that you act as a sole proprietor (Art. 465, Tax Code); leaving it out does not reduce your liability (Art. 6, Law No. 69-II).

How Pactum helps

Pactum's lawyers in Tashkent:

• tell you whether self-employment is enough, a sole proprietorship is needed or an LLC makes more sense, and model the taxes on your turnover;
• check your activity against the lists and any licensing rules;
• prepare and file the application, and help with the bank account and registering employees;
• if you need an LLC, draft a charter under ZRU-1137 and register the company.

Sole proprietor registration starts from 1,000,000 UZS and LLC registration from 1,500,000 UZS, excluding state fees; the final price and timeline are fixed in a written proposal after we review your case. Start with our company formation page or book a consultation with a lawyer: 60 minutes for 300,000 UZS, credited towards the service.

Phone +998 99 050 50 70, Telegram, info@pactum.uz. Office: 21 Afrosiyob Street, Tashkent.

FAQ

How do I register as a sole proprietor in Uzbekistan online?

Log in to my.gov.uz, choose the "Business registration" service, enter your activity and place of business, pay the state fee and sign the application with an electronic signature. Registration takes no more than 30 minutes, and the certificate arrives in your portal account.

How much does it cost to register a sole proprietor in Tashkent?

The state fee is 440,000 UZS at a Public Services Centre or 396,000 UZS online, plus a 1% commission for electronic payment. Anyone self-employed for at least six months pays no fee. Pactum's support starts from 1,000,000 UZS.

What taxes does a sole proprietor pay in Uzbekistan in 2026?

A 1% turnover tax and social tax of at least 1 BRV a month; this income is not subject to personal income tax. For each employee you withhold 12% personal income tax from salary and pay social tax of at least 1 BRV a year.

Can a foreigner register as a sole proprietor in Uzbekistan?

Yes, with a document certifying identity and place of residence in Uzbekistan, such as the ID card of a foreigner permanently residing in the country. With only a temporary stay registration, check with a Public Services Centre; without such a document, an LLC is the practical route.

Sole proprietor or LLC: which is better?

A sole proprietorship is cheaper: 1% turnover tax against 4% for most LLCs, and no tax on dividends. An LLC is needed for limited liability, partners, more than five employees or an activity outside the sole proprietor list.

What is the difference between self-employed and a sole proprietor in Uzbekistan?

A self-employed person registers through the tax authority's app, works within 72 listed activities without staff and pays social tax voluntarily. A sole proprietor goes through state registration, can hire up to five people and must pay social tax.

How many employees can a sole proprietor hire?

Up to five, at one address, and only after opening a bank account. Each must be registered with the tax authority within three working days of signing the employment contract, and the proprietor withholds personal income tax from their pay.

How do I close a sole proprietorship in Uzbekistan?

Close your main bank account, settle any tax debts and file an application to terminate the activity; the register entry follows the tax authority's reply. If you pay turnover tax, confirm the route with a Public Services Centre first. Debts to creditors survive the closure.

Sources

• Tax Code, Arts. 47, 237, 258, 294, 337, 360, 365, 381, 385, 405, 408, 461, 462, 465, 467, 470
• Law ZRU-1108 of 25.12.2025, Art. 4 (item 44), Arts. 5, 12
• Decree UP-100 of 26.05.2026, paras. 2, 5–7, 9
• Decree UP-115 of 23.06.2026, para. 3
• Decree UP-50 of 19.03.2025 and its Annex 2 (Uzbek text)
• Resolution PP-4742 of 08.06.2020, paras. 3, 4, 6
• Regulation on State Registration of Business Entities, Cabinet Resolution No. 66
• State Duty Law ZRU-600, Arts. 15, 22-1 and Annex
• Civil Code, Arts. 24, 25
• Law No. 69-II as restated by ZRU-328, Art. 6
• Cabinet Resolution No. 6 of 07.01.2011, list of activities for sole proprietors
• Cabinet Resolution No. 707 of 22.11.2021 (Uzbek text)
• Cabinet Resolution No. 704 of 21.08.2019, paras. 40–46 (Uzbek text)
• Law ZRU-1137 on limited liability companies, Arts. 3, 4, 8, 21
• Law ZRU-692 on the legal status of foreign citizens and stateless persons, Arts. 3, 6, 7, 41
• Tax Committee: reminder for self-employed persons, 19.12.2025
• Tax Committee: "Taxation is being simplified", press release of 27.05.2026

Quotations from Uzbek legislation are our translation. Information is current as of October 2026.