Foreign companies that do not intend to carry out income-generating activities in Uzbekistan may consider establishing a Representative Office (RO). This type of entity allows a foreign business to maintain a legal presence in the country without engaging in direct commercial operations.
To set up a representative office, the company must appoint an authorized agent who is a resident of Uzbekistan.
While representative offices are traditionally non-commercial, recent legal changes now allow them to engage in income-generating activities if they are registered as a “permanent establishment” for tax purposes. In such cases, the representative office becomes subject to corporate income tax in Uzbekistan.
Opening a representative office is a strategic way to explore and assess the Uzbek market without committing to full business operations. However, it is not a one-size-fits-all solution. The decision to establish an RO should be based on the specific goals and expectations of the foreign company. It’s important to evaluate operational capacity, long-term plans, and legal implications before proceeding with any form of legal presence in Uzbekistan.
The Uzbek government has recently updated the regulations governing representative offices:
Employment Quotas: The number of foreign nationals permitted to work in a representative office has increased from three to five. However, foreign employees may not exceed 40% of the total workforce. This regulation encourages the hiring of more local staff.
Accreditation Duration: Accreditation for both the representative office and its staff is valid for one year.
Head of Office: The head of the representative office may be a foreign national, but must resident in Uzbekistan.
Renewals: Applications for renewal must be submitted at least one month prior to the expiration date.
Closure: Upon closure of the representative office, the resident visa tied to RO accreditation becomes invalid, and all accredited staff must leave the country accordingly.
Contact axvericon partners today to get your representation office accredited
The information provided on this website is for general guidance and informational purposes only. While we strive to ensure accuracy and keep content up to date, laws, regulations, and administrative procedures in Uzbekistan are subject to change. Axvericon does not accept any liability for errors, omissions, or any consequences arising from the use of this information. We strongly recommend consulting with our legal and tax advisors before making any business or investment decisions.
