Business in Uzbekistan for Kazakhstan Citizens: 2026 Guide
How a Kazakhstan citizen can open a business in Uzbekistan in 2026: visa-free travel, the Kazakhstan–Uzbekistan tax treaty, RK↔RUz trade and logistics
Last updated 2026-06-15
Ivan Karataev
Managing Partner, BizReg
MBA, ACCA, CPA · ex-KPMG, ex-CFO of NYSE-listed companies · 20+ years in US & Uzbek business
Last updated 2026-06-15 · 12 min read · ✓ Facts verified against primary sources (lex.uz, soliq.uz)
A Kazakhstan citizen can start a business in Uzbekistan visa-free on an internal passport: it is enough to register an LLC or a foreign enterprise with 100% foreign ownership and open an account at an Uzbek bank. For a Kazakhstan citizen, Uzbekistan is not «far-away emigration» — it is a neighbouring market a few hours away: a shared border, visa-free entry, a common Russian-language business culture and two-way trade flows that grow every year. Opening a company here is simpler than it looks, but the logic differs both from Kazakhstan (where a TOO or IP can be set up in a day) and from a from-scratch relocation by someone from far abroad. This guide is specifically about the Kazakhstan–Uzbekistan link: visa-free travel, the tax treaty, trade and logistics between RK and RUz, tenge/sum settlements and EAEU nuances.
Why the neighbour: a Kazakhstan citizen's logic
A Kazakhstan entrepreneur starts from a different point than a relocator from far abroad. Uzbekistan is not a «backup airfield» but a natural extension of the home market: 36+ million people, growing domestic demand and convenient «by road, not by plane» logistics. Kazakhstan citizens usually have three main motives: trade and supply into the Uzbek market, using Uzbekistan as a production and logistics base, and access to incentives (above all IT Park) on terms unavailable at home.
A market next door
A neighbouring market without flights: goods and teams move by land, negotiations happen in one time zone and in Russian.
The treaty works
A double taxation treaty is in force between Kazakhstan and Uzbekistan — the same income is not taxed twice.
100% ownership
A Kazakhstan citizen can own an Uzbek company in full, with no mandatory local partner.
IT Park
For IT and digital — exemption from key taxes until 2028 and low employee income tax.
Does a Kazakhstan citizen need a visa to start a business in Uzbekistan?
This is the first thing that sets a Kazakhstan citizen apart from most foreigners. A visa-free regime applies between Kazakhstan and Uzbekistan: a citizen of Kazakhstan enters without arranging a visa, which makes business trips easy and frequent. In practice this removes the biggest relocation headache — having to secure a visa ahead of every visit to a bank, a notary or a partner.
It is important to distinguish entry from long-term stay and work. Visa-free entry does not equal an automatic right to live and work in the country for a long time: there are registration rules for staying at a place of residence, and a foreign director usually needs a work permit. Check the permitted length of visa-free stay and registration procedure on mfa.uz and gov.uz — these migration rules are updated from time to time.
What visa-free travel means in practice
You can come to open the account, sign documents at a notary and meet the bank in one short trip — with no visa waiting. For a Kazakhstan citizen the «in-person visit» to a bank is not a flight across the world but a trip to neighbours. That greatly simplifies the most «physical» step — opening the account.
RK↔RUz trade and logistics: the unique advantage of being neighbours
For a Kazakhstan business an Uzbek company is especially valuable in trade and logistics. Border proximity, overland corridors and reciprocal demand make the RK↔RUz link a working model rather than a theory. Uzbekistan is one of Kazakhstan's key trade partners in Central Asia, and vice versa; official trade-turnover figures are published by stat.uz and Kazakhstan's statistics agencies — those are the figures to rely on, not numbers from forums.
Here is exactly what being neighbours gives you if the business is structured through an Uzbek legal entity:
| Direction | What the Uzbek company gives a Kazakhstan citizen | What to watch |
|---|---|---|
| Import into RUz | A local entity as importer and holder of contracts on the Uzbek market | RUz customs procedures, product certification |
| Export from RUz | Buying Uzbek goods (textiles, fruit and vegetables, building materials) via a local company | RUz export and currency-control rules |
| Overland logistics | Short transport leg, road haulage without air freight — lower costs and times | Routes, border crossings, cargo documents |
| Local settlements | Paying local suppliers and rent in sum from the Uzbek company's account | Currency law, Central Bank rules |
| Manufacturing/assembly | Locating production or assembly closer to raw materials and labour | Activity codes (OKED), possible licences |
| Market access | Being «inside» the Uzbek market as a local player, not an outside supplier | Contracts, a registered legal address and office |
EAEU: do not transfer Kazakhstan habits to Uzbekistan
Kazakhstan is in the EAEU; Uzbekistan is not (it holds observer status). That means there is no single customs space between the countries: goods cross the border under bilateral agreements and customs law, not «as inside the EAEU». Do not count on duty-free movement of goods «by analogy with the EAEU» — verify customs procedures and tariffs in the official sources of both countries.
Which business form should a Kazakhstan citizen open in Uzbekistan?
Here a Kazakhstan citizen meets the first major difference from home. In Kazakhstan the most common start is an IP or TOO in a single day. In Uzbekistan an IP (sole proprietor) is available to a foreigner only with residency in the country (registration by place of residence or a residence permit) and with limits, so a non-resident usually opens a legal entity instead. Two forms are available:
LLC with foreign participation
flexibleA limited liability company whose members include a foreign person (possibly alongside a local partner). Suited to joint projects and a mixed ownership structure.
Foreign enterprise (IP OOO)
100% to RK citizenAn LLC with 100% foreign capital — the «IP OOO». Optimal if a Kazakhstan citizen wants full control with no local co-founder.
«IP» in Uzbekistan ≠ IP in Kazakhstan
In the Uzbek context the abbreviation «IP» more often means a foreign enterprise (an LLC with 100% foreign capital), not a sole proprietor. Because of this overlap Kazakhstan citizens regularly get confused. Remember: the familiar «IP in a day» from Kazakhstan is available to a foreigner only with residency in Uzbekistan, so a non-resident usually opens an LLC or a foreign enterprise.
The Kazakhstan–Uzbekistan tax treaty: avoiding double taxation
This is the second most important topic for a Kazakhstan citizen specifically. A double taxation avoidance treaty (DTT) is in force between the Republic of Kazakhstan and the Republic of Uzbekistan. Its purpose is simple: the same income should not be taxed in both countries, and for cross-border income — dividends, interest, royalties — the treaty reduces withholding tax compared with the standard rate.
In practice this means that distributing the Uzbek company's profit to its Kazakhstan member, or paying interest and royalties, can be done at a reduced withholding rate — provided tax residency is properly confirmed.
Dividends
Profit distribution to an RK resident — reduced withholding rate under the treaty
Interest
On loans and debt claims — rate capped by the treaty
Royalties
Licences, software, trademarks — withholding rate is limited
Without DTT
Standard withholding rate under the RUz Tax Code
Rate figures — only from the primary source
The specific reduced rates for dividends, interest and royalties are fixed in the treaty text, and the application procedure is in the RUz Tax Code. They cannot be «estimated from memory»: verify the current DTT version and application rules on lex.uz and soliq.uz. Claiming the benefit usually requires a Kazakhstan tax residency certificate (current as of 2026-06-15).
Tenge/sum settlements and currency nuances
A Kazakhstan citizen almost always has a «home» side of settlements in tenge and an Uzbek side in sum. The Uzbek company settles in the national currency (sum) and in foreign currency under Uzbek currency law, with exchange rates and currency operations governed by the Central Bank of Uzbekistan.
The Uzbek company's account
After registration a settlement account is opened — in sum and, if needed, a foreign-currency one. Without an account you can neither buy locally nor receive revenue.
Local settlements in sum
Rent, salaries, local suppliers and taxes are all paid in sum from the Uzbek company's account.
Cross-border payments
Settlements with the Kazakhstan side and foreign counterparties follow RUz currency-control rules; conversion goes through the bank.
Repatriation and distribution
Distributing profit to the Kazakhstan member is planned with the treaty and currency rules in mind.
On tenge, conversion and limits — no guessing
Taxes after opening — briefly
A detailed breakdown of regimes is a separate topic; here are planning benchmarks for 2026.
Social tax is 12%. For trade, catering and services, a voluntary reduced VAT rate was introduced from 1 June 2026 and the mandatory VAT registration threshold was raised — particularly relevant for Kazakhstan citizens entering trade. Verify the exact figures and conditions on soliq.uz and lex.uz.
| Tax | 2026 rate |
|---|---|
| Profit tax | 15% |
| VAT (standard) | 12% |
| Personal income tax | 12% |
| Social tax | 12% |
| Turnover tax (simplified) | 4% |
If you are in IT or digital
An IT Park resident is exempt from profit tax, VAT, social tax and turnover tax until 1 January 2028, with employee income tax at 7.5%. For Kazakhstan IT teams this is often the deciding argument. Terms are on it-park.uz (current as of 2026-06-15).
Relocation and stay: what matters for a Kazakhstan citizen
Registering a company and the right to live and work in Uzbekistan long-term are different things. Visa-free travel covers entry and short trips, but a long stay requires registration at a place of residence, and a foreign director needs a work permit. Opening a company by itself does not grant residency automatically, but it creates the basis for further legalisation. Check the grounds and conditions for stay and residency on gov.uz and mfa.uz. For more on moving a business and linking two jurisdictions, see our guide to business relocation to Uzbekistan.
Common mistakes by Kazakhstan citizens
How to do it right
- Open an LLC or foreign enterprise — do not look for an «IP» like at home
- Use visa-free travel to come in person to open the account
- Apply the treaty with an RK residency certificate when distributing profit
- Check RK↔RUz customs and tariffs rather than assuming «as inside the EAEU»
- Verify currency rules and tenge settlements on cbu.uz
What to avoid
- Expecting to open an IP in a day, as in Kazakhstan, without residency in Uzbekistan — a non-resident usually opens an LLC
- Assuming Uzbekistan is in the EAEU and goods move duty-free
- Distributing profit without applying the treaty and confirming residency
- Treating currency and tenge «by analogy» with Kazakhstan
- Ignoring tax consequences in both countries
Key points for a Kazakhstan citizen
- Visa-free travel between RK and RUz makes business trips and an in-person bank visit easy.
- A foreigner opens an LLC or a foreign enterprise (IP OOO); an IP is only available with residency in Uzbekistan, a non-resident usually opens an LLC.
- The Kazakhstan–Uzbekistan treaty lowers withholding tax on dividends/interest/royalties with a residency certificate.
- Uzbekistan is not in the EAEU — trade follows bilateral and customs rules, not duty-free movement.
- Tenge/sum settlements, conversion and repatriation follow Central Bank rules (cbu.uz); take figures from primary sources.
Related articles
- Business in Uzbekistan for Belarus Citizens: 2026 Guide
- Starting a Business in Uzbekistan for Tajik Citizens
- Business in Uzbekistan for Ukrainian Citizens: 2026 Guide
- Relocating Your Business from Russia to Uzbekistan 2026
Frequently asked questions
Does a Kazakhstan citizen need a visa to do business in Uzbekistan?+
No. A visa-free regime applies between Kazakhstan and Uzbekistan — an RK citizen enters without a visa for business trips. Check the length of visa-free stay and registration-by-place-of-residence rules on mfa.uz and gov.uz.
Can a Kazakhstan citizen register as a sole proprietor (IP) in Uzbekistan?+
A sole-proprietor status is available to a foreigner only with residency in Uzbekistan and with limits, so a non-resident usually opens an LLC with foreign participation or a foreign enterprise — an LLC with 100% foreign capital.
Is there a tax treaty between Kazakhstan and Uzbekistan?+
Yes, a double taxation avoidance treaty is in force. It prevents double taxation of the same income and reduces withholding tax on dividends, interest and royalties. Applying it requires a tax residency certificate; the text and procedure are on lex.uz and soliq.uz.
Does the EAEU give trade advantages through an Uzbek company?+
Kazakhstan is in the EAEU; Uzbekistan is not (observer). There is no single customs space between the countries: goods follow bilateral agreements and customs law. Verify procedures and tariffs in the official sources of both countries.
In which currency does the Uzbek company settle?+
In sum and in foreign currency under Uzbek currency law. Tenge settlements, conversion and repatriation are governed by Central Bank of Uzbekistan rules — check cbu.uz.
Does a Kazakhstan citizen need to be present in person?+
The legal entity can be registered remotely, but opening a bank account at most banks requires an in-person visit. Thanks to visa-free travel and the nearby border, a trip from Kazakhstan is usually planned specifically around the account.
Does a Kazakhstan director need a work permit?+
Visa-free entry does not equal the right to work. A foreign director usually needs a work permit, and a long stay requires registration at a place of residence. Check the details on gov.uz.
We will open an Uzbek company for a Kazakhstan citizen — with the tax treaty, trade and tenge/sum settlements in mind
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Who we are and why you can trust us
Ivan Karataev
Managing Partner, BizReg
MBA, ACCA, CPA · ex-KPMG, ex-CFO of NYSE-listed companies · 20+ years in US & Uzbek business
BizReg (Ustores LLC, Tashkent) helps foreigners set up companies in Uzbekistan turnkey — registration, legal address, bank account and accounting. 1000+ registrations over 15 years.
Consultation in Russian and English · +998 90 347 86 92
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