Can a foreign company open a branch in Uzbekistan?

Yes. A foreign company may open a branch or representative office in Uzbekistan after accreditation with the Ministry of Investment and Foreign Trade (MIFT). The accreditation period is 1 year, renewable annually.

What is the difference between a branch and a representative office?

A branch may engage in commercial activity — sign contracts, receive revenue, pay taxes independently. A representative office is limited to marketing, partner searches, and market research; it cannot conduct commercial transactions.

Does a branch pay taxes in Uzbekistan?

Yes. A branch is a permanent establishment (PE) and pays corporate income tax at 15% on Uzbekistan-sourced profits, VAT at 12% (or turnover tax at 4%), personal income tax and social tax on employee salaries.

What is better — a branch or a separate LLC?

An LLC provides full legal independence and limits the parent company's liability. A branch is simpler to manage and requires no charter capital, but the parent company bears unlimited liability for its obligations. The choice depends on your strategy.

How long does accreditation take?

MIFT reviews applications within up to 10 business days. Combined with document preparation and apostille, the full process realistically takes 4–8 weeks.

Does a branch require a resident director?

The head of the branch can be a foreign national, but they will need a work permit if they physically work in Uzbekistan.

How do you close a foreign company branch in Uzbekistan?

You must notify MIFT, settle tax obligations, dismiss employees, close the bank account, and file for accreditation cancellation. The process typically takes 2–3 months or more.

Branch of a Foreign Company in Uzbekistan: How to Open

Branch vs representative office of a foreign company in Uzbekistan: differences, taxes, accreditation process, documents and comparison with LLC. Updated 2026.

Last updated 2026-06-30

Ivan Karataev

Managing Partner, BizReg

MBA, ACCA, CPA · ex-KPMG, ex-CFO of NYSE-listed companies · 20+ years in US & Uzbek business

Last updated 2026-06-30 · 8 min read

✓ Facts verified against primary sources (lex.uz, soliq.uz)

Last updated 2026-06-30 · 8 min read · ✓ Facts verified against primary sources (lex.uz, soliq.uz)

A branch of a foreign company in Uzbekistan is an accredited separate subdivision authorised to conduct full commercial activities and pay taxes locally — without creating a separate legal entity. If you already run a foreign company and want to enter the Uzbek market with a lean structure, a branch or representative office may be the right first step. Below we break down the key differences, taxes, required documents, and common pitfalls.

Key facts about foreign company branches in Uzbekistan

A branch can conduct commercial activity and is a permanent establishment (PE) — it pays corporate income tax at 15% and VAT at 12% in Uzbekistan.
A representative office is limited to non-commercial functions (marketing, negotiations, market research); it does not pay corporate income tax but must register with tax authorities.
Accreditation of both forms is granted by the Ministry of Investment and Foreign Trade (MIFT) for 1 year, renewable annually.
No charter capital is required — unlike an LLC.
The parent company bears unlimited liability for a branch's obligations; with an LLC, liability is capped at the charter capital.
All foreign company documents must be apostilled (or consularly legalised) and translated into Uzbek.
For strategic long-term presence (active trading, large headcount), an LLC or foreign enterprise often offers better asset protection.

Branch or representative office — what is the fundamental difference?

Both formats are governed by Cabinet of Ministers Resolution No. 410 (2012) and further clarified by the Tax Code (2020). The key distinction is the scope of permitted activities:

Branch

Commercial activity is permitted: signs contracts, issues invoices, receives revenue. Recognised as a permanent establishment of the foreign company under Art. 35 of the Tax Code. Pays corporate income tax, VAT (or turnover tax), personal income tax and social tax. Unlimited liability falls on the parent company.

Representative Office

Auxiliary functions only: market research, advertising, partner searches, negotiations without authority to sign commercial contracts. Not a permanent establishment if activities are preparatory or auxiliary in nature (Art. 35.4 of the Tax Code). Does not pay corporate income tax; must register with tax authorities and pay payroll taxes.

The line between «auxiliary» and «commercial» is thin

If a representative office de facto concludes transactions, agrees on prices, or accepts orders, tax authorities may reclassify it as a permanent establishment with full tax consequences. This is one of the most common compliance risks when operating through a representative office.

How do you register a branch of a foreign company?

The accreditation procedure is the same for both branches and representative offices; the document package differs only in the declared purpose of activity.

Prepare parent company documents
Required: charter of the parent company, certificate of incorporation, resolution of the authorised body to open a branch/representative office in Uzbekistan, power of attorney for the branch head, and the Branch Regulations (Polozheniye). All documents must be apostilled (or consularly legalised — depending on the country) and carry a notarially certified translation into Uzbek.
Draft Branch Regulations
The Branch Regulations are the core document: they specify the subject of activity, the head's powers, and the legal address in Uzbekistan. The scope of activities must match actual operations: purely non-commercial functions for a representative office; specific OKED-coded activities for a branch.
File an application with MIFT
Accreditation is granted by the Ministry of Investment and Foreign Trade. Documents are submitted through the MIFT portal or in person. The review period is up to 10 business days. Upon approval, a Certificate of Accreditation valid for 1 year is issued.
Register with the tax authorities
After receiving the certificate, mandatory tax registration at the local tax office is required (Art. 83 of the Tax Code). The branch is assigned a TIN and its tax regime is determined.
Open a bank account
A bank account is opened at an Uzbek bank in the branch's name. Personal presence of the branch head for identification is typically required. If currency transactions are planned, a separate foreign-currency account is needed.
Renew accreditation annually
Accreditation is granted for 1 year. A renewal application with updated parent company documents must be filed 30 days before expiry. Operating without a valid accreditation is an administrative violation.

Documents for accreditation of a foreign company branch in Uzbekistan — Apostilled parent company documents are the mandatory foundation for accreditation

What taxes does a foreign company branch pay in Uzbekistan?

A branch is a permanent establishment (PE) under Art. 35 of the Tax Code. This means it is taxed as an independent entity on income sourced in Uzbekistan.

15%

Corporate Income Tax

12%

VAT

Turnover Tax

12%

Personal Income Tax

12%

Social Tax

1 year

Accreditation term

A double tax treaty may reduce the tax burden

If the parent company's country of registration has signed a Double Tax Treaty (DTT) with Uzbekistan, income tax and dividend rates may be lower. For more details, see our article on double taxation in Uzbekistan.

How is branch profit calculated?

Profit is determined as the difference between Uzbekistan-sourced revenue and documented expenses. Head-office overhead allocated to the branch (e.g. management fees) is deductible up to 10% of branch revenue — an important cap for transfer pricing planning.

Branch, representative office, or LLC: which to choose?

Criterion	Branch	Representative Office	LLC / Foreign Enterprise
Commercial activity	Yes	No	Yes
Separate legal entity	No	No	Yes
Charter capital	Not required	Not required	Minimum per law
Parent company liability	Unlimited	Unlimited	Limited to capital
Corporate income tax	15%	None (if auxiliary)	15%
Opening timeline	~2–4 weeks	~2–4 weeks	~3–7 days
Annual renewal	Yes	Yes	Not required

Choose the optimal form of presence

Get a consultation

What risks does the parent company face with a branch?

Unlimited liability. A branch is not a separate legal entity. The parent company is fully liable for its debts and obligations. With an LLC, liability is capped at the Uzbek subsidiary's charter capital.

Tax exposure. If tax authorities assess additional taxes for prior years (the statute of limitations in Uzbekistan extends to 5 years), claims will be directed at the parent company.

Reputational risk. Court judgments and debts to counterparties of the branch are legally the parent company's liabilities.

When a branch makes sense

A branch is a good fit when: (1) you want to test the market quickly without building a full corporate structure; (2) the parent company is financially strong and accepts unlimited liability; (3) the activity is temporary or project-based; (4) you plan to transition to an LLC later.

Office of a foreign company in Tashkent — An accredited office in Tashkent — a market presence without a separate legal entity

Frequently asked questions

Yes. Accreditation of a branch or representative office does not require a local partner or co-founder. Documents are filed by the foreign company through an authorised representative. This is a key advantage compared to some other jurisdictions.

No. Branches and representative offices of foreign legal entities are accredited with the Ministry of Investment and Foreign Trade (MIFT), not the Ministry of Justice. Registration with the Ministry of Justice applies to Uzbek legal entities (LLC, JSC, etc.).

Yes. A representative office may hire both local staff and foreign specialists. Personal income tax and social tax must be withheld and paid on all salaries. Employees work within the permitted non-commercial scope of the representative office.

Documents requiring an apostille (or consular legalisation for non-Hague Convention countries) include: the charter, certificate of incorporation, and a certificate of good standing of the parent company. Documents in Russian are generally accepted without translation; other languages require a notarially certified Uzbek translation.

There is no direct conversion procedure. You must close the representative office (cancel the accreditation) and open a new structure by filing for branch accreditation or registering an LLC. These are separate processes, which is why the initial choice of structure matters.

Yes. A branch must maintain accounting records under Uzbekistan's standards and file tax returns. A representative office also keeps books and reports on payroll taxes, even if it does not pay corporate income tax.

Some activities are separately licensed (banking, insurance, telecommunications) and require special permits in addition to accreditation. For most commercial activities, accreditation and tax registration are sufficient.

Branch accreditation end-to-end

Calculate the cost

Opening timeline: how long does it take?

A realistic timeline for clients from Russia, Kazakhstan, EU:

Stage	Duration
Document preparation and apostille in the parent company's country	5–15 business days
Notarially certified Uzbek translation	2–5 days
Drafting Branch Regulations	2–3 days
MIFT application review	up to 10 business days
Tax registration	3–5 days
Bank account opening	5–14 days
Total (realistic)	4–8 weeks

Speed depends largely on document readiness on the parent company's side. Apostilling in some countries takes several weeks — this is the critical path.

Open a branch or representative office end-to-end

Sources

Who we are and why you can trust us