Companies considering expanding to Uzbekistan have to focus on many different facets of a new business, such as payroll, hiring, and sourcing benefits. However, the most important aspect to consider is how to set up an Uzbekistan subsidiary. You need a subsidiary before you can do anything else in the country or work legally, but it can take companies weeks, months, or a year to incorporate.
Globalization Partners will help you expand to new countries in as little as a day. You can use our global PEO to expand quickly without having to worry about Uzbekistan’s subsidiary laws. When you work with our team, you can have ultimate peace of mind and focus on building your company while we handle everything else.
How to Set Up an Uzbekistan Subsidiary
The Uzbekistan subsidiary setup process will change depending on your location and entity. Sometimes regions, cities, or states can have different Uzbekistan subsidiary laws just like different states in the US have their own laws. If you’re not familiar with the areas within Uzbekistan, you should look for a consultant or other expert who can help you find the right location and meet the applicable laws.
You should also consider what type of entity will work best for your needs from several options, including a limited liability company (LLC), joint stock company, or representative office. Many companies decide to incorporate as an LLC because it protects the parent company from any liability from the subsidiary’s actions. However, if your company is only performing a few activities in Uzbekistan, you can incorporate as a representative office to suit your needs.
The steps to set up your Uzbekistan subsidiary as an LLC include:
- Appointing directors and shareholders
- Compiling minimum share capital
- Opening an in-country bank account and depositing capital
- Drafting foundational documents/company charter
- Meeting all state registration and taxation laws
- And more
Uzbekistan Subsidiary Laws
The Uzbekistan subsidiary laws that apply to an LLC may differ from those that regulate joint stock companies and representative offices. All LLCs need at least one director and one shareholder. Although they can be of any nationality, the director must be an Uzbekistan resident. The minimum share capital requirement for LLCs is about $1,800, which must be deposited before incorporation.
All foreign-owned LLCs need to follow tax laws just like local companies. However, you can gain tax privileges if you have initial share capital over $150,000. Working with a lawyer or accountant who understands tax laws can help you stay compliant and meet all the applicable Uzbekistan subsidiary laws.
Benefits of Setting Up a Uzbekistan Subsidiary
You have two options for the Uzbekistan subsidiary setup process — do it yourself or work with a global PEO. Companies that establish their own subsidiary will benefit from working in the country legally and protecting the parent company’s assets. However, it will take months to reap the rewards of these benefits.
On the other hand, companies that work with a global PEO such as Globalization Partners can benefit right away. You won’t have to set up your own subsidiary because you can use our Uzbekistan PEO, which will help you work quickly and ensure that you don’t have to worry about Uzbekistan subsidiary laws. Our Global Expansion solution covers everything from hiring to compensation and benefits, so you’ll have ultimate peace of mind about your company’s operations.
Other Important Considerations
If you decide to incorporate on your own instead of choosing Uzbekistan subsidiary outsourcing with Globalization Partners, you’ll need to prepare for the time it takes to incorporate. Meet with other company executives to delegate tasks and determine how long you’ll need. Then, clear your schedule.
You’ll also require money for your start-up capital, incorporation fees, travel expenses, and more. You can budget with your accounting department to understand how much you’ll need and how much you’ll profit. Another expense may be an Uzbekistan subsidiary law expert who can help you avoid any fines or delays by staying compliant.
Let Globalization Partners Help With Your Expansion
Globalization Partners has helped countries expand to new places quickly and effortlessly. Contact us today to learn more about Uzbekistan subsidiary outsourcing and how it can benefit you.