Self-employed individuals to be exempt from state fees when registering as entrepreneurs or legal entities

On March 19, President Shavkat Mirziyoyev approved measures to increase the participation of small and medium-sized businesses (SMEs) in the economy. The presidential decree was published by the Chamber of Commerce and Industry.

The document formalizes initiatives announced by the President during a meeting with SME representatives. The goal is to raise the share of small and medium enterprises in GDP to 55%, in industrial production and exports to 34%, and in employment to 75%.

To encourage business expansion following the model of “self-employed → individual entrepreneur → small business → medium business → large enterprise”, starting May 1, self-employed individuals will be exempt from state fees when registering as individual entrepreneurs (IE) or legal entities.

Upon scaling up to an IE, microfirm, or small enterprise, businesses will be eligible for unsecured loans. The loan amounts will reach up to 50 million UZS under the Family Entrepreneurship Program and 150 million UZS under the Comprehensive SME Support Program.

Companies that achieve medium or large business status will receive VAT refunds in an expedited manner for one year. The tax reimbursement period will be no longer than seven days.

The Ministry of Economy and Finance, along with the Central Bank, has been tasked with allocating 120 trillion UZS for SME development, of which 22 trillion UZS will be provided under entrepreneurship programs.

Additional support measures will be introduced for SMEs in Karakalpakstan. New companies will be able to obtain loans under family business programs without requiring a sufficient turnover in their bank accounts, using collateral as the basis for loan eligibility. By July 1, the issuance of microloans online is expected to be simplified.

Additionally, SMEs will receive loans for working capital replenishment when hiring unemployed individuals listed in the Unified Social Protection Registry. These loans will be provided at 14% for three years, with 10 million UZS per worker, up to a maximum of 100 million UZS.