Minimum authorized capital requirement for JSCs may be abolished

Deputies of the Legislative Chamber of Oliy Majlis, in the first reading, reviewed the draft law “On introducing amendments and addenda to some legislative acts of the Republic of Uzbekistan”, which envisages the abolition of the requirement for the minimum size of the authorized fund of JSCs and limited liability companies.

According to the press service of the parliament, the draft law provides for the introduction of the requirements of Doing Business report methodology, aimed at creating a favorable business environment, into legislation.

In compliance with the amendments introduced by the draft law, regulations are presented on the cancellation of mandatory notarization of the contract for the sale of real estate of legal entities, abolition of the requirement for the minimum amount of authorized capital of JSC and LLC, the definition of requirements for the minimum size of authorized capital with the requirements of licenses.

It also envisages the abolition of the requirement of presence of a foreign investor in the authorized capital of the joint stock company with a share of at least 15%.

At the same time, it is determined to establish a procedure in accordance with which current shareholders have the preemptive right to acquire additionally issued shares, to transfer the right of determining an audit organization for conducting a mandatory audit to the general meeting of shareholders.