Procedure for liquidation of business entities simplified

From January 1, 2020, Uzbekistan introduces a new procedure for the liquidation of business entities. The corresponding decree was signed by President Shavkat Mirziyoyev on June 7.

From January 1, 2020, permanently functioning territorial special commissions for the liquidation of enterprises that are not engaged in financial and economic activities and (or) have not formed their statutory funds within the time limits established by law will be abolished.

In addition, the order of liquidation of business entities that have not formed statutory funds in the amount provided for by the constituent documents within one year from the date of state registration is canceled.

It also introduces electronic exchange of information between government agencies by reducing redundant documents and procedures during the liquidation of business entities.

According to the document, a new order is introduced according to which:

a) in case of voluntary liquidation of business entities:

- publication of the announcement on the liquidation of the enterprise in one or several periodicals is not required, and the relevant data are posted on the official website of the registering authority;

- financial and economic activities of enterprises that have not carried out financial and economic activities since the moment of state registration and do not have tax debts are not subject to verification;

- the maximum frequency of inspections of financial and economic activities of liquidated enterprises by state tax service bodies is three years;

- obtaining the available information about the enterprise from the authorized state bodies to verify its financial and economic activity is carried out through the Automated system of state registration and registration of business entities;

- the total period of voluntary liquidation of an enterprise shall not exceed six months from the date of receipt by the registering authority of the notice of voluntary liquidation.

b) the applicant does not need to receive the conclusion of the state tax service body on the absence of tax arrears and other obligatory payments when suspending the activities of individuals - business entities;

c) in case of liquidation of enterprises that are not engaged in financial and economic activities:

- the period that is the basis for recognizing an enterprise as not engaging in financial and economic activity is nine months;

- on the proposal of the state tax service body, enterprises that do not carry out financial and economic activities are transferred by the registering body to an inactive regime for a period of three years;

- the registering authority excludes them from the Unified State Register of business entities in the non-restoration of the activities of enterprises transferred to an inactive regime for three years.