- 07.08.2024
- News & publications
In Uzbekistan, wide-ranging reforms are being implemented to ensure the smooth conduct of entrepreneurial activities, create favorable business conditions, and enhance the investment attractiveness of the republic. Significant efforts have been made to eliminate bureaucratic barriers to business development, including the abolition of counter inspections and all types of unscheduled inspections, as well as the reduction and simplification of certain licensed activities and permit procedures in the field of entrepreneurship.
These reforms aim to make Uzbekistan more attractive for business operations, both for local and foreign entrepreneurs. They create conditions under which businesses can develop without unnecessary administrative obstacles, which in turn promotes overall economic growth and improves the standard of living in the country.
In this Guide, we will familiarize you with the main inspections provided for by the legislation of Uzbekistan, the procedure for conducting them, and your rights and obligations. We will detail the types of inspections that exist, how they are conducted, and what you need to know to be prepared for them, which will undoubtedly be useful for effective interaction with regulatory authorities and minimizing the risks associated with inspections. Our Guide will help you better understand local legislation and take advantage of all the opportunities it provides. Whether you are an experienced entrepreneur or just starting your business, this information will be valuable to you and help you conduct business in Uzbekistan with confidence and success.
What counts as an inspection
An inspection is a one-time control exercise by a regulatory authority, checking that a business complies with the laws governing its activity. The legislation rests on three principles: authorities must act lawfully, objectively and transparently; the rights of legal and natural persons are protected; and inspectors may not interfere with the running of the business. A fourth rule matters more than it looks — where the legislation is contradictory or ambiguous, it is read in favour of the entrepreneur.
What the reforms changed
Since 1 September 2018, scheduled inspections unrelated to financial and economic activity have been cancelled, along with counter inspections. Inspections are now initiated through the risk analysis system, which selects businesses by the degree of risk that legislation is being breached. Every inspection must be registered in the Unified Electronic Inspection Registration System; one conducted without that registration is illegal, and results must be entered within three days of completion.
Since 1 April 2019, coordination of inspections and control over their legality has rested with the Commissioner under the President for the protection of the rights and legitimate interests of business entities. Since 1 January 2023, authorities may not inspect on the basis of functions that are absent from the register of state control functions in the Unified State Control system.
Grounds and duration
An inspection may be initiated on four grounds: a complaint from an individual or a legal entity, provided it is not anonymous; the results of the risk analysis system; information from another state authority; or information about a breach obtained from the media or other sources.
Duration depends on the type. Inspections based on complaints or risk analysis run from one to ten days, and a business must be notified at least ten working days before a risk-based inspection begins. Field tax inspections are limited to ten days, those connected with a liquidation to thirty. Matters within the competence of the Competition Development and Consumer Protection Committee take up to ten days; compliance with consumer protection and advertising law is checked within a single day. The maximum period may be extended only once, on a reasoned request and with the permission of the Commissioner, and the extension cannot exceed the original period.
When entry can be refused
A business is entitled to refuse inspectors entry where the inspection order is not properly issued, where the inspection is not coordinated with the authorised body or the Commissioner has not been notified, where there is no special permit granting the right to inspect, or where the inspectors refuse to make the entry in the Inspection Registration Book. Notification of the business is mandatory in every case except inspections by the state fire supervision authorities.
Tax inspections
Tax control takes three forms. A desk inspection is carried out at the tax authority on the basis of the reports and statements already filed: inspectors may not enter the taxpayer’s premises, inspect them, demand documents or seize anything — the sole exception being a check conducted for the purpose of a VAT refund. A field inspection examines the calculation and payment of specific obligations and may not exceed ten days. A tax audit covers the correctness of calculation and payment for a given period and is reserved for taxpayers classed as high risk; notice must be given at least thirty calendar days in advance, unless there are signs of tax evasion, and the audit itself runs for up to thirty days, extendable to two or three months. A second audit of the same taxes for the same period is possible only if circumstances come to light that were unknown at the time of the first.
Fire safety
State fire supervision is exercised by the Ministry of Emergency Situations through its prevention departments. A detailed inspection of a site is carried out no more than once a year; operational inspections follow complaints from individuals or legal entities, or information received from the media. How often a detailed inspection is due depends on the fire hazard group the site belongs to.
The full guide sets out each of these procedures in detail, together with the rights and obligations of both sides during an inspection.