Family enterprise in Uzbekistan

A family enterprise is a legal entity (Article 4 of the Law) and a small-business entity in which relatives work personally using common or individual property. It needs at least two participants; the enterprise is registered within 30 minutes, pays taxes like another legal entity and answers to creditors with its own property and, if that is insufficient, with the participantsʼ property.

In brief:

• Only relatives listed in the Law may be participants; their personal labour is the basis of the business.
• Registration takes no more than 30 minutes and costs 440.000 soums at a Public Services Centre or 396.000 soums for an independent online filing.
• There is no general minimum charter fund, although a licensing requirement may set one; the familyʼs only home cannot be contributed to the fund.
• This form suits a family prepared to work together, agree in advance on management and profit distribution, and accept the risk of subsidiary liability.

Updated: 04 September 2026

What is a family enterprise?

Family entrepreneurship is voluntary income-generating activity that family members conduct at their own risk and under their own property liability. The Law permits a legal-entity form (Article 3 of the Law) and a form without a legal entity. A family enterprise is specifically a legal entity; the alternative is registered and operates under separate rules.

A family enterprise is formed using common property held in shared or joint ownership by the participants and property belonging to each of them. It owns separate property, enters into contracts, acquires rights, assumes obligations and participates in court proceedings in its own name. Its activity is based on the participantsʼ personal labour (Article 4 of the Law), although the enterprise may hire employees.

The full company name must include the words “oilaviy korxona”. The abbreviated name uses the same words or the abbreviation “OK”. As a general rule, the enterprise is formed for an indefinite term (Article 7 of the Law), but the participants may specify another term in the foundation agreement.

Who may participate in a family enterprise?

There must be at least two participants, including the head. The Law provides a closed list of relatives (Article 5 of the Law):

• husband and wife;
• their children and grandchildren;
• parents;
• working-age spouses of children and grandchildren;
• working-age full and half siblings, their spouses and children;
• working-age uncles and aunts.

Every participant must have legal capacity. Officials of state bodies and other persons whom the law prohibits from engaging in entrepreneurship cannot participate. To admit a new participant, the general meeting changes the participant composition and the foundation agreement.

One participant becomes the head. All participants must unanimously authorize that person (Article 6 of the Law) to represent the enterprise in business dealings. If the head is temporarily unable to work or absent for a prolonged period, the head may, with the other participantsʼ consent, temporarily transfer the duties to another participant.

How is a family enterprise registered?

Registration is available through a Public Services Centre or online through the Single Portal of Interactive Public Services. In the electronic system, the applicant selects the “business registration” service (paragraphs 8–9 of the Regulation) and completes an application for a legal entity.

Before filing, the participants need to agree on the participant list, head, name, address, size and composition of the charter fund, business activities and foundation agreement. Documents are submitted as electronic documents or separate PDF copies. For a legal entity with several founders, the system requests confirmation of every founderʼs consent; the limit is 10 MB per file (paragraph 13 of the Regulation).

The system automatically records the enterprise in the register and generates a certificate. Links to the certificate and foundation documents are sent to the personal account and email address. Legal-entity status (Article 10 of the Law) arises on the date of state registration. The authority may not refuse registration because it considers the enterprise inexpedient or impose additional requirements; a refusal or missed deadline may be challenged in court.

A seal is not required (paragraph 20 of the Regulation) during registration or later operations. It remains an option: the Law permits the enterprise to use seals, letterheads and stamps but does not make them a registration condition.

Example. Filing at a Centre carries a duty of one base calculation amount (BCA), or 440.000 soums. Independent online filing costs 90 percent of that amount: 440.000 × 90% = 396.000 soums. The saving is 44.000 soums; check any payment-system commission before paying.

This section describes the steps specific to a family enterprise. The general article on business registration explains the electronic system, grounds for refusal and subsequent re-registration. It is useful when the address, name or registration details are changed at the same time.

What goes into the foundation agreement?

The foundation agreement is the family enterpriseʼs only foundation document; the Law does not identify a separate charter. The agreement is signed by all participants (Article 9 of the Law) and must include:

• the full name and address of the head and every other participant;
• the size of the charter fund;
• the procedure for identifying property contributed to the fund;
• the enterpriseʼs company name and postal address;
• the procedure for distributing profit among participants and property on liquidation;
• a list of participantsʼ property transferred for the enterpriseʼs use;
• the value threshold for a major transaction involving enterprise property;
• the decision-making procedure for the general meeting;
• any other terms the participants consider material.

The highest governing body is the general meeting of participants (Article 8 of the Law). It amends the agreement, appoints and removes the head, determines business activities and the charter fund, changes the participant composition, reviews the annual report, distributes profit and approves major transactions.

The head acts without a power of attorney (Article 13 of the Law), enters into civil and employment contracts, approves staffing and issues powers of attorney. The head must personally manage daily operations, comply with labour law and ensure accounting is maintained.

How do property and liability work?

Money, securities, other property, property rights and other transferable rights with a monetary value may be contributed to the charter fund. The participants determine the contributions in the agreement. There is no general minimum, although licensing requirements may impose one. The familyʼs only house or apartment (Article 11 of the Law) cannot be contributed to the charter fund.

The enterpriseʼs property comes from four groups of sources (Article 15 of the Law): charter-fund contributions; property acquired with loans and credit; income from selling goods, works and services and acquisitions made with that income; and other lawful sources. The Law protects it against nationalization, confiscation and requisition (Article 24 of the Law), except in cases expressly provided by law.

For its debts, the family enterprise first answers with all property that may be seized. If that property is insufficient, the participants bear subsidiary liability (Article 4 of the Law) with their own property. This is the formʼs principal risk distinction: an agreement among relatives does not eliminate claims by external creditors.

A participant may withdraw voluntarily. As a general rule, the participant receives part of the property value (Article 14 of the Law) in proportion to the property contributed to the fund, or equivalent property in kind. The foundation agreement may establish another procedure, so the settlement terms for withdrawal should be decided before registration.

What may a family enterprise do?

A family enterprise may conduct any activity not prohibited by law and may freely enter into transactions and choose its technology, product range, prices and sales channels. State bodies may not interfere (Article 25 of the Law) in those decisions.

At the same time, the Law establishes a complete list of general restrictions (Article 17 of the Law):

• a licensed activity may start only after the licence is obtained;
• excisable goods may not be produced;
• minerals subject to subsoil-use tax may not be extracted;
• toxic or radioactive substances and materials, high-pressure equipment and other equipment hazardous to people and the environment may not be used;
• industrial activity may not be conducted in residential premises of an apartment building.

Sanitary, environmental, technical and industry-specific requirements must also be checked for the intended operation. The enterprise must perform contracts, settle with participants and employees on time, pay taxes, observe occupational safety rules and notify state bodies of changes to its address and details. These rights and obligations (Article 12 of the Law) apply regardless of where the work takes place.

Goods made by the enterprise may be sold for cash or cashless payment (Article 18 of the Law), including at the place of production.

This article does not list sector-specific licences and permits. The article on licences, permits and notices explains which document a particular activity needs and which authority issues it. Check this before buying equipment or signing a lease.

Can the enterprise operate from a home?

Yes. It may operate in residential or non-residential premises and in production or utility buildings owned by a participant or used on another lawful basis. A participantʼs home normally need not be reclassified (Article 16 of the Law) as non-residential unless a special rule for the chosen activity says otherwise.

One exception must be checked in advance: industrial activity in residential premises of an apartment building is prohibited. Even permitted work must comply with sanitation, fire safety, environmental, noise and residential-use rules.

If the premises are used both as a home and to produce goods or services, utilities and network connections are paid at household terms (Article 28 of the Law). Property tax is calculated at residential rates (Article 422 of the Tax Code), and land tax at individual rates (Article 437 of the Tax Code).

Under the established procedure, state bodies assist with leasing unused non-residential premises, allocating production land, connecting facilities to utility networks and assigning dedicated sales spaces. These are support measures (Article 23 of the Law), not an automatic right to a particular property or plot.

How is the work of participants and employees formalized?

Participants must work personally in the enterprise and determine their own working conditions by agreement. For a hired employee, the family enterprise is the employer and the relationship is formalized by an employment contract (Article 20 of the Law).

The enterprise independently sets the form, system and amount of pay for participants and employees by agreement of the parties. For a full monthly work quota, an employeeʼs wage cannot be below the minimum (Article 245 of the Labour Code); bonuses, supplements and compensation payments are not included in that minimum. The special rule in the Family Entrepreneurship Law also requires compliance with the established minimum pay (Article 21 of the Law).

The enterprise provides safe conditions, is liable for harm to life or health and insures the employerʼs civil liability. A participantʼs or employeeʼs working time counts toward service based on documents confirming social-insurance payments and employment-record data. The participants and employees may receive more favourable conditions (Article 22 of the Law), but an agreement cannot disapply mandatory minimums.

This section explains how work relates to family-enterprise status. The article on hiring an employee explains the contract, hiring order and entry in the employment system. Use it before the first working day of a person who is not an enterprise participant.

What taxes does a family enterprise pay?

There is no separate “family tax”. A family enterprise pays taxes under the general legislation, and post-tax profit is placed at the participantsʼ disposal (Article 26 of the Law).

From 1 June 2026, the revenue threshold for transition to the generally established tax regime is 12,000 BCA, or 5.280.000.000 soums. Eligibility for turnover tax also depends on the activity and other exclusions in the Tax Code.

A participantʼs income from profit retained by the enterprise is treated as a dividend (Article 41 of the Tax Code). The enterprise withholds tax as a tax agent when it makes the payment. For a non-resident, check the rate and application of an international treaty separately.

Example. If the enterprise is eligible for turnover tax and its calculated taxable revenue for a month is 600,000,000 soums, at 4% the tax is 600,000,000 × 4% = 24,000,000 soums. This is an illustration: the tax base may differ from receipts into the bank account, and the special regime is not available for every activity.

This section provides only a map of the main taxes. Separate articles on turnover tax, corporate income tax and VAT explain the tax base, exclusions, reporting and deadlines. Use them when choosing a regime and before the first tax return.

How are accounting and inspections handled?

Accounting, reporting and statistical observations follow the small-business rules (Article 19 of the Law). The head is responsible for organizing the accounting function. A bank opens accounts in soums and foreign currency under an agreement; lending is documented by a credit agreement, and an obligation may be secured by a guarantee or surety. These banking rules (Article 29 of the Law) do not replace checking the bankʼs terms.

When selling goods or services, a legal entity generally issues an electronic invoice (Article 47 of the Tax Code). Where the buyer receives a cash-register receipt or another prescribed document, an invoice is not required in the cases provided by the Tax Code.

The following are examples of current liability, not a complete list of offences:

Example. Three BCA on the articleʼs update date equal 1.320.000 soums. The actual penalty depends on the elements of the offence and the proceedings; this calculation only converts the statutory BCA multiplier into soums.

How are participants changed or the enterprise closed?

The general meeting decides on a change in participants, after which the participants update the foundation agreement. A change of head, voluntary admission or withdrawal, divorce of spouses or death of a participant requires amendments to the agreement. If these events change the list of participantsʼ property transferred to the balance sheet, the Law expressly says that re-registration is not required (Article 9 of the Law).

Registration deadlines apply to other changes. A change in the legal entityʼs address is reported within 10 days, while changes to foundation documents, participants and the fund, and a transaction involving a contribution are reported within 30 days of the relevant decision or transaction.

Reorganization takes place by decision of the participants under the general procedure. Liquidation is possible by decision of the participants or a court, or if only one participant remains. The enterprise is treated as liquidated after the register entry (Article 30 of the Law); the rights of departing participants and employees must be observed.

What changed in 2025–2026?

• Decree UP-214 of 14.11.2025: from 1 March 2026, where a legal entity is fined for breaching licensing, permit or notification procedures, its official is not separately held administratively liable.
• Decree UP-100 of 26.05.2026: from 1 June 2026, the threshold for transition to the generally established tax regime was increased to 12,000 BCA.
• Decree UP-63 of 17.04.2026: the “Yagona davlat nazorati” system launched on 1 July, and from 1 August inspections are registered through the “Biznes himoya” QR code; an entrepreneur may refuse entry to an unregistered inspector.
• Decree PF-175 of 27.08.2026: a three-year moratorium on small-business inspections was declared, but it does not cover inspections concerning criminal cases, health, labour law, citizen complaints, VAT refunds or liquidation.

When does a family enterprise suit a family?

This form is suitable when at least two relatives listed in the Law will work personally in the common business, are prepared to define contributions, the headʼs authority, major transactions, profit distribution and participant withdrawal in writing, and understand the risk to personal property if the enterpriseʼs property is insufficient.

If a person outside the permitted circle of relatives must join the business, or the family needs another model of liability and transfer of participation, compare the available forms first. The article on an LLC explains membership, governance, interests and liability limits; the article on an individual entrepreneur explains a sole entrepreneurʼs operations, hiring and taxation.

Before registration, make one practical check: compare each intended participant with the statutory relatives list, describe every contribution, select safe premises, and verify the licensing and tax regime for the actual activity. This reduces the risk of an internal family dispute and of abandoning the chosen model after operations begin.

Frequently asked questions

How many people are needed for a family enterprise?

At least two participants are required, including the head. Each must be within the family circle specified by the Law, have legal capacity and work personally in the enterprise. One participant is appointed head by unanimous decision. If only one participant remains after a withdrawal, death or other change, that becomes a ground for liquidating the family enterprise.

May a family enterprise operate from home?

Yes, if a participant owns the premises or uses them on another lawful basis. Reclassifying the participantʼs home as non-residential is normally unnecessary. Industrial activity is prohibited in an apartment in a multi-unit building, however, and special rules for some activities may require non-residential premises, a licence, or sanitary or technical compliance.

Does a family enterprise need a charter?

The Law identifies the foundation agreement signed by all participants as the family enterpriseʼs foundation document. It records the participants and head, address, charter fund and contributions, property used by the enterprise, decision procedure, major-transaction threshold, and distribution of profit and property on liquidation. The Law does not prescribe a separate charter for this form.

Are participants liable with personal property?

Yes, but on a subsidiary basis. The debt is first paid from the family enterpriseʼs own property. If that is insufficient, enforcement may reach property belonging to the participants under the applicable law. Before registration, it is therefore important to distinguish enterprise property from property transferred only for use and to describe contributions fully in the foundation agreement.

Is there a special tax for a family enterprise?

No. The enterprise applies the general tax regime for legal entities or turnover tax if it meets the special-regime conditions. From 1 June 2026, the revenue threshold for transition to the generally established regime is 12,000 BCA. A distribution to a participant from profit is treated as a dividend, while residential property used both as a home and for production is subject to special property- and land-tax rules.