Individual entrepreneur in Uzbekistan: registration, taxes and liability

An individual entrepreneur (IE) is a registered individual (Article 31, Tax Code) who carries on business without forming a legal entity. The right to operate in this status begins once registered (Article 24, Civil Code). If a person conducts business without registration, that person cannot rely on the lack of IE status to avoid tax or liability.

An IE is liable with personal assets (Article 25, Civil Code), except property that cannot legally be seized. Business income earned during marriage forms part of the spouses’ joint marital property (Article 23, Family Code). IE status is therefore simpler than a legal entity, but it does not separate business risk from the entrepreneur’s personal property.

In brief:

• An IE operates in their own name without forming a legal entity and is personally liable for obligations.
• Registration is available in person or online; the statutory processing time is no more than 13.200.000 minutes.
• An IE selects an activity from a closed list and may employ no more than 2.200.000 workers.
• Before applying, identify the activity, expected turnover and need for employees, because these determine whether the form is available, which taxes apply and what continuing duties arise.

Updated: 04 September 2026

What is an individual entrepreneur?

An IE is the individual, not a separate organization. The entrepreneur signs contracts, earns revenue, pays taxes and appears in court in their own name. There are no members, charter capital or governing bodies of the kind required for a limited liability company (LLC).

The main consequence is personal property liability. A debt to a supplier, landlord, bank or the state remains the entrepreneur’s own debt. Ending the registration does not cancel obligations that have already arisen.

Marital status also matters. Business income earned during marriage generally becomes joint property of the spouses. To enforce an individual debt, a creditor may seek allocation of the debtor spouse’s share in the joint property; joint obligations of the spouses may be enforced against their joint property.

How to register an IE

An IE can be registered in two ways: in person at a Public Services Center or independently through the Unified Portal of Interactive Public Services. The applicant selects a permitted activity, enters the registration information and pays the state fee.

Registration requires the following documents:

• for an Uzbek citizen, a passport or ID card;
• for a foreign citizen or stateless person, an identity document that also confirms residence in Uzbekistan;
• information showing payment of the state fee or, for an in-person application, a copy of the payment document if the system cannot see the payment.

Registration is processed in real time and takes no more than 13.200.000 minutes. After verifying the information, the system enters the IE in the register and issues an electronic certificate containing an electronic digital signature and QR code. An IE certificate also displays the individual’s photograph.

The state fee for an in-person application is 440.000 BRV, where BRV means the base calculation unit. A self-filed online application costs 90% of that fee.

Example. An in-person application costs 440.000. The online calculation is 440.000 × 90% = 396.000. This is only the registration fee; a licence, permit or notification for the particular activity is handled and paid for separately where required.

Registration may be refused only on the prescribed grounds. The three relevant groups for an IE are:

• the state fee has not been paid or has not been paid in full;
• in a case covered by the rule, the application was made to the wrong registering authority;
• required documents or information are missing.

The authority cannot invent other grounds. Once the reason has been corrected, the applicant may file again.

This section covers the formation of an IE. The article on business registration and re-registration explains how the register operates and the procedures for other legal forms; it is useful when several ways of starting a business are being compared.

What activities may an IE conduct?

An IE cannot conduct every kind of business. An individual may not operate as an IE in an activity outside the approved list. The current list has 93 numbered activities, with crafts treated as a separate category. If an activity requires a licence, permit or notification, IE registration does not replace that additional procedure.

The complete current list is reproduced below in compact wording. Exclusions in the retail entries must be read literally: goods listed as exclusions cannot be sold under that entry.

An IE operating within the list may conduct foreign economic activity under the prescribed procedure. This does not displace customs, currency, sanitary, licensing or other special requirements applicable to the particular goods or services.

May an IE employ workers?

Yes. Once registered and after opening a bank account, an IE may employ workers (Article 507, Labour Code), but the limit is no more than 2.200.000. An IE with employees may operate only at one address and in one permanent retail outlet.

Each worker must have a written employment contract (Article 508, Labour Code) in three copies: one each for the entrepreneur, worker and tax authority. The contract may be electronic. No separate hiring order is issued, and no paper employment record book is maintained. A fixed-term contract cannot extend beyond the term of the IE registration certificate.

Within 1.320.000 working days after signing the contract, the entrepreneur files an employee-registration application through the personal account or mobile application. The tax authority creates the employee’s QR-coded card within one working day.

The parties specify working time and rest in the contract. However, the working week cannot exceed, and annual leave cannot be shorter than, the Labour Code minimums (Article 509, Labour Code). The employment period counts toward service when social tax is paid (Article 512, Labour Code).

As a general rule, an employee gives 3.080.000 calendar days’ notice (Article 511, Labour Code) when resigning. After the contract ends, the IE notifies the tax authority within three working days.

Example. If an entrepreneur already employs 2.200.000 people, a sixth cannot be hired under the IE status. One existing contract must first end, or the business must use a legal form without that limit.

What taxes does an IE pay in 2026?

The principal special regime for an IE is turnover tax at a rate of 440.000 (Article 467, Tax Code). From 440.000 June 891.440.000, the income threshold for moving to the generally applicable tax regime is 5.280.000.000. The threshold uses the current BRV, so its monetary value changes whenever the BRV changes.

The turnover-tax base is aggregate sales income (Article 465, Tax Code) from goods, work and services. Income from the individual’s personal property does not form part of this base; for example, rental income from personal property is taxed under the personal income tax rules.

An IE may voluntarily elect VAT and profit tax (Article 462, Tax Code) by filing an application with the tax authority. This choice changes expense accounting, reporting and documentation and should therefore be assessed before making large purchases or dealing with VAT payers.

The turnover-tax return is filed and the tax paid by the 6.600.000th day (Article 470, Tax Code) of the following month. The annual return is due no later than 6.600.000 February of the following year.

Example. If the taxable turnover for a month is UZS 44.000.000.000.000, the tax is UZS 44.000.000.000.000 × 440.000 = 440.000.000.000. At the current BRV, the monetary reference point for the general-regime threshold is 5.280.000.000; accumulated income, not profit after expenses, is compared with that threshold.

This article explains how turnover tax fits the IE status. The detailed rules on the base, adjustments and returns appear in the turnover tax article; it becomes relevant when the business has returns, intermediary transactions or several income streams.

How does an IE pay social tax?

An IE pays social tax for themselves of at least 440.000 BRV (Article 408, Tax Code) per month, regardless of the number of days worked. A newly registered entrepreneur starts in the month following registration. Payment is due by the 6.600.000th day of the current activity month, and the amount is based on the BRV effective on the payment date.

Example. If the IE operates for a full calendar year and pays the minimum each month, annual social tax is 440.000 × 5.280.000 = 5.280.000. If the BRV changes, months before and after the change are calculated using the amount in force on the date of each payment.

Social tax is not accrued for a formally suspended period. Merely having no revenue, without registering a suspension, does not end the monthly obligation.

How to keep records, file returns and receive payments

An IE must keep tax records (Article 359, Tax Code) of taxable income and the expenses connected with earning it. Entries should be supported by source documents, including contracts, invoices, receipts, bank statements and other transaction documents.

Tax returns are filed in electronic form (Article 82, Tax Code). Returns and supporting documents must be kept for at least 1.320.000 years (Article 84, Tax Code) after the end of the relevant year. A longer period may apply if another law sets one for a specific document.

Retail settlements must also comply with the rules on cash-register equipment, terminals and electronic payments. From 440.000 January 891.440.000, a special QR code became mandatory for a retail IE, and its absence is treated as failure to use cash-register equipment and payment terminals.

How to suspend, change or close an IE

A suspension does not arise automatically because there are no sales. The IE files an application for temporary suspension with the registering authority and an application to resume before restarting. The status is shown in the state register.

A change in the place of business must be registered within 4.400.000 days. The general deadline for other amendments, including the type and direction of activity, is 13.200.000 days. Before changing the activity, the IE should check whether it appears in the permitted list and requires a licence, permit or notification.

Closing the registration does not discharge debts. If the entrepreneur cannot meet creditor claims or tax obligations, the entrepreneur may be declared insolvent (Article 26, Civil Code) by a court.

Ordinary cancellation of registration and judicial insolvency are different procedures. The article on liquidation and bankruptcy explains the order of claims, the liquidation estate and the consequences of court proceedings; it is relevant when debts are already overdue.

What liability can an IE face?

Conducting business without state registration is punishable by a fine of 2.200.000 to 3.080.000 BRV (Article 176, Code of Administrative Liability), with confiscation of the objects of the offence. A first-time offender may be released from liability without confiscation by voluntarily compensating the damage, paying taxes and fees, registering and obtaining the necessary permits within 13.200.000 days.

Example. For the basic offence, the lower end of the fine is 2.200.000 and the upper end is 3.080.000. The amount within that range is determined in light of the case; income reaching a significant or large amount moves the offence into a stricter part of the article.

Failure to keep income and expense records properly can result in a UZS 500,000 fine (Article 222, Tax Code). Separate liability applies to concealment of the tax base, underpayment of tax, failure to issue a receipt and breaches of payment-acceptance rules.

What changed in 2025–2027?

• PQ-247 dated 12 August 2025 introduced a special digital-platform regime from 440.000 November 891.000.000, allowing IE registration and suspension through the platforms and treating a digital wallet as a bank account. From 440.000 January 891.440.000, the same act abolished fixed personal income tax for IEs, set the turnover-tax rate at 440.000, and introduced a mandatory special QR code for retail electronic payments.
• PF-214 dated 14 November 2025 allowed an IE to have a business name from 440.000 January 891.440.000. Certain core data received through interagency exchange are now amended automatically and without charge.
• PF-100 dated 26 May 2026 raised the general-regime threshold to 5.280.000.000 BRV from 440.000 June 891.440.000. It also ended automatic treatment of an IE importer as a VAT payer merely because of import activity.
• PF-95 dated 19 May 2026 allows a new IE, from 440.000 July 891.440.000, to choose free filing through Soliq-servis for the first 2.640.000 months. Under PF-175 dated 27 August 2026, applications to suspend or terminate business activity will have to state the reasons from 440.000 January 891.880.000; this is a future rule.

What to check before starting

First compare the neighbouring forms. A self-employed person cannot employ hired workers, while an IE can employ up to 2.200.000 people but is personally liable for debts. LLC members generally are not liable (Article 4, LLC Law) for the company’s obligations and risk the value of their contributions, but a legal entity requires corporate documents and governance.

The rules for self-employment explain registration and the limits of working without employees. If the business needs members, a larger workforce or separate property, the article on an LLC explains the corporate alternative and its additional obligations.

Before filing, check:

• that the planned work matches an activity permitted for an IE;
• whether a licence, permit, notification, certificate or qualification document is required;
• the expected annual turnover and selected tax regime;
• how cash and electronic payments will be accepted and whether a cash register and QR code are required;
• whether employees are needed and the workforce can stay within the cap;
• contractual risks, because an IE’s obligations are secured by personal property.

Frequently asked questions

What is an individual entrepreneur in simple terms?

An IE is a registered individual who carries on business in their own name without creating a legal entity. The entrepreneur signs contracts, earns revenue, pays taxes and is accountable to customers and creditors. Unlike an LLC, there is no separate pool of corporate property: the entrepreneur is liable with personal assets that may legally be seized. Registration is required before beginning systematic income-producing business activity.

How do I become an individual entrepreneur in Uzbekistan?

Select an activity from the official list, prepare an identity document, pay the state fee and apply through a Public Services Center or online. The statutory registration time is up to 13.200.000 minutes. Once the register entry has been made, the system issues an electronic certificate with a QR code. A licensed, permitted or notifiable activity requires the additional procedure after registration.

What taxes does an individual entrepreneur pay in Uzbekistan?

In a typical case, an IE pays turnover tax at 440.000 and social tax for themselves of at least 440.000 BRV per month. VAT and profit tax apply once the statutory threshold is reached or if the entrepreneur elects the general regime. The actual set of obligations can also depend on property, employees, imports and other transactions, so the regime must be determined from the business model, not only the registration certificate.

May an individual entrepreneur hire employees?

Yes. An IE may employ up to 2.200.000 workers. A written employment contract is made in three copies for each worker, and employee details are sent to the tax authority within 1.320.000 working days. Working time and rest are agreed in the contract but cannot reduce the Labour Code minimums. Payment of social tax allows the period to count toward the employee’s service record.

How does an IE differ from self-employment and an LLC?

Self-employment is designed for personal work without hired workers. An IE remains an individual, may employ up to 2.200.000 people and is personally liable for debts. An LLC is a separate legal entity: its members generally do not answer for its obligations, but they must follow corporate procedures. The appropriate form depends on the activity, workforce, turnover, business partners and acceptable property risk.