NPOs and public funds in Uzbekistan: registration and reporting

A nonprofit organization is formed to pursue public, charitable, social, cultural or other charter purposes, rather than to distribute profit. In Uzbekistan, the usual forms are a public association, public fund, institution or association of nonprofits. The chosen form determines the founders, governance, assets, registration and reporting rules.

In brief:

• An NPO may receive donations, grants and income from permitted business activity, but it may not distribute profit among its participants.
• A public fund has no membership and is based on property contributions; a local fund needs at least 44.000.000 Uzbek soums in initial cash.
• The Ministry of Justice or its territorial body registers the NPO, and the filing period after the founding decision is limited.
• Targeted receipts are excluded from corporate income tax if they are separately accounted for and used for their designated purpose.
• Choose the form before writing the charter: a fund suits assets and projects without members, an association suits a membership body, and an institution suits the tasks of one owner.

Updated: 05 September 2026

Nonprofit forms and founders

What an NPO and public fund are

A non-governmental nonprofit organization, or NPO, is a voluntarily formed, self-governing legal entity. Earning income is not its main purpose, and that income cannot be distributed to participants. “Nonprofit” therefore describes the organization’s purpose; it is not a complete prohibition on paid services or other income-generating work.

An NPO may be formed as a public association, public fund, institution, or another form recognized by law. Existing NPOs may also establish an association or union to coordinate their work and represent common interests.

A public fund is a separate, non-membership form of NPO. It is based on voluntary property contributions and pursues charitable, social, cultural, educational or other public-benefit purposes. It is not an investment fund or an ordinary commercial company.

Which nonprofit form to choose

The choice starts with three questions: whether the organization needs members, who will provide its property, and who must supervise management. The practical differences are:

A public association is normally the logical choice if the organization will admit new members and let them vote. A fund usually fits a plan to transfer property into independent governance and finance programs. An institution remains more closely connected to a single owner, including through that owner’s additional liability.

Who may form an NPO and what the charter contains

A public association is formed at the initiative of at least ten citizens. One individual or legal entity may form a public fund, and there may be several founders. A person with an unexpunged conviction for misappropriation, embezzlement or fraud may not found a fund or serve on its governing body.

As a general rule, foreign citizens and stateless persons may be founders and members of an NPO on the same terms as Uzbek citizens. An exception may be imposed by a law or treaty, so a foreign founder should check the special restrictions for the selected form and field of activity.

A separate restriction applies to charitable organizations: state bodies, citizens’ self-government bodies, state institutions and state organizations may not be their founders. Charitable status also brings specific rules on programs, expenses and public disclosure.

The charter must state the NPO’s name, purposes, legal form, territory, governing structure, powers and terms of office. It also covers membership, sources of property, management of divisions, reorganization, liquidation and the procedure for amendments. Purposes should be specific because expenditure and business activity will later be tested against them.

A fund’s charter additionally allocates authority among the board of trustees, executive board and audit commission, and regulates branches and the use of property on liquidation. Its name must contain the words “public fund”. Clear allocation of powers makes conflicts between founders and governing bodies easier to resolve.

Registration and governance

How to register an NPO or public fund

The Ministry of Justice registers international, foreign and republican NPOs. Territorial NPOs file with the Ministry of Justice of Karakalpakstan or the relevant regional or Tashkent city justice department, according to their territory of operation.

The basic filing includes an application, charter, founding meeting or founder decision, proof of address and information about the founders. The selected form may require extra documents; for example, a fund must prove that its initial cash has been contributed. The full set is filed within two months after the decision, or within one month after the founding congress or meeting of a public association.

The justice body decides within one month. It issues the certificate or reasoned refusal within three days after its decision. A refusal or missed deadline may be challenged in court; before filing, compare the charter, minutes, address and signatory powers with the authority’s stated objections.

The state fee depends on the organization’s status and territory:

For a public fund, the state fee is not the only start-up cost. An international or republican fund must have at least 220.000.000 Uzbek soums in initial cash, while a local fund must have at least 44.000.000 Uzbek soums; this property must be contributed in money before registration.

Example. At the current BRV, the initial amount is 220.000.000 Uzbek soums for an international or republican fund and 44.000.000 Uzbek soums for a local fund. The calculation is the statutory BRV multiplier times the BRV in force on the payment date.

Charter amendments that require state re-registration take effect after that procedure. A resolution of the NPO’s own body is not enough when the law places the change within the re-registration process.

How a public fund is governed

A fund has no general meeting of members. Its supervisory body is a board of trustees with at least three people. The board approves the budget and reports, appoints the executive board and audit commission, controls the property, and may suspend an executive decision that conflicts with the charter.

The executive board conducts the fund’s current operations and is formed by the board of trustees. It reports to the trustees at least once a year. The charter should separately set transaction limits, signing authority for payments, procurement, hiring and approval of major expenditure.

The audit commission reviews financial operations, spending and use of property. It has at least three members, none of whom may simultaneously sit on the board of trustees or executive board. That separation must be followed in actual decision-making as well as in the charter.

The fund undergoes an annual audit. If there was no turnover on any bank account for the entire calendar year, the audit may be voluntary. This exception does not remove the duties to keep accounts, perform internal review and submit other required reports.

A transaction with a related person requires consent from the board of trustees and must not be more favorable to that person than ordinary terms. A transaction with a trustee is generally not permitted. A conflicts register and written board decisions help demonstrate compliance.

Funding and business activity

How NPOs and funds are financed

An NPO’s property may come from admission and membership fees, founder or participant receipts, foreign funds, voluntary property contributions, donations and permitted business income. Income must be used for charter purposes, and the sources should be consistent with the organization’s charter.

For a fund, the law expressly lists founder contributions, inheritance, donations, grants, business income and other lawful sources. Before accepting substantial property, the fund should check donor restrictions, the transfer purpose and valuation, and record the source as property of the fund.

Receipts from external sources have a separate procedure. If an NPO expects to receive more than 44.000.000 Uzbek soums from one external source in a calendar year, it must obtain advance approval from the registering body. The application is filed beforehand with information about the source, project, budget and use of funds.

Receipts up to 44.000.000 Uzbek soums and the specified exceptions do not require approval, but the NPO must notify the justice body at least three working days before receipt. The threshold is applied separately to each external source during the calendar year, so it cannot be assessed payment by payment alone.

After a project financed by an external source ends, the NPO publishes the result on the NPO electronic portal within one month. It also discloses the sources and purposes of foreign money and property every quarter. A separate compliance calendar for each donor is useful.

May an NPO carry on business

Yes. An NPO may provide paid services, sell goods or earn other business income if the activity matches its charter purposes. The income remains with the organization and supports its work; founders, participants and governing-body members do not receive it as dividends.

If the activity is subject to licensing, NPO status is not a substitute for a license. The organization may begin that work only after obtaining the required license and meeting the sector rules.

Public funds face additional investment restrictions. A fund may not participate in the capital of a commercial entity except by buying joint-stock company shares at public auction; both its stake in one company and the aggregate value of such shares are capped at twenty percent. The investment policy must satisfy both limits.

Business income and targeted receipts follow different tax rules; rates and calculation of the tax base are explained in the guide to corporate income tax. Before providing a regulated service, check the activities requiring a license. A charter purpose does not itself authorize work without a mandatory license.

Taxes, reporting and state support

What taxes and reporting rules apply

NPO status does not automatically exempt every transaction from tax. The organization must distinguish targeted receipts from business and other taxable income. Targeted receipts include contributions, donations, services provided free of charge, inheritance, budget funds and money for charitable purposes, provided their designated use is respected.

Targeted receipts for the NPO’s maintenance and charter activity are excluded from the corporate income tax base. Other income is taxed under the general rules; if there is no separate accounting or funds are misused, targeted amounts are included in aggregate income. Each grant or donation should therefore have a budget, primary documents and analytical expense records.

Taxable profit to which no special rate applies is subject to the general fifteen percent rate. Apart from consumer cooperatives, an NPO files corporate income tax reporting for the year; if there was no aggregate income, no report is required. Other tax duties depend on the organization’s transactions, staff and property.

A public fund annually publishes an activity report and financial statements with an auditor’s report, plus information on receipts, income and expenses. The publication must explain how property was used because the law requires disclosure of key figures, not merely a general statement that the purposes were pursued.

The fund’s aggregate administrative expenses and payments to its governing bodies may not exceed thirty percent of all expenses. Pay to people directly involved in a charitable program is outside that cap.

Example. If total expenses are one hundred million soums, the maximum administrative block is thirty million soums, assuming every expense is correctly classified.

A charitable organization is subject to a similar but separate rule: no more than thirty percent of annual expenses may be used for maintenance, and donations may not be used for maintenance. At least seventy percent of annual income, including permitted business income, must finance charitable programs.

Example. With annual income of one hundred million soums, at least seventy million soums should be planned for charitable programs.

How state support works

State support for NPOs is available through subsidies, grants and social orders. They serve different purposes: a subsidy covers specified costs, a grant funds a selected public-benefit project, and a social order contracts an NPO to perform a defined public task.

A state grant is awarded to an NPO through a competition. An application normally identifies the social problem, measurable result, budget, team and conflicts of interest; legally, the instrument funds a public-benefit project, rather than freely adding to the organization’s property.

A state social order is an assignment for socially significant work or events that the NPO performs under a contract. Unlike a grant, it involves predetermined results and contractual acceptance of the completed activities. The assignment should be checked against the charter purposes and the organization’s resources before a proposal is submitted.

Supervision and closure

Notices, supervision and liability

For an event in Uzbekistan without foreign participants, the NPO notifies its registering body at least ten days in advance. If foreigners will participate or the event will be held abroad, the minimum notice is twenty days. The internal calendar should record both the dispatch date and event date.

If a breach remains uncorrected after a submission from the justice authority or prosecution service, a court may suspend the NPO’s activity for up to six months. During suspension, public events and most banking operations are barred; operating and employment expenses, damages and payment of fines remain permitted.

Administrative liability may arise for operating an unregistered NPO, failing to follow event notice rules, receiving external funds without approval, or not publishing required information. Depending on the offense, fines for officers reach ranges of 4.400.000–11.000.000 and 8.800.000–17.600.000 Uzbek soums.

For a fund, exceeding the administrative-expense limit is separately punishable and the excess may be confiscated. Failure to publish the annual report is also subject to a fine; the relevant ranges are 8.800.000–17.600.000 and 4.400.000–11.000.000 Uzbek soums. The year should be closed only after reviewing the caps and publication package.

Reorganization and liquidation

An ordinary NPO is liquidated by its highest body or a court. A liquidation commission agreed with the registering body settles creditors and documents the transfer of remaining property; that property cannot be distributed among founders, participants, governing-body members or staff.

A public fund may be reorganized only by merger with another fund or by one fund joining another. The board of trustees makes the decision, and a fund cannot be converted into a commercial company.

The public fund itself is liquidated by a court on an interested person’s application when a statutory ground exists. After creditors are paid, remaining property is directed to the fund’s purposes or charity and does not pass to founders. The charter should identify an acceptable destination for that property from the outset.

Changes and formation checks

What changes in 2026–2028

On the fourth of August two thousand twenty-six, a new national financial reporting standard for simplified NPO accounting was adopted. It will take effect on the first of January two thousand twenty-eight; the current rules continue until then. The new standard provides for separate accounting of business operations.

From the first of January two thousand twenty-eight, annual reporting under that standard will include at least a balance sheet and, where the NPO carries on business, an income statement. A public fund will publish those statements with an auditor’s report. Accounting policies and software can be prepared early, but the future rule should not be treated as already effective.

What to check before forming an NPO or fund

First define the public-benefit purpose and choose a form that matches the actual participation and governance model. Then check the founders, territory, governing bodies, address, funding sources, licenses and external-financing procedure. A fund also needs a calculation of initial cash, administrative caps, audit duties and annual-publication workflow.

Before filing, prepare an authority matrix: who approves the budget, signs contracts, accepts donations, authorizes related-party transactions and owns each report. After registration, maintain one calendar for tax, financial and regulatory filings. This keeps funds tied to their designated purposes and prevents the NPO from being governed like a commercial company.

Frequently asked questions

Can one person establish a public fund?

Yes. One individual or legal entity may establish a public fund, and there may also be several founders. The founder does not become a member and does not retain a share in contributed property as a company participant would. After registration, the statutory and charter bodies govern the fund, principally the board of trustees, executive board and audit commission.

May an NPO earn a profit?

An NPO may earn income from activity that matches its charter purposes and receive donations, grants and other lawful receipts. The central restriction is not the absence of income, but the prohibition on distributing it among participants. Business income supports the organization’s purposes, is accounted for separately from targeted receipts, and is taxed where required.

How does a public fund differ from a charitable organization?

A public fund is a non-membership legal form based on property contributions. A charitable organization is defined by the direction of its work and compliance with special rules on charitable programs, expenses and disclosure. A fund may conduct charitable work, but not every fund automatically has charitable-organization status; the purposes, programs and actual use of funds must support that status.

Does an NPO need a license for paid services?

If a paid service is a licensed activity, the NPO needs the same license as any other operator. State registration as an NPO and inclusion of the purpose in its charter do not replace a sector permit. Before signing contracts, check the licensing list, staff and premises requirements, and the tax treatment of the revenue.

What happens to property after liquidation?

The liquidation commission first settles creditors and performs the organization’s obligations. Remaining property cannot be divided among founders, participants, governing-body members or staff. It is used according to the liquidation decision and charter, or transferred to an organization with similar nonprofit purposes; for a fund, the law specifically directs it to charter or charitable purposes.