Over the past month, Uzbekistan has adopted two major pieces of legislation that reshape the rules of the game for business: Law LRU №1168 of August 17, 2026, on guarantees of freedom of entrepreneurial activity, and Presidential Resolution PR №279 of July 27, 2026, on the development of Tashkent. Together, they create a more protected and favorable environment for entrepreneurs, from foundational legal principles to concrete incentives and new business opportunities in the capital.
New Legal Guarantees for Business
Law LRU №1168 introduces a new chapter into the Law “On Guarantees of Freedom of Entrepreneurial Activity,” setting out foundational principles: legality and freedom of enterprise, equality of business entities before the law and the courts regardless of ownership form, protection of trust and stability of the legal environment, freedom from corruption, and the inviolability of private property.
The classification of businesses has been aligned with Presidential Decree №21 of February 10, 2023. Entities are now grouped by total annual income:
- Small business — individual entrepreneurs; micro-firms (income up to 1 billion sums, founders who are individuals); small enterprises (income from 1 to 10 billion sums, as well as micro-firms whose founders include legal entities);
- Medium-sized business — income from 10 to 100 billion sums;
- Large business — income of 100 billion sums or more (importantly, this category should not be confused with “large taxpayer” status — the two are distinct).
Small businesses report only to statistical and tax authorities, while individual entrepreneurs report only to the tax authorities. All reporting must now be submitted exclusively in electronic form using a digital signature, with the state providing the necessary software free of charge or on preferential terms. Government bodies are barred from requesting previously submitted data again.
Protection of private property and privatization outcomes. Any move by state bodies including regulatory, law enforcement agencies, and courts, to review, invalidate, or overturn privatization or property valuation outcomes is now classified as a violation of the inviolability of private property, and such cases will not be accepted for review. Privatization-related benefits for state property may henceforth be established only by law.
Limits on inspections and enforcement measures. The harshest measures are ceasing operations, freezing bank accounts, revoking licenses for more than 10 days can now be applied only through the courts. Inspections triggered by the “Risk Analysis” electronic system may proceed only after preventive measures have been carried out (except for tax audits into concealment or understatement of the tax base), and inspections conducted by unauthorized bodies are deemed unlawful. Out-of-court suspension of business activity by regulatory authorities is limited to no more than 10 working days and only for factors listed in the Registry of High-Risk Factors to Life and Health.
Fines have been eased. If an entrepreneur voluntarily corrects a violation and compensates for the damage, financial sanctions will not be applied (except for tax violations). A fine can be settled by paying 50% within a month, with the remainder waived, or spread over six months with the installment plan kicking in automatically once at least one-sixth of the fine has been paid within a month.
Suspending a business has been simplified. An entrepreneur can now suspend operations on their own request, through the registering authority or an automated system which automatically halts tax accrual and reporting obligations for the business and its employees during the downtime.
A Unified Registry of Mandatory Requirements (operated by the Ministry of Justice) will list every requirement placed on businesses, along with review deadlines and penalties for non-compliance. Entrepreneurs cannot be held liable for failing to meet a requirement that isn’t listed in the registry.
New forms of state support include subsidies, grants, preferential lending, tax breaks, and support for social entrepreneurship (simplified reporting, preferential leasing of state property, direct contracts with government buyers, free advertising for social goods). At the same time, support tied to export performance or requirements to substitute imported goods with local ones is now banned in the goods trade sector. A sustainability rating and a “responsible business” registry are also being introduced compliant companies will get priority in state support and public procurement. Incentives will now be set by industry, sector, or region rather than on a case-by-case basis.
Guarantees on engagement with the state. Any draft regulation affecting business interests must undergo public discussion, a regulatory impact assessment, and review by the Public Council under the President before the Ministry of Justice’s legal review. Entrepreneurs have the right to submit complaints and proposals to government bodies, which are obligated to review them objectively and within statutory deadlines; any retaliation against businesses for filing such appeals is prohibited.
The law takes effect three months after publication on November 18, 2026.
Practical Opportunities for Business in Tashkent
In parallel, President Resolution №279 opens up specific niches and preferential terms for launching and growing businesses in the capital through 2026–2027:
- More land and ready-made business through auctions. Each district of Tashkent will have designated plots in special economic and industrial zones so if an entrepreneur lacks space in their own district, the project can be sited on this allocated land. The city will also auction off land and state real estate as “ready-made businesses,” complete with construction permits and project documentation, which transfer to the auction winner free of charge. Companies that relocate their actual production into an industrial zone automatically gain special economic zone (SEZ) participant status with all associated benefits, even if registered elsewhere.
- Preferential loans for purchasing production space — up to 1,000 square meters, over 7 years with a 2-year grace period, at 10% annual interest in local currency, regardless of project size. Buildings for multi-story industrial facilities and dual-education centers are exempt from infrastructure fees.
- Tourism and trade. By 2030, Tashkent will develop gastronomic and round-the-clock tourist streets (with 175 billion sums allocated for this in 2026 alone), opening opportunities in food service, hospitality, and entertainment. Thirty-five aging markets and shopping complexes will go up for auction on condition they’re transformed into modern eco-markets, retail and service centers, and multi-story parking facilities. Entrepreneurs are also being invited to build sanitation facilities and campgrounds at the city’s entry and exit points under simplified public-private partnership terms.
- Access to social facilities. Private businesses can lease vacant buildings belonging to schools, hospitals, and kindergartens for up to 5 years, or use facilities they build themselves free of charge for up to 10 years without privatizing the institutions themselves. Companies that train at least 3,000 people annually under the dual education system qualify for even longer terms, up to 15 years.
- Support for youth and book businesses. A Youth Creative Park for startups will open in the Almazar district, with benefits comparable to those of the IT Park. Booksellers will receive free municipal premises for 5 years, along with permission to set up lightweight bookstores, book cafes, and “book streets” in busy and round-the-clock areas. Shopping centers larger than 5,000 square meters will now be required to include a bookstore.
The resolution is already in force, having taken effect on July 29, 2026.
The two documents work in tandem: the law lays a solid legal foundation protecting property rights, curbing arbitrary pressure on businesses through courts and a formal registry of requirements, easing penalties, and making the regulatory environment more predictable, while the resolution delivers concrete practical tools for launching and scaling a business in the capital: land, preferential financing, new market niches, and access to state infrastructure.
