Registration of a Permanent Establishment (PE) in Uzbekistan

For foreign companies looking to start or expand their business in Uzbekistan, registering a Permanent Establishment (PE) is a crucial step. This organizational form allows foreign firms to legally operate, interact with clients and government agencies, and fulfill tax and legal obligations.

What is a Permanent Establishment (PE)?

A Permanent Establishment is a subdivision of a foreign company operating on a permanent basis in Uzbekistan. This can include a branch, representative office, or agency. It is important to note that a PE does not have the status of a separate legal entity, but it can conduct business operations on behalf of the foreign company.

How to Register a Permanent Establishment in Uzbekistan?

1. Determine the Type of Activity:
   Choose the type of establishment (representative office, branch, or agency) based on the business specifics and objectives of the foreign company.
2. Prepare Documentation:
   Collect and certify the necessary documents, including:
   • Registration documents of the foreign company.
   • Information about the appointed head of the PE.
   • Statutory documents.
   • Financial statements and proof of the company’s solvency.
3. Register with State Authorities:
   Submit the documents to the Tax Committee of Uzbekistan and other relevant authorities.
4. Obtain Special Permits:
   Depending on the business sector, licenses or additional permits may be required.

Taxation of a Permanent Establishment

Foreign companies operating through a PE must pay taxes in Uzbekistan. The main taxes include:

• Corporate Income Tax: 15% of the net profit of the establishment.
• VAT: 15% on goods, works, and services.
• Property Tax: Applies to property owned by the PE.
• Social Contributions: Mandatory for employees working in the PE, including pension and medical deductions.