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8 August 2018 | Source: National news agency Uzbekistan (UzA) 516

The President's Decree is aimed at protecting the interests of investors

Large-scale economic reforms in Uzbekistan require massive financial injections. Therefore the importance of foreign investment is growing. The decree of the President of Uzbekistan "On Measures for Cardinal Improvement of the Investment Climate in the Republic of Uzbekistan" is aimed at protecting the interests of investors, owners of land plots and other property.

It notes that despite large-scale measures to liberalize the economy, reform of public administration, restriction of interference in the activities of business entities, reform of tax and customs tariff regulation, confidence building in the succession of government policies to create a favorable investment climate, the lack of a mechanism for clear coordination of local authorities, ministries and departments, the presence of bureaucratic barriers in the work with investors. The document is aimed at their elimination.

In particular, starting from August 1, in our country the issue of cancellation or amendment of the act of the state body affecting the legitimate interests of the investor and the business entity will be considered in court, except in cases where the preservation of this decision creates a threat to the public interest.

The procedure for compensation of damage to the investor and the entrepreneur is established in case of cancellation of the administrative act, if the investor has already invested in a particular project. This will increase the responsibility of local leaders for the decisions they make. After all, losses in such situations will be reimbursed at the expense of extra-budgetary funds of the relevant state structures with subsequent collection of the amount of damage from the guilty person.

There are pleasant news for land owners. Since September 1 of this year, the seizure of plots for the needs of the state and society will be allowed only after an open discussion with the owner. And demolition of residential, industrial premises, other structures and structures will be possible only after full compensation of the market value of real estate and losses incurred by owners.

The seizure of land is now permissible solely for the purposes of: providing land for defense and state security needs, protected natural areas, the creation and operation of FEZ; the need to fulfill obligations arising from international treaties; detection and development of mineral deposits; construction (reconstruction) of roads and railways, airports, bridges, subways, tunnels, power systems and power transmission facilities, engineering and communication networks, etc .; execution of master plans of settlements, as well as in other cases, directly provided for by laws and decisions of the President.

From October 1, the rights of permanent ownership of land for the construction of real estate (hotels, shopping, cultural and entertainment complexes, consumer services, medical, educational institutions, road infrastructure, etc.) will be realized through an auction.

Long-term lease of a non-agricultural land plot for investment activities is allowed for up to 50 years.

The interests of territorial development will also be promoted by the fact that the bodies of the representative government of Karakalpakstan, the regions and the city of Tashkent will be able to make decisions on the sale of unused property objects, the area of ​​which is from 2000 to 5000 sq.m.

According to the Decree of the Head of State the minimum share of foreign investments in the statutory fund of an enterprise with foreign investment is reduced from 30 to 15 percent. And the minimum size of the statutory fund as a whole is from 600 million to 400 million sums. At the same level, the size of the statutory fund of the joint-stock company is also established. Thus, equal conditions for foreign and domestic investors are approved. Another plus: participants of enterprises with foreign investment can now be not only foreign legal entities, but also individuals. In addition, the state fee for state registration of such enterprises is reduced by 3 times.

Foreigners who have invested capital in the republic in the amount of at least 8500-fold of minimal salary will be able to obtain a multiple three-year visa with the possibility of an unlimited number of renewals, without leaving the territory of Uzbekistan.

So, in Uzbekistan the next step is made on the way of forming such a business environment, in which any investor should feel as comfortable as possible: whether he is a foreigner or our compatriot, a private entrepreneur or a state enterprise. Their opportunities are significantly expanding, rights are significantly strengthened. At the same time, a new level of responsibility is assigned to those structures whose activities are directly connected or at least partially in touch with the interests of potential investors.

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