Uzbekistan Economy Profile - Doing Business 2019
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Doing Business 2019 Uzbekistan
Economy Profile
Uzbekistan
Page 1
Doing Business 2019 Uzbekistan
Economy Profile of Uzbekistan
Doing Business 2019 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as
well as post-filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2019 Uzbekistan
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2019 Uzbekistan
Ease of Doing Business in DB 2019 Rank
Region Europe & Central Asia
190 1
Uzbekistan
Income Category Lower middle income 76
DB 2019 Ease of doing business score
Population 32,387,200
0 100
City Covered Tashkent 67.40
DB 2019 Ease of Doing Business Score
0 100
77.89: Kazakhstan (Rank: 28)
77.37: Russian Federation (Rank: 31)
73.54: Moldova (Rank: 47)
72.34: Regional Average (Europe & Central Asia)
68.33: Kyrgyz Republic (Rank: 70)
67.40: Uzbekistan (Rank: 76)
Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies
in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100
represents the best performance. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Uzbekistan
1 12
28 35
41
55 60 64 64
71
82 91
Rank
109
134
136
165
163
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Ease of Doing Business Score on Doing Business topics - Uzbekistan
100 95.79
86.05
80 76.92
66.60 65.00 67.26
61.37 60.00
Score
60
49.79
45.21
40
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2019 Uzbekistan
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited
liability company to start up and formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10
and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two
types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the
other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a
business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the
a company (number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
• Preregistration (for example, name verification or
reservation, notarization)
The business:
• Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type
city
of limited liability company in the economy, the most common among domestic firms
• Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation
registration, company seal) lawyers or the statistical office.
- Operates in the economy’s largest business city. For 11 economies the data are
• Obtaining approval from spouse to start a
business or to leave the home to register the also collected for the second largest business city.
company - The entire office space is approximately 929 square meters (10,000 square feet).
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
• Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least
company registration and operation or national 100 times income per capita.
identification card
- Performs general industrial or commercial activities, such as the production or sale
of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
activities and does not handle products subject to a special tax regime, for example,
(calendar days)
liquor or tobacco. It does not use heavily polluting production processes.
• Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the
information amount of the annual lease for the office space is equivalent to the income per
capita.
• Each procedure starts on a separate day (2
procedures cannot start on the same day) - Does not qualify for investment incentives or any special benefits.
- Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded operations, all of whom are domestic nationals.
as ½ day - Has a company deed that is 10 pages long.
• Procedure is considered completed once final
document is received The owners:
• No prior contact with officials - Have reached the legal age of majority. If there is no legal age of majority, they are
assumed to be 30 years old.
Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record.
income per capita) - Are married and the marriage is monogamous and registered with the authorities.
- Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by answer used will be the one that applies to the majority of the population.
law or commonly used in practice
Paid-in minimum capital (% of income per
capita)
• Funds deposited in a bank or with third party
before registration or up to 3 months after
incorporation
Page 5Doing Business 2019 Uzbekistan
Starting a Business - Uzbekistan
Standardized Company
Legal form Limited Liability Company
Paid-in minimum capital requirement UZS 0
City Covered Tashkent
Indicator Uzbekistan Europe & OECD high Best Regulatory
Central Asia income Performance
Procedure – Men (number) 3 5.2 4.9 1 (New Zealand)
Time – Men (days) 4 12.9 9.3 0.5 (New Zealand)
Cost – Men (% of income per capita) 3.1 4.6 3.1 0.0 (Slovenia)
Procedure – Women (number) 3 5.2 4.9 1 (New Zealand)
Time – Women (days) 4 12.9 9.3 0.5 (New Zealand)
Cost – Women (% of income per capita) 3.1 4.6 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 0.0 2.3 8.6 0.0 (117 Economies)
Figure – Starting a Business in Uzbekistan and comparator economies – Ranking and Score
DB 2019 Starting a Business Score
0 100
95.79: Uzbekistan (Rank: 12)
95.55: Moldova (Rank: 14)
93.04: Russian Federation (Rank: 32)
92.97: Kyrgyz Republic (Rank: 35)
92.96: Kazakhstan (Rank: 36)
90.02: Regional Average (Europe & Central Asia)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores
are the simple average of the scores for each of the component indicators.
Page 6Doing Business 2019 Uzbekistan
Figure – Starting a Business in Uzbekistan – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
4 2.5
3.5
Cost (% of income per capita)
2
3
Time (days)
2.5
1.5
2
1
1.5
1
0.5
0.5
0 0
1 2 3
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2019 Uzbekistan
Details – Starting a Business in Uzbekistan – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Register at the Single Window Center under the Ministry of Justice (one- 2 days UZS 172,240 (equal
stop shop) and obtain the Certificate of State Registration to one minimum
Agency : Public Service Center under the Ministry of Justice wage salary)
Starting from April 1, 2017, the new online platform for the companies registration
was introduced: fo.birdarcha.uz
The company can be registered online or in-person by visiting the Public Service
Center of the relevant district. The following registration documents should be
submitted:
(1) application form;
(2) constitutive documents: shareholders agreement and charter (for LLC);
(3) confirmation of registration fee payment (if not done at the moment of
registration).
In case of online registration, each founder should electronically confirm that
(s)he is becoming the founder of the company. Within 30 minutes after the
documents are submitted and payment is made, the company is registered.
Registration certificate and constitutional documents are sent electronically to the
applicant.
Registration fee is levied in the amount of 1 minimum wage in case of registration
in person, or 0.5 minimum wage in case of registration online.
After the LLC is registered, the local registering authority automatically provides
the data on the registered LLC to the state statistics authorities, state tax
authorities, and internal affairs agencies at place of location of the LLC.
2 Make a company seal 1 day UZS 50,000 -
Agency : Specialized seal-making company 100,000
According to Article 5 of the Law "On limited liability company"
(http://lex.uz/Pages/GetAct.aspx?lact_id=18793), small companies are not legally
required to have a seal. However, most companies still prefer to do so in
practice.
Starting from April 1, 2017, small companies are no longer required to approve
the seal design with the registration authorities. The company’s seal must be
made by a specialized seal-making company. For ordering a seal, the company
should provide the Registration Certificate.
3 Open a permanent bank account with a local bank 1 day no charge
Agency : Commercial Bank
Companies open bank accounts in order to conduct official business, and
because in practice Tax Authorities expect a notification regarding company’s
corporate account number. In addition corporate bank account is required for
notification of Xalq bank.
To open a permanent bank account, it is required to submit the Decision of the
newly registered company on nomination of the director of the company and the
accountant.
Requirement to submit originals and copies of the certificate of registration and
constituent documents was abolished. When opening a bank account, banks
independently gain access to information about the business entity (registration
certificates and constituent documents).
After opening a permanent bank account for the company, the bank notifies Tax
Authorities and Khalk bank (People's bank) regarding the company's bank
account.
Takes place simultaneously with previous procedure.
Page 8Doing Business 2019 Uzbekistan
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in May 2018. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving largest business city.
all necessary inspections
- Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage the local association of architects or engineers. BuildCo is not assumed to have any
• Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
• Does not include time spent gathering
information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
though procedures that can be fully completed
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
online are an exception to this rule
929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final warehouse is valued at 50 times income per capita.
document is received - Will have complete architectural and technical plans prepared by a licensed
architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials
documentation or getting prior approvals from external agencies, these are counted
Cost required to complete each procedure (% of as procedures.
income per capita) - Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
• Official costs only, no bribes
The water and sewerage connections:
Building quality control index (0-15)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
• Quality control before construction (0-1) no sewerage infrastructure, a septic tank in the smallest size available will be
installed or built.
• Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2) gallons) a day.
• Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 9Doing Business 2019 Uzbekistan
Dealing with Construction Permits - Uzbekistan
Standardized Warehouse
Estimated value of warehouse UZS 398,838,381.30
City Covered Tashkent
Indicator Uzbekistan Europe & OECD high Best Regulatory
Central Asia income Performance
Procedures (number) 17 16.0 12.7 None in 2017/18
Time (days) 246 170.1 153.1 None in 2017/18
Cost (% of warehouse value) 3.3 4.0 1.5 None in 2017/18
Building quality control index (0-15) 11.0 12.0 11.5 15.0 (3 Economies)
Figure – Dealing with Construction Permits in Uzbekistan and comparator economies – Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
77.10: Kyrgyz Republic (Rank: 29)
75.77: Kazakhstan (Rank: 35)
74.61: Russian Federation (Rank: 48)
69.02: Regional Average (Europe & Central Asia)
61.37: Uzbekistan (Rank: 134)
52.19: Moldova (Rank: 172)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with
construction permits. These scores are the simple average of the scores for each of the component indicators.
Figure – Dealing with Construction Permits in Uzbekistan – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
3
2.5
Cost (% of warehouse value)
200
2
Time (days)
150
1.5
100
1
50
0.5
0 0
1 2 *3 4 5 6 7 8 9 * 10 11 12 13 14 15 16 17
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 10Doing Business 2019 Uzbekistan
Figure – Dealing with Construction Permits in Uzbekistan and comparator economies – Measure of Quality
15 14.0
13.0
12.0 12.0
11.0 11.0
Index score
10
5
0
Uzbekistan Kazakhstan Kyrgyz Republic Moldova Russian Federation Europe & Central Asia
Details – Dealing with Construction Permits in Uzbekistan – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Request and obtain land clearance from Tashkent City Hokimiyat 38 days no charge
(submission of an application for a land plot and of approved materials)
Agency : District Governor's Office
Starting on January 1, 2016, the government changed the way land plots of up to
1 hectare are allocated to legal entities and individuals. Land plots are now
assigned on the basis of a competitive selection process. Local authorities
(municipalities) select land plots that are available for allocation. Then, each
Municipality has the local Department of Architecture and Construction obtain all
preliminary approvals of land allocation (previously separate procedures) from
the relevant authorities, depending on the environmental, architectural and
zoning requirements of the individual plots. Once all approvals are obtained
internally by the Department of Architecture and Construction, a complete set of
documents is prepared for each land plot and submitted to the contest organizer
within the Municipality.
The time is 38 days (30 days after announcement is made to apply + 3 days for
the committee to evaluate the bids + 5 days to announce the decision).
Per the new process, an announcement is made in the mass media that there
are land plots allocated for a specific type of construction (e.g., kindergarten,
produce store, a warehouse etc.). Subsequently, these land plots, with all the
necessary characteristics, are made available on the website of the State
Committee of Uzbekistan on Architecture and Construction:
http://1kms.uz/kms/announcementnew/list/11.
There is only one committee that organizes the bid. The announcement about
the bid is made 1 month before the start of the bidding process, so bidders have
1 month to prepare the application and submit the bid. The committee takes 3
days to evaluate all the bids and then it has 5 days to announce the allotment
decision.
Once the decision is made, it is announced in mass media (in the same national
and local newspapers where the bid was announced in the first place). The
committee will inform the winners within 2 days after the official announcement.
Those who were not selected will find out in the papers and on the website. The
announcement is also sent by mail to all bidders.
The announcement of the auction / competition is made only 2 times a year (May
and November). This announcement is determined based on demand and supply
of available land plots.
The Hokimiyat signs a contract with the winner and the winner can go ahead and
sign a contract with the project design company.
2 Obtain topographic survey of the land plot and the land plot's precise 21 days UZS 1,200,000
location (red lines) by "UzGAShKLITI”
Agency : State Design Research Institute of Engineering Studies in Construction,
Geoinformatics and Urban Cadastre - "UzGAShKLITI"
A specialized agency draws the precise location of the land plot on a map
(usually in red color, hence the name "red lines").
Page 11Doing Business 2019 Uzbekistan
3 Request and obtain technical conditions for the connection to water and 7 days no charge
sewerage
Agency : Water and Sewerage Authority
BuildCo must obtain technical terms for the connection to the water and
sewerage systems. The terms are necessary for preparing project
documentation.
BuildCo must submit the following information to the local water and sewerage
authority:
• For water: the load of water demand, the calculation of water height, and the
expected date of commencement of water consumption
• For sewerage: the calculation of sewage volume, qualitative composition of the
sewage, specification of whether the any plans for internal treatment, and the
expected date the sewerage system is to be put into operation
By law, this procedure should be completed in 3 business days. However, in
practice, it takes longer.
4 Request and obtain architectural and technical objectives 30 days UZS 688,960
Agency : Main Department of Architecture and Construction
Based on the terms for designing the building in accordance with engineering
supply norms and regulations, the technical conditions, and the decision of the
Hokimat on the land plot (all provided by the department on architecture and
construction of the city), the Main Department of Architecture and Construction
develops the architectural planning terms (APZ, parts I and II).
The fee is established by Government Resolution No. 150 (dated May 30, 2013)
was set at 4 MMW.
5 Request ecological examination 20 days UZS 725,000
Agency : Private Licensed Organization
BuildCo should submit the project and pre-project documentation for ecological
examination to a private expert firm. The expert firm will provide the examination
and will also obtain the conclusion from The State Ecological Examination body
of the Committee on the Protection of Nature of the city of Tashkent will issue the
conclusion of the ecological examination. This document is necessary for
subsequent submission to the territorial Inspection of State Architectural Building
Supervision of the city of Tashkent and to the servicing bank (to allow financing).
It is also necessary for obtaining the fire safety and earthquake stability
compliance.
6 Request and obtain examination of project documents on their compliance 14 days UZS 344,480
with fire safety and seismic stability
Agency : State Architectural and Construction Inspection (GASN)
After obtaining an ecological evaluation, BuildCo can submit the construction
plans for state examination on their compliance with fire safety and earthquake
stability.
7 Request and obtain sanitation clearance for the project 14 days no charge
Agency : State Sanitation and Epidemic Supervision Authority
BuildCo must obtain project clearance from the state sanitation and epidemic
supervision authority. This document can only be obtained after obtaining the fire
safety and earthquake stability compliance.
8 Request and obtain project clearance from the local water and sewerage 7 days no charge
authority
Agency : Water and Sewerage Authority
BuildCo must obtain project clearance from the local water and sewerage
authority. This authority checks whether the project and other relevant
documentation conform to construction rules and technical terms. BuildCo enters
into a contract with the local water and sewerage authority on technical
supervision of the construction. This document can only be obtained after
obtaining a sanitation clearance.
Page 12Doing Business 2019 Uzbekistan
9 Request and obtain construction permit from State Architectural and 10 days UZS 119,652
Construction Inspection (GASN)
Agency : State Architectural and Construction Inspection (GASN)
The permit for construction works is issued by the local branch of the architecture
and construction authority. Although the permit should be issued within 5 days, in
practice it takes longer.
An inspector from the local branch of the architecture and construction authority
undertakes oversight of the construction. There is no permit application fee.
However, for the oversight/inspection phase, the company enters into a contract
with the authority at a cost of 0.03% of the value of the warehouse.
The company must submit the following documents:
• Application form
• Positive evaluation summary from the public examination bodies on the working
project
• Copy of the general plan and elevations of the building approved by the
architectural bodies, or the protocol of the Town-Planning Council of the Main
Department on Architecture and Construction of the city of Tashkent
• Address list of construction sites
The Inspectorate registers the construction project and issues the building
permit. BuildCo starts construction of the warehouse and notifies the
Inspectorate of the commencement of works within a month of receiving the
building permit.
Hire a technical supervision company for construction supervision 1 day UZS 9,970,960
10 Agency : Private construction supervision company
There are three levels of construction supervision in Uzbekistan: (1) internal
supervision or author's supervision, (2) technical supervision conducted by an
external firm and (3) government supervision. The technical supervision
companies usually charge around 2-3% of the construction costs.
11 Receive inspection from the State Architectural and Construction 1 day no charge
Inspection (GASN)
Agency : State Architectural and Construction Inspection (GASN)
Inspection is carried out by State Architectural and Construction Inspection
(GASN). GASN will assign one inspector for the specific construction who will be
responsible for conducting the inspections throughout the construction period.
12 Connect to water and sewerage services 5 days no charge
Agency : Water and Sewerage Authority
13 Obtain updated topographic map 7 days no charge
Agency : State Design Research Institute of Engineering Studies in Construction,
Geoinformatics and Urban Cadastre - "UzGAShKLITI"
Once the construction works and complete and the water and sewage
connection is obtained, the State Design Research Institute "UzGAShKLITI"
conducts a survey of the land plot and of the building to develop a new
topographic map of the area with the new construction on it. This is called
executive mapping.
14 Call and establish Working Commission and submit documents to the 14 days no charge
Commission
Agency : Working Commission
After completion of the construction works, BuildCo requests the creation of a
Working Commission composed of the representatives of district architects, the
sanitation supervision authority, the state fire supervision authority, the ministry
on emergency situations, the city committee on nature protection, and others.
The timeframe under the Construction rules, registered by Ministry of Justice
No.545, for establishing Working Commission is 5 working days. However, in
practice it takes 14 days, as the Commission only meets once every two weeks
and in case the file doesn’t make it to the first meeting, it would almost certainly
be reviewed at the second one.
BuildCo must submit the following documents to the Working Commission:
• The list of organizations that participated in the building and construction works,
along with the type of work done by these organizations, the family names of the
responsible engineers and technical employees
• The full set of design drawings of the property developed by the project
organizations
• Certificates, technical passports, and other documents certifying the quality and
safety of the materials, constructions, and details used in the building and
construction works
• Other relevant documents
Page 13Doing Business 2019 Uzbekistan
15 Receive inspection and obtain certificate of completion from Working 21 days no charge
Commission
Agency : Working Commission
After the inspection, an act of acceptance is drafted and endorsed by all
members in no more than 5 working days.
The Working Commission will inspect, among other things:
• The compliance of the building and construction works with the requirements on
labor protection, fire safety, environment protection, and its prevention of human-
caused emergency situations, and so forth
• The separate constructions and units of the warehouse
If its findings are favorable, the commission then accepts the construction for
subsequent presentation to the State Acceptance Board.
The Working Commission issues the following:
• The certificate of allowable concentration of radon in the completed
constructions
• The certificate of acceptance of the temporary buildings and constructions
• The certificate of readiness of the construction for presentation to the State
Acceptance Board
16 Request and obtain certificate of acceptance from the Tashkent City 14 days no charge
Hokimat
Agency : Hokimat
The Hokim (the head of the city government) decides whether to approve the
Working Commission’s act of acceptance within 2 days. However, in practice,
this takes longer. There is no fee involved. The decision of Hokim is further
needed for registering the building with the cadastre authorities.
BuildCo should submit to the State Acceptance Board, among other documents,
the following documents:
• The certificate on elimination of defects brought to light by the Working
Commission
• The approved project and estimate documentation
• The list of project and research organizations that participated in construction
• Other relevant documents
17 Register the new construction with the cadastre 30 days UZS 86,120
Agency : Cadastre
BuildCo must register the new construction with the real estate cadastre of the
relevant district of the city of Tashkent. The registration takes around 2 weeks in
Tashkent and costs 50% of MMW for legal entities.
Takes place simultaneously with previous procedure.
Page 14Doing Business 2019 Uzbekistan
Details – Dealing with Construction Permits in Uzbekistan – Measure of Quality
Answer Score
Building quality control index (0-15) 11.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections by in- 1.0
(0-2) house engineer;
Inspections by
external engineer
or firm;
Unscheduled
inspections;
Inspections at
various phases.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency; Yes, in-
house engineer
submits report for
final inspection;
Yes, external
engineer submits
report for final
inspection.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 1.0
Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 1.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer;
Professional in
charge of the
supervision;
Construction
company.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 2.0
Page 15Doing Business 2019 Uzbekistan
What are the qualification requirements for the professional responsible for verifying that the Minimum number 1.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of
experience;
University degree
in architecture or
engineering.
What are the qualification requirements for the professional who supervises the construction Minimum number 1.0
on the ground? (0-2) of years of
experience;
University degree
in engineering,
construction or
construction
management.
Page 16Doing Business 2019 Uzbekistan
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) warehouse, the electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are
receiving all necessary inspections
also collected for the second largest business city.
• Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an
purchasing material for these works area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and
- Has two stories with a total surface area of approximately 1,300.6 square meters
obtaining final supply
(14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure (10,000 square feet).
(calendar days)
The electricity connection:
• Is at least 1 calendar day
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
• Does not include time spent gathering kilowatt (kW).
information - Has a length of 150 meters. The connection is to either the low- or medium-voltage
distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve
follow-up and no prior contact with officials
the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
Cost required to complete each procedure (% of carried out on public land. There is no crossing of other owners’ private property
because the warehouse has access to a road.
income per capita)
- Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes already been completed up to and including the customer’s service panel or
• Value added tax excluded switchboard and the meter base.
The reliability of supply and transparency of The monthly consumption:
tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
• Tools to monitor power outages (0–1) there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest
• Regulatory monitoring of utilities’ performance supplier.
(0–1) - Tariffs effective in January of the current year are used for calculation of the price of
electricity for the warehouse. Although January has 31 days, for calculation
• Financial deterrents limiting outages (0–1) purposes only 30 days are used.
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial
warehouse in case study
*Note: Doing Business measures the price of
electricity, but it is not included in the ease of doing
business score nor the ranking on the ease of
getting electricity.
Page 17Doing Business 2019 Uzbekistan
Getting Electricity - Uzbekistan
Standardized Connection
Price of electricity (US cents per kWh) 5.7
Name of utility Uzbekenergo
City Covered Tashkent
Indicator Uzbekistan Europe & OECD high Best Regulatory
Central Asia income Performance
Procedures (number) 4 5.3 4.5 3 (25 Economies)
Time (days) 88 110.3 77.2 18 (3 Economies)
Cost (% of income per capita) 705.2 325.1 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff 8 5.5 7.5 8.0 (27 Economies)
index (0-8)
Figure – Getting Electricity in Uzbekistan and comparator economies – Ranking and Score
DB 2019 Getting Electricity Score
0 100
94.00: Russian Federation (Rank: 12)
86.05: Uzbekistan (Rank: 35)
76.79: Kazakhstan (Rank: 76)
74.88: Moldova (Rank: 81)
71.66: Regional Average (Europe & Central Asia)
46.01: Kyrgyz Republic (Rank: 164)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are
the simple average of the scores for all the component indicators except the price of electricity.
Page 18Doing Business 2019 Uzbekistan
Figure – Getting Electricity in Uzbekistan – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
800
80
700
Cost (% of income per capita)
70
600
60
Time (days)
500
50
400
40
300
30
200
20
10 100
0 0
1 2 3 4
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Uzbekistan and comparator economies – Measure of Quality
8 8 8
8
7
7
6 5.5
Index score
5
4
3
2
1
0
0
Uzbekistan Kazakhstan Kyrgyz Republic Moldova Russian Federation Europe & Central Asia
Page 19Doing Business 2019 Uzbekistan
Details – Getting Electricity in Uzbekistan – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application and await technical conditions and connection contract 14 calendar days UZS 0
with estimate
Agency : Tashkent City Electric Network Enterprise OJSC
The customer submits an application for the electrical connection to the Tashkent
City Electric Network Enterprise and waits for them to issue technical conditions
along with the connection contract that contains the time required for the
connection works as well as the connection cost estimate.
2 Signing connection contract and make payment 3 calendar days UZS 56,250,000
Agency : Tashkent City Electric Network Enterprise OJSC
Upon receiving the connection contract from the utility, customer has 3 business
days to sign the contract and make the 100% prepayment for connection.
3 Implementation of connection works by utility and inspection 70 calendar days UZS 0
Agency : Tashkent City Electric Network Enterprise OJSC
During this procedure the Utility implements following works:
- prepares the connection design, after the receipt of the advance payment under
the contract on connection to electric networks "on a turn-key basis"(15-20
business days),
- receives preliminary approval by all stakeholder organizations (5 business
days)
- finalizes design based on received comments and gets final approval (3
business days)
- upon having the design approved, utility conducts the external connection
works, carries out meter installation (15-30 business days)
- after completion of external works, inspection by the State Energy Inspectorate
"Uzgosenergonadzor" takes place (3 business days), wherein
"Uzgosenergonadzor" inspects an external power supply system and issues:
1) Certificate of technical inspection of electrical installations of consumers
2) Permit for the commissioning of electrical installations
4 Sign supply contract and obtain final connection 1 calendar day UZS 0
Agency : Tashkent City Electric Network Enterprise OJSC
The customer concludes a supply contract and obtains final electricity
connection.
Takes place simultaneously with previous procedure.
Page 20Doing Business 2019 Uzbekistan
Details – Getting Electricity in Uzbekistan – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 8
Total duration and frequency of outages per customer a year (0-3) 3
System average interruption duration index (SAIDI) 0.2
System average interruption frequency index (SAIFI) 0.1
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 0.5
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes
supply?
Financial deterrents aimed at limiting outages (0-1) 1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online http://uzbekenergo.u
z./ru/activities/tariffs-
electric-power/
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 21Doing Business 2019 Uzbekistan
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
• Preregistration procedures (for example, The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
- Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest economies the data are also collected for the second largest business city.
business city.
- Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals.
title with municipality) - Perform general commercial activities.
Time required to complete each procedure The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering - Is fully owned by the seller.
information - Has no mortgages attached and has been under the same ownership for the past
• Each procedure starts on a separate day - 10 years.
though procedures that can be fully completed - Is registered in the land registry or cadastre, or both, and is free of title disputes.
online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
document is received
located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials heating system and complies with all safety standards, building codes and legal
requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of entirety.
property value) - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
• Official costs only (such as administrative fees,
duties and taxes). any kind.
- Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural
payments are excluded activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 22Doing Business 2019 Uzbekistan
Registering Property - Uzbekistan
Indicator Uzbekistan Europe & OECD high Best Regulatory
Central Asia income Performance
Procedures (number) 9 5.3 4.7 1 (4 Economies)
Time (days) 46 20.3 20.1 1 (New Zealand)
Cost (% of property value) 1.1 2.6 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 18.5 19.6 23.0 None in 2017/18
Figure – Registering Property in Uzbekistan and comparator economies – Ranking and Score
DB 2019 Registering Property Score
0 100
90.27: Kyrgyz Republic (Rank: 8)
88.74: Russian Federation (Rank: 12)
84.62: Kazakhstan (Rank: 18)
82.62: Moldova (Rank: 22)
75.57: Regional Average (Europe & Central Asia)
66.60: Uzbekistan (Rank: 71)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These
scores are the simple average of the scores for each of the component indicators.
Figure – Registering Property in Uzbekistan – Procedure, Time and Cost
Time (days) Cost (% of property value)
0.5
45
40
Cost (% of property value)
0.4
35
30
Time (days)
0.3
25
20
0.2
15
10 0.1
5
0 0
1 2 *3 *4 *5 *6 7 8 9
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 23Doing Business 2019 Uzbekistan
Figure – Registering Property in Uzbekistan and comparator economies – Measure of Quality
30
26.0
25 24.0
22.0
Index score 19.6
20 18.5
17.0
15
10
5
0
Uzbekistan Kazakhstan Kyrgyz Republic Moldova Russian Federation Europe & Central Asia
Details – Registering Property in Uzbekistan – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain the evaluation of the market value for the property 10 days UZS 1,500,000; (1 to
Agency : Private evaluator 2 million UZS)
Private evaluator will visit the land ad immovable property, take measurements,
etc. Usually, the visit is performed without presence of a client (seller).
2 Request and obtain Cadastral Certificate 10 days no charge
Agency : Cadastral Service Office
The seller has to obtain the Cadastral Certificate. The certificate contains
technical parameters of premises (when built, height, deterioration level,
blueprint, etc.) as well as cadastral value (taxable value), which is used for
property tax calculation purposes.
3 Inspection of a property to determine its status 1 day UZS 960,065.76; (1%
Agency : Cadastral Service Office of the minimum
Pursuant to the Decree No.1 as of Jan 7, 2014 the state official will have to monthly wage per
conduct the onsite inspection of the land and building. The inspection is
square meter of land
performed to establish cadastral value of the property and to evaluate all possible
plot area
changes in technical parameters, record new construction and reconstruction etc.
As of December 1,
2017, the minimum
Pursuant to the Order No. 186 from July 10, 2014 the fee for an inspection of the
property by experts from the State Committee on Land Resources, Geodesy, wage is UZS
Cartography and State Cadastre is set as follow: 172,240)
1. Property with total size up to 100 sqr. m - 1 MMW (monthly minimum wage)
2. Property with total size from 100 sqr. m to 1000 sqr. m - 1% from MMW per
square meter of the property size
3. Property with total size from 1000 sqr. m to 5000 sqr. m - 15 from MMW
4. Property with total size from 5000 sqr. m to 15000 sqr. m - 30 from MMW
5. Property with total size from 15000 sqr. m to 50000 sqr. m - 50 from MMW
6. Property with total size more than 50000 sqr. m - 70 MMW
4 Seller obtains the certificate stating that there are no outstanding payments 1 day no charge
due to the water and sewage service provider
Agency : Water service provider
Parties have to submit to the notary the certificates stating that there are no
outstanding payments due to the trash collection service use from trash
collection service provider. Parties have to request these certificates specifically
for the property transaction to demonstrate that there are no outstanding fees
that have to be paid before transfer of property takes place.
5 Seller obtains the certificate stating that there are no outstanding electricity 1 day no charge
bills
Agency : Electricity service provider
Parties have to submit to the notary the certificates stating that there are no
outstanding payments due to the electricity service use from electricity service
provider. Parties have to request these certificates specifically for the property
transaction to demonstrate that there are no outstanding fees that have to be
paid before transfer of property takes place.
6 Seller obtains the certificate stating that there are no outstanding trash 1 day no charge
collection bills
Agency : Trash collection service provider
Parties have to submit to the notary the certificates stating that there are no
outstanding payments due to the trash collection service use from trash
collection service provider. Parties have to request these certificates specifically
for the property transaction to demonstrate that there are no outstanding fees
that have to be paid before transfer of property takes place.
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