Fine for unregistered business activity will be canceled

Starting January 1, 2025, a new approach to accountability for business violations will be implemented in Uzbekistan, establishing a single penalty for each offense. Notably, the financial penalty for operating a business without registering as a private enterprise will be canceled. President Shavkat Mirziyoyev reviewed these proposals today, November 4, aimed at bolstering legal protections for entrepreneurs.

This initiative is part of broader measures announced on August 20 to enhance legal protections for businesses and streamline inspections, following feedback shared during an open dialogue between the president and entrepreneurs.

Under the new regulations:

Beginning January 1, 2025, each offense will result in one penalty only, eliminating the financial fines for conducting business without registering as an individual entrepreneur.

Administrative penalties will also be removed for violating digital labeling rules, failing to display fiscal marks, and concealing the number of employees.

Additionally, from March 1, 2025, a partial refund of state duty will be available for parties who settle disputes through mutual agreement before court proceedings are finalized.

The government will also formalize the list of regulatory bodies and their oversight areas. Inspections outside these designated areas will be prohibited. All inspections will now follow a notification process via the “Unified State Control” information system.

As of January 1, 2025, inspections will be managed under a “Risk Analysis” electronic system, categorizing entrepreneurs into three risk levels.

During the presentation, discussions also addressed preventing unauthorized inspections and improving the qualifications of inspectors.

President Mirziyoyev has directed further legal refinements to ensure these measures are applied fairly and effectively in practice.