Business registration

Sole proprietor or LLC registration in Uzbekistan — without mistakes in choosing the form

The wrong business form at the start can cost you 2–3x in overpaid taxes or make it impossible to sell certain categories. Let's review your situation.

Uzbekistan actively attracts foreign entrepreneurs: simple registration, low taxes, a growing market. But each legal form has its own limits, nuances and pitfalls — especially for non-residents. We track every change in legislation and know exactly where money is usually lost.

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Two options

Sole proprietor or LLC: which one is right for you

Sole proprietor (YATT)

Sole proprietor (YATT) — for market testing and small volumes

In Uzbekistan, a sole proprietor is called YATT. It is the simplest form for getting started: fast registration, minimal reporting, low tax burden.

Turnover tax

1% of revenue — one of the lowest rates in the region (as of 2026)

Social tax

1 BRV per month — about 412,000 UZS (~$34). Fixed payment regardless of turnover

Turnover limit

1 billion UZS (~$78,000) per year. The limit is prorated to the registration date — if you register in March, the limit for the current year will be lower

Reporting

Monthly, filed online. No need to hire a full-time accountant

Withdrawing funds

Revenue can be withdrawn immediately after paying taxes. There is no concept of "dividends"

Imports

Limited direct import capabilities. Large-volume foreign trade via a sole proprietor attracts attention from customs

Restriction

A number of products subject to Asl Belgisi labeling (Uzbekistan's equivalent of Honest Sign (KIZ)) cannot be officially sold through a sole proprietor when imported via cargo

Who a sole proprietor suits

•First 2–3 months on marketplaces — testing demand
•Turnover up to $50,000–60,000 per year (with a buffer below the limit)
•Products that do not require Asl Belgisi labeling
•Sales on Uzum, Wildberries, Yandex Market without official import

LLC (MCHJ)

LLC (MCHJ) — for structured operations and scaling

An LLC is the standard form for a serious business: unlimited volumes, direct imports, work with retail chains, and stronger credibility with B2B partners.

Turnover tax

4% (if revenue is below 1 billion UZS per year). Above the limit — 15% profit tax + 12% VAT

2026 incentive

An LLC switching to VAT for the first time is exempt from profit tax for the next 1 calendar year (Law No. ZRU-1108 dated 25.12.2025)

Dividends

5% for citizens of Uzbekistan, 10% for foreign individuals when distributing profits

Imports

Direct contracts with suppliers, customs clearance, VAT operations without restrictions

B2B

Large companies and retail chains prefer working with LLCs. It signals serious intent

Reporting

More detailed than for a sole proprietor. Ongoing accounting support is recommended

Who an LLC suits

•Planned turnover above $60,000–70,000 per year
•Direct imports of goods with customs clearance
•Work with retail chains (Korzinka, Makro, Magnit and others)
•Products requiring Asl Belgisi labeling
•Companies planning a long-term presence in the market

Pitfalls

Where people most often go wrong during registration

Pitfall 1. The sole proprietor limit is prorated to the registration date

If you registered as a sole proprietor on March 1, 2026, your allowed turnover for 2026 is not 1 billion UZS but less: 1,000,000,000 ÷ 365 × the number of days remaining until year-end. With a March 1 registration — about 835 million UZS (~$65,000). Many entrepreneurs only learn about this after they have already exceeded the limit.

Pitfall 2. Exceeding the limit means an automatic switch to VAT

As soon as a sole proprietor's turnover exceeds the established limit, you automatically become a VAT payer (12%) and a profit tax payer (15%). The tax burden multiplies several times over. With healthy sales on Uzum Market, this limit can easily be reached within 2–3 months.

Pitfall 3. Personal presence is mandatory

Obtaining a PINFL (the equivalent of a TIN) requires a personal visit to Uzbekistan. Neither a sole proprietor nor an LLC can be registered remotely. We help you go through this process as quickly as possible and support you at every step.

If you plan to act as CEO of the LLC, you will need a work permit in Uzbekistan (around $1,000 per year).

Pitfall 4. Not all products can be sold through a sole proprietor

Products subject to Asl Belgisi labeling (Uzbekistan's equivalent of Honest Sign (KIZ)) — typically electronics, motorized goods and several other categories — cannot be officially sold by a sole proprietor when imported via cargo. Such products require an LLC.

Services

What SellerLab handles for you

Consultation on choosing the business form based on your products, sales channels and planned volumes

Sole proprietor (YATT) registration support: help with obtaining a PINFL, filing documents, tax registration

LLC (MCHJ) setup assistance: selecting a legal address, support at the bank, drafting incorporation documents

Opening a corporate bank account at a bank in Uzbekistan

Accounting support: monthly reporting, monitoring the sole proprietor turnover limit, timely alerts as you approach the VAT threshold

Comparison

Sole proprietor vs LLC — at a glance

Parameter	Sole proprietor (YATT)	LLC (MCHJ)
Tax	1% on turnover	4% on turnover (up to the limit)
Turnover limit	~$78,000/year (prorated by date)	No limit
Direct imports	No	Unlimited
B2B with retail chains	Not always accepted	Yes
Accounting	Simple, online	Requires ongoing support
Launch speed	Fast	Slightly longer
Withdrawing funds	Immediately after taxes	Through dividends (10% for non-residents)
Best for	Market testing, small volumes	Structured operations and growth

Questions and answers

Frequently asked questions about registration

Can a business be registered fully remotely?

No. Obtaining a PINFL (the equivalent of a TIN) requires personal presence in Uzbekistan. We guide you through the process and help complete it as quickly as possible — usually in a single visit.

How long does registration take?

Sole proprietor — typically 3–5 business days after obtaining a PINFL. LLC — 7–14 business days. Opening a bank account takes another 1–3 days.

Can a citizen of Kazakhstan, Russia, Belarus or the UAE register as a sole proprietor?

Yes. Foreign nationals can register as sole proprietors and LLCs in Uzbekistan. The procedure is the same for citizens of any country.

Does a sole proprietor need a legal address?

For a sole proprietor — no, the address is linked to the place of residence. For an LLC — a legal address is required. We help you select one (there are minimum area requirements).

What happens if a sole proprietor exceeds the turnover limit?

You are automatically switched to VAT-payer status: 15% profit tax + 12% VAT. This is not catastrophic in itself, but it is important to prepare in advance.

Can a single sole proprietor operate on multiple marketplaces?

Yes. A single sole proprietor or LLC can simultaneously operate on Uzum Market, Wildberries, Yandex Market Go and run B2B shipments.