Uzbekistan launches Enterprise Uzbekistan: what the new law on the International Center for Digital Technologies will change

President of the Republic of Uzbekistan Shavkat Mirziyoyev signed the Constitutional Law “On the International Center for Digital Technologies.” The law establishes a special legal framework for Enterprise Uzbekistan and creates a long-term foundation for attracting global technology companies, startups, investors, research organizations, and highly qualified specialists to the country.

The special legal regime of the Center is established until 2100 and covers corporate and commercial relations, investment activities, labor relations, data and intellectual property protection, public services, artificial intelligence, education, and regulatory testing of innovations, as well as taxation and customs regulation.

The law establishes a special legal regulation system for Enterprise Uzbekistan, valid until 2100. Center regulations may be developed taking into account elements of the common law of England and Wales and standards of leading international financial centers. The opportunities, preferences, and benefits provided under the special legal regime cannot be changed to the detriment of their recipients or terminated before the expiration of their validity. These measures create a stable, predictable, and long-term legal environment.

Business Registration and Operation

Legal entities engaged in approved types of activities may become residents of the Center. The law allows for the creation of companies under the law of the Center, participation of legal entities established in other jurisdictions, and the operation of branches and representative offices of foreign organizations. Resident status is acquired upon registration and inclusion in the unified registry of Center participants.

Center authorities are granted powers for the registration and accreditation of individuals and legal entities, conducting permitting procedures in areas covered by the special legal regime, and providing consulting and information services.

Investments, Venture Capital, and Startups

The law establishes a legal framework for an ecosystem of alternative and venture investments and identifies four categories of investors: institutional, startup investors, resident investors, and infrastructure investors.

Investors have the right to independently determine the volume, form, and direction of investments and freely dispose of the income received. The law provides protection for funds, assets, property, and property rights against nationalization, expropriation, confiscation, freezing, and other restrictions, except in cases explicitly established by law and mandatory court decisions.

Regulatory Sandbox — Testing Ground for New Solutions

One of the key tools of the Center is the “regulatory sandbox”: the opportunity to test innovative technologies, products, and services under controlled conditions, in a limited market, for up to 12 months. Sandbox participants may be temporarily exempted from certain legislative requirements, receive simplified access to licensing and permitting procedures, and use the Center’s infrastructure, including research laboratories and expert consultations. If a solution proves effective and safe after testing, it can be implemented permanently within the Center or scaled up gradually to other territories of Uzbekistan.

International Specialists and Flexible Labor Relations

Entry visas for foreign workers of the Center will be issued for up to three years — they can be obtained through consulates, at international airports in Uzbekistan, or while already on the country’s territory.

The labor regime is based on principles of contractual regulation, non-discrimination, labor safety, and fair pay. It allows for remote work, flexible schedules, various working time regimes, and alternative compensation systems, while ensuring minimum guarantees for worker protection.

Financial Infrastructure

Center participants will be able to receive banking, investment, venture, insurance, payment, and other financial services through accredited partners. With the agreement of the Central Bank of the Republic of Uzbekistan, branches of foreign banks may be opened within the Center.

Data, Cloud Technologies, and Intellectual Property

Special rules for the processing and protection of personal data, aligned with international standards, will apply within the Center. The law permits the storage and processing of data using cloud technologies, provided that data security, integrity, and reliability requirements are met.

The law also provides for the protection of intellectual property rights in accordance with generally recognized international norms and establishes additional mechanisms for their registration and protection, including the ability to submit applications through digital services.

Freedom for Artificial Intelligence and Education

The law guarantees freedom of research, development, testing, and implementation of artificial intelligence technologies, taking into account the protection of human rights, public safety, and the international obligations of the Republic of Uzbekistan. It also creates a foundation for international scientific and technological cooperation.

In the field of education, the use of programs and standards from leading foreign educational organizations is permitted. On the territory of the Center, academies, research institutes, universities, branches of foreign universities, and training centers may be established based on special licenses issued by the Center Administration.

Tax and Customs Regime

A special tax model applies within the Center: only VAT, corporate income tax, and personal income tax are retained, while other taxes and fees do not apply to activities under the special regime.

Key Conditions

Within the framework of exports and activities conducted inside the Center:
— 0% corporate income tax
— 0% VAT
— 0% personal income tax for foreign employees
— exemption of investors from taxes on dividends and other income received from investment activities under the special legal regime.

However, Enterprise Uzbekistan offers more than just tax advantages. Companies will operate under specific rules for registration, corporate governance, contractual relations, investment, employment, banking operations, and data protection. Regulation is based on elements of English common law and international practice, and English becomes the official language of documentation.

Thus, investors receive not just zero rates, but a clear, protected, and internationally oriented legal environment within Uzbekistan.

Dispute Resolution

Civil, economic, corporate, labor, and other disputes arising within the special legal regime fall under the jurisdiction of the Tashkent International Commercial Court.

Management and Next Steps

The highest body of Enterprise Uzbekistan is the Management Council, headed by the President of the Republic of Uzbekistan. The executive body is the Center Administration, responsible for developing rules, supporting participants, developing infrastructure, monitoring projects, and operating the regulatory “sandbox.”

In the initial period, Center authorities will ensure the adoption of a set of regulations defining practical procedures for registration, licensing, investment, tax and customs administration, labor relations, data protection, and other elements of the special legal regime.

In the next stage, Enterprise Uzbekistan will focus on forming the regulatory framework, launching digital services, developing infrastructure, and attracting global technology companies, startups, investors, and international partners.