Unofficial translation<\/p>\n
LAW <\/span><\/strong><\/p>\n OF THE REPUBLIC OF UZBEKISTAN<\/span><\/strong><\/p>\n DECEMBER 25, 2019 <\/span>y<\/span>.<\/span><\/strong><\/p>\n \u2116<\/span> LRU-598<\/span><\/strong><\/p>\n \u041e<\/span><\/span>n investments and investment activity<\/span><\/span><\/strong><\/p>\n Adopted by the Legislative Chamber on December 9, 2019 <\/span> CHAPTER 1. GENERAL PROVISIONS<\/span> <\/strong><\/p>\n Article 1. Purpose and objectives of this Law<\/span>\u00a0\u00a0<\/span><\/strong><\/p>\n The purpose of this Law is to regulate relations in the field of investments and investment activity carried out by foreign and domestic investors.<\/span><\/p>\n This Law does not regulate relations associated with centralized investments.<\/span><\/p>\n Legal relations in the field of concession activities, conclusion, execution and termination of production sharing agreements, investment, mutual and venture capital funds, capital market regulation, including securities transactions, public-private partnership, special economic zones are regulated by separate laws.<\/span><\/p>\n Article 2. <\/span>Legislationon<\/span> investments and investment activity<\/span><\/strong><\/p>\n The legislation on investments and investment activity consists of this Law and other legislative acts.<\/span><\/p>\n If an international treaty of the Republic of Uzbekistan establishes other rules than those provided for by the legislation of the Republic of Uzbekistan on investment activity, then the rules of the international treaty shall apply. <\/span><\/p>\n Article 3. Key definitions<\/span><\/strong><\/p>\n The following key terms are applied in this Law:<\/span><\/p>\n investment project<\/span><\/strong> \u2014 a set of interrelated activities aimed at attracting investments to obtain economic, social and other benefits;<\/span><\/p>\n investment obligation<\/span><\/strong> \u2014 an obligation, undertaken by an investor to achieve certain goals;<\/span><\/p>\n investment policy<\/span><\/strong> \u2014 a set of interrelated measures to ensure the required level and structure of investments in the economy of the Republic of Uzbekistan and its individual sectors, increase investment activity of investment entities aimed at finding sources of investments and identifying priority sectors for their use;<\/span><\/p>\n investment activity<\/span><\/strong> \u2014 set of actions of subjects of investment activities related to the implementation of investments;<\/span><\/p>\n party to the investment activities<\/span><\/strong> \u2014 a subject of investment activity, which ensures the implementation of investments as an executor of orders or on the basis of an order from an investor;<\/span><\/p>\n investment contract<\/span><\/strong> \u2014 a written agreement concluded between the subjects of investment activity that defines the rights, obligations and responsibilities of the parties to the investment agreement;<\/span><\/p>\n investments<\/span><\/strong> \u2014 tangible and intangible assets and rights to them, including intellectual property rights, as well as reinvestments, invested by an investor on the basis of risks in social facilities, entrepreneurial, scientific and other activities for profit, which may include:<\/span><\/p>\n funds, including cash (including foreign currency), targeted bank deposits, shares, stocks, bonds, bills and other securities;<\/span><\/p>\n movable and immovable property (buildings, structures, equipment, machinery and other material values);<\/span><\/p>\n intellectual property rights, including patented or non-patented (know-how) technical, technological, commercial and other knowledge, drawn up in the form of technical documentation, skills and production experience, necessary for organizing a particular type of production, as well as other values, not prohibited by the legislation of the Republic of Uzbekistan;<\/span><\/p>\n investor<\/span><\/strong> \u2014 a subject of investment activity, carrying out investment of own and (or) borrowed funds or other attracted investment resources in objects of investment activity in order to make a profit;<\/span><\/p>\n domestic investors<\/span><\/strong> \u2014 citizens of the Republic of Uzbekistan, foreign citizens and stateless persons who have the status of a resident of the Republic of Uzbekistan, including individual entrepreneurs, as well as legal entities of the Republic of Uzbekistan engaged in investment activities;<\/span><\/p>\n reinvestment <\/span><\/strong>\u2014 any income from investments invested into objects of business and other activities not prohibited by law, including profits, interest, dividends, royalties, license and commission fees, payments for technical assistance, maintenance and other forms of rewards.<\/span><\/p>\n foreign direct investments<\/span><\/strong> \u2014 investment at the expense of own or borrowed funds of a foreign investor on conditions of risk, without government guarantees;<\/span><\/p>\n foreign investments<\/span><\/strong> \u2014 tangible and intangible benefits and rights to them, including rights to intellectual property, as well as reinvestment by a foreign investor in objects of the social sphere, business, scientific and other activities;<\/span><\/p>\n foreign investors<\/span><\/strong> \u2014 foreign states, administrative or territorial bodies of foreign states, international organizations founded in accordance with conventions or other agreements between states or being subjects of public international law, legal entities, any other partnerships, organizations or associations founded and acting in accordance with acts of legislation of foreign states, citizens of a foreign state and stateless persons permanently residing outside the Republic of Uzbekistan;<\/span><\/p>\n enterprises with foreign investments in the territory of the Republic of Uzbekistan<\/span><\/strong> \u2014 enterprises in which foreign investments make up at least fifteen percent of the stocks (shares, units) or statutory fund (charter capital).<\/span><\/p>\n Article 4. Basic principles of investments and investment activity<\/span><\/strong><\/p>\n The main principles of investments and investment activity are:<\/span><\/p>\n legality;<\/span><\/p>\n publicity and openness;<\/span><\/p>\n freedom to implementation of investment activity;<\/span><\/p>\n justice and equality of subjects of investment activity;<\/span><\/p>\n non-discrimination against investors;<\/span><\/p>\n presumption of investor conscientiousness;<\/span><\/p>\n The basic principles of the legislation on investments and investment activity are applied at all stages of the investment process and investment activity.<\/span><\/p>\n CHAPTER 2. INVESTMENTS, OBJECTS AND SUBJECTS OF THE INVESTMENT ACTIVITY<\/span><\/strong><\/p>\n Article 5. Types of investments by the target object<\/span><\/strong><\/p>\n Investments by the target of the object are subdivided into capital, financial and social.<\/span><\/p>\n Capital investments include investments made in the creation and reproduction of fixed assets, including in new construction, modernization, reconstruction, technical re-equipment, as well as in the development of other forms of tangible production.<\/span><\/p>\n Financial investments include investments in stocks, corporate, infrastructure and government bonds, as well as other types of securities.<\/span><\/p>\n Social investments include investments made in the development of human potential, skills and production experience, as well as in the development of other forms of intangible goods.<\/span><\/p>\n Article 6. Forms of investments implementation.<\/span><\/strong><\/p>\n Forms of investments implementation are:<\/span><\/p>\n establishment of legal entities or equity participation in their authorized funds (authorized capital), including through the acquisition of property and stocks (shares);<\/span><\/p>\n acquisition of securities, including debt instruments issued by the residents of the Republic of Uzbekistan;<\/span><\/p>\n the acquisition of concessions, including concessions for exploration, development, production or use of natural resources, as well as participation in the production sharing agreement;<\/span><\/p>\n acquisition of property rights, including ownership of intellectual property, copyrights, patents, trademarks, utility models, industrial samples, brand names and know-how, business reputation (goodwill), as well as objects of trade and services along with land plots in which they are located;<\/span><\/p>\n acquisition of the right to own and use land (including on a rental basis) and other natural resources.<\/span><\/p>\n Investors can make investments in other forms that do not contradict the legislation.<\/span><\/p>\n Investment activity can be carried out through a combination of various forms of investments.<\/span><\/p>\n Changing the forms in which investments are initially or re-invested does not lead to a change in their qualifications as investments.<\/span><\/p>\n Article 7. Investment Resources<\/span><\/strong><\/p>\n Investment resources include:<\/span><\/p>\n monetary (including foreign currency) and other financial assets, including loans, units, shares, stocks and other securities;<\/span><\/p>\n movable and immovable property (buildings, structures, equipment, machinery and other tangible values) and rights to them;<\/span><\/p>\n intellectual property objects, including patented or non-patented (know-how) technical, technological, commercial and other knowledge, drawn up in the form of technical documentation, skills and production experience, necessary for organizing a particular type of production;<\/span><\/p>\n rights to own and use land and other natural resources, as well as other property rights arising from property rights.<\/span><\/p>\n Article 8. Objects of investment activity<\/span><\/strong><\/p>\n The objects of investment activity are objects of social sphere, entrepreneurial, scientific and other types of activity not prohibited by legislation.<\/span><\/p>\n It is prohibited to invest in objects, the creation and use of which do not meet the sanitary and hygienic, radiation, environmental, architectural, town planning and other requirements established by legislation, violate the rights and interests of legal entities and individuals protected by law.<\/span><\/p>\n Article 9. Subjects of investment activity<\/span><\/strong><\/p>\n The subjects of investment activity are citizens, individual entrepreneurs and legal entities \u2014 residents of the Republic of Uzbekistan, state and local government bodies, foreign states, administrative or territorial bodies of foreign states, international organizations and foreign legal entities and citizens, as well as stateless persons.<\/span><\/p>\n Article 10. Investor\u2019s rights<\/span><\/strong><\/p>\n An investor has the right to:<\/span><\/p>\n freely carry out investment activities, determine the volumes, types, forms, scope and directions of investment, not contradicting the legislation of the Republic of Uzbekistan;<\/span><\/p>\n conclude agreements with legal entities and individuals to carry out investment activity;<\/span><\/p>\n own, use and dispose of income received as a result of investment activities, as well as sell and export of income received as a result of investment activity;<\/span><\/p>\n independently and freely manage the income received as a result of investment activity, after paying taxes, fees and other payments stipulated by legislation (hereinafter \u2014 taxes and payments);<\/span><\/p>\n to use property and any property rights belonging to him by right of ownership as security for all types of obligations undertaken by him, including obligations aimed at attracting borrowed funds;<\/span><\/p>\n to receive adequate compensation in case of requisition (expropriation) of his investments and other assets;<\/span><\/p>\n raise funds in the form of loans and borrowings;<\/span><\/p>\n receive compensation for losses caused as a result of illegal actions (inaction) and decisions of state bodies, local government bodies and their officials.<\/span><\/p>\n Article 11. Investor\u2019s obligations<\/span><\/strong><\/p>\n An investor is obliged:<\/span><\/p>\n pay taxes and fees;<\/span><\/p>\n fulfill contractual obligations assumed in connection with the investment; <\/span><\/p>\n comply with legal requirements, including competition, anti-corruption, investments and investment activity, labor, urban development, environmental protection, as well as safety, sanitary norms and rules;<\/span><\/p>\n to indemnify losses caused to a party in investment activity by failure to fulfill or improper performance of contractual obligations; <\/span><\/p>\n comply with the requirements of authorized bodies of state administration and state authorities in the field, within the scope of their mandate.<\/span><\/p>\n Article 12. Rights of a party to the investment activity<\/span><\/strong><\/p>\n A party to the investment activity has the right to:<\/span><\/p>\n be a party of the competitive (tender) bidding, electronic stores and auctions;<\/span><\/p>\n enter into contracts with investors for the execution of their orders;<\/span><\/p>\n involve in execution of its contractual obligations with regard to the investor other persons, unless otherwise provided by the contract;<\/span><\/p>\n Article 13. Obligations of a party to the investment activity<\/span><\/strong><\/p>\n A party to the investment activity is obliged: <\/span><\/p>\n comply with the norms, rules and standards established by law, including the requirements of competition law, anti-corruption, investments and investment activity, labor, urban planning and environmental protection;<\/span><\/p>\n execute contracts in a timely and proper manner; <\/span><\/p>\n to compensate losses caused to the investor by non-fulfillment or improper fulfillment of contractual obligations; <\/span><\/p>\n comply with the requirements of state and local government bodies presented within the scope of their authority;<\/span><\/p>\n
\nApproved by the Senate on December 14, 2019<\/span><\/p>\n