Uzbekistan is steadily transforming into a hub of opportunity for businesses, investors, and non-governmental organizations (NGOs) alike. This transformation reflects the government's drive to diversify its economy, modernize its legal framework, and open doors to foreign investments and international aid programs. One of the critical components in this process is the registration of NGOs, especially for those looking to contribute to the country's development.
As Uzbekistan has moved from being ranked 144th in the 2015 Doing Business rankings to 69th today, the country’s reforms have made it easier for businesses to operate. Corporate tax rates are set at a competitive 15%, VAT is 12%, and special privileges for IT companies are positioning Uzbekistan as a regional IT hub. These changes are part of a broader strategy to attract both commercial investment and international development assistance, including through NGOs.
For foreign organizations, establishing an NGO in Uzbekistan is essential to implement international programs, such as those funded by USAID and similar agencies. However, despite the streamlined process for setting up businesses, NGO registration remains complex, particularly for foreign entities.
In Uzbekistan, NGOs are governed by the Law "On non-state non-profit organizations." According to this law, the registration of an NGO or its branch office must follow a formal process, with several mandatory documents that need to be submitted. These documents, which are especially important for NGOs with foreign elements, include:
All of these documents must be apostilled and accurately translated, as any minor mistakes or discrepancies could lead to the application being rejected. A rejected application can delay the entire process, requiring the organization to resubmit all documents from the beginning.
While the law provides a clear process, in practice, registering an NGO can be challenging. Simple mistakes in documentation or a lack of understanding of local requirements can lead to lengthy delays. There have been instances where NGO registrations have been delayed for over a year, with some organizations facing rejection for several consecutive years. The primary reasons for these rejections are non-compliance with local regulations or failure to meet the documentation standards expected by authorities.
Foreign NGOs may find it difficult to navigate this bureaucratic landscape without the support of local legal expertise. Understanding the expectations of the authorities and ensuring all documents are correctly prepared and submitted is crucial for a smooth registration process.
With over a decade of experience in the Uzbek legal sphere, SETTLE law firm is well-versed in the intricacies of NGO registration. We have successfully assisted numerous international organizations, including a recent case where we helped a U.S.-based NGO establish its local branch office in Uzbekistan. This NGO is a key implementing partner of a USAID-funded program, demonstrating our ability to work with high-profile international clients.
SETTLE Law Firm provides a full range of legal services tailored to the unique needs of NGOs, ensuring that all documentation is compliant with Uzbek regulations and helping organizations avoid costly delays. From document preparation to liaising with authorities, we are your trusted partner for NGO registration in Uzbekistan.