Registration of companies in Tajikistan FEZ

The importance of FEZs for the country's economy

FEZs play a leading role in the economic development of Tajikistan. They offer various advantages that are crucial for attracting foreign investors and for long-term and mutually beneficial cooperation with them at the regional and national levels.

The Government of Tajikistan is taking numerous measures to attract foreign capital. Firstly, the country's special economic zones create a favourable tax environment for international business. In addition, advanced technologies are being actively introduced in many sectors, increasing the competitiveness of both local and foreign companies registered in Tajikistan's FEZs in the global market.

FEZs promote economic diversification by stimulating the development of different industries. This makes the country's economy more resilient to external shocks and reduces its dependence on one sector.

Among other things, Tajikistan's FEZs provide enterprises with the necessary conditions to expand their production. This expansion of production capacity contributes to overall economic growth and increased production volumes.

Of course, the country is still in the early stages of economic transformation. The government continues to implement comprehensive programmes to support exports, create jobs, diversify the economic structure, promote technological innovation and expand production capacity. For investors looking to expand their presence in Central Asia, registering a company in the FEZ of Tajikistan may therefore be a promising option.

Requirements for opening a company in the free economic zone of Tajikistan

Legal requirements for registering a company

Documents for registering a company in the FEZ of Tajikistan:

• Application for business registration. This is an official document expressing the intention to establish an enterprise in the FEZ of Tajikistan.
• Basic documents of the company (e.g. articles of association). These are official documents describing the structure, objectives and main provisions of the company's activities.
• Personality of founders and managers. This includes information and copies of identification documents of all founders and managers of the company.

Licensing, certification and standardisation

Licences and permits may be required to open a company in a free economic zone in Tajikistan, especially if the company is engaged in certain activities or operates in certain industries. Depending on the industry, certain technical standards and product certifications may be required.

• Financial services such as banking, insurance or investment funds require specific licences from the regulatory authorities.
• Companies providing medical services need appropriate licences and permits to ensure the quality and safety of medical practice.
• The production and sale of certain goods is also subject to government licensing. This includes activities such as the production and sale of alcohol, tobacco, or pharmaceuticals.
• Companies involved in customs operations or foreign trade also need to be registered and have the appropriate permits for customs clearance and import/export of goods.

Financial requirements and obligations

Minimum starting capital

• To open a business in the FEZ of Tajikistan, the investor must demonstrate his financial solvency by depositing the minimum initial capital in the account of a Tajik bank. The amount of this capital depends on factors such as the type of business activity and the specific conditions of the chosen FEZ. Each FEZ may have its own rules and requirements, so it is critical to study the conditions of the specific zone in which you plan to open a business.
• For foreign entrepreneurs, the authorised capital usually ranges from US$10,000 to US$500,000, depending on the type of business. Factors that may affect the minimum start-up capital include the following

Currency regulations and restrictions

Currency regulations and restrictions are important factors when doing business, including in the free economic zones of Tajikistan. These regulations and restrictions are subject to the laws and policies of central banks and governments. Some key points to consider before registering a company in an SEZ in Tajikistan include:

• In the country, the exchange of local currency for foreign currency is subject to certain controls. Companies may also face restrictions on exchanging foreign currency with local banks and financial institutions. This may affect the availability of foreign currency for companies.
• Capital controls may make it difficult for companies to meet long-term foreign currency obligations.
• Companies registered in Tajikistan may face restrictions on the repatriation of profits and the return of foreign currency capital. These restrictions may affect the liquidity of the company and its ability to pay dividends and transfer funds abroad.

Accounting and auditing

Accounting and auditing are the most important components of the activities of companies operating in the Tajik SEZ. This practice serves as an essential tool for maintaining financial transparency and effective financial management.

• Companies in SEZs are required to maintain accounting records in accordance with the national accounting standards of Tajikistan. This includes recording financial transactions, preparing financial statements (such as balance sheets and income statements), and recording taxes and statutory payments.
• Under Tajik law, companies may be subject to an audit. An audit is an independent examination of a company's financial statements and financial transactions. Auditors ensure that accounting records comply with standards and identify potential irregularities or errors.
• Compliance with accounting and auditing requirements is not only a legal obligation, but also a means of ensuring the financial integrity and transparency of your business. This is important for proper financial management and reporting in FEZ Tajikistan.

Advantages of setting up a business in a Tajikistan FEZs

FEZs in Tajikistan offer several tax incentives that make them attractive for investment activities.

1. Depending on the size of the investment, there are income tax exemptions.
2. VAT benefits for importing goods and services into the FEZ in the form of accelerated refund.
3. Possibility of obtaining customs and tax concessions when exporting goods from the FEZ.

Main risks and problems in registering a company in Tajikistan

• There are restrictions on foreign currency transactions, including conversion and withdrawal of funds. Investors may need permission from local foreign exchange authorities to conduct foreign exchange transactions.

• There are restrictions on foreign capital and ownership in certain industries and sectors. Investors should carefully consider the ownership and investment rules in their chosen sector.

FEZs in Tajikistan: brief overview

This table provides a concise overview of the key information for each of the free economic zones in Tajikistan, including their location, infrastructure, advantages, industries, key investors, export opportunities, local characteristics, and development prospects.

Table 1: Sughd

Table 2: Panj

Table 3: Dangara

Table 4: Kulyab

Conclusion

Tajikistan's SEZs offer valuable opportunities for investors and entrepreneurs wishing to develop their own businesses within the context of this Central Asian country's economy. These zones offer some benefits, including tax breaks and simplified administrative procedures, which make them attractive for business activities. The modern infrastructure of the SEZs further enhances the efficiency of various business processes.

However, it is critical to approach activities in Tajikistan's SEZs with a thorough understanding of the current conditions, rules, and requirements. It is crucial to recognise the nuances of the local economy and political environment, as these can affect business activities. It is therefore advisable to seek assistance in doing business in the FEZ of Tajikistan.