Uzbekistan Launches New Rules for Spin-Off Enterprises

Tashkent, Uzbekistan (UzDaily.com) — President Shavkat Mirziyoyev of the Republic of Uzbekistan has signed a decree “On Additional Measures to Implement the System of Production Based on New Developments and Support for Science in the Country.”

The document aims to stimulate innovation and develop spin-off enterprises affiliated with higher education and research institutions.

According to the decree, from 1 May 2026, the management of the state’s share in the authorized capital of such enterprises will be transferred to the founders based on a power of attorney, while privatization of the state share is prohibited for five years.

State registration and changes in the size of the state share will not require prior approval from the Agency for State Asset Management or the Committee for Competition Development and Consumer Protection.

The creation of spin-off enterprises using funds from the Innovation Activity Support Fund is equated with venture financing under the procedures established by law. Employment in these enterprises must include professors, researchers, students, or other specialists affiliated with the founder.

Moreover, transactions and investments in such enterprises do not require approval from a competent state authority.

These measures are designed to simplify the process of establishing innovative enterprises, increase the role of science in the economy, and promote venture financing.

Uzbekistan will implement a Registry of Spin-Off Enterprises based on new scientific developments. Enterprises included in the registry and producing goods based on patented research, as well as their employees, will receive benefits and preferences as provided by Decree No. UP–5099 of 30 June 2017.

For enterprises producing goods based on unpatented research, a 50 percent reduced corporate income tax rate will apply from 1 May 2026, to 1 May 2029.

Additionally, from 1 May 2026, part of the costs of experimental and pilot work based on developments under state scientific programs will be reimbursed from the Science Funding and Innovation Support Fund.

Support measures for entrepreneurship in education are also expanded. Interest-free loans of up to 320 times the base calculation amount for three years, with a six-month grace period, for opening foreign language training centers in remote areas will now be available not only to youth but also to individuals over 30 years old.