Regulatory Pulse
Legal changes decoded for business impact
Uzbekistan's Digital Economy Law: What Foreign Tech Investors Must Know
The April 2026 Digital Economy Development Law introduces mandatory data localization, updated e-signature standards, and new IT Park incentive tiers. Foreign tech companies operating in Uzbekistan must comply by Q3 2026.
Business Impact
Non-compliant companies face data processing suspension and loss of IT Park tax benefits (0% income tax, 0% VAT).
Recommended Action
Audit your data architecture and appoint a local data protection officer before September 2026.
Uzbekistan Tightens FDI Screening in Strategic Sectors
New Presidential Decree No. 87 introduces pre-approval screening for foreign investments exceeding $10M in energy, telecommunications, and financial services. Processing time: 45 business days.
Business Impact
Deal timelines for large investments in strategic sectors will extend by 45–90 days. BIT protections remain intact.
Recommended Action
Factor screening timeline into deal structure from day one. File pre-notification to start clock early.
Labor Code Amendment: New Remote Work and Fixed-Term Contract Rules
Effective March 2026, Uzbekistan's Labor Code now explicitly governs remote work arrangements, limits fixed-term contracts to 3 renewals, and mandates electronic employment records for companies with 50+ employees.
Business Impact
Companies using fixed-term contracts with repeated renewals risk automatic conversion to permanent employment. Penalties: up to 200 BCU per violation.
Recommended Action
Audit your employment contract portfolio and convert eligible fixed-term arrangements before Q2 2026.
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