Can an entrepreneur from a foreign country conduct business in Uzbekistan without opening a subsidiary, representative office or a branch?
The legislation of Uzbekistan does not establish any restrictions on conducting business on its territory by foreign legal entities without registration a subsidiary/representative office/branch. However, in practice it is recommended to open a representative office or register an LLC with 100% foreign participation since under the legislation of Uzbekistan to be accepted and have the rights to act as the subject of entrepreneurial activity it is necessary to undergo state registration in the prescribed manner provided for by the Uzbekistan legislation.
On July 2, 2018 the President of the Republic of Kazakhstan signed a new law “On Currency Regulation and Currency Control” No. 167-VI ЗРК (hereinafter – the “New Law”), which enters into force on July 1, 2019. From the mentioned date the current law “On Currency Regulation and Currency Control” № 57-III ЗРК dated June 13, 2005 will lose its force (hereinafter – the “Old Law”).
In this article we would like to illustrate the main changes in the Kazakh currency regulation, entering into force on July 1, 2019, which in our opinion will have a direct impact on the way of doing business in Kazakhstan by both residents and non-residents of Kazakhstan.
On 6 May 6 2015, the First President of Kazakhstan, Nursultan Nazarbayev, proposed five key reforms, so called “100 Concrete Steps”, which are designed to provide the strong national platform needed to overcome global and internal challenges and are aimed at bringing the country into the club of the world’s 30 most developed countries by 2050.
Step 59 of the “100 Concrete Steps” reform is devoted to the attracting strategic investors to the energy saving industry by encouraging the development of companies in the private sector to provide energy saving services with the return of their expenditures and financial profit arriving from the reduction of energy costs.
The main task is to stimulate the development of private energy service companies (ESCOs) to provide a range of services in the field of energy saving. ESCOs reimburse their own expenses and receive financial profits solely from the actual energy savings achieved.
Today, the choice of English law is one of the most popular in international investment and corporate transactions. M&A transaction, direct investments in capital and other similar transactions are often concluded under English law. Nowadays, English law is also applied in other industries such as construction, trade and other international contracts and cross-border transactions.
Kazakh legal system today, cannot ensure the full implementation of the legal structures of English law for the lack of relevant legal norms, and because of the unwillingness of the judicial system to apply the legal structures which are not prohibited by Kazakh law, but yet not familiar to Kazakh courts. In addition, the imperative nature of certain rules of Kazakh law reduces the ability of the parties to formalize their agreements, including possibility to apply English law to certain types of contracts.
Today, because of a shortage of budgetary funds development of PPP in Kazakhstan is considered as an important element of the new economic policy, not only to raise funds to the infrastructure but also as a way of improving the efficiency and quality of medical services.
The advantages of the PPP model have resulted in the active development of PPP in Kazakhstan in past decades. Although the transport and energy sectors used PPP, it is widely implemented in healthcare, education, telecommunications, utilities, and municipal sectors with a different level of success.
Kazakhstan being a developing country faces many challenges while developing infrastructure based on the PPP model. Despite significant improvements in PPP project implementation and overall positive dynamics, there are still several matters to deal with.
PPP’s legal framework is one fundamental of the effective implementation and progressive development of PPP both in Kazakhstan and in any other country.
Taking into consideration that PPP in Kazakhstan is under development, legal regulation of this cooperation between the state and business is also developing and definitely requires modernization on many directions, without which the PPP development in Kazakhstan can be seriously obstructed.
PPP in healthcare: Critical issues. Best Practice and Kazakh Realities