November 2, 2020

Licensing in Uzbekistan

Introduction

Legal and regulatory framework

Basic terms

Competent authorities

Licensing features

Procedures and cost

License agreement

Suspension, termination and nullification of the license

License register

Liability for violation of licensing laws

Reforms in the sphere of licensing

Introduction

Licensing is one of the most common tools of state control in Uzbekistan.

Thus, a license is a permit (right) to carry out a licensed type of activity, subject to mandatory compliance with licensing requirements and conditions, issued by the licensing authority to a legal entity or individual (article 3 of the Law of the Republic of Uzbekistan No. 71-II of 25.05.2000 “On licensing of certain types of activities”).

Licensed activities include activities that may cause detriment to the rights and legitimate interests, the health of citizens, public safety, and the regulation of which cannot be carried out by other methods other than licensing (article 7 Of the law of the Republic of Uzbekistan No. 71-II of 25.05.2000 “On licensing of certain types of activities”). A detailed list of activities that are subject to mandatory licensing on the territory of Uzbekistan can be found here. In addition, the types of licensed activities, as well as their licensing requirements and conditions, can be found in detail on the e-licensing Portal.

Legal and regulatory framework

In the Republic of Uzbekistan, this sphere is regulated by the following legal acts:

  1. Law of the Republic of Uzbekistan No. 71-II of 25.05.2000 “On licensing of certain types of activities”;
  2. Decree of the President of the Republic of Uzbekistan No. UP-5409 of 11.04.2018 “On measures to further reduce and simplify licensing and licensing procedures in the field of business, as well as improve business conditions”;
  3. Resolution of the President of the Republic of Uzbekistan No. PP-2164 of 15.04.2014 “On measures to further improve procedures related to the implementation of business activities and the provision of public services”;
  4. Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 236 of 28.06.2002. “On measures to implement the Law of the Republic of Uzbekistan” on licensing of certain types of activities”;
  5. Resolution of the Oliy Majlis of the Republic of Uzbekistan No. 222-II of 12.05.2001. “On the List of activities that are subject to licensing”;
  6. Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 488 of 20.12.2000 “On approval of the regulations on the procedure for making license forms and on the procedure for forming and maintaining the register of licenses in the territory of the Republic of Uzbekistan”;

In General, the legal regime of licensing in Uzbekistan can be divided into two groups – general provisions and licensing of certain (specific) types of activities (for each of these types of activities, a separate Provision has been adopted regulating licensing in a given area).

Basic terms

  • licensing – a set of measures related to the process of submitting and reviewing an application for a license, suspension or termination of the license, as well as its cancellation and renewal;
  • license requirements and conditions – a set of requirements and conditions established by law that the licensee must meet when performing the licensed activity;
  • licensing authorities – specially authorized bodies that carry out licensing in accordance with the legislation;
  • license applicant – a legal entity or individual who has applied to the licensing authority with an application for a license to carry out the licensed type of activity;
  • licensee – a legal entity or individual who has a license to carry out the licensed type of activity;
  • license agreement – a contract concluded between the licensing authority and the license applicant, regulating the relationship between them regarding the licensee’s receipt and use of a license to carry out the licensed type of activity;
  • license register – a set of databases of licensing authorities containing information about issued, suspended, renewed, reissued, revoked licenses, as well as licenses that have been terminated.

Competent authorities

According to article 4 of the Law of the Republic of Uzbekistan No. 71-II of 25.05.2000. “On licensing certain types of activities” state regulation in the field of licensing in the territory of Uzbekistan is exercised by the Cabinet and licensing authorities listed in the Decree of the Cabinet of the Republic of Uzbekistan No. 236 of 28.06.2002 “On measures to implement the Law of the Republic of Uzbekistan “On licensing of certain types of activities”, as well as in the relevant Provisions regulating licensing in the relevant areas.

Licensing features

There are two types of licenses – standard (simple) and individual (Article 10 Of the law of the Republic of Uzbekistan No. 71-II of 25.05.2000 “On licensing of certain types of activities”).

Standard (simple) licenses include licenses issued to an unlimited number of legal entities and individuals, if they meet the same conditions and requirements for the implementation of the relevant type of activity.

Individual licenses include licenses issued to legal entities and individuals on the basis of special requirements and conditions, granting licensees exclusive rights in the implementation of this type of activity, and limited in number. Individual licenses are limited in number by the territory of operation, by the object of activity, or on other grounds determined by the Cabinet of the Republic of Uzbekistan. This type of license is usually issued on the basis of a tender. For example, this is indicated in the Resolution of the Cabinet of the Republic of Uzbekistan No. 592 of 20.12.2004 “On measures to ensure efficient use of radio spectrum in broadcasting”, namely regulation on the competitive distribution of radio frequencies and issue of individual licenses to carry out activities in the field of broadcasting (Annex to Decree №592 of 20.12.2004).

The license for each type of licensed activity is issued separately. Some of them can be issued for an unlimited period, while others can be issued for a limited period.

Procedures and cost

Although each type of licensed activity has a special procedure for obtaining a license, there are also general requirements for the procedure that apply to all such activities. For example, when obtaining a license, the following types of documents are submitted to the licensing authority:

  • statement of license indicating the name and organizational-legal form of legal entity, its location (postal address), names of banking institutions and current account in a banking institution of legal entity; surname, name, patronymic, data of the document proving the citizen’s identity for individuals; licensed activity (or part thereof) that a legal or natural person intends to carry out, as well as in cases stipulated by the legislation of the period within which to perform the specified activity. The license application may include the email address of the license applicant;
  • a document confirming that the license applicant has paid a fee for consideration by the licensing authority of the license applicant’s application, in cases provided for by law;
  • other documents confirming the ability of the license applicant to meet the requirements and conditions for obtaining a license for a particular type of activity and determined by law.

It is forbidden to request documents that are not specified in the acts of legislation on licensing of certain types of activities. The state fee for reviewing documents varies depending on the type of activity, but cannot exceed 5 basis of calculation. The time frame for making a decision to issue or refuse to issue a standard (simple) license by the competent authority also varies, but the total period for issuing a license may not exceed 30 days. And after the decision is made, the applicant must be notified no later than 3 days.

Refusal to issue a license may be in the following cases:

  • submission of improperly executed documents by the license applicant;
  • the presence of false or distorted information in the documents submitted by the license applicant;
  • non-compliance of the license applicant with the license requirements and conditions, as well as the terms of the competition (tender).

Refusal to issue a license on other grounds, including the inexpediency of issuing a license, is not allowed. And of course, the applicant can always challenge the decision of the Licensing authority.

License agreement

The license agreement is a document that defines the mutual rights and obligations of the licensing authority and the licensee.

The license agreement must contain

  • surname, first name, patronymic, position of the persons who signed the agreement;
  • details of the parties;
  • name of the type of activity for which the license is issued;
  • license requirements and conditions for the licensee;
  • license validity – for licenses issued for a limited period of validity;
  • liability of the parties for violation of the requirements and terms of the license agreement;
  • the licensing authority’s control over the licensee’s compliance with the requirements and conditions of the license agreement;
  • other information in accordance with the regulation on licensing of a particular type of activity.

The license agreement is drawn up in two copies – one copy each for the licensee and the licensing authority.

Suspension, termination and nullification of the license

The license is suspended if the licensing authority detects a violation of the license requirements and conditions specified in the license agreement, and the licensee does not correct the violations despite the relevant decision of the Licensing authority. The license may be suspended by the Licensing authority (for a period of no more than 10 days) or by the court (for a period of more than 10 days). If the circumstances of suspension of the license have been eliminated by the licensee, the Licensing authority or the court that made the decision on suspension shall renew the license within three days from the date of receipt of the certificate of elimination of such circumstances.

The license is terminated if:

  • the licensee himself applies for termination of the license;
  • liquidated legal entity-the licensee – with the liquidation or stops its activities due to the reorganization since the reorganization, except for its conversion, and also merge with the reorganized legal entities on the date of the state registration of again arisen legal person licenses for the same licensed activity;
  • the certificate of state registration of an individual entrepreneur is terminated;
  • limits the legal capacity of an individual entrepreneur in accordance with the established procedure or recognition of his / her incapacity;
  • the licensee violates the license requirements and conditions stipulated in the license agreement systematically or as a result of a single gross violation;
  • the licensee does not eliminate the circumstances that led to the suspension of the license within the period established by the licensing authority or the court;
  • the illegality of the licensing authority’s decision to issue a license is established;
  • terminated the term of the license.

The license is nullified if:

  • the licensee shall within three months from the date of sending (delivery) of notification of the decision on issuance of license is not submitted to the licensing authority a document confirming payment of state duty for issuance of license or have not signed the license agreement, the licensing authority may cancel the said license.
  • the licensee makes an application for revocation of the license;
  • the fact of obtaining a license using forged documents is established.

If a license is nullified, it is considered null from the moment it is issued.

Information about the suspension, termination and nullification of the license is subject to publication in the mass media, as well as on the official website of the licensing authority.

License register

Licensing authorities maintain registers of licenses separately for each type of activity that they license.

Each license register must contain:

  • basic information about licensees;
  • dates of issue and license numbers;
  • license expiration dates – for licenses issued for a limited period of validity;
  • grounds and dates for renewal, suspension and renewal of licenses;
  • base and the date of termination of the license;
  • the grounds and date of revocation of licenses;
  • other information specified in the regulations on licensing of certain types of activities.

Maintenance of license registers is regulated by the Regulation “On the procedure for forming and maintaining the register of licenses in the territory of the Republic of Uzbekistan”.

Liability for violation of licensing laws

Persons guilty of violating the legislation on licensing certain types of activities are liable in accordance with the established procedure. In particular, under article 165, article 176-3, article 241-5 of the Code on Administrative responsibility of the Republic of Uzbekistan; article 190, article 192-5 of the Criminal Code of the Republic of Uzbekistan; article 117 of the Tax Code of the Republic of Uzbekistan. This is also mentioned in paragraph 5 Of the Resolution of the Plenary Session of the Supreme court of the Republic of Uzbekistan No. 9 of 15.03.1996 “On judicial practice in cases of crimes and other offenses in the field of trade”.

Reforms in the sphere of licensing

According to the Decree of the President of the Republic of Uzbekistan No. 6044 of 24.08.2020, from January 1, 2020, licensing of 37 types of activities is canceled, licensing of 16 types of activities is canceled by combining, and 17 licenses are canceled by introducing a notification procedure. You can read more about this here.

But at the same time, there are new types of licensed activities. For example, The decree of the Cabinet of Ministers of the Republic of Uzbekistan No. 663 of 28.10.2020 approved the Regulation “on the procedure for licensing activities in the field of nuclear energy use”. You can read more about this here.