Comparative analysis: PE, RO and LLC

·         is not a legal entity.

·         Is a legal entity.

·         KYC verification is present, therefore, in rare cases, accreditation may be denied (for reasons of insufficient grounds for accreditation).

·         technical procedure (if there are grounds;

·         no KYC category verification.

·         no verification of the KYC category by the registration authority.

·         power of attorney, legalized or apostilled (for countries participating in the Minsk or Chisinau Conventions, for example, the Russian Federation, a notarized certificate is sufficient);

·         copy of the representative’s passport;

·         photo with a resolution of 297×382 pixels.

·         power of attorney, legalized or apostilled (for countries participating in the Minsk or Chisinau Conventions, for example, the Russian Federation, a notarized certificate is sufficient);

·         copy of the representative’s passport;

·         photo with resolution of 297×382 pixels.

·         power of attorney, legalized or apostilled (for countries participating in the Minsk or Chisinau Conventions, for example, the Russian Federation, a notarized certificate is sufficient);

·         copy of the supervisor’s passport;

·         photo with resolution of 297×382 pixels.

·         incorporation documents of the commercial entity;

·         document confirming registration in the country of origin;

·         power of attorney of the commercial entity addressed to the head of the RO;

·         regulations on RO;

·         guarantee letter from a legal entity or an individual – the owner of a non-residential premises.

·         document confirming registration in the country in which this legal entity is established – a non-resident of the Republic of Uzbekistan;

·         copy of permits (if any);

·         power of attorney or other document (if any);

·         agreement (if any), the execution of which results in the formation of a PE.

·         decision of the founder;

·         charter;

·         samples of stamps;

·         office address or rental agreement (preliminary).

·         State duty – 1400 USD annually;

·         Translation of parent company documents – from 50 to 300 USD (depending on the number of pages);

·         Stamps- 20 USD.

·         State duty – none;

·         Translations of parent company documents – from 50 to 300 USD (depending on the number of pages);

·         Stamps- 20 USD.

·         State duty (from 20 to 280 USD depending on the status);

·         Translations of parent company documents – from 50 to 300 USD (depending on the number of pages).

·         Stamps- up to 20 USD.

·         all funds held in the representative office’s bank account must be provided and deposited by the parent legal entity. Such funds, if not exchanged and spent, can be easily transferred back to the parent company;

·         is able to make money transfers from a bank account when purchasing goods, works and services for the administrative expenses of the representative office.

·         is able to make money transfers from a bank account when purchasing goods, works and services for business purposes carried out through the PE.

·         is able to make money transfers from a bank account when purchasing goods, works and services for economic activities carried out through a permanent establishment and receive funds (abroad) when selling (exporting) goods, works and services.

·         business activities carried out through RO (except for sales) may lead to the emergence of a permanent establishment for tax purposes of a non-resident legal entity and, when carried out, lead to the withdrawal of accreditation;

·         cannot generate income;

·         there may be certain restrictions on the import of equipment, although there are no formal restrictions. Historically, a wider range of import rights has been granted to residents.

·         can carry out licensed activities and obtain permits;

·         there may be certain restrictions on the import of equipment, although there are no formal restrictions. Historically, a wider range of import rights has been granted to residents.

·         can carry out licensed activities and obtain permits.

·         cannot receive funds for such transactions;

·         can spend the funds received only on office expenses (including staff salaries);

·         cannot act as a payment agent.

·         can buy/sell foreign assets on behalf of parent company;

·         an receive funds from such transactions ;

·         can spend the funds received;

·         can act as a payment agent.

(the above requires coordination with the servicing bank in Uzbekistan and with the tax authority, since the PE is usually makes transactions upon the contract it arose and was registered. We did not serve PE who did not have contracts in Uzbekistan).

·         can receive funds;

·         can spend the funds received;

·         can act as a payment agent.

·         can import foreign labor within the reasonable needs of the office (usually up to 10 foreign employees);

·         foreign employees must obtain work permit (simplified procedure – up to 15 working days);

·         non-resident employees, if accredited, can enjoy the same rights as local residents: to purchase and sell assets, use and manage bank accounts in foreign and local currency;

·         state duty for the accreditation of a PO employee is 150 USD per year (repeated – 75 USD per year).

·         there are no restrictions on the number of employees;

·         the import of foreign workers requires permits (the procedure for management personnel is simplified – up to 15 working days);

·         state duty for the import of one foreign employees is 900 USD per year (annually).

·         there are no restrictions on the number of employees;

·         the import of foreign workers requires permits (the procedure for management personnel is simplified – up to 15 working days);

·         state duty for the import of one foreign worker is USD 850 per year (annually).

·         taxes on payroll of staff;

·         VAT on the purchase of goods, works and services;

·         other taxes payable by resident legal entities are NOT paid if there is no taxable activity.

·         VAT (Art. 237 of the Tax Code);

·         excise tax (Art. 283 of the Tax Code);

·         personal income tax (Art. 386 of the Tax Code);

·         social tax (Art. 402 of the Tax Code);

·         property tax (Art. 410 of the Tax Code);

·         land tax (Art. 425 of the Tax Code);

·         tax for the use of water resources (Art. 441 of the Tax Code).

·         VAT (Art. 237 of the Tax Code);

·         excise tax (Art. 283 of the Tax Code);

·         income tax of employees (Art. 386 of the Tax Code);

·         social tax (Art. 402 of the Tax Code);

·         property tax (Art. 410 of the Tax Code);

·         land tax (Art. 425 of the Tax Code);

·         tax for the use of water resources (Art. 441 of the Tax Code).

·         does NOT pay taxes (does NOT conduct business activity);

·         tax residency in Uzbekistan, in general, applies only to taxes on the salaries of employees of the PO.

·         obligations under the transaction concluded through the PE arise from the parent company. The parent company will not be subject to tax audit, only the activities of the PE may be subject to tax audit;

·         has simplified tax reporting.

(a non-resident company (the parent company of PE) pays taxes only on income received from sources in Uzbekistan (including withholding tax) and some other taxes)

·         obligations under a transaction concluded through an LLC arise for an LLC.

·         no formal procedure for termination;

·         may be terminated in compliance with mandatory requirements (in terms of assets, contractual obligations, financial reports, administrative requirements and employment obligations).

·         no formal procedure for termination;

·         may be terminated in compliance with mandatory requirements (in terms of assets, contractual obligations, financial. reports, administrative requirements and labor obligations).

·         no formal procedure for termination;

·         may be terminated in compliance with mandatory requirements (in terms of assets, contractual obligations, financial reports, administrative requirements and labor obligations).