On June 6 of current year, another hour of legal training was conducted through the ZOOM platform for employees of the central office of the State Unitary Enterprise “Center of Electromagnetic Compatibility”, Electromagnetic Compatibility Services of the Republic of Karakalpakstan and regions.
During the training hour, 1st category engineer of Department of Economic Analysis and Marketing Kh. Egamberdieva explained the content of the Law of the Republic of Uzbekistan “On investments and investment activities” dated December 25, 2019 No. ZRU-598.
Purpose and scope of this Law
The purpose of this Law is to regulate relations in the field of investments and investment activities carried out by foreign and domestic investors.
This Law does not regulate relations related to centralized investments.
Legal relations in the field of concession activities, conclusion, execution and termination of production sharing agreements, investment, mutual and venture funds, regulation of the capital market, including transactions with securities, public-private partnerships, special economic zones are regulated by separate laws.
Legislation on investments and investment activities
Legislation on investments and investment activities consists of this Law and other acts of legislation.
If an international treaty of the Republic of Uzbekistan establishes rules other than those provided for by the legislation of the Republic of Uzbekistan on investments and investment activities, then the rules of the international treaty apply.
The following basic concepts apply in this Law:
investment project - a set of interrelated activities aimed at implementing or attracting investments to obtain economic, social and other benefits;
investment obligation - an investor’s obligation assumed by him to achieve certain goals;
investment policy - a set of interrelated measures to ensure the required level and structure of investment in the economy of the Republic of Uzbekistan and its individual sectors, increasing the investment activity of investment entities aimed at finding sources of investment and identifying priority sectors for their use;
investment activity - a set of actions of subjects of investment activity related to the implementation of investments;
participant in investment activities - a subject of investment activities that ensures the implementation of investments as an executor of orders or on the basis of an order from an investor;
investment agreement - a written agreement concluded between subjects of investment activity, defining the rights, obligations and responsibilities of the parties to the investment agreement;
investments - tangible and intangible benefits and rights to them, including rights to intellectual property, as well as reinvestments made by an investor on the terms of bearing risks in objects of the social sphere, entrepreneurial, scientific and other types of activities in order to make a profit, which may include into yourself:
funds, including cash (including foreign currency), target bank deposits, shares, interests, stocks, bonds, bills and other securities;
movable and immovable property (buildings, structures, equipment, machinery and other material assets);
proprietary intellectual property rights, including patented or unpatented (know-how) technical, technological, commercial and other knowledge, formalized in the form of technical documentation, skills and production experience necessary for organizing a particular type of production, as well as other valuables, not prohibited by the legislation of the Republic of Uzbekistan;
investor - a subject of investment activity that invests its own and (or) borrowed funds or other attracted investment resources into objects of investment activity in order to make a profit;
domestic investors - citizens of the Republic of Uzbekistan, foreign citizens and stateless persons with resident status of the Republic of Uzbekistan, including individual entrepreneurs, as well as legal entities of the Republic of Uzbekistan carrying out investment activities;
reinvestment - any income from investments invested in objects of business and other types of activity, including profits, interest, dividends, royalties, license and commission fees, payments for technical assistance, maintenance and other forms of remuneration;
foreign direct investment - investment at the expense of a foreign investor’s own or borrowed funds on the basis of bearing risk, without government guarantees;
foreign investments - tangible and intangible benefits and rights to them, including rights to intellectual property, as well as reinvestments made by a foreign investor in objects of the social sphere, business, scientific and other types of activities;
foreign investors - foreign states, administrative or territorial bodies of foreign states, international organizations founded in accordance with agreements or other treaties between states or that are subjects of public international law, legal entities, any other partnerships, organizations or associations founded and operating in accordance with acts of legislation of foreign states, citizens of a foreign state and stateless persons permanently residing outside the Republic of Uzbekistan;
enterprises with foreign investments on the territory of the Republic of Uzbekistan - enterprises in which foreign investments constitute at least fifteen percent of shares (shares, shares) or authorized capital (authorized capital).
Basic principles of investments and investment activities
The basic principles of investment and investment activity are:
legality;
publicity and openness;
freedom to carry out investment activities;
fairness and equality of subjects of investment activity;
non-discrimination against investors;
presumption of investor good faith.
