How to Become a Member of IT Park Uzbekistan?
IT Park Uzbekistan serves as an outsourcing hub, bringing together technology and service companies engaged in creating digital services and software products. To enhance export performance and increase the country’s investment appeal, the government is undertaken relevant measures. These include the introduction of new programs to support the activities of members and the establishment of a conducive business environment. This year, a decision was made to expand the list of activities permitted for IT Park Uzbekistan members. Now, almost any company that conducts its business with clients via the Internet can become a member. However, there are certain nuances to consider. In this article, we will discuss these nuances and the opportunities available for members.
Which Companies Are Eligible to Obtain Member Status
IT Park Uzbekistan sets three main requirements for obtaining member status:
- The company must be registered as a legal entity within the Republic of Uzbekistan.
- The company must provide a business plan for the conducted activity, in accordance with the List of Permitted Activities for IT Park members.
In line with the new Resolution of the Cabinet of Ministers No. 303 dated May 29, 2024, the List of Permitted Activities has been expanded to include service companies whose services are exported to at least 2 countries, with more than 50% of their revenue derived from foreign exports. In other words, any company registered in Uzbekistan that provides services via the Internet can now qualify as a member. However, there are two important conditions for such companies:
- The annual export share in the company’s revenue must be at least 50%.
- The export must be conducted to at least two foreign countries.
Applications for member status can be submitted on the website: my.it-park.uz.
Case Study Examples
CASE CARD
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Case #1 Company LLC “Accounting” provides accounting services via the Internet. Its clientele includes companies from Uzbekistan, Kazakhstan, and Turkey, with revenue distributed as follows: Uzbekistan — 30%, Kazakhstan — 40%, Turkey — 30%. Can LLC “Accounting” become a member of IT Park Uzbekistan? Yes, the share of exports in revenue is more than 50%, and exports are conducted to two countries. |
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Case #2 Company LLC “Dispatch” serves clients from Uzbekistan and the USA, with American clients generating 90% of its total revenue. Can LLC “Dispatch” become a member of IT Park Uzbekistan? No, as the company only exports services to only one country. |
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Case #3 Company LLC “Support Service” collaborates with three companies from Uzbekistan, China, and Japan. Its clients generating revenue in the following proportions: Uzbekistan — 55%, China — 35%, Japan — 10%. Can LLC “Support Service” become a member of IT Park Uzbekistan? No, as the share of exports in revenue is less than 50%. |
For other IT companies, meeting the export revenue requirement is not obligatory. However, export-oriented companies are incentivized by IT Park and may qualify for specific benefits, which will be detailed subsequently.
Benefits for Members
Support programs for foreign and local companies provided by IT Park Uzbekistan include:
1. Zero Risk. This program is available to foreign IT companies entering the Uzbekistan market with minimal risks and costs. Specifically, companies benefit from a free office space in the regions of the country for 12 months and assistance in equipping the office for up to 100 employees; reimbursement of up to 15% of expenses for salaries of Uzbek citizen employees; and reimbursement of 50% of costs incurred for recruitment and training.
2. Local2Global. This program is designed to support local companies by stimulating their export activities. It covers 50% of expenses related to: export consulting services; overseas travel of clients to Uzbekistan; international business trips and participation in international exhibitions; provides free access to top courses on Coursera; and offers export mentorship.
3. One Stop Shop. This service facilitates the establishment of businesses in Uzbekistan for both local and foreign companies. It includes the prompt registration of legal entities, preparation of initial documentation, opening of bank accounts, and registration with tax authorities by qualified specialists.
4. IT Visa. Foreign specialists, investors, and founders of IT Park Uzbekistan members are granted a multi-entry visa valid for up to 3 years. The IT Visa allows foreigners to: access medical care and educational services equally with Uzbek citizens; obtain temporary registration for the visa duration; and purchase real estate of any value.
5. Softlanding. This new support program for foreign exporter members of IT Park Uzbekistan encompasses services provided under the One Stop Shop and IT Visa programs, as well as assistance with employee recruitment, housing searches, organization of staff training, and more. Moreover, IT Park Uzbekistan offers business support, including banking and financial consultations, assistance with locating and leasing office space, partner identification, and various other services.
Obligations of Members
Membership in IT Park requires companies to fulfill the following obligations:
- Conducting operations in accordance with the approved business plan.
- Adhering to the obligations stipulated in the Agreement on the conditions of the member’s activities with IT Park.
- Providing quarterly reports on their activities.
- Submitting an annual audit report.
Non-compliance with any of these requirements will lead to the deprivation of the company’s membership status and the subsequent termination of all associated preferential programs and privileges.
2024-08-27