On measures to organize the activity of the technological park of software products and information technologies (589-son)

15.07.2019

RESOLUTION

OF THE CABINET OF MINISTERS OF THE REPUBLIC OF UZBEKISTAN

In accordance with the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated January 10, 2019, No. 17 “On measures to create a Technological Park of Software Products and Information Technologies”, as well as for the efficient management of the operations of the Technological Park of Software Products and Information Technologies, determine the procedure for registering legal entities as its residents, apply tax and customs privileges, and provide comprehensive support for “startup projects”, including based on venture financing, the Cabinet of Ministers resolves:

1. To approve the Regulations on the procedure for organizing the activities of the Technological Park of Software Products and Information Technologies according to the appendix.

2. To the Directorate of the Technopark for Software Products and Information Technologies (hereinafter referred to as the “Directorate”):

to allow, on an exceptional basis, the engagement of qualified specialists, including those from abroad, as consultants, on a contract basis, without the need for competitive bidding, in order to assist in the implementation of designated tasks;

to grant the right of independent development and approval of the staffing structure, to differentiate terms of remuneration and financial incentives for employees of the Directorate, based on the degree of difficulty, quality, and volume of work performed.

3. To agree with the proposal to transfer to the authorized fund of the Directorate of buildings and structures of the Ministry for the Development of Information Technologies and Communications of the Republic of Uzbekistan located at Tashkent, Mirzo-Ulugbek district, Tepamasjid St. 4, in particular, a specialized school with in-depth study of subjects related to the field of information and communication technologies named after Muhammad al-Khorezmi, at a cost determined by the appraisal organization, due to an increase in the state share.

In accordance with the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan, dated June 7, 2018, No. 478-F, a land plot of a total area of 6.5 hectares has been allocated (the territory of the former 22 nd Military Camp — at the intersection of Makhtumkuli Street) in Yashnabad district, Tashkent, to a Specialized School with Advanced Training in Information and Communication Technologies, named after Muhammad al-Khorezmi, under the Ministry of Development of Information Technology and Communications of the Republic of Uzbekistan.

4. In order to establish that payment for the services to determine the market value of the state property specified in paragraph 3 of this Resolution shall be carried out at the expense of the Directorate.

5. The Ministry of Employment and Labor Relations of the Republic of Uzbekistan shall, upon request from the Directorate, ensure the issuance (renewal) of work permits for highly qualified foreign professionals engaged in organizing activities at the software products and information technology park (hereinafter referred to as the "Technopark") in the Republic.

6. The Ministry for the Development of Information Technologies and Communications of the Republic of Uzbekistan and the Directorate are to ensure by August 1, 2019, that:

completion of reconstruction and major repair works of the Technopark building.

initiation of the registration of legal entities as residents of the Technopark, as well as the reception, consideration, and selection of promising startup projects in accordance with the Regulations on the procedure for organizing the activities of the Technological Park of Software Products and Information Technologies.

7. Delete the first sub-paragraph of Paragraph 6 of Resolution No. 17 of the Cabinet of Ministers of the Republic of Uzbekistan dated January 10, 2019 "On measures to organize a Technological Park of Software Products and Information Technologies ".

8. The implementation of this resolution will be overseen by the Minister for Development of Information Technologies and Communications, Sh. M. Sadikov, of the Republic of Uzbekistan and the Secretariat of the Cabinet of Ministers for Telecommunications, Information Technology, Innovation Activities and Information Security of the Republic of Uzbekistan.

Prime Minister of the Republic of Uzbekistan A. ARIPOV

Tashkent,

July 15, 2019,

No. 589

APPENDIX to the Resolution of the Cabinet of Ministers No. 589 dated of July 15, 2019

REGULATION

On the procedure for organizing the activities of the Technological Park of Software Products and Information Technologies

Chapter 1. General Provisions

1. This Regulation defines the organization of activities of the Technological Park of Software Products and Information Technologies, including the registration and deregistration of entities as residents, the tax and customs benefits available to residents, the eligibility for tax benefits for employees under employment contracts, and the procedures for identifying and funding promising startup projects.

2. The following definitions are used in this Regulation:

Business plan — is a plan or program for carrying out business operations and company activities, containing information about the company, its products, production processes, services provided, potential markets, marketing strategy, the organization of planned operations, and indicators of their effectiveness;

Startup project — a project aimed at creating a new product or introducing a service in the field of software products and information technologies under conditions of uncertain profitability and high financial risk;

Technological Park of Software Products and Information Technologies (hereinafter referred to as the Technopark) — an organization operating across the territory of the Republic of Uzbekistan based on the principle of extraterritoriality to maximize favorable conditions for the development of information technology products;

Directorate of the Technological Park of Software Products and Information Technologies (hereinafter referred to as the Directorate) — a legal entity in the form of a limited liability company responsible for the operational management of the Technopark;

Unified Registry of Residents — a publicly accessible information resource containing a list of legal entities registered in the Technopark according to this Regulation;

Resident of Technopark — a legal entity registered in Technopark in the prescribed manner and included in the Unified Registry of Residents;

Applicant — a legal entity applying for the status of a Technopark resident;

Startup Project Initiator — a physical or legal person who submits a proposal for the implementation of a startup project;

Mentor — an advisor who supports the development and promotion of a startup project with their knowledge and experience;

Advisory Council (hereafter referred to as the Council) — an organ established under the Directorate to select candidates for incubation or acceleration programs according to the requirements set in this Regulation, as well as to select mentors;

Acceleration Program — an educational-practical program aimed at developing startup projects through testing and business model development, supported by mentors and market experts;

Incubation program — an educational-practical program within which the idea of a startup project is formed and developed;

Web portal — a section on the official website of the Directorate in the global Internet information network, designed for receiving documents from legal entities to obtain the status of Technopark resident, and for facilitating collaboration between the Directorate and its residents, including the acceptance of reports, conclusions, business plans, and other documents. The operation of the web portal is determined by the Directorate;

Expert Commission for Reviewing and Evaluating Promising Startup Projects and Selecting Mentors (hereafter referred to as the Expert Commission) — an organ established under the Ministry for the Development of Information Technologies and Communications of the Republic of Uzbekistan to organize the review and study for further financing of successfully accelerated startup projects, as well as to select mentors.

Expert Council — an organ established within the Directorate, comprising qualified specialists from ministries and agencies and other experts, tasked with reviewing and analyzing business plans of legal entities applying for the status of Technopark resident. The operation of the Expert Council is determined by the Directorate;

Expert Group — an organ established within the Directorate, comprising qualified specialists from ministries and agencies and other experts, tasked with reviewing applications submitted for obtaining an “IT visa” based on the Directorateʼs recommendation. The operation of the Expert Group is determined by the Directorate;

Virtual office — a facility that allows employees to perform their duties via a legal (postal) address located in the global Internet information network (without a physical location), enabling communication with the companyʼs contractors (suppliers, buyers, government bodies, etc.).

3. The main directions of activity of the Technopark include:

Developing and manufacturing competitive information technology products and services, facilitating their introduction into domestic and international markets, and encouraging innovative developments;

Providing residents of Technopark with the necessary infrastructure, including modern laboratories, financial, marketing, legal, and other consulting services, as well as services related to acceleration programs;

Supporting the implementation of startup projects, including through venture financing, and assisting startups and small enterprises in the field of information technologies in achieving innovative activity results;

Assisting residents in attracting local and foreign investors for joint implementation of projects, including through the transfer of modern technologies and software products;

Ensuring the continuity of the production chain of high-tech products and services by assisting in the integration of activities of scientific, research, educational, and manufacturing organizations;

Organizing the education of the population and youth with the aim of forming a modern class of highly qualified specialists in the field of information technologies;

Conducting master classes, training sessions, and advanced training courses, as well as scientific-practical conferences, with the involvement of leading companies and specialists in the field of information technologies.

Chapter 2. Organization of the Activities of the Technopark Directorate

4. The Directorate is led by a Chief Executive Officer, who is appointed in accordance with the procedure established by Article 39 of the Law of the Republic of Uzbekistan “On Limited Liability and Additional Liability Companies”.

The powers of the Chief Executive Officer are defined in the charter of the Directorate.

The Chief Executive Officer is personally responsible for the implementation of the functions and tasks assigned to the Directorate and reports on the activities of the Technopark and the Directorate at the request of the Ministry of Digital Technologies.

5. The financing of the Directorate's activities is carried out from the following sources:

Monthly transfers of allocations by the Technopark residents to the Directorate;

Revenues from services provided, as well as from leasing out real estate assigned to the Directorate;

Grants and loans from international financial organizations and institutions;

Revenues obtained from venture financing of startup projects;

Funds from the Information and Communication Technologies Development Foundation (hereinafter referred to as the Foundation) and structural divisions of the Ministry for the Development of Information Technologies and Communications of the Republic of Uzbekistan;

Other sources not prohibited by law.

6. The Directorate:

Organizes the acceptance of applications from legal entities to obtain the status of Technopark resident, also makes decisions on registering residents in the Unified Registry of Residents and issuing the appropriate certificates confirming their resident status;

Organizes the examination of business plans submitted by legal entities and startup project initiators according to this Regulation, including involving experts (scientific and other organizations, scientists, and specialists);

Approves the regulations and compositions of the Expert Council and the Expert Group;

Rents and subleases equipment, laboratory and experimental-manufacturing spaces, offices, classrooms, conference halls, auditoriums, and other rooms to Technopark residents and other economic entities on a contractual basis, also provides services for virtual offices and preparation of documents for establishing new legal entities (one-stop-shop);

Recommends the issuance of an “IT visa” to foreign investors and specialists in the field of information technologies, as well as to the founders (participants) of Technopark residents, in a manner determined by the Ministry for the Development of Information Technologies and Communications;

Assists in organizing training and enhancing the qualifications of personnel in the field of information technologies (programming, artificial intelligence, e-commerce, etc.);

Organizes media coverage of the activities of Technopark and its residents;

Prepares and publishes information and analytical materials within its powers;

Provides financial, legal, or other advisory assistance to newly established legal entities in the process of negotiating contracts with investors and creditors;

Assists Technopark residents in attracting investments for their startup projects;

Organizes the entry of products and services of Technopark residents into domestic and international markets;

Organizes and conducts international fairs and exhibitions of information technology products produced by Technopark residents and other economic entities, and also assists in organizing their participation in international seminars, conferences, and other events held both in the republic and internationally;

Makes decisions to deprive legal entities of the status of Technopark resident;

Performs other functions according to the Charter of the Directorate, this Regulation, and other normative-legal documents.

The Directorate is entitled, within the scope of its assigned tasks and in accordance with the established legal procedures, to establish subsidiaries or branches or to participate differently in the charter funds (charter capital) of other legal entities.

Chapter 3. Procedure for Registering Legal Entities as Residents of Technopark

7. Legal entities registered within the territory of the Republic of Uzbekistan may apply for the status of a Technopark resident.

8. The organization of the Directorate's activities for registering residents is carried out according to the scheme in Appendix 1 of this Regulation.

9. Legal entities applying for the status of a Technopark resident must meet the following criteria:

a) Must be registered as a legal entity within the territory of the Republic of Uzbekistan;

b) Must engage in the type(s) of activities (hereinafter referred to as the list) according to Appendix 2 of this Regulation;

c) Must have economically justified business plans for the types of activities specified in the list. The business plan should specify specific actions for implementing one or several types of activities listed, types of services intended for sale, their volume, the necessity for implementation, the monetization model of the proposed project, and the expected financial-economic results. The format and requirements for the business plan are approved by the Directorate.

d) Must ensure the integration of automated accounting tools (information systems, software) developed in the areas of automating accounting registers and other primary documents related to taxation objects and taxation, with the information systems of tax authorities.

e) Legal entities applying for the status of a Technopark resident for the purpose of implementing venture-financed projects and acceleration programs must be registered and located at the legal address of the Technopark area or the Directorate's branches;

f) Legal entities applying for the status of a Technopark resident to provide services in the field of eSports must have international certification according to a list approved by the Directorate.

10. Applicants for the status of a Technopark resident submit their application through the web portal, attaching the business plan proposed for implementation as a Technopark resident.

No documents not specified in this Regulation may be required from the legal entity applying for the status of a Technopark resident.

The applicant is responsible for the accuracy of the submitted information. If discrepancies with the requirements of this Regulation and the laws of the Republic of Uzbekistan are found in the applicant's submitted documents, the applicant may rectify the deficiencies within five working days and resubmit the application. If the discrepancies are not resolved within this period, the Directorate has the right to reject the application.

Once all necessary forms on the web portal are completed by the legal entity, submitting the application implies consent to the terms of the agreement about the activities of a Technopark resident if the decision to register is made.

11. The applicant has the right to withdraw the application within three working days from the time of submission by notifying the Directorate in writing.

12. Applications and documents submitted for the examination of the compatibility of business plans with the specified types of activities listed, the feasibility of the project implementation, and the innovative and popular aspects of the project proposed to be implemented by the legal entity as a Technopark resident are sent by the Directorate to the Expert Council within 3 (three) working days.

The Expert Council has the right to invite the applicant for a business plan presentation or to reject the registration.

The Expert Council conducts the expertise of the business plan within no more than ten working days.

The Expert Council provides a conclusion regarding the compatibility or incompatibility of the submitted business plan with the specified types of activities listed.

13. The Directorate, upon reviewing the submitted documents, shall decide within no more than 15 working days from the date the documents specified in Article 10 of this Regulation are accepted, whether to register or deny registration of the applicant as a Technopark resident.

14. The following shall be considered grounds for denying registration as a Technopark resident:

Failure by the applicant to rectify discrepancies identified in the submitted documents within the given period.

The Expert Council's conclusion that the applicant's activities are obsolete, have no future, or are of minor importance;

The proposed business plan does not align with the types of activities specified in the list, or its implementation extends beyond the designated activity types;

Existence of unfulfilled obligations under previous contracts concerning the terms of activities of the Technopark resident, owed by the legal entity or associated persons to the Technopark.

The basis for denial will be stated in the Directorate's decision to deny registration as a Technopark resident and communicated to the applicant via the web portal.

the use of automated accounting tools (information systems, software products) developed in the areas of automation of accounting registers and other primary documents related to objects of taxation and objects related to taxation, without integration with information systems of tax authorities.

15. If the reasons for denying registration as a Technopark resident are rectified by the applicant, a re-evaluation of the application and other documents will be conducted according to Articles 10 to 13 of this Regulation.

16. A decision to register a legal entity as a Technopark resident signifies the legal entity's agreement to the terms of the contract regarding the activities of a Technopark resident.

The contract form is approved by the Ministry for the Development of Information Technologies and Communications of the Republic of Uzbekistan, published on the Directorate's official website, and will be in the form of a public offer.

17. A Technopark resident:

May transfer dividends and salaries to foreign founders (participants) and foreign experts within the scope of revenues from exports of goods (works, services) in foreign currency to international payment cards;

Can engage foreign experts to work in the territory of the Republic of Uzbekistan without obtaining work permit confirmations;

May operate using a virtual office;

Has the right to export works and services in foreign currency through online stores on the global Internet information network without an export contract.

A Technopark resident may also have other rights according to the contract with the Directorate regarding the terms of activities of a Technopark resident.

18. A Technopark resident:

Must only engage in types of activities specified in the business plan based on the list of activities;

Must comply with the contract regarding the terms of activities of a Technopark resident signed with the Directorate;

Must submit information, including statistical and tax reports, according to the terms and form approved by the Directorate, via the web portal;

Not later than the 20th day of the month following the reporting period, to transfer deductions from its total income, in the amounts established by legislative acts, to the Directorateʼs on-demand deposit account;

to conduct an annual mandatory audit of financial and economic activities by July 1 of the year following the reporting year, and to submit a copy of the auditor's report on the results of the special issue examination and the audit opinion to the Directorate via the web portal; provided that the auditor's report on the special issue examination shall take into account the legal entity's actual activities, their compliance with the types of activities specified in the register, as well as the types of activities carried out during the financial year and their share in the total revenue, export volume, and structure; while the audit opinion shall specify the revenue received and the compliance of the legal entity's actual activities with the registered types of activities;

Implementation by a resident of a Technopark of new types of activities not specified in the business plan submitted by the resident of the Technopark, after the approval of a new (additional) business plan by the Directorate;

Annually provide the Directorate with information about the conducted training courses in information technologies, if such courses are organized, and also coordinate the training program within the framework of these courses.

ensuring mandatory integration with the information systems of tax authorities of automated accounting tools (information systems, software products) developed in the areas of automation of accounting registers and other primary documents related to objects of taxation and objects related to taxation;

A resident of the Technopark may have other responsibilities in accordance with the agreement concluded with the directorate on the terms of operation of a resident of the Technopark;

It is essential to ensure that the proportion of revenue derived from English language training services in the information technology sector does not exceed 40% of the overall annual revenue generated by education in this field.

19. After the decision to grant the status of a Technopark resident, within three working days, the Directorate:

Inserts the relevant entry about the registration of the legal entity in the Unified Registry of Residents, indicating the legal entityʼs name, type of activity, postal and electronic addresses;

Issues a certificate to the legal entity confirming its registration as a Technopark resident;

Sends an official notification to the State Tax Committee and the State Customs Committee, as well as the commercial bank serving the legal entity, about the registration of the legal entity as a Technopark resident.

20. Upon the reorganization of a legal entity through transformation, the status of a resident of the Technopark transfers to the reorganized legal entity from the date of its state registration, while preserving all rights and previously assumed obligations. Within ten days after the state registration, the legal entity shall, in writing, apply to the Directorate to make changes to the unified register of residents and other documents. This procedure is also applied when changing the name of the legal entity.

Based on the notification regarding the reorganization or change of name of a legal entity, the Directorate shall make appropriate amendments to the Unified Register of Residents and notify the State Tax Committee of the Republic of Uzbekistan, the State Customs Committee and the commercial bank that serves the legal entity regarding the registration of the entity as a resident of the Technopark.

Chapter 4. Grounds and Procedure for Depriving a Legal Entity of Technopark Resident Status

21. The following are considered grounds for depriving the status of a Technopark resident:

The current activities of the Technopark resident do not correspond to the types of activities specified in the list;

Failure to fulfill obligations specified in the contract regarding the terms of activities of a Technopark resident made with the Directorate;

The Technopark resident being declared bankrupt;

Voluntary renunciation of resident status by the Technopark resident;

Failure to provide activity reports, tax and statistics reports, business plans, as well as audit reports and audit conclusions within the specified deadlines, or provision of unreliable information in them;

Non-payment of allocations specified in sub-heading five of Article 18 of this Regulation;

Reorganization of the legal entity;

When automated accounting tools (information systems, software products) developed in the areas of automating accounting registers and other primary documents related to taxation objects and taxation are used without integrating with the tax authorities' information systems;

When revenues from English language teaching services in the field of information technologies exceed 40% of the annual total revenue from education in the field of information technologies;

When Technopark residents engaged in venture financing and acceleration programs change their registered legal address from Technopark and its branches to another location;

Other grounds as per the laws of the Republic of Uzbekistan.

22. The decision to deprive a legal entity of Technopark resident status is made by the Directorate. After the decision is made, the legal entity is notified, and the appropriate changes are made to the Unified Registry of Residents.

The deprivation of Technopark resident status does not terminate the obligations specified in the Regulation for the legal entity.

24. Within three working days from the day the entry about the deprivation of Technopark resident status of a legal entity is made in the Unified Registry of Residents, the Directorate notifies the State Tax Committee, the State Customs Committee, and the commercial bank serving the legal entity.

Chapter 5. Procedure for Applying Tax and Customs Privileges for Technopark Residents

25. In accordance with the Decree of the President of the Republic of Uzbekistan “On radical improvement of conditions for the development of the information technology sector in the Republic” dated June 30, 2017, No. PF-5099, and other normative legal documents, the following privileges and preferences are provided:

а) For Technopark residents:

Exemption from all types of taxes and mandatory contributions to state targeted funds, as well as from social tax;

Exemption from customs duties (excluding customs fees) for equipment, components, parts, assemblies, technological documents, and software not produced in Uzbekistan and imported for their own needs, as per the approved lists;

Implementation of dividends and salary payments to foreign founders (participants) and foreign specialists within the scope of revenues from the export of goods (works, services) in foreign currency via international payment cards;

Operation of their activities through a virtual office when employees do not physically reside at the legal (postal) address;

Attraction of foreign specialists to engage in labor activities within the territory of the Republic of Uzbekistan without obtaining work permit confirmations;

Export without an export contract through online stores;

Reduction of monthly contributions to the Directorate by 25% when the volume of exported goods (services) exceeds 10 million US dollars in twelve months, and up to 50% when it exceeds 20 million US dollars;

b) For employees of Technopark residents under labor contracts, income from labor paid in the form of salaries:

Is taxed at a fixed rate of 7.5% for personal income tax;

Is not included in the calculation of the total annual income of individuals for taxation purposes;

c) Until January 1, 2025, dividends earned by founders (participants) of Technopark residents — who are non-residents of the Republic of Uzbekistan, both individuals and legal entities — will be taxed at a five percent rate, similar to the personal income tax and corporate profit tax applicable to residents of the Republic of Uzbekistan.

26. The privileges mentioned in Paragraph 25 of this Regulation:

For taxes and mandatory contributions — apply from the first day of the month following the month in which the legal entity is entered into the Unified Registry of Residents;

For customs duties — apply from the date the positive conclusion of the comprehensive examination of the list of goods imported (imported) into the territory of the Republic of Uzbekistan is received from the “Center for Comprehensive Examination of Projects and Import Contracts” under the Ministry of Economy and Industry of the Republic of Uzbekistan.

27. A Technopark resident has the right to earn income under the general regime of taxes and fees, as specified in part three of Article 297 of the Tax Code of the Republic of Uzbekistan, while being exempt from all taxes when conducting types of activities according to the list, under paragraphs 1, 9, 16, and 18 of part three of this article.

28. Technopark residents will be deprived of their resident status and the privileges specified in Paragraph 25 of this Regulation if they fail to fulfill the obligations stipulated in Paragraph 18 of this Regulation. The tax authorities will take measures to reinstate the obligations to pay to the State Budget of the Republic of Uzbekistan as per the established procedure.

29. When a legal entity is deprived of the status of a Technopark resident, the following privileges are discontinued:

For taxes and mandatory contributions — from the first day of the month following the month in which the status of Technopark resident is revoked;

For customs duties — from the day the resident status is revoked.

The date a legal entity voluntarily renounces its status as a Technopark resident is considered the date the application is received by the Directorate.

30. If it is determined that Technopark residents used goods exempted from customs duties for purposes other than their own needs within three years from the date they were released for free circulation, tax authorities will conduct an inspection of the financial-economic activity of the resident — taxpayer and prepare relevant documents about the cases identified during the inspection, and send them to the regional bodies of the state customs service within 3 working days.

The amount of customs duties corresponding to the share of imported goods used for purposes other than their own needs must be recovered to the State Budget of the Republic of Uzbekistan as per the established procedure with penalty calculated.

30¹. The Directorate provides a virtual office to Technopark residents under the following conditions:

Based on an application submitted through the personal account on the Directorate's web portal;

If the head of the executive body of the Technopark resident is a citizen of the Republic of Uzbekistan.

The virtual office is provided at the address registered with the tax authorities at the time of the application.

The Technopark resident undertakes to change the legal (postal) address in the founding documents as per the established procedure after the contract for the virtual office is made (or terminated).

The contract form for the virtual office is approved by the Ministry of Information Technologies and Communications Development.

The cost of the virtual office provision services is determined by the Directorate.

30². Technopark residents who have signed a contract for a virtual office with the Directorate are not subject to the following requirements:

Suspension of operations on accounts due to the absence of legal entities at the legal address;

Conversion of residential buildings where the employees operate into non-residential category;

Inclusion in the high-risk taxpayer category for not having real estate, lease or free use contracts at the registered legal (postal) address, suspension of the VAT payer certificate, and application of tax control measures in these cases.

Chapter 6. Procedure for Reviewing and Selecting Promising Startup Projects

31. The Directorate organizes the process of selecting and financing startup projects according to the scheme specified in Appendix 3 of this Regulation.

32. Information technologies, as well as the application of advanced information technologies in financial technologies, e-commerce, e-learning, agriculture, biotechnology, food industry, medicine, logistics, and the integration of digital technologies into production are considered priority directions for the implementation of startup projects by Technopark residents.

33. An applicant — the initiator of a startup project — submits documents to the Directorate (personally, by mail, email, or through the official website of the Directorate) according to Appendix 4 of this Regulation.

The applicant is responsible for the reliability of the information provided in the documents.

34. A Consultative Council is established at the Technopark to review and assess the promising startup projects for admission to incubation and acceleration programs, examining the compliance of the documents provided by the applicant with the required document list, as well as their conformity to the criteria specified in Article 45 of this Regulation.

The review of the submitted applications for startup projects is carried out within 20 working days. The decision on admission to an incubation or acceleration program is made by the Council.

35. The Directorate has the right to invite the applicant to present their startup project in order to make a final decision on admission to an incubation or acceleration program or to reject it.

36. The Council studies and analyzes the compliance of the documents submitted by the applicant with the required documents indicated in Appendix 4 and conducts a selection based on the conformity to the criteria specified in Article 45 of this Regulation.

37. Based on the results of the review, the Council makes a collegial decision on whether to accept or reject the startup project for incubation or acceleration program.

38. The decision of the Council is formalized with a record and signed by the chairman and the secretary of the Council.

39. If the admission of a startup project is rejected, the Directorate sends a written notification to the applicant citing the reasons for rejection based on the decision of the Council.

40. If the decision is made to accept the startup project, an agreement is concluded between the Directorate and the initiator of the startup project within the periods specified by the Directorate for participation in the incubation or acceleration program.

41. An Expert Commission is established within the Ministry of Information Technologies and Communications Development of the Republic of Uzbekistan to timely review and assess startup projects that have passed through the acceleration program, to subsequently finance them, and to select highly qualified mentors.

42. Following the completion of acceleration programs, the Directorate organizes a demonstration (demo day) of products (services) for subsequent financing. Following the demo, an application for financing is prepared and sent to the Expert Commission.

43. The Expert Commission reviews the projects for selection according to the criteria specified in Article 45 of this Regulation within 7 working days after the demonstration.

44. Recommended startup projects for future participation and financing are sent within 3 working days after the decision of the Expert Commission, signed by the Minister of Information Technologies and Communications Development of the Republic of Uzbekistan or his deputy responsible for the activities of the Expert Commission, to the Fund for allocating financial resources.

In this case, a contract regarding the terms of financing and support for the startup project is concluded within 5 working days between the Fund, the Directorate, and the initiator of the startup project.

Chapter 7. Criteria for Selecting and Evaluating Startup Projects

45. The Council and Expert Commission study the compliance of the documents with the requirements of this Regulation and select startup projects based on the following criteria:

The presence and quality of documents listed in Article 33 of this Regulation;

Alignment of the startup project with the directions specified in Article 32 of this Regulation;

Relevance of the proposed startup project — the significance of the idea presented in the project in solving modern problems and issues is evaluated;

The innovative orientation and novelty of the project idea — the project must involve new, improved technologies and/or principles not previously used in the republic, as well as plan the production of new products or the introduction of new services not previously produced in the republic;

Assessment of the project's potential to achieve results — the availability, justification, and adequacy of the proposed methods and approaches aimed at achieving the results stated in the project are evaluated;

Evaluation of market demand for the product or service — the market demand and commercial prospects for the product or service are assessed;

Commercialization prospects of the startup project — the future product must have potential for application and market entry, targeted specifically at a certain consumer;

Evaluation of the project's potential competitive advantages — features such as advantages of the product/technology for the consumer compared to existing alternatives are assessed;

The investment attractiveness of the project — a combination of favorable investment conditions and benefits that reduce the risk of not recovering investments and generate additional profits;

Economic efficiency of the project — financial results of implementing the project considering direct participants, as well as the budget efficiency reflecting the financial consequences of the project implementation.

Chapter 8. Procedures for Participation in Incubation and Acceleration Programs of Startup Projects

46. The procedures and appropriateness of a startup project's participation in incubation and acceleration programs are determined by the Directorate.

47. The Directorate has the right to expel the initiator of a startup project based on the decision of the Expert Commission if the obligations accepted under the agreement for participation in the incubation or acceleration program signed between the Directorate and the initiator of the startup project are not met, and the requirements set in this Regulation are not fulfilled.

48. Mentors for a particular startup project are selected from qualified specialists with work experience and advisory experience in the field presented by the startup project.

49. Mentors may have a financial interest in the implementation of the startup project based on the terms of the contract between the initiator of the startup project and the mentors.

Chapter 9. Procedures for Financing Promising Startup Projects

Financing of promising startup projects is carried out using the funds of the Fund, the Directorate's own funds, as well as other sources not prohibited by law.

51. Financing of startup projects by the Fund is carried out by allocating funds gratuitously, as well as by the Directorate according to Article 53 of this Regulation, and by attracting other sources not prohibited by law.

52. Creating necessary conditions for implementing a startup project is carried out based on the contract signed between the Directorate and the startup project initiator, which includes allocating rooms and equipment for work, providing high-speed internet, and other consulting services, or by transferring targeted funds to the bank account of the legal entity — the startup project initiator.

53. Financing of the startup project includes venture financing, where the Directorate becomes part of the startup project founders. The share of the Directorate, and the distribution of shares is specified in the agreement on the terms of financing and support of the startup project between the Fund (in cases where financing is carried out by the Fund), the Directorate, and the startup project initiator.

The Directorate and the startup project initiator independently determine the subsequent stages of cooperation, the terms of settlements, and the procedure for the Directorate's exit from the composition of founders of the legal entity established by the startup project initiator, in accordance with the law.

54. A positive conclusion from the Expert Commission serves as a basis for financing a startup project.

Chapter 10. Procedure for Selecting Mentors

55. The selection of mentors for participation in a startup project is carried out by the Expert Commission based on the proposals of the Council.

56. The Council conducts a preliminary review of experts, including foreign experts, for participation in the Directorate's startup projects and submits a list of recommended experts for review by the Expert Commission.

57. The Commission reviews the recommended list and selects mentors according to the following criteria:

Practical work experience in the field presented by the startup project;

Experience in conducting business (possibly in other areas);

Knowledge of market dynamics for potential markets for the future products of the startup project.

Additional criteria may be applied based on the characteristics of the startup project.

58. The decision of the Expert Commission is formalized with a record signed by the chairman of the Expert Commission.

Chapter 11. Final Rule

59. The reorganization and termination of Technopark activities are carried out in accordance with the law.

APPENDIX 1 to the Regulation on the procedure for organizing the activities of the Technological Park of Software Products and Information Technologies

SCHEME

Procedure for Registering Residents at the Directorate of the Software and Information Technologies Technopark

APPENDIX 2 to the Regulation on the procedure for organizing the activities of the Technological Park of Software Products and Information Technologies

LIST

of Permitted Activities by the Residents of the Technological Park of Software Products and Information Technologies

1. Development, design, and sale (including licensing for use and granting exclusive rights) of software for all platforms, including computer games.

2. Implementation of software or executing specific phases in its implementation, support, servicing, including training services in the use of this software.

3. Enhancement and modification of software products.

4. Creation of databases during the development of information systems and software, preparing records in a specified format for these databases, and providing, supporting, and servicing access to them.

5. Data processing activities using software.

6. Providing space for advertising in their software or earning additional revenue using features of the software.

7. Development and implementation of automated management systems.

8. Analyzing the information needs of legal entities (system analysis, business analysis) and developing technical requirements for the implementation of information systems and software to innovate (re-engineer) business processes, and consulting on the use of information technologies.

9. Auditing the compliance of information needs and technical requirements of users during the development, implementation, and commissioning of information systems and software.

10. Providing automated services for searching, selecting, processing, sorting, and providing information upon third-party requests using software developed by the Technopark resident.

11. Providing services related to auxiliary production, administrative, and business process management (implementation) to non-residents of the Republic of Uzbekistan using software (software-hardware means).

12. Sale of materials, technologies, micro-, opto-, and nanoelectronics, microelectromechanical systems, and their compatible software developed by the Technopark resident.

13. Development (research, design (construction), testing, and technical trials) and services related to the sale without production or service provision of the results of information transmission systems, technologies, devices, radar systems, radio navigation, radiocommunication, remote control, radio frequency identification equipment.

14. Development or specific stages of production (research, design, prototyping, testing) of high-technology equipment and systems, software-hardware means, and their compatible software, and services related to the sale and/or assimilation of production results, whether industrial in nature or not.

15. Activities related to the technical and/or cryptographic protection of information, including the use of electronic digital signatures.

16. Development, implementation, and sale related to the concept of a computational-communication network of physical objects equipped with built-in technologies for interaction with each other and the external environment.

17. Provision of services for teaching English within the scope of education organized in the field of information technologies, including via the global Internet, as per a program approved by the Technopark Directorate, with the annual revenue from education in the field of information technologies not exceeding 40%.

18. Export of information services via the global Internet.

19. Providing services in the field of multimedia and design (web design, graphic design, computer game design, vector graphics, 3D graphics, visualization design, interface design, technical design, motion design).

20. Production of animated products using software.

21. Activities in the field of venture financing and the implementation of acceleration programs for information technology projects.

22. Providing services in the field of esports.

23. Provision of services by organizations operating in at least two or more foreign countries, where the share of service exports in the total volume of services is higher than the volume of services provided for the local market.

*Note. Classification and explanations for types of activities are carried out by the expert council of the Directorate.

APPENDIX 3 to the Regulation on the procedure for organizing the activities of the Technological Park of Software Products and Information Technologies

SCHEME

for the Selection and Financing of Startup Projects by the Directorate of the Software and Information Technologies Technopark

APPENDIX 4 to the Regulation on the procedure for organizing the activities of the Technological Park of Software Products and Information Technologies