On private enterprise (558-II-son)

11.12.2003

Law of the Republic of Uzbekistan

I. GENERAL PROVISIONS

Article 1. Purpose of this Law

The purpose of this Law is to regulate relations in the field of formation, activities, reorganization and liquidation of private enterprises.

Article 2. Legislation on a private enterprise

The legislation on a private enterprise consists of this Law and other legislative acts.

Article 3. Private enterprise

A private enterprise is a commercial organization formed and managed by the owner - one individual. A private enterprise is the legal form of business entities.

Private enterprise has in the property separate property, can own and exercise property and personal non-property rights, bear responsibilities, be a plaintiff and defendant in court by its name.

A private enterprise is liable for its obligations with all property belonging to it.

The owner of the private enterprise in accordance with the legislation bears subsidiary responsibility belonging to his/her property for the obligations of the private enterprises with insufficient assets of the enterprise.

Article 4. Company name of a private enterprise

Private enterprise must have a full and the right to have an abbreviated company name. The full company name of the private enterprise must contain its full name and the words “private enterprise”. The abbreviated company name of the private enterprise must contain its abbreviated name and the words “private enterprise” or the abbreviation “PE”.

Article 5. Bank accounts of a private enterprise

Private enterprise open bank accounts on the territory of the Republic of Uzbekistan and beyond its borders in accordance with the procedure established by law.

Article 6. Seal of a private enterprise

A private enterprise has the right to have a seal containing its full company name in the state language and an indication of the location of the private enterprise. The printing can be simultaneously specified brand name on another language.

Article 7. Stamps and blanks of a private enterprise

Private enterprise is entitled to have stamps and blanks with its brand name, its own emblem, and also registered in the established order of trade mark and other means of individualization of participants of civil turnover, goods, works and services.

II. FORMATION OF A PRIVATE ENTERPRISE AND ITS STATE REGISTRATION

Article 8. Procedure for establishing a private enterprise

A private enterprise is formed by the owner, who gives the enterprise the corresponding property and approves its charter.

Private enterprise is fomed on an indefinite period, unless otherwise not provided for its charter.

Article 9. Establishment of other legal entities. Representative offices and branches of a private enterprise

Private enterprise has the right to act as the founder or any other way participate in the authorized capital of other legal entities, to open representative offices and establish branches in accordance with the procedure established by law.

Article 10. Charter of a private enterprise

The constituent document of a private enterprise is its charter.

The charter of a private enterprise must contain:

company name;

information about its location and mailing address;

a list of the main types of activities;

surname, name, patronymic and place of residence of the owner;

amount of authorized capital.

The charter of a private enterprise may be contained other provisions not contrary to law.

Article 11. State registration of a private enterprise

A private enterprise acquires the status of a legal entity from the moment of its state registration.

State registration of a private enterprise is carried out in the manner prescribed by law.

Article 12. Authorized capital of a private enterprise

The authorized capital of a private enterprise is indivisible and determined by the owner himself.

A contribution to the authorized capital of a private enterprise may be money, securities, other property or property rights or other alienable rights having a monetary value. The owner independently evaluates the property contributed by him/her to the authorized capital of a private enterprise.

If during the formation of the authorized capital of the private enterprise owner transfers the enterprise property, which is a common (shared or joint) property of the members of his/her family, is required to obtain a notarially certified consent of all owners of this property.

Article 13. Increase and decrease in the authorized capital of a private enterprise

The increase and decrease in the authorized capital of private enterprises is carried out according to the decision of the owner by making changes in the charter of a private enterprise.

If, at the end of the second and each subsequent financial year, the value of the net assets of a private enterprise is less than its authorized capital, the private enterprise is obliged to reduce its authorized capital to an amount not exceeding the value of its net assets.

The value of the net assets of a private enterprise is determined in the manner prescribed by law.

III. MANAGEMENT PRIVATE ENTERPRISE

Article 14. Sole management of a private enterprise

The owner of the private enterprise individually manages the enterprise as a leader, acts without the power of attorney on behalf of enterprise, represents its interests, disposes monetary funds and other assets of private enterprise, concludes contracts, including labor contracts, issues powers of attorney, opens accounts in banks, approves the staff, makes orders and gives instructions binding on all employees of the enterprise.

Article 15. Rights and obligations of the owner of a private enterprise

The owner of a private enterprise has the right to:

make amendments and additions to the charter of a private enterprise in the manner determined by law;

make decisions on the reorganization and liquidation of a private enterprise;

use at its discretion the profit of a private enterprise remaining after payment of taxes and other obligatory payments;

dispose owned private enterprise property, take it in rent, to give in a pledge, to make in as a contribution to the authorized capital of other legal persons or other way to dispose of these assets.

The owner of the private enterprise can have other rights in accordance with law.

The owner of a private enterprise is obliged to:

form the authorized capital;

individually manage the enterprise belongs to him/her.

The owner of the private enterprise can bear other obligations in accordance with law.

Article 16. Temporary management of a private enterprise

In the case of his/her temporary absence of the owner of the private enterprise receives a written decision on the imposition of obligations of the head to another physical person in the period of absence. The owner of a private enterprise may restrict the right of an interim manager to dispose of the property of a private enterprise.

Article 17. Inability of the owner to fulfill the obligations of the head of a private enterprise

In case of inability of the owner to perform obligations of the head of the private enterprise as a result of death, disability, restriction of legal capacity or the recognition of its untraceable missing the management of private enterprise is carried out in accordance with the civil legislation and the charter of the private enterprise.

IV. LABOR RELATIONS IN A PRIVATE ENTERPRISE

Article 18. Relations between the employer and the employee of a private enterprise

The relations between the private enterprise (employer) and the employee of the private enterprise regulated by labor agreement (contract) in accordance with the legislation on labor.

Article 19. Remuneration on private enterprise

A private enterprise independently establishes the forms, system and amount of remuneration and compensation for its employees in accordance with the law.

The remuneration of persons working in a private enterprise under an labor agreement (contract) is established by agreement of the parties, but not lower than the amount established by law for the first category of the Unified tariff schedule for Remuneration.

Article 20. Social protection of employees of a private enterprise

A private enterprise is obliged to provide its employees with safe working conditions, social protection measures and is liable for harm caused to their life or health in the manner prescribed by law.

A private enterprise has the right to independently establish for its employees more preferential labor and socio-economic conditions in comparison with those established by law.

V. GUARANTEE OF FREEDOM OF ACTIVITY OF A PRIVATE ENTERPRISE

Article 21. Inadmissibility of nationalization and requisition of property of a private enterprise

The property of a private enterprise is not subject to nationalization, with the exception of cases provided by law.

The property is a private enterprise not subject to requisition, for the exception of the cases of natural disasters, accidents, epidemics, epizootics and other circumstances bearing extraordinary character with a payment to the owner of the private enterprises compensation equivalent to the market value of requisitioned property.

Article 22. Freedom of activity of a private enterprise

A private enterprise carries out any type of activity in accordance with the law.

A private enterprise is free to complete transactions.

Article 23. Privileges, preferences and guarantees to private enterprises

Private enterprises is subject to privileges, preferences and guarantees provided by the legislation of the subjects of entrepreneurship.

VI. FINAL PROVISIONS

Article 26. Association of private enterprises

Private enterprises in order to protect their rights and interests may unite in associations (unions) and other associations in accordance with the law.

Article 27. Alienation of a private enterprise

The owner of the private enterprise has the right to sell, give, bequeath the private enterprise as a property complex or any other way to make its alienation.

When the alienation of private companies the right to use brand names, trade marks, marks of service and other means of individualization of the private enterprise and its products, performed their works or provided services transferred to the new owner, unless otherwise not provided for by the legislation or the contract.

Article 28. Reorganization and liquidation of a private enterprise

A private enterprise can be reorganized by decision of its owner or court in the manner prescribed by law.

A private enterprise may be liquidated by the decision of its owner or a court, or the registering authority.

Article 29. Settlement of disputes

Disputes in the field of formation, activity, reorganization and liquidation of private enterprises are resolved in the manner prescribed by law.

Article 30. Responsibility for violation of legislation on a private enterprise

Persons guilty of violating the legislation on a private enterprise are liable in the prescribed manner.

President of the Republic of Uzbekistan I. KARIMOV

Tashkent city,

December 11, 2003,

No. 558-II