Doing Business 2018 Uzbekistan Economy Pro le of Uzbekistan Doing Business 2018 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and permits safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. Page 2   for insolvency Doing Business Labor market 2018 regulation Uzbekistan Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Region Europe & Central Asia DB 2018 Rank 190 1 Uzbekistan Income Category Lower middle income 74 Population 31,848,200 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 2,220 0 100 66.33 City Covered Tashkent DB 2018 Distance to Frontier (DTF) 0 100 75.50: Russian Federation (Rank: 35) 75.44: Kazakhstan (Rank: 36) 73.00: Moldova (Rank: 44) 71.33: Regional Average (Europe & Central Asia) 66.33: Uzbekistan (Rank: 74) Page 3   65.70: Kyrgyz Republic (Rank: 77) aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Uzbekistan Ease of Doing Business in Region Europe & Central Asia DB 2018 Rank 190 1 Uzbekistan Income Category Lower middle income 74 Population 31,848,200 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 2,220 0 100 66.33 City Covered Tashkent DB 2018 Distance to Frontier (DTF) 0 100 75.50: Russian Federation (Rank: 35) 75.44: Kazakhstan (Rank: 36) 73.00: Moldova (Rank: 44) 71.33: Regional Average (Europe & Central Asia) 66.33: Uzbekistan (Rank: 74) 65.70: Kyrgyz Republic (Rank: 77) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Uzbekistan 1 11 27 28 39 55 55 62 73 78 82 87 Rank 109 135 136 163 168 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Distance to Frontier (DTF) on Doing Business topics - Uzbekistan 100 95.54 85.50 80 74.78 66.34 65.00 67.26 61.26 58.33 60 DTF 44.31 45.00 40 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+13.69 Change:+0.11 Change:0.00 Investors Change:+20.74 Borders Change:0.00 Change:-1.29 Change:+1.61 Permits Change:+3.33 Change:0.00 Change:+6.38 Starting a Business Page 4   This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+13.69 Change:+0.11 Change:0.00 Investors Change:+20.74 Borders Change:0.00 Change:-1.29 Change:+1.61 Permits Change:+3.33 Change:0.00 Doing Business 2018 Uzbekistan Change:+6.38 Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and operate a To make the data comparable across economies, several assumptions company (number) about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay Pre-registration (for example, name verification no bribes. or reservation, notarization) Registration in economy’s largest business city The business: - Is a limited liability company (or its legal equivalent). If there is more than Post-registration (for example, social security one type of limited liability company in the economy, the most common registration, company seal) among domestic rms is chosen. Information on the most common form is Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical o ce. or leave home to register company - Operates in the economy’s largest business city and the entire o ce Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11 can impact company registration, company economies the data are also collected for the second largest business city. operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal identity card entity; and has a start-up capital of 10 times income per capita and has a Time required to complete each procedure turnover of at least 100 times income per capita. (calendar days) - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does Does not include time spent gathering not perform foreign trade activities and does not handle products subject information to a special tax regime, for example, liquor or tobacco. It does not use Each procedure starts on a separate day (2 heavily polluting production processes. procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent as ½ day to 1 times income per capita. Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts. document is received - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of The owners: income per capita) - Have reached the legal age of majority. If there is no legal age of majority, Official costs only, no bribes they are assumed to be 30 years old. No professional fees unless services required by - Are sane, competent, in good health and have no criminal record. law or commonly used in practice - Are married and the marriage is monogamous and registered with the authorities. Paid-in minimum capital (% of income per capita) - Where the answer di ers according to the legal system applicable to the Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Standardized Company Page 5   before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Doing Business 2018 Uzbekistan Standardized Company Legal form Limited Liability Company Paid-in minimum capital requirement UZS 0 City Covered Tashkent Europe & OECD high Indicator Uzbekistan Central Asia income Overall Best Performer Procedure – Men (number) 3 5.2 4.9 1.00 (New Zealand) Time – Men (days) 5 10.1 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 3.1 4.4 3.1 0.00 (United Kingdom) Procedure – Women (number) 3 5.2 4.9 1.00 (New Zealand) Time – Women (days) 5 10.1 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 3.1 4.4 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 0.0 3.4 8.7 0.00 (113 Economies) Figure – Starting a Business in Uzbekistan and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 95.54: Uzbekistan (Rank: 11) 93.76: Moldova (Rank: 23) 93.03: Russian Federation (Rank: 28) 92.94: Kyrgyz Republic (Rank: 29) 91.95: Kazakhstan (Rank: 41) 90.62: Regional Average (Europe & Central Asia) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Uzbekistan – Procedure, Time and Cost Time Cost 5 3 2.5 4 ost (% of income per capita) 2 Time (days) 3 1.5 2 1 Page 6   starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Uzbekistan Figure – Starting a Business in Uzbekistan – Procedure, Time and Cost Time Cost 5 3 2.5 4 Cost (% of income per capita) 2 Time (days) 3 1.5 2 1 1 0.5 0 0 1 2 3 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Uzbekistan – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Register at the Single Window Center under the Ministry of Justice (one- 2 days UZS 149,775 (equal stop shop) and obtain the Certi cate of State Registration to one minimum Agency : Single Window Center under the Ministry of Justice wage salary) Starting from April 1, 2017, the new online platform for the companies registration was introduced: fo.birdarcha.uz The company can be registered online or in-person by visiting the Single Window Center of the relevant district. The following registration documents should be submitted: (1) application form; (2) constitutive documents: shareholders agreement and charter (for LLC); (3) con rmation of registration fee payment (if not done at the moment of registration). In case of online registration, each founder should electronically con rm that (s)he is becoming the founder of the company. Within 30 minutes after the documents are submitted and payment is made, the company is registered. Registration certi cate and constitutional documents are sent electronically Page 7   to the applicant. (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Uzbekistan Details – Starting a Business in Uzbekistan – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Register at the Single Window Center under the Ministry of Justice (one- 2 days UZS 149,775 (equal stop shop) and obtain the Certi cate of State Registration to one minimum Agency : Single Window Center under the Ministry of Justice wage salary) Starting from April 1, 2017, the new online platform for the companies registration was introduced: fo.birdarcha.uz The company can be registered online or in-person by visiting the Single Window Center of the relevant district. The following registration documents should be submitted: (1) application form; (2) constitutive documents: shareholders agreement and charter (for LLC); (3) con rmation of registration fee payment (if not done at the moment of registration). In case of online registration, each founder should electronically con rm that (s)he is becoming the founder of the company. Within 30 minutes after the documents are submitted and payment is made, the company is registered. Registration certi cate and constitutional documents are sent electronically to the applicant. Registration fee is levied in the amount of 1 minimum wage in case of registration in person, or 0.5 minimum wage in case of registration online. After the LLC is registered, the local registering authority automatically provides the data on the registered LLC to the state statistics authorities, state tax authorities, and internal a airs agencies at place of location of the LLC. 2 Make a company seal 2 days UZS 50,000 Agency : Specialized seal-making company According to Article 5 of the Law "On limited liability company" (http://lex.uz/Pages/GetAct.aspx?lact_id=18793), small companies are not legally required to have a seal. However, most companies still prefer to do so in practice. Starting from April 1, 2017, small companies are no longer required to approve the seal design with the registration authorities. The company’s seal must be made by a specialized seal-making company. The cost ranges between UZS 35,000-UZS 75,000. For ordering a seal, the company should provide the Registration Certi cate. Page 8   state tax authorities, and internal a airs agencies at place of location of the Doing LLC. Business 2018 Uzbekistan 2 Make a company seal 2 days UZS 50,000 Agency : Specialized seal-making company According to Article 5 of the Law "On limited liability company" (http://lex.uz/Pages/GetAct.aspx?lact_id=18793), small companies are not legally required to have a seal. However, most companies still prefer to do so in practice. Starting from April 1, 2017, small companies are no longer required to approve the seal design with the registration authorities. The company’s seal must be made by a specialized seal-making company. The cost ranges between UZS 35,000-UZS 75,000. For ordering a seal, the company should provide the Registration Certi cate. 3 Open a permanent bank account with a local bank 1 day no charge Agency : Commercial Bank Companies open bank accounts in order to conduct o cial business, and because in practice Tax Authorities expect a noti cation regarding company’s corporate account number. In addition corporate bank account is required for noti cation of Xalq bank. To open a permanent bank account, it is required to submit the Decision of the newly registered company on nomination of the director of the company and the accountant. Requirement to submit originals and copies of the certi cate of registration and constituent documents was abolished. When opening a bank account, banks independently gain access to information about the business entity (registration certi cates and constituent documents). After opening a permanent bank account for the company, the bank noti esy Tax Authorities and Khalk bank (People's bank) regarding the company's bank account. Applies to women only. Takes place simultaneously with previous procedure. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and Page 9   certificates The construction company (BuildCo): Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Uzbekistan Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Standardized Warehouse Page 10   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Uzbekistan Standardized Warehouse Estimated value of warehouse UZS 318,484,704.20 City Covered Tashkent Europe & OECD high Indicator Uzbekistan Central Asia income Overall Best Performer Procedures (number) 17 16.0 12.5 7.00 (Denmark) Time (days) 246 168.3 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 3.4 4.0 1.6 0.10 (5 Economies) Building quality control index (0-15) 11.0 11.4 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Uzbekistan and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 76.85: Kyrgyz Republic (Rank: 31) 73.30: Kazakhstan (Rank: 52) 68.09: Regional Average (Europe & Central Asia) 65.25: Russian Federation (Rank: 115) 61.26: Uzbekistan (Rank: 135) 51.98: Moldova (Rank: 165) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Uzbekistan – Procedure, Time and Cost Time Cost 3 200 2.5 Cost (% of warehouse value) 2 150 Time (days) 1.5 100 1 50 0.5 0 0 1 2 *3 4 5 6 7 8 9 * 10 11 12 13 14 15 16 17 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 11   component indicators. Doing Business 2018 Uzbekistan Figure – Dealing with Construction Permits in Uzbekistan – Procedure, Time and Cost Time Cost 3 200 2.5 Cost (% of warehouse value) 2 150 Time (days) 1.5 100 1 50 0.5 0 0 1 2 *3 4 5 6 7 8 9 * 10 11 12 13 14 15 16 17 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Uzbekistan and comparator economies – Measure of Quality 14 13.0 12.0 12 11.0 11.0 11.4 10.0 10 Index score 8 6 4 2 0 Uzbekistan Kazakhstan Kyrgyz Republic Moldova Russian Federation Europe & Central Asia Details – Dealing with Construction Permits in Uzbekistan – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request and obtain land clearance from Tashkent City Hokimiyat 38 days no charge (submission of an application for a land plot and of approved materials) Agency : District Governor's O ce "Starting on January 1, 2016, the government changed the way land plots of up to 1 hectare are allocated to legal entities and individuals. Land plots are now assigned on the basis of a competitive selection process. Local authorities (municipalities) select land plots that are available for allocation. Then, each Municipality has the local Department of Architecture and Construction obtain all preliminary approvals of land allocation (previously separate procedures) from the relevant authorities, depending on the environmental, architectural and zoning requirements of the individual Page 12   plots. Once all approvals are obtained internally by the Department of Uzbekistan Kazakhstan Kyrgyz Republic Moldova Russian Federation Europe & Central Asia Doing Business 2018 Uzbekistan Details – Dealing with Construction Permits in Uzbekistan – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request and obtain land clearance from Tashkent City Hokimiyat 38 days no charge (submission of an application for a land plot and of approved materials) Agency : District Governor's O ce "Starting on January 1, 2016, the government changed the way land plots of up to 1 hectare are allocated to legal entities and individuals. Land plots are now assigned on the basis of a competitive selection process. Local authorities (municipalities) select land plots that are available for allocation. Then, each Municipality has the local Department of Architecture and Construction obtain all preliminary approvals of land allocation (previously separate procedures) from the relevant authorities, depending on the environmental, architectural and zoning requirements of the individual plots. Once all approvals are obtained internally by the Department of Architecture and Construction, a complete set of documents is prepared for each land plot and submitted to the contest organizer within the Municipality. The time is 38 days (30 days after announcement is made to apply + 3 days for the committee to evaluate the bids + 5 days to announce the decision). Per the new process, an announcement is made in the mass media that there are land plots allocated for a speci c type of construction (e.g., kindergarten, produce store, a warehouse etc.). Subsequently, these land plots, with all the necessary characteristics, are made available on the website of the State Committee of Uzbekistan on Architecture and Construction: http://1kms.uz/kms/announcementnew/list/11. There is only one committee that organizes the bid. The announcement about the bid is made 1 month before the start of the bidding process, so bidders have 1 month to prepare the application and submit the bid. The committee takes 3 days to evaluate all the bids and then it has 5 days to announce the allotment decision. Once the decision is made, it is announced in mass media (in the same national and local newspapers where the bid was announced in the rst place). The committee will inform the winners within 2 days after the o cial announcement. Those who were not selected will nd out in the papers and on the website. The announcement is also sent by mail to all bidders. The announcement of the auction / competition is made only 2 times a year (May and November). This announcement is determined based on demand and supply of available land plots. The Hokimiyat signs a contract with the winner and the winner can go ahead and sign a contract with the project design company. 2 Obtain topographic survey of the land plot and the land plot's precise 21 days UZS 1,200,000 location (red lines) by "UzGAShKLITI” Agency : State Design Research Institute of Engineering Studies in Construction, Geoinformatics and Urban Cadastre - "UzGAShKLITI" A specialized agency draws the precise location of the land plot on a map (usually in red color, hence the name "red lines"). Page 13   and sign a contract with the project design company. Doing Business 2018 Uzbekistan 2 Obtain topographic survey of the land plot and the land plot's precise 21 days UZS 1,200,000 location (red lines) by "UzGAShKLITI” Agency : State Design Research Institute of Engineering Studies in Construction, Geoinformatics and Urban Cadastre - "UzGAShKLITI" A specialized agency draws the precise location of the land plot on a map (usually in red color, hence the name "red lines"). 3 Request and obtain technical conditions for the connection to water 7 days no charge and sewerage Agency : Water and Sewerage Authority BuildCo must obtain technical terms for the connection to the water and sewerage systems. The terms are necessary for preparing project documentation. BuildCo must submit the following information to the local water and sewerage authority: • For water: the load of water demand, the calculation of water height, and the expected date of commencement of water consumption • For sewerage: the calculation of sewage volume, qualitative composition of the sewage, speci cation of whether the any plans for internal treatment, and the expected date the sewerage system is to be put into operation By law, this procedure should be completed in 3 business days. However, in practice, it takes longer. 4 Request and obtain architectural and technical objectives 30 days UZS 472,000 Agency : Main Department of Architecture and Construction Based on the terms for designing the building in accordance with engineering supply norms and regulations, the technical conditions, and the decision of the Hokimat on the land plot (all provided by the department on architecture and construction of the city), the Main Department of Architecture and Construction develops the architectural planning terms (APZ, parts I and II). The fee is established by Government Resolution No. 150 (dated May 30, 2013) was set at 4 MMW. 5 Request ecological examination 20 days UZS 725,000 Agency : Private Licensed Organization BuildCo should submit the project and pre-project documentation for ecological examination to a private expert rm. The expert rm will provide the examination and will also obtain the conclusion from The State Ecological Examination body of the Committee on the Protection of Nature of the city of Tashkent will issue the conclusion of the ecological examination. This document is necessary for subsequent submission to the territorial Inspection of State Architectural Building Supervision of the city of Tashkent and to the servicing bank (to allow nancing). It is also necessary for obtaining the re safety and earthquake stability compliance. 6 Request and obtain examination of project documents on their 14 days UZS 236,000 compliance with re safety and seismic stability Agency : State Architectural and Construction Inspection (GASN) After obtaining an ecological evaluation, BuildCo can submit the construction plans for state examination on their compliance with re safety and earthquake stability. Page 14   and to the servicing bank (to allow nancing). It is also necessary for Doing obtaining Business the re safety 2018 and earthquake stability compliance. Uzbekistan 6 Request and obtain examination of project documents on their 14 days UZS 236,000 compliance with re safety and seismic stability Agency : State Architectural and Construction Inspection (GASN) After obtaining an ecological evaluation, BuildCo can submit the construction plans for state examination on their compliance with re safety and earthquake stability. 7 Request and obtain sanitation clearance for the project 14 days no charge Agency : State Sanitation and Epidemic Supervision Authority BuildCo must obtain project clearance from the state sanitation and epidemic supervision authority. This document can only be obtained after obtaining the re safety and earthquake stability compliance. 8 Request and obtain project clearance from the local water and sewerage 7 days no charge authority Agency : Water and Sewerage Authority BuildCo must obtain project clearance from the local water and sewerage authority. This authority checks whether the project and other relevant documentation conform to construction rules and technical terms. BuildCo enters into a contract with the local water and sewerage authority on technical supervision of the construction. This document can only be obtained after obtaining a sanitation clearance. 9 Request and obtain construction permit from State Architectural and 10 days UZS 95,545 Construction Inspection (GASN) Agency : State Architectural and Construction Inspection (GASN) The permit for construction works is issued by the local branch of the architecture and construction authority. Although the permit should be issued within 5 days, in practice it takes longer. An inspector from the local branch of the architecture and construction authority undertakes oversight of the construction. There is no permit application fee. However, for the oversight/inspection phase, the company enters into a contract with the authority at a cost of 0.03% of the value of the warehouse. The company must submit the following documents: • Application form • Positive evaluation summary from the public examination bodies on the working project • Copy of the general plan and elevations of the building approved by the architectural bodies, or the protocol of the Town-Planning Council of the Main Department on Architecture and Construction of the city of Tashkent • Address list of construction sites The Inspectorate registers the construction project and issues the building permit. BuildCo starts construction of the warehouse and noti es the Inspectorate of the commencement of works within a month of receiving the building permit. Hire a technical supervision company for construction supervision 1 day UZS 7,962,118 10 Agency : Private construction supervision company There are three levels of construction supervision in Uzbekistan: (1) internal supervision or author's supervision, (2) technical supervision conducted by an external rm and (3) government supervision. The technical supervision Page 15   companies usually charge around 2-3% of the construction costs. Inspectorate of the commencement of works within a month of receiving the Doing building Business permit. 2018 Uzbekistan Hire a technical supervision company for construction supervision 1 day UZS 7,962,118 10 Agency : Private construction supervision company There are three levels of construction supervision in Uzbekistan: (1) internal supervision or author's supervision, (2) technical supervision conducted by an external rm and (3) government supervision. The technical supervision companies usually charge around 2-3% of the construction costs. 11 Receive inspection from the State Architectural and Construction 1 day no charge Inspection (GASN) Agency : State Architectural and Construction Inspection (GASN) Inspection is carried out by State Architectural and Construction Inspection (GASN). GASN will assign one inspector for the speci c construction who will be responsible for conducting the inspections throughout the construction period. 12 Connect to water and sewerage services 5 days no charge Agency : Water and Sewerage Authority 13 Obtain updated topographic map 7 days no charge Agency : State Design Research Institute of Engineering Studies in Construction, Geoinformatics and Urban Cadastre - "UzGAShKLITI" Once the construction works and complete and the water and sewage connection is obtained, the State Design Research Institute "UzGAShKLITI" conducts a survey of the land plot and of the building to develop a new topographic map of the area with the new construction on it. This is called executive mapping. 14 Call and establish Working Commission and submit documents to the 14 days no charge Commission Agency : Working Commission After completion of the construction works, BuildCo requests the creation of a Working Commission composed of the representatives of district architects, the sanitation supervision authority, the state re supervision authority, the ministry on emergency situations, the city committee on nature protection, and others. The timeframe under the Construction rules, registered by Ministry of Justice No.545, for establishing Working Commission is 5 working days. However, in practice it takes 14 days, as the Commission only meets once every two weeks and in case the le doesn’t make it to the rst meeting, it would almost certainly be reviewed at the second one. BuildCo must submit the following documents to the Working Commission: • The list of organizations that participated in the building and construction works, along with the type of work done by these organizations, the family names of the responsible engineers and technical employees • The full set of design drawings of the property developed by the project organizations • Certi cates, technical passports, and other documents certifying the quality and safety of the materials, constructions, and details used in the building and construction works • Other relevant documents 15 Receive inspection and obtain certi cate of completion from Working 21 days no charge Commission Page 16   building and construction works Other relevant Doing •Business 2018documents Uzbekistan 15 Receive inspection and obtain certi cate of completion from Working 21 days no charge Commission Agency : Working Commission After the inspection, an act of acceptance is drafted and endorsed by all members in no more than 5 working days. The Working Commission will inspect, among other things: • The compliance of the building and construction works with the requirements on labor protection, re safety, environment protection, and its prevention of human-caused emergency situations, and so forth • The separate constructions and units of the warehouse If its ndings are favorable, the commission then accepts the construction for subsequent presentation to the State Acceptance Board. The Working Commission issues the following: • The certi cate of allowable concentration of radon in the completed constructions • The certi cate of acceptance of the temporary buildings and constructions • The certi cate of readiness of the construction for presentation to the State Acceptance Board 16 Request and obtain certi cate of acceptance from the Tashkent City 14 days no charge Hokimat Agency : Hokimat The Hokim (the head of the city government) decides whether to approve the Working Commission’s act of acceptance within 2 days. However, in practice, this takes longer. There is no fee involved. The decision of Hokim is further needed for registering the building with the cadastre authorities. BuildCo should submit to the State Acceptance Board, among other documents, the following documents: • The certi cate on elimination of defects brought to light by the Working Commission • The approved project and estimate documentation • The list of project and research organizations that participated in construction • Other relevant documents 17 Register the new construction with the cadastre 30 days UZS 59,000 Agency : Cadastre BuildCo must register the new construction with the real estate cadastre of the relevant district of the city of Tashkent. The registration takes around 2 weeks in Tashkent and costs 50% of MMW for legal entities. Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Uzbekistan – Measure of Quality Answer Score Building quality control index (0-15) 11.0 Quality of building regulations index (0-2) 2.0 Page 17   How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Takes place simultaneously with previous procedure. Doing Business 2018 Uzbekistan Details – Dealing with Construction Permits in Uzbekistan – Measure of Quality Answer Score Building quality control index (0-15) 11.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections by 1.0 construction? (0-2) in-house engineer; Inspections by external engineer or rm; Unscheduled inspections; Inspections at various phases. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency; Yes, in- house engineer submits report for nal inspection; Yes, external engineer submits report for nal inspection. Page 18   Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 control after QualityBusiness Doing 2018construction index (0-3) Uzbekistan 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency; Yes, in- house engineer submits report for nal inspection; Yes, external engineer submits report for nal inspection. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Professional in charge of the supervision; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Professional certi cations index (0-4) 2.0 What are the quali cation requirements for the professional responsible for verifying Minimum 1.0 that the architectural plans or drawings are in compliance with existing building number of years regulations? (0-2) of experience; University degree in architecture or engineering. What are the quali cation requirements for the professional who supervises the Minimum 1.0 construction on the ground? (0-2) number of years of experience; University degree in engineering, construction or construction management. Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly Page 19   constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, construction management. Doing Business 2018 Uzbekistan Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10- Official costs only, no bribes meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Tools to restore power supply (0–1) The monthly consumption: Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00 (0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours Transparency and accessibility of tariffs (0–1) (kWh); hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tari s e ective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for * N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used. electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 20   Standardized Connection frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Uzbekistan Standardized Connection Price of electricity (US cents per kWh) 6.8 Name of utility Uzbekenergo City Covered Tashkent Europe & OECD high Indicator Uzbekistan Central Asia income Overall Best Performer Procedures (number) 4 5.4 4.7 2 (United Arab Emirates) Time (days) 88 113.7 79.1 10 (United Arab Emirates) Cost (% of income per capita) 883.1 344.3 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 8 5.3 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Uzbekistan and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 92.81: Russian Federation (Rank: 10) 85.50: Uzbekistan (Rank: 27) 76.77: Kazakhstan (Rank: 70) 74.65: Moldova (Rank: 80) 70.35: Regional Average (Europe & Central Asia) 44.19: Kyrgyz Republic (Rank: 164) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Uzbekistan – Procedure, Time and Cost Time Cost 1000 80 70 800 Cost (% of income per capita) 60 Time (days) 600 50 40 400 30 20 200 10 Page 21   getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Uzbekistan Figure – Getting Electricity in Uzbekistan – Procedure, Time and Cost Time Cost 1000 80 70 800 Cost (% of income per capita) 60 Time (days) 600 50 40 400 30 20 200 10 0 0 1 2 3 4 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Uzbekistan and comparator economies – Measure of Quality 9 8 8 8 8 7 7 6 Index score 5.3 5 4 3 2 1 0 0 Uzbekistan Kazakhstan Kyrgyz Republic Moldova Russian Federation Europe & Central Asia Details – Getting Electricity in Uzbekistan – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application and await technical conditions and connection 14 calendar days UZS 0 contract with estimate Agency : Tashkent City Electric Network Enterprise OJSC The customer submits an application for the electrical connection to the Tashkent City Electric Network Enterprise and waits for them to issue technical conditions along with the connection contract that contains the time required for the connection works as well as the connection cost estimate. 2 Signing connection contract and make payment 3 calendar days UZS 56,250,000 Agency : Tashkent City Electric Network Enterprise OJSC Page 22   Uzbekistan Kazakhstan Kyrgyz Republic Moldova Russian Federation Europe & Central Asia Doing Business 2018 Uzbekistan Details – Getting Electricity in Uzbekistan – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application and await technical conditions and connection 14 calendar days UZS 0 contract with estimate Agency : Tashkent City Electric Network Enterprise OJSC The customer submits an application for the electrical connection to the Tashkent City Electric Network Enterprise and waits for them to issue technical conditions along with the connection contract that contains the time required for the connection works as well as the connection cost estimate. 2 Signing connection contract and make payment 3 calendar days UZS 56,250,000 Agency : Tashkent City Electric Network Enterprise OJSC Upon receiving the connection contract from the utility, customer has 3 business days to sign the contract and make the 100% prepayment for connection. 3 Implementation of connection works by utility 70 calendar days UZS 0 Agency : Tashkent City Electric Network Enterprise OJSC During this procedure the Utility implements following works: - prepares the connection design (15-20 business days), - receives preliminary approval by all stakeholder organizations (5 business days) - nalizes design based on received comments and gets nal approval (3 business days) - upon having the design approved, utility conducts the external connection works (15-30 business days) - after completion of external works, utility receives inspection by the State Energy Inspectorate "Uzgosenergonadzor" (3 business days) 4 Sign supply contract and obtain nal connection 1 calendar day UZS 0 Agency : Tashkent City Electric Network Enterprise OJSC The customer concludes a supply contract and obtains nal electricity connection. Takes place simultaneously with previous procedure. Details – Getting Electricity in Uzbekistan – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 8 Total duration and frequency of outages per customer a year (0-3) 3 System average interruption duration index (SAIDI) 0.2 System average interruption frequency index (SAIFI) 0.1 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 0.5 Page 23   Mechanisms for monitoring outages (0-1) 1 Takes place simultaneously with previous procedure. Doing Business 2018 Uzbekistan Details – Getting Electricity in Uzbekistan – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 8 Total duration and frequency of outages per customer a year (0-3) 3 System average interruption duration index (SAIDI) 0.2 System average interruption frequency index (SAIFI) 0.1 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 0.5 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online http://uzbekenergo. uz./ru/activities/tarif fs-electric-power/ Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Page 24   What the indicators measure Case study assumptions If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Uzbekistan Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions property (number) about the parties to the transaction, the property and the procedures are used. Preregistration procedures (for example, checking for liens, notarizing sales agreement, The parties (buyer and seller): paying property transfer taxes) - Are limited liability companies (or the legal equivalent). Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. business citya. For 11 economies the data are also collected for the second largest Postregistration procedures (for example, filling business city. title with municipality) - Are 100% domestically and privately owned. Time required to complete each procedure - Have 50 employees each, all of whom are nationals. (calendar days) - Perform general commercial activities. Does not include time spent gathering information The property (fully owned by the seller): - Has a value of 50 times income per capita, which equals the sale price. Each procedure starts on a separate day - though - Is fully owned by the seller. procedures that can be fully completed online - Has no mortgages attached and has been under the same ownership for are an exception to this rule the past 10 years. Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title document is received disputes. No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required. Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety duties and taxes). standards, building codes and legal requirements. The property, Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety. payments are excluded - Will not be subject to renovations or additional construction following the Quality of land administration index (0-30) purchase. - Has no trees, natural water sources, natural reserves or historical Reliability of infrastructure index (0-8) monuments of any kind. Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. Land dispute resolution index (0–8) - Has no occupants, and no other party holds a legal interest in it. Equal access to property rights index (-2–0) Standard Property Transfer Property value UZS 318,484,704.20 City Covered Tashkent Page 25   Europe & OECD high Doing Business 2018 Uzbekistan Standard Property Transfer Property value UZS 318,484,704.20 City Covered Tashkent Europe & OECD high Indicator Uzbekistan Central Asia income Overall Best Performer Procedures (number) 9 5.3 4.6 1.00 (4 Economies) Time (days) 46 20.4 22.3 1.00 (3 Economies) Cost (% of property value) 1.2 2.5 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 18.5 19.8 22.7 29.00 (Singapore) Figure – Registering Property in Uzbekistan and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 90.21: Kyrgyz Republic (Rank: 8) 88.72: Russian Federation (Rank: 12) 84.61: Kazakhstan (Rank: 17) 82.60: Moldova (Rank: 20) 76.02: Regional Average (Europe & Central Asia) 66.34: Uzbekistan (Rank: 73) Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Uzbekistan – Procedure, Time and Cost Time Cost 0.6 45 40 0.5 35 Cost (% of property value) 30 0.4 Time (days) 25 0.3 20 15 0.2 10 0.1 5 0 0 1 2 *3 *4 *5 *6 7 8 9 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 26   Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Uzbekistan Figure – Registering Property in Uzbekistan – Procedure, Time and Cost Time Cost 0.6 45 40 0.5 35 Cost (% of property value) 30 0.4 Time (days) 25 0.3 20 15 0.2 10 0.1 5 0 0 1 2 *3 *4 *5 *6 7 8 9 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Uzbekistan and comparator economies – Measure of Quality 30 26.0 25 24.0 22.0 19.8 20 18.5 Index score 17.0 15 10 5 0 Uzbekistan Kazakhstan Kyrgyz Republic Moldova Russian Federation Europe & Central Asia Details – Registering Property in Uzbekistan – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain the evaluation of the market value for the property 10 days 1 to 2 million UZS Agency : Private evaluator Private evaluator will visit the land ad immovable property, take measurements, etc. Usually, the visit is performed without presence of a client (seller). 2 Request and obtain Cadastral Certi cate 10 days no cost Agency : Cadastral Service O ce (simultaneous with procedures 3, 4, 5 The seller has to obtain the Cadastral Certi cate. The certi cate contains Page 27   and 6) Uzbekistan Kazakhstan Kyrgyz Republic Moldova Russian Federation Europe & Central Asia Doing Business 2018 Uzbekistan Details – Registering Property in Uzbekistan – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain the evaluation of the market value for the property 10 days 1 to 2 million UZS Agency : Private evaluator Private evaluator will visit the land ad immovable property, take measurements, etc. Usually, the visit is performed without presence of a client (seller). 2 Request and obtain Cadastral Certi cate 10 days no cost Agency : Cadastral Service O ce (simultaneous with procedures 3, 4, 5 The seller has to obtain the Cadastral Certi cate. The certi cate contains and 6) technical parameters of premises (when built, height, deterioration level, blueprint, etc.) as well as cadastral value (taxable value), which is used for property tax calculation purposes. 3 Inspection of a property to determine its status 1 day 1% of the minimum (simultaneous with monthly wage per Agency : Cadastral Service O ce procedures 2, 4, 5, square meter of and 6) building area Pursuant to the Decree No.1 as of Jan 7, 2014 the state o cial will have to As of October, 2016, conduct the onsite inspection of the land and building. The inspection is the minimum wage is performed to establish cadastral value of the property and to evaluate all UZS 149,775 possible changes in technical parameters, record new construction and reconstruction etc. Pursuant to the Order No. 186 from July 10, 2014 the fee for an inspection of the property by experts from the State Committee on Land Resources, Geodesy, Cartography and State Cadastre is set as follow: 1. Property with total size up to 100 sqr. m - 1 MMW (monthly minimum wage) 2. Property with total size from 100 sqr. m to 1000 sqr. m - 1% from MMW per squear meter of the property size 3. Property with total size from 1000 sqr. m to 5000 sqr. m - 15 from MMW 4. Property with total size from 5000 sqr. m to 15000 sqr. m - 30 from MMW 5. Property with total size from 15000 sqr. m to 50000 sqr. m - 50 from MMW 6. Property with total size more than 50000 sqr. m - 70 MMW 4 Seller obtains the certi cate stating that there are no outstanding 1 day no cost payments due to the water and sewage service provider (simultaneous with Agency : Water service provider procedures 2, 3, 5, and 6) Parties have to submit to the notary the certi cates stating that there are no outstanding payments due to the trash collection service use from trash collection service provider. Parties have to request these certi cates speci cally for the property transaction to demonstrate that there are no outstanding fees that have to be paid before transfer of property takes place. 5 Seller obtains the certi cate stating that there are no outstanding 1 day no cost electricity bills (simultaneous with Agency : Electricity service provider procedures 2, 3, 4, and 6) Page 28   Parties have to submit to the notary the certi cates stating that there are no outstanding fees that have to be paid before transfer of property takes Doing place. Business 2018 Uzbekistan 5 Seller obtains the certi cate stating that there are no outstanding 1 day no cost electricity bills (simultaneous with Agency : Electricity service provider procedures 2, 3, 4, and 6) Parties have to submit to the notary the certi cates stating that there are no outstanding payments due to the electricity service use from electricity service provider. Parties have to request these certi cates speci cally for the property transaction to demonstrate that there are no outstanding fees that have to be paid before transfer of property takes place. 6 Seller obtains the certi cate stating that there are no outstanding trash 1 day no cost collection bills (simultaneous with Agency : Trash collection service provider procedures 2, 3, 4, and 5) Parties have to submit to the notary the certi cates stating that there are no outstanding payments due to the trash collection service use from trash collection service provider. Parties have to request these certi cates speci cally for the property transaction to demonstrate that there are no outstanding fees that have to be paid before transfer of property takes place. 7 Notarize the sale agreement between the seller and buyer 1 day 1% of the minimum Agency : Public Notaries monthly wage per square meter of According to Article 480 of the Civil Code of Uzbekistan a contract for sale of building area + fees an immovable shall be concluded in a written form by formation of one charged by notaries document signed by the parties. Accordingly, the obligation to notarize the for consultations sale of a real estate between legal persons is not required by law. and drafting sale- However, upon agreement of the parties, the contract can be notarized. In purchase agreement accordance with paragraph 51 of Instructions on notarial acts of notaries, in case of notarization of the sale contract of a real estate such transactions As of October, 2016, shall be certi ed in a notary's o ce located at the place where the location the minimum wage is of the real state is. UZS 149,775. For certi cation of transactions on alienation of a real estate owned by legal entities, notary requires the following documents: • Proof of ownership of the property (cadastral certi cate); • Certi cate of state registration of the legal entity; • Certi cate on the net book value of the property, signed by the director and the chief accountant of the legal entity; • Certi cate of net assets of the legal entity; • Power of attorney for a representative of the legal entity, issued in the prescribed manner (if there is no an employment contract between the representative and the legal entity, a power of attorney shall be issued by a notary); • Act of acceptance of the property; • Document verifying the payment between the parties (the receipt, payment order)*; *In case the sale contract is notarized, a written basis for the settlement between the parties, namely the conclusion of the preliminary agreement between the parties on the basis of which the payment for the transferred property was made, will be needed in order to provide the notary with a document con rming settlement between the parties. 8 Buyer applies for the registration at the Registration O ce 22 calendar days No cost Agency : Registration O ce - Department of Land Resources and State Cadastre - City of Tashkent Page 29   According to Article 481 of Civil Code of Uzbekistan, the transfer of the property was made, will be needed in order to provide the notary with a Doing document Business con rming 2018 settlement between the parties. Uzbekistan 8 Buyer applies for the registration at the Registration O ce 22 calendar days No cost Agency : Registration O ce - Department of Land Resources and State Cadastre - City of Tashkent According to Article 481 of Civil Code of Uzbekistan, the transfer of the property rights on immovable property from the seller to the buyer is subject to the state registration. In case of registration of a building or structure in a land register and in a register book, the case of change of the owner of person having proprietary rights to that object, and also in case of change of the legal position of the object, a new certi cate of state registration of a building structure will be issued with the obligatory withdrawal and cancellation of the old certi cate. Pursuant to the Resolution of the President of Uzbekistan No.PP-2412 dated 28 September 2015 the document con rming the title to the property rights shall be submitted with the registration department of city/district municipality (khokimiyat), further the property rights will be registered by the State Committee on Land Resources, Geodesy, Cartography and State Cadaster. 9 Buyer submits the cadastral package to the local tax authorities 3 days no cost Agency : Local Tax Authorities The buyer submits a copy of Cadastral package to the local tax authority in order to update the land and property taxation records to the new owner's name. In addition, according to the Tax Code of the Republic of Uzbekistan, authorities involved with the registration of the title must report information on new owners to the tax authorities within 10 days after registration of the title has taken place. Takes place simultaneously with previous procedure. Details – Registering Property in Uzbekistan – Measure of Quality Answer Score Quality of the land administration index (0-30) 18.5 Reliability of infrastructure index (0-8) 5.0 What is the institution in charge of immovable property registration? Tashkent city Department of Land Resources and State Cadastre In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Cadastre Service o ce under the State Committee on land resources, cartography and Page 30   State Cadastre Takes place simultaneously with previous procedure. Doing Business 2018 Uzbekistan Details – Registering Property in Uzbekistan – Measure of Quality Answer Score Quality of the land administration index (0-30) 18.5 Reliability of infrastructure index (0-8) 5.0 What is the institution in charge of immovable property registration? Tashkent city Department of Land Resources and State Cadastre In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Cadastre Service o ce under the State Committee on land resources, cartography and State Cadastre In what format are the majority of maps of land plots kept in the largest business city— Computer/Scann 1.0 in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for recording boundaries, checking plans and providing No 0.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Single database 1.0 cadastral or mapping agency kept in a single database, in di erent but linked databases or in separate databases? Do the immovable property registration agency and cadastral or mapping agency use Yes 1.0 the same identi cation number for properties? Transparency of information index (0–6) 2.5 Who is able to obtain information on land ownership at the agency in charge of Only 0.0 immovable property registration in the largest business city? intermediaries and interested parties Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made publicly available–and if so, how? Link for online access: http://www.kada str.uz/ru/individu al/services/perec hen- dokumentov- dlya-registratsii- prava/2933/ Page 31   Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made Doing publicly available–and Business if so, how? 2018 Uzbekistan Link for online access: http://www.kada str.uz/ru/individu al/services/perec hen- dokumentov- dlya-registratsii- prava/2933/ Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: http://www.kada str.uz/ru/individu al/services/stoim ost-uslug/2931/ Does the agency in charge of immovable property registration commit to delivering a Yes, online 0.5 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: http://www.kada str.uz/ru/individu al/services/sroki- okazaniya- uslug/2923/ Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available o cial statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2015: Who is able to consult maps of land plots in the largest business city? Only 0.0 intermediaries and interested parties Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, online 0.5 —and if so, how? Link for online access: http://www.kada str.uz/ru/corpor ate/services/stoi most- uslug/3364/ Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5 speci c time frame—and if so, how does it communicate the service standard? Link for online access: http://odnookno. uz/ru/e- services/order/? SERVICE_ID=780 Page 32   Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5 c time frame—and speciBusiness Doing if so, how does it communicate the service standard? 2018 Uzbekistan Link for online access: http://odnookno. uz/ru/e- services/order/? SERVICE_ID=780 Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 4.0 Are all privately held land plots in the economy formally registered at the immovable No 0.0 property registry? Are all privately held land plots in the largest business city formally registered at the Yes 2.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? Yes 2.0 Land dispute resolution index (0–8) 7.0 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private Yes 0.5 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who No 0.0 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Notary; Lawyer. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Notary. Is there a national database to verify the accuracy of identity documents? Yes 1.0 For a standard land dispute between two local businesses over tenure rights of a Arbitration Court property worth 50 times gross national income (GNI) per capita and located in the or The economic largest business city, what court would be in charge of the case in the rst instance? Court of Tashkent city How long does it take on average to obtain a decision from the rst-instance court for Less than a year 3.0 such a case (without appeal)? Are there any statistics on the number of land disputes in the rst instance? No 0.0 Number of land disputes in the largest business city in 2015: Page 33   Are there Doing 2018 on any statistics Business the number of land disputes in the rst instance? Uzbekistan No 0.0 Number of land disputes in the largest business city in 2015: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Page 34   Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Uzbekistan Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Europe & OECD high Indicator Uzbekistan Central Asia income Overall Best Performer Strength of legal rights index (0-12) 6 6.6 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 6.3 6.6 8.00 (34 Economies) Page 35   Credit registry coverage (% of adults) 0.0 22.2 18.3 100.00 (3 Economies) possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Uzbekistan Europe & OECD high Indicator Uzbekistan Central Asia income Overall Best Performer Strength of legal rights index (0-12) 6 6.6 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 6.3 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 0.0 22.2 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 40.1 42.8 63.7 100.00 (23 Economies) Figure – Getting Credit in Uzbekistan and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 75.00: Kyrgyz Republic (Rank: 29) 75.00: Russian Federation (Rank: 29) 70.00: Moldova (Rank: 42) 65.00: Uzbekistan (Rank: 55) 64.58: Regional Average (Europe & Central Asia) 55.00: Kazakhstan (Rank: 77) Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Uzbekistan and comparator economies 10 9 9 8 8 8 7 6.6 6 Index score 6 5 4 4 3 2 1 0 Uzbekistan Kazakhstan Kyrgyz Republic Moldova Russian Federation Europe & Central Asia Details – Legal Rights in Uzbekistan Strength of legal rights index (0-12) 6 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and Yes enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Page 36   Uzbekistan Kazakhstan Kyrgyz Republic Moldova Russian Federation Europe & Central Asia Doing Business 2018 Uzbekistan Details – Legal Rights in Uzbekistan Strength of legal rights index (0-12) 6 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and Yes enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds No or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and No obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically Yes and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? Yes Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be Yes performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency No procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? No Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised No reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law Yes allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Uzbekistan and comparator economies 8 7 7 7 6.3 6 6 6 Index score 4 2 0 Uzbekistan Kazakhstan Kyrgyz Republic Moldova Russian Federation Europe & Central Asia Details – Credit Information in Uzbekistan Page 37   0 Uzbekistan Doing Business 2018 Kazakhstan Uzbekistan Kyrgyz Republic Moldova Russian Federation Europe & Central Asia Details – Credit Information in Uzbekistan Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? Yes No 1 Are both positive and negative credit data distributed? Yes No 1 Are data from retailers or utility companies - in addition to data from banks and financial institutions - No No 0 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more Yes No 1 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? Yes No 1 By law, do borrowers have the right to access their data in the credit bureau or credit registry? Yes No 1 Can banks and financial institutions access borrowers’ credit information online (for example, Yes No 1 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial Yes No 1 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 7 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 7,897,775 0 Number of firms 620,225 0 Total 8,518,000 0 Percentage of adult population 40.1 0.0 Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple Page 38   transactions; Available legal remedies (damages, Percentage of adult population 40.1 0.0 Doing Business 2018 Uzbekistan Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple disgorgement of profits, fines, imprisonment, shareholders. rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speci cally Ease of shareholder suits index (0–10): Access to required by law. internal corporate documents; Evidence - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal system) on which 60% of the shareholder-elected members have been expenses appointed by Mr. James, who is Buyer’s controlling shareholder and a Extent of conflict of interest regulation index member of Buyer’s board of directors. (0–10): Simple average of the extent of disclosure, - Has not adopted any bylaws or articles of association that di er from extent of director liability and ease of default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate Extent of shareholder rights index (0-10): governance. Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network. decisions Extent of ownership and control index (0-10): The transaction involves the following details: Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve- from undue board control and entrenchment member board. Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer Extent of shareholder governance index (0–10): agrees. The price is equal to 10% of Buyer’s assets and is higher than the Simple average of the extent of shareholders market value. rights, extent of ownership and control and - The proposed transaction is part of the company’s ordinary course of extent of corporate transparency indices business and is not outside the authority of the company. Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained, (0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not interest regulation and extent of shareholder fraudulent). governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. Europe & OECD high Indicator Uzbekistan Central Asia income Overall Best Performer Extent of conflict of interest regulation index (0- 6 6.3 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 5.7 6.6 6.4 Page 39   9.00 (Kazakhstan) and the other parties that approved the transaction. Doing Business 2018 Uzbekistan Europe & OECD high Indicator Uzbekistan Central Asia income Overall Best Performer Extent of conflict of interest regulation index (0- 6 6.3 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 5.7 6.6 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Uzbekistan and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 85.00: Kazakhstan (Rank: 1) 66.67: Moldova (Rank: 33) 64.31: Regional Average (Europe & Central Asia) 61.67: Kyrgyz Republic (Rank: 51) 61.67: Russian Federation (Rank: 51) 58.33: Uzbekistan (Rank: 62) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Uzbekistan and comparator economies – Measure of Quality Uzbekistan 7 3 8 4 6 7 Kazakhstan 9 6 9 8 10 9 Kyrgyz Republic 7 5 7 6 4 8 Moldova 8 4 7 5 8 8 Russian Federation 8 2 6 5 9 7 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 Europe & Central Asia 7.4 4.6 7 5.5 7.2 6.8 0 10 20 30 40 50 60 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Uzbekistan – Measure of Quality Answer Score Page 40   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Uzbekistan Details – Protecting Minority Investors in Uzbekistan – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 6 Extent of disclosure index (0-10) 8 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Shareholders 3.0 excluding interested parties Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0 all material facts Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0 the transaction and on the con ict of interest Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- Disclosure on 1.0 2) the transaction only Extent of director liability index (0-10) 3 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Not liable 0.0 caused to Buyer? (0-2) Can shareholders hold the other directors liable for the damage the transaction caused Not liable 0.0 to Buyer (0-2) Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by No 0.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by No 0.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by No 0.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if unfair 2.0 or prejudicial Ease of shareholder suits index (0-10) 7 Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Documents that 2.0 directly prove speci c facts in the plainti ’s Page 41   Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction Doing 2018 (0-1) documents? Business Uzbekistan Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Documents that 2.0 directly prove speci c facts in the plainti ’s claim Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) Yes 2.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-10) 5.7 Extent of shareholder rights index (0-10) 6 Does the sale of 51% of Buyer's assets require shareholder approval? Yes 1.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0 Do shareholders automatically receive preemption rights every time Buyer issues new No 0.0 shares? Must shareholders approve the election and dismissal of the external auditor? No 0.0 Are changes to the rights of a class of shares only possible if the holders of the a ected No 0.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require Yes 1.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new Yes 1.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their No 0.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 4 Is it forbidden to appoint the same individual as CEO and chair of the board of Yes 1.0 directors? Must the board of directors include independent and nonexecutive board members? No 0.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising No 0.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 Page 42   of Buyer? Must the board of directors include a separate audit committee exclusively comprising No 0.0 board Doing members? Business 2018 Uzbekistan Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? No 0.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve No 0.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a No 0.0 maximum period set by law? Extent of corporate transparency index (0-10) 7 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? No 0.0 Must Buyer disclose information about board members’ primary employment and Yes 1.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? Yes 1.0 Must a detailed notice of general meeting be sent 21 days before the meeting? No 0.0 Can shareholders representing 5% of Buyer’s share capital put items on the general Yes 1.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Assuming that Buyer is a limited company, must members meet at least once a year? Yes 1.0 Assuming that Buyer is a limited company, can members representing 5% put items on Yes 1.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be No 0.0 audited by an external auditor? Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Page 43   Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory Assuming that Buyer is a limited company, must Buyer's annual nancial statements be No 0.0 audited by an external auditor? Doing Business 2018 Uzbekistan Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, with the requirements of post ling processes and time waiting. sales tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: Time required to comply with 3 major taxes - TaxpayerCo is a medium-size business that started operations on January (hours per year) 1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes Collecting information, computing tax payable and contributions recorded are paid in the second year of operation Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at all levels of government. Arranging payment or withholding Preparing separate tax accounting books, if The VAT refund process: required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally all taxes) spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per Profit or corporate income tax capita divided by 12). The machinery seller is registered for VAT and excess Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive employer months if the VAT rate is the same for inputs, sales and the machine and Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT Dividend, capital gains, financial transactions in June 2016. taxes The corporate income tax audit process: Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates, or incorrectly treating an expense as tax deductible) Post ling Index leads to an incorrect income tax return and a corporate income Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax Time to complete a corporate income tax audit return, but within the tax assessment period. Europe & OECD high Indicator Uzbekistan Central Asia income Overall Best Performer Payments (number per year) 10 16.5 10.9 3 (Hong Kong SAR, China) Page 44   return, but within the tax assessment period. Doing Business 2018 Uzbekistan Europe & OECD high Indicator Uzbekistan Central Asia income Overall Best Performer Payments (number per year) 10 16.5 10.9 3 (Hong Kong SAR, China) Time (hours per year) 181 218.4 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 38.3 33.1 40.1 18.47% (32 Economies) Postfiling index (0-100) 48.39 65.20 83.45 99.38 (Estonia) Figure – Paying Taxes in Uzbekistan and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 84.55: Moldova (Rank: 32) 79.47: Kazakhstan (Rank: 50) 79.29: Russian Federation (Rank: 52) 75.78: Regional Average (Europe & Central Asia) 74.78: Uzbekistan (Rank: 78) 56.55: Kyrgyz Republic (Rank: 151) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Uzbekistan and comparator economies – Measure of Quality 100 90.79 90 80 73.14 70 65.20 Index score 60 48.39 48.85 50 37.38 40 30 20 10 0 Uzbekistan Kazakhstan Kyrgyz Republic Moldova Russian Federation Europe & Central Asia Details – Paying Taxes in Uzbekistan Total tax and Tax or mandatory Payments Notes on Time Statutory contribution rate Notes contribution (number) Payments (hours) tax rate Tax base (% of profit) on TTR Page 45   Unified social payment 1 66 15% gross salaries 24.85 Doing Business 2018 Uzbekistan Figure – Paying Taxes in Uzbekistan and comparator economies – Measure of Quality 100 90.79 90 80 73.14 70 65.20 Index score 60 48.39 48.85 50 37.38 40 30 20 10 0 Uzbekistan Kazakhstan Kyrgyz Republic Moldova Russian Federation Europe & Central Asia Details – Paying Taxes in Uzbekistan Total tax and Tax or mandatory Payments Notes on Time Statutory contribution rate Notes contribution (number) Payments (hours) tax rate Tax base (% of profit) on TTR Unified social payment 1 66 15% gross salaries 24.85 Corporate income tax 1 64 7.5% taxable profit 5.78 Infrastructure 1 8% taxable income 5.70 development tax after corporate income tax Land tax 1 various land area 1.65 rates Tax on interest 1 withheld 10% interest income 0.26 Environmental tax 1 various tons of waste 0.01 rates Employee paid - 1 1% gross salaries 0.00 withheld Cumulative Pension Fund contribution Employee paid - 1 filed jointly with 7.5% gross salaries 0.00 withheld Personal Pension Fund USP, but paid contribution separately Value added tax (VAT) 1 51 20% value added 0.00 not included Water tax 1 withheld various water 0.00 small rates consumption amount Totals 10 181 38.3 Details – Paying Taxes in Uzbekistan – Tax by Type Taxes by type Answer Page 46   Profit tax (% of profit) 11.5 Totals 10 181 38.3 Doing Business 2018 Uzbekistan Details – Paying Taxes in Uzbekistan – Tax by Type Taxes by type Answer Profit tax (% of profit) 11.5 Labor tax and contributions (% of profit) 24.9 Other taxes (% of profit) 1.9 Details – Paying Taxes in Uzbekistan – Measure of Quality Answer Score Post ling index (0-100) 48.39 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? No Restrictions on VAT refund process Carry forward for 6 months Percentage of cases exposed to a VAT audit (%) Not applicable Is there a mandatory carry forward period? Yes Time to comply with VAT refund (hours) No VAT refund 0 per case study scenario Time to obtain a VAT refund (weeks) No VAT refund 0 per case study scenario Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 0% - 24% Time to comply with a corporate income tax audit (hours) 5.0 93.58 Time to complete a corporate income tax audit (weeks) No tax audit per 100 case study scenario Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Page 47   a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Uzbekistan Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the Traffic delays and road police checks while largest value (price times quantity) of auto parts. It is assumed each shipment is en route economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 48   a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Uzbekistan Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the Traffic delays and road police checks while largest value (price times quantity) of auto parts. It is assumed each shipment is en route economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 49   of agriculture or industry, national security agencies and any other Doing Business 2018 Uzbekistan government authorities. Europe & OECD high Indicator Uzbekistan Central Asia income Overall Best Performer Time to export: Border compliance (hours) 112 28.0 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 278 191.4 149.9 0.00 (19 Economies) Time to export: Documentary compliance 174 27.9 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 292 113.8 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 111 25.9 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 278 185.1 111.6 0.00 (27 Economies) Time to import: Documentary compliance 174 27.3 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 292 94.7 25.6 0.00 (30 Economies) Figure – Trading across Borders in Uzbekistan and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 92.32: Moldova (Rank: 35) 83.96: Regional Average (Europe & Central Asia) 73.34: Kyrgyz Republic (Rank: 84) 69.20: Russian Federation (Rank: 100) 63.19: Kazakhstan (Rank: 123) 44.31: Uzbekistan (Rank: 168) Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Uzbekistan – Time and Cost Time Cost 292 292 200 278 278 174 174 250 150 200 Time (hours) Cost (USD) 112 111 100 150 100 50 50 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary CompliancePage 50   Doing Business 2018 Uzbekistan Figure – Trading across Borders in Uzbekistan – Time and Cost Time Cost 292 292 200 278 278 174 174 250 150 200 Time (hours) Cost (USD) 112 111 100 150 100 50 50 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Uzbekistan Characteristics Export Import Product HS 52 : Cotton HS 8708: Parts and accessories of motor vehicles Trade partner Russian Federation Russian Federation Border Beyneu border crossing Yallama border crossing Distance (km) 1515 60 Domestic transport time (hours) 52 2 Domestic transport cost (USD) 1065 58 Details – Trading across Borders in Uzbekistan – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 85.9 277.9 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 25.8 0.0 Import: Clearance and inspections required by customs authorities 85.9 277.9 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 24.7 0.0 Details – Trading across Borders in Uzbekistan – Trade Documents Export Import Export declaration Customs Import Declaration Export contract Certificate of origin Page 51   Domestic transport cost (USD) 1065 58 Doing Business 2018 Uzbekistan Details – Trading across Borders in Uzbekistan – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 85.9 277.9 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 25.8 0.0 Import: Clearance and inspections required by customs authorities 85.9 277.9 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 24.7 0.0 Details – Trading across Borders in Uzbekistan – Trade Documents Export Import Export declaration Customs Import Declaration Export contract Certificate of origin Notice from the bank about advance 100% pre-payment Commercial invoice Certificate of conformity Packing list Invoice Serial/code numbers Packing list CMR waybill CMR Certificate of conformity Certificate of origin Expert decision determining the code of the product License to export a particular product Certificate of fumigation Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Page 52   Time to enforce the judgment several assumptions about the case: Certificate of fumigation Doing Business 2018 Uzbekistan Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable assets. Standardized Case Claim value UZS 12,959,870.00 Court name Tashkent Commercial Court City Covered Tashkent Europe & OECD high Indicator Uzbekistan Central Asia income Overall Best Performer Time (days) 225 489.9 577.8 164.00 (Singapore) Cost (% of claim value) 20.5 26.2 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 6.0 10.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Uzbekistan and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 77.55: Kazakhstan (Rank: 6) 72.18: Russian Federation (Rank: 18) 67.26: Uzbekistan (Rank: 39) Page 53   of judicial processes Quality Business Doing index (0-18) 2018 Uzbekistan 6.0 10.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Uzbekistan and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 77.55: Kazakhstan (Rank: 6) 72.18: Russian Federation (Rank: 18) 67.26: Uzbekistan (Rank: 39) 65.38: Regional Average (Europe & Central Asia) 60.87: Moldova (Rank: 62) 48.57: Kyrgyz Republic (Rank: 139) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Uzbekistan – Time and Cost Time Cost 700 47.0 50 585 577.8 600 Cost (% of claim value) 489.9 40 500 410 Time (days) 28.6 400 26.2 370 30 337 22.0 21.5 20.5 300 16.5 225 20 200 10 100 0 0 Europe & Kazakhstan Kyrgyz Republic Moldova OECD high income Russian Federation Uzbekistan Central Asia Figure – Enforcing Contracts in Uzbekistan and comparator economies – Measure of Quality Uzbekistan 1.5 0 2 2.5 Kazakhstan 3 4 2 5 Kyrgyz Republic 1 0 3 Moldova 2.5 3 2 2 Russian Federation 2.5 4 0 3 OECD high income 2.5 2.9 2 3.6 Europe & Central Asia 2.1 2.9 1.5 3.5 0 2 4 6 8 10 12 14 Page 54   16 Europe & Kazakhstan Kyrgyz Republic Moldova OECD high income Russian Federation Uzbekistan Central Asia Doing Business 2018 Uzbekistan Figure – Enforcing Contracts in Uzbekistan and comparator economies – Measure of Quality Uzbekistan 1.5 0 2 2.5 Kazakhstan 3 4 2 5 Kyrgyz Republic 1 0 3 Moldova 2.5 3 2 2 Russian Federation 2.5 4 0 3 OECD high income 2.5 2.9 2 3.6 Europe & Central Asia 2.1 2.9 1.5 3.5 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Uzbekistan Indicator Time (days) 225 Filing and service 30 Trial and judgment 90 Enforcement of judgment 105 Cost (% of claim value) 20.5 Attorney fees 15 Court fees 3.5 Enforcement fees 2 Quality of judicial processes index (0-18) 6.0 Court structure and proceedings (-1-5) 2.5 Case management (0-6) 0.0 Court automation (0-4) 2.0 Alternative dispute resolution (0-3) 1.5 Details – Enforcing Contracts in Uzbekistan – Measure of Quality Page 55   Alternative dispute resolution (0-3) 1.5 Doing Business 2018 Uzbekistan Details – Enforcing Contracts in Uzbekistan – Measure of Quality Answer Score Quality of judicial processes index (0-18) 6.0 Court structure and proceedings (-1-5) 2.5 1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5 2. Small claims court 0.0 2.a. Is there a small claims court or a fast-track procedure for small claims? No 2.b. If yes, is self-representation allowed? n.a. 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? No 0.0 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 0.0 1. Time standards 0.0 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? No 1.c. Are these time standards respected in more than 50% of cases? Yes 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a. 3. Can two of the following four reports be generated about the competent court: (i) No 0.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the No 0.0 competent court? 5. Are there any electronic case management tools in place within the competent court No 0.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court No 0.0 for use by lawyers? Court automation (0-4) 2.0 1. Can the initial complaint be led electronically through a dedicated platform within Yes 1.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 56   1. Can the initial complaint be led electronically through a dedicated platform within Yes 1.0 Businesscourt? the competent Doing 2018 Uzbekistan 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? Yes 1.0 4. Publication of judgments 0.0 4.a Are judgments rendered in commercial cases at all levels made available to the No general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme No court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 1.5 1. Arbitration 1.0 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public No order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? No 2. Mediation/Conciliation 0.5 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or No consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., No if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Page 57   Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Uzbekistan Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent Court fees in local currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s real estate. The hotel cannot pay back the loan, but makes Lawyers’ fees enough money to operate otherwise. Assessors’ and auctioneers’ fees In addition, Doing Business evaluates the adequacy and integrity of the Other related fees existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The index tests whether economies adopted internationally accepted good Whether business continues operating as a going practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal debtor’s assets, reorganization proceedings and creditor participation. Recovery rate for creditors Measures the cents on the dollar recovered by secured creditors Outcome for the business (survival or not) determines the maximum value that can be recovered Official costs of the insolvency proceedings are deducted Depreciation of furniture is taken into account Present value of debt recovered Strength of insolvency framework index (0- 16) Sum of the scores of four component indices: Commencement of proceedings index (0-3) Management of debtor’s assets index (0-6) Reorganization proceedings index (0-3) Creditor participation index (0-4) Europe & OECD high Indicator Uzbekistan Central Asia income Overall Best Performer Recovery rate (cents on the dollar) 37.2 38.0 71.2 93.1 (Norway) Time (years) 2.0 2.3 1.7 0.4 (Ireland) Page 58   Cost (% of estate) 10.0 13.1 9.1 1.00 (Norway) Creditor participation index (0-4) Doing Business 2018 Uzbekistan Europe & OECD high Indicator Uzbekistan Central Asia income Overall Best Performer Recovery rate (cents on the dollar) 37.2 38.0 71.2 93.1 (Norway) Time (years) 2.0 2.3 1.7 0.4 (Ireland) Cost (% of estate) 10.0 13.1 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 0 .. .. .. concern) Strength of insolvency framework index (0-16) 8.0 10.8 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Uzbekistan and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 67.52: Kazakhstan (Rank: 39) 57.83: Russian Federation (Rank: 54) 54.19: Regional Average (Europe & Central Asia) 52.56: Moldova (Rank: 65) 45.00: Uzbekistan (Rank: 87) 37.67: Kyrgyz Republic (Rank: 119) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Uzbekistan – Time and Cost Time Cost 3 15.0 15.0 2.8 15.0 16 13.1 14 2.5 2.3 12 2.0 2.0 10.0 Cost (% of estate) Time (years) 2 1.7 9.1 9.0 10 1.5 1.5 1.5 8 6 1 4 0.5 2 0 0 Europe & Kazakhstan Kyrgyz Republic Moldova OECD high income Russian Federation Uzbekistan Central Asia Figure – Resolving Insolvency in Uzbekistan and comparator economies – Measure of Quality Uzbekistan 3 2.5 2 0.5 Page 59   Kazakhstan 6 3 4 2 Europe & Kazakhstan Kyrgyz Republic Moldova OECD high income Russian Federation Uzbekistan Central Asia Doing Business 2018 Uzbekistan Figure – Resolving Insolvency in Uzbekistan and comparator economies – Measure of Quality Uzbekistan 3 2.5 2 0.5 Kazakhstan 6 3 4 2 Kyrgyz Republic 1 3 0 2 Moldova 4 2.5 3 2.5 Russian Federation 5 2.5 3 1 OECD high income 5.4 2.8 2.3 1.9 Europe & Central Asia 4.4 2.6 2.1 1.8 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Uzbekistan and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 45 40.7 40 37.2 38.3 38.0 35.2 35 30 28.0 25 20 15 10 5 0 Uzbekistan Kazakhstan Kyrgyz Republic Moldova Russian Federation Europe & Central Asia Details – Resolving Insolvency in Uzbekistan Indicator Answer Explanation Proceeding liquidation Liquidation is the most likely procedure, because there are several creditors involved and the debts of the hotel significantly exceed the permissible limits under Uzbekistan law. Reorganization is not often achieved in Uzbekistan for private companies. Outcome piecemeal sale Hotel's assets are likely to be sold piecemeal, because it would be very difficult to find a buyer willing to purchase the entire hotel and continue operating it. Time (in years) 2.0 After the Bank files the petition for liquidation of the debtor, the court will review the petition and initiate bankruptcy proceedings. The court will also appoint a liquidation manager, who will then take over the company's financials, publish notice of bankruptcy, receive claims from creditors, and try to reach settlements with creditors, whenever possible and prepare register of creditors' claims. The liquidation manager also must prepare an interim balance Page 60   sheet of the debtor and present it to the creditors, who will have to approve it. The hotel will Uzbekistan Kazakhstan Kyrgyz Republic Moldova Russian Federation Europe & Central Asia Doing Business 2018 Uzbekistan Details – Resolving Insolvency in Uzbekistan Indicator Answer Explanation Proceeding liquidation Liquidation is the most likely procedure, because there are several creditors involved and the debts of the hotel significantly exceed the permissible limits under Uzbekistan law. Reorganization is not often achieved in Uzbekistan for private companies. Outcome piecemeal sale Hotel's assets are likely to be sold piecemeal, because it would be very difficult to find a buyer willing to purchase the entire hotel and continue operating it. Time (in years) 2.0 After the Bank files the petition for liquidation of the debtor, the court will review the petition and initiate bankruptcy proceedings. The court will also appoint a liquidation manager, who will then take over the company's financials, publish notice of bankruptcy, receive claims from creditors, and try to reach settlements with creditors, whenever possible and prepare register of creditors' claims. The liquidation manager also must prepare an interim balance sheet of the debtor and present it to the creditors, who will have to approve it. The hotel will then go into liquidation. A public auction will be held to sell the assets, after which the creditors will be paid and the company will be liquidated. The longest part of this process will be the time it takes the liquidation manager to take over company's financials and prepare the interim balance sheet. Cost (% of 10.0 Total cost will be up to 10% of the value of the estate. Remuneration and fees of the estate) liquidation manager – around 3% of the value of the estate; attorneys' fees (as attorneys are usually engaged by the liquidation manager to assist with the case) – around 3% of the value of the estate; fees of other professionals involved in the insolvency proceedings, such as accountants (as accountants are usually engaged by the liquidation manager to assist with the case) – around 3% of the value of the estate; auctioneer’s fees – up to 2% of the value of the estate. Recovery rate (cents on the 37.2 dollar) Details – Resolving Insolvency in Uzbekistan – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 8.0 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0 insolvency framework? generally unable to pay its debts as they mature Page 61   Management of debtor's assets index (0-6) 3.0 dollar) Doing Business 2018 Uzbekistan Details – Resolving Insolvency in Uzbekistan – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 8.0 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0 insolvency framework? generally unable to pay its debts as they mature Management of debtor's assets index (0-6) 3.0 Does the insolvency framework allow the continuation of contracts supplying essential No 0.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? No 0.0 Does the insolvency framework allow avoidance of undervalued transactions? No 0.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit Yes 1.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (b) Yes over 1.0 ordinary unsecured creditors but not over secured creditors Reorganization proceedings index (0-3) 0.5 Which creditors vote on the proposed reorganization plan? (a) All creditors 0.5 Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 2.0 Does the insolvency framework require approval by the creditors for selection or Yes 1.0 appointment of the insolvency representative? Page 62   Creditor Doing participation Business 2018 index (0-4) Uzbekistan 2.0 Does the insolvency framework require approval by the creditors for selection or Yes 1.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial Yes 1.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request No 0.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to No 0.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for Page 63   work of equal value and nondiscrimination based on the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Uzbekistan Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of ve fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Details – Labor Market Regulation in Uzbekistan Answer Hiring Page 64   Fixed-term contracts prohibited for permanent tasks? Yes days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Uzbekistan Details – Labor Market Regulation in Uzbekistan Answer Hiring Fixed-term contracts prohibited for permanent tasks? Yes Maximum length of a single xed-term contract (months) 60.0 Maximum length of xed-term contracts, including renewals (months) 60.0 Minimum wage applicable to the worker assumed in the case study (US$/month) 129.2 Ratio of minimum wage to value added per worker 0.5 Maximum length of probationary period (months) 3.0 Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 50.0 Premium for work on weekly rest day (% of hourly pay) 100.0 Premium for overtime work (% of hourly pay) 100.0 Restrictions on night work? No Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 15.0 Paid annual leave for a worker with 5 years of tenure (working days) 15.0 Paid annual leave for a worker with 10 years of tenure (working days) 15.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 15.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? No Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? Yes Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? Yes Page 65   Third-party Doing approval Business 2018 if nine workers are dismissed? Uzbekistan No Retraining or reassignment obligation before redundancy? Yes Priority rules for redundancies? Yes Priority rules for reemployment? No Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 8.7 Notice period for redundancy dismissal for a worker with 5 years of tenure 8.7 Notice period for redundancy dismissal for a worker with 10 years of tenure 8.7 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 8.7 Severance pay for redundancy dismissal for a worker with 1 year of tenure 8.7 Severance pay for redundancy dismissal for a worker with 5 years of tenure 8.7 Severance pay for redundancy dismissal for a worker with 10 years of tenure 8.7 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 8.7 Job quality Equal remuneration for work of equal value? No Gender nondiscrimination in hiring? No Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 126.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? Yes Unemployment protection after one year of employment? Yes Minimum contribution period for unemployment protection (months)? 0.0 Business Reforms in Uzbekistan In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Uzbekistan implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Starting a Business: Uzbekistan made starting a business easier by rolling out a new platform for business registration, starting with name veri cation as the rst step. Dealing with Construction Permits: Uzbekistan made dealing with construction permits easier by streamlining the process of obtaining approvals of land plot allocations from various agencies. Getting Electricity: Uzbekistan streamlined the process of obtaining an electricity connection by introducing a turnkey service at the utility that ful lls all connection-related services, including the design and completion of the external connection. Page 66   Protecting Minority Investors: Uzbekistan strengthened minority investor protections by increasing corporate transparency Minimum contribution period for unemployment protection (months)? 0.0 Doing Business 2018 Uzbekistan Business Reforms in Uzbekistan In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Uzbekistan implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Starting a Business: Uzbekistan made starting a business easier by rolling out a new platform for business registration, starting with name veri cation as the rst step. Dealing with Construction Permits: Uzbekistan made dealing with construction permits easier by streamlining the process of obtaining approvals of land plot allocations from various agencies. Getting Electricity: Uzbekistan streamlined the process of obtaining an electricity connection by introducing a turnkey service at the utility that ful lls all connection-related services, including the design and completion of the external connection. Protecting Minority Investors: Uzbekistan strengthened minority investor protections by increasing corporate transparency requirements. Paying Taxes: Uzbekistan made paying taxes easier and less costly by introducing an electronic system for ling and paying VAT, land tax, uni ed social payments, CIT, infrastructure development tax, environmental tax, personal pension fund contributions and cumulative pension contributions. On the other hand, land tax rates were increased. DB2017 Registering Property: Uzbekistan made transferring a property easier by increasing transparency of information. Protecting Minority Investors: Uzbekistan strengthened minority investor protections by clarifying ownership and control structures. Paying Taxes: Uzbekistan made paying taxes less costly by reducing the uni ed social payment rate paid by employers and the corporate income tax rate. However, the land tax rates in city of Tashkent increased. DB2016 Starting a Business: Uzbekistan made starting a business easier by introducing an online one-stop shop and streamlining registration procedures. Registering Property: Uzbekistan made transferring property easier by eliminating the requirement to provide several di erent nonencumbrance certi cates, though it also increased the costs associated with property transfers. Getting Credit: Uzbekistan improved access to credit by adopting new laws on secured transactions that allow a general description of assets granted as collateral and establish a modern, uni ed, notice-based collateral registry. DB2015 Protecting Minority Investors: Uzbekistan strengthened minority investor protections by introducing a requirement for public joint stock companies to disclose information about related-party transactions in their annual report; setting higher standards for disclosure of such transactions to the board of directors; and establishing the right of shareholders to receive all documents related to such transactions. Trading across Borders: Uzbekistan made trading across borders easier by reducing the number of documents to export and import and by making it possible to submit documents electronically. DB2014 Starting a Business: Uzbekistan made starting a business easier by abolishing the paid-in minimum capital requirement and by eliminating the requirement to have signature samples notarized before opening a bank account. Registering Property: Uzbekistan made transferring property easier by reducing the notary fees. Page 67   Getting Credit: Uzbekistan improved access to credit information by expanding the scope of credit information and requiring Starting a Business: Uzbekistan made starting a business easier by abolishing the paid-in minimum capital requirement and by eliminating 2018 to the requirement Doing Business have signature samples notarized before opening a bank account. Uzbekistan Registering Property: Uzbekistan made transferring property easier by reducing the notary fees. Getting Credit: Uzbekistan improved access to credit information by expanding the scope of credit information and requiring that more than 2 years of historical data be collected and distributed. Paying Taxes: Uzbekistan made paying taxes easier for companies by eliminating some small taxes. Trading across Borders: Uzbekistan made trading across borders easier by eliminating the need to register import contracts with customs, tightening the time limits for banks to register export or import contracts and reducing the number of export documents required. Enforcing Contracts: Uzbekistan made enforcing contracts easier by introducing an electronic ling system for court users. DB2013 Starting a Business: Uzbekistan made starting a business easier by introducing an online facility for name reservation and eliminating the fee to open a bank account for small businesses. Getting Credit: Uzbekistan improved access to credit information by guaranteeing borrowers’ right to inspect their personal data. Trading across Borders: Uzbekistan reduced the time to export by introducing a single window for customs clearance and reduced the number of documents needed for each import transaction. Resolving Insolvency: Uzbekistan strengthened its insolvency process by introducing new time limits for insolvency proceedings and new time limits and procedures for the second auction and by making it possible for businesses to continue operating throughout the liquidation proceeding. DB2012 Starting a Business: Uzbekistan made starting a business easier by reducing the minimum capital requirement, eliminating 1 procedure and reducing the cost of registration. DB2011 Dealing with Construction Permits: Uzbekistan increased all fees for procedures relating to construction permits. DB2010 Dealing with Construction Permits: Uzbekistan made dealing with construction permits less costly by reducing the building permit fees. Paying Taxes: Uzbekistan made paying taxes easier for companies through a new tax code combining corporate income tax provisions. DB2009 Getting Credit: In Uzbekistan a private credit bureau (Inter Bank Kredit Bureau) started collecting information on the repayment patterns of individual borrowers as well as rms. DB2008 Starting a Business: Uzbekistan made starting a business easier by eliminating the requirement for substantive review at the registry, simplifying internal procedures and clarifying rules for refusal of registration. Registering Property: Uzbekistan made registering property easier and less costly by introducing a formula for calculating the fee to notarize a property sale agreement that takes into account the minimum wage. Paying Taxes: Uzbekistan made paying taxes easier and less costly for companies by abolishing the ecology tax, reducing the number of payments required for the corporate income tax and reducing the corporate income tax rate and the uni ed social payment rate. Resolving Insolvency: Uzbekistan made resolving insolvency easier by adopting legislation on the voluntary liquidation of private companies. Page 68   Resolving Insolvency: Uzbekistan made resolving insolvency easier by adopting legislation on the voluntary liquidation of private companies. Doing Business 2018 Uzbekistan Page 69