How to Conduct a Company Split in Uzbekistan

Uzbekistan, as one of Central Asia’s rapidly developing economies, offers a strategic region for investors. Companies often utilize legal mechanisms, such as a company split, to implement growth and restructuring strategies. A company split involves transferring all or part of a company’s assets to a newly established or existing company.

Legal Framework for Company Splits in Uzbekistan
Company splits in Uzbekistan are regulated under the Uzbek Commercial Code and Companies Law. These regulations allow companies to:

• Restructure their capital,

• Separate business lines,

• Implement restructuring and growth strategies.

Types of company splits include:

• Full Split: All assets of the existing company are transferred, and the company legally ceases to exist.

• Partial Split: Certain business lines or assets are transferred to a new or existing company.

Company Split Process in Uzbekistan

1. Preparation of a Split Plan
   The board of directors prepares a detailed plan outlining the assets to be transferred, allocation of liabilities, the status of shareholders, and the commercial rationale for the split.

2. Approval by the General Assembly
   The split plan is presented to the company’s shareholders at the general assembly and is usually approved by a special majority.

3. Notification of Creditors
   Creditors are informed of the split decision and may file objections within a designated period to protect their rights.

4. Registration and Official Publication
   The split plan and general assembly resolution are registered with the Companies Registrar under the Ministry of Commerce and Industry of Uzbekistan and gain legal effect through official publication.

5. Formation of a New Company (if applicable)
   If the split results in a new company, its establishment procedures are carried out and recorded in the commercial register.

Financial and Tax Considerations
A company split in Uzbekistan is not only a legal procedure but also has financial and tax implications. Asset transfers, the formation of a new capital structure, and the registration of a new company must comply with accounting and tax regulations. Poorly structured splits can result in additional financial burdens for the company.

Cosmos Legal Law Firm’s Support in Uzbekistan
Cosmos Legal provides professional advisory services for company splits in Uzbekistan. Our services include:

• Preparing the split plan

• Securing approvals from the general assembly and shareholders

• Protecting and managing creditor rights

• Handling registration with the commercial register and official publication

• Managing financial and tax obligations

• Completing the establishment of a new company

Conclusion
A company split in Uzbekistan is an important legal tool for companies to achieve restructuring, growth, and strategic objectives. Both legal and financial aspects must be carefully managed. Cosmos Legal Law Firm serves as a reliable partner for companies operating in Uzbekistan throughout this process.