BUSINESS LAW AND INVESTMENTS: INTERNATIONAL EXPERIENCE AND UNIQUE ASPECTS IN UZBEK LEGISLATION

Abstract

This article analyzes the international practices and unique aspects of national legislation in the field of business law and investments. It discusses the specific features of legislation in the field of business law and international practices in the investment sector. The bases for encouraging investments and related legal frameworks in various countries' legislation are analyzed. Additionally, the development trends of the investment sector in Uzbekistan are examined. Effective methods for applying international experiences in entrepreneurship support through the development of investment policy to national legislation are proposed.

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Djadigerov Timur Maxsetovich. (2024). BUSINESS LAW AND INVESTMENTS: INTERNATIONAL EXPERIENCE AND UNIQUE ASPECTS IN UZBEK LEGISLATION. International Journal Of Law And Criminology, 4(12), 64–67. https://doi.org/10.37547/ijlc/Volume04Issue12-11
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Abstract

This article analyzes the international practices and unique aspects of national legislation in the field of business law and investments. It discusses the specific features of legislation in the field of business law and international practices in the investment sector. The bases for encouraging investments and related legal frameworks in various countries' legislation are analyzed. Additionally, the development trends of the investment sector in Uzbekistan are examined. Effective methods for applying international experiences in entrepreneurship support through the development of investment policy to national legislation are proposed.


background image

Volume 04 Issue 12-2024

64


International Journal Of Law And Criminology
(ISSN

2771-2214)

VOLUME

04

ISSUE

12

P

AGES

:

64-67

OCLC

1121105677
















































Publisher:

Oscar Publishing Services

Servi

ABSTRACT

This article analyzes the international practices and unique aspects of national legislation in the field of business law
and investments. It discusses the specific features of legislation in the field of business law and international practices
in the investment sector. The bases for encouraging investments and related legal frameworks in various countries'
legislation are analyzed. Additionally, the development trends of the investment sector in Uzbekistan are examined.
Effective methods for applying international experiences in entrepreneurship support through the development of
investment policy to national legislation are proposed.

KEYWORDS

Investment activity, international currency fund, investment agencies, tax rate, legislative initiative, financial
incentives, major investment projects.

INTRODUCTION

Developing

effective

legislative

projects

in

entrepreneurship and investment activities serves to
foster the development of the state economy and
engage various societal layers in socio-economic
activities. Currently, states are promoting legislative

initiatives that facilitate investment attractiveness to
further expand the entrepreneurial environment.

Internationally, there are diverse approaches to
supporting the fields of entrepreneurship and
investments. Many developed countries, including the

Research Article

BUSINESS LAW AND INVESTMENTS: INTERNATIONAL EXPERIENCE AND
UNIQUE ASPECTS IN UZBEK LEGISLATION

Submission Date:

December 15, 2024,

Accepted Date:

December 20, 2024,

Published Date:

December 25, 2024

Crossref doi:

https://doi.org/10.37547/ijlc/Volume04Issue12-11


Djadigerov Timur Maxsetovich

Trainee-teacher at the department of Civil and Business law of Faculty of Law, Karakalpak State University,
Uzbekistan

Journal

Website:

https://theusajournals.
com/index.php/ijlc

Copyright:

Original

content from this work
may be used under the
terms of the creative
commons

attributes

4.0 licence.


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Volume 04 Issue 12-2024

65


International Journal Of Law And Criminology
(ISSN

2771-2214)

VOLUME

04

ISSUE

12

P

AGES

:

64-67

OCLC

1121105677
















































Publisher:

Oscar Publishing Services

Servi

United States, Germany, and Japan, employ systematic
and effective legal measures to attract investments
and improve the entrepreneurial environment. These
countries

have

tax

incentives,

financial

encouragements, and additional support programs for
entrepreneurs aimed at enhancing the investment
climate.

Countries like India and Brazil are also significantly
focusing on refining their legislation to attract
international investments. These nations have
implemented

crucial

reforms

in

protecting

investments,

simplifying

entrepreneurship,

and

combating corruption.

International organizations and financial institutions,
including the World Bank and the International
Monetary Fund, strive to support entrepreneurship
and investment at a global level. They assist developing
countries by providing technical support and financial
resources to modernize economies and improve the
entrepreneurial climate.

In Uzbekistan, the «Law on Investment and Equity
Funds» adopted in 2015 became one of the legal
foundations regulating investment activities in the
state. According to this law, investment funds are
divided into two types:

an investment fund obligated to repurchase its

issued shares;

an investment fund not obligated to repurchase its

issued shares.

Furthermore, it was stipulated that «state governing
bodies shall revise and annul their normative legal acts
that contradict this Law.

Also in Uzbekistan, reflecting the analysis of
international practices, the "Law on Investments and
Investment Activities" was adopted on December 25,
2019. The purpose of this law is to regulate relations in
the field of investments and investment activities
conducted by foreign and local investors.

Article 15 of the law states that "the state guarantees
the rights of subjects of investment activity." It is also
specified that state bodies and their officials are not
entitled to interfere with the activities of investment
subjects carried out in accordance with legislation. This
establishes the following conditions for the
development of entrepreneurship:

it allows entrepreneurs to conduct their activities

independently

and

legally

without

state

interference;

it helps to develop transparent and fair

relationships

between

entrepreneurs

and

investment agencies;

it makes the country more attractive to foreign

investors, which in turn, facilitates the attraction of

investments that contribute to economic growth

and modernization.

Although this law includes provisions for encouraging
investments through investment credits and financing,
these norms have not been reflected in the tax
legislation. Consequently, the use of this financial
resource to increase investment volumes is limited.

However, the effectiveness of this practice is known
from foreign experiences. The growth of investment
resources contributes positively to increasing the
production capacities of regions and provides a
positive solution to the issue of employment.


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Volume 04 Issue 12-2024

66


International Journal Of Law And Criminology
(ISSN

2771-2214)

VOLUME

04

ISSUE

12

P

AGES

:

64-67

OCLC

1121105677
















































Publisher:

Oscar Publishing Services

Servi

The effective implementation of legislation impacts
the performance in this sector. For instance, the

indicators of major investment projects carried out in
our republic are as follows:

The major investment projects implemented in our republic

Time of launch of major

investment projects

Number of large

investment projects

launched

Volume of launched large

investment projects, US

dollars.

1

2015

158

7,4 billion.

2

2016

164

5,0 billion.

3

2017

161

2,4 billion.

4

2018

353

9,8 billion.

5

2019

179

20,5 billion.

6

2020

43

13,9 billion.

7

2021

236

28,9 billion.

8

2022

262

38,8 billion.

9

2023

287

49,5 billion.

Source: Prepared by the author based on data from

www.stat.uz

Based on the analysis of the information provided
above, the growth trend in Uzbekistan's major
investment projects reveals several critical aspects.
Specifically, the Presidential Decree PF-60 dated

January 28, 2022, “On the Development Strategy of

New Uzbekistan for 2022-

2026,” includes proposals to

increase investment in projects in regions categorized
as 4th and 5th level by applying a 1% tax rate on
turnover for newly established entrepreneurial entities
in areas with challenging conditions. This strategy aims
to attract more funds to investment projects in the
republic's districts and cities, facilitating growth and
development in these underdeveloped areas.

The high growth rates observed in 2018 and the
consistent growth in subsequent years are practical
results of reforms aimed at stabilizing Uzbekistan's
economy and enhancing its competitiveness on an
international scale. While the decline in 2020 reflected

the impact of global economic conditions, the high
growth rates from 2021 to 2023 confirm the post-
pandemic recovery of the country's economy and the
improvement of the investment environment.

The reforms being implemented in Uzbekistan,
particularly those aimed at attracting investments,
strengthening the legal base for supporting
entrepreneurial entities, and improving the business
environment based on international standards, are
also noteworthy. However, addressing the challenges
encountered in this process and deepening reforms, as
well as creating real opportunities for entrepreneurs,
require a continuous and systematic approach.

CONCLUSION

In conclusion, studying and analyzing the international
experience in business law and investments and the
unique aspects of national legislation are crucial steps


background image

Volume 04 Issue 12-2024

67


International Journal Of Law And Criminology
(ISSN

2771-2214)

VOLUME

04

ISSUE

12

P

AGES

:

64-67

OCLC

1121105677
















































Publisher:

Oscar Publishing Services

Servi

in Uzbekistan's economic development, making the
country more competitive and attractive. This not only
contributes to economic progress but also to social
advancement.

REFERENCES

1.

LEGISLATIVE DOCUMENTS

1.1.

Law of the Republic of Uzbekistan - On
Investment and Equity Funds. Number O'RQ-
392 dated August 25, 2015. https://lex.uz/docs/-
2731863#-2731909

1.2.

Law of the Republic of Uzbekistan - On
Investments

and

Investment

Activities.

Number O'RQ-598 dated December 25, 2019.
https://lex.uz/uz/docs/-4664142

1.3.

Presidential

Decree

PF-60

on

the

"Development Strategy of New Uzbekistan for
2022-2026.". https://lex.uz/ru/docs/-5841063

2.

ARTICLES

2.1.

Ikromov Elyor Ibodulloyevich

Tadbirkorlik

faoliyatini davla

t tomonidan qo‘llab

-quvvatlanishi va

sohaga mintaqalar miqyosida investitsiya jalb qilish
samaradorligi.
https://miastoprzyszlosci.com.pl/index.php/mp/article/
view/4877/4569

2.2.

Shagazatov

Oybek

Baxodirovich

O‘zbekistonda to‘g‘ridan

-

to‘g‘ri xorijiy inv

estitsiyalar

holati

va

tendentsiyalari

tahlili.

https://finance.tsue.uz/index.php/afa/article/view/362/
381

References

LEGISLATIVE DOCUMENTS

Law of the Republic of Uzbekistan - On Investment and Equity Funds. Number O'RQ-392 dated August 25, 2015. https://lex.uz/docs/-2731863#-2731909

Law of the Republic of Uzbekistan - On Investments and Investment Activities. Number O'RQ-598 dated December 25, 2019. https://lex.uz/uz/docs/-4664142

Presidential Decree PF-60 on the "Development Strategy of New Uzbekistan for 2022-2026.". https://lex.uz/ru/docs/-5841063

ARTICLES

Ikromov Elyor Ibodulloyevich – Tadbirkorlik faoliyatini davlat tomonidan qo‘llab-quvvatlanishi va sohaga mintaqalar miqyosida investitsiya jalb qilish samaradorligi. https://miastoprzyszlosci.com.pl/index.php/mp/article/view/4877/4569

Shagazatov Oybek Baxodirovich – O‘zbekistonda to‘g‘ridan-to‘g‘ri xorijiy investitsiyalar holati va tendentsiyalari tahlili. https://finance.tsue.uz/index.php/afa/article/view/362/381