Should a foreign company open a branch or an Uzbek LLC?

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Usually the LLC. A branch is a permanent establishment with a narrower life. LLC A subsidiary is a local person — it holds assets, hires, licenses and banks in its own name, and its parent’s risk stops at the contribution. PE A branch is the foreign company itself — a fixed place of business or sustained work makes a permanent establishment, registered and taxed on its Uzbek result. 15% Same profit tax either way — a permanent establishment pays profit tax at the standard rate on the profit attributable to it. Access Accreditation is its own procedure — a representative office is accredited rather than registered, and is meant for representation, not trade. The subsidiary and the branch answer different questions. An LLC is a separate Uzbek legal person: it can own property, employ, take licences and open accounts in its own name, and the foreign parent risks its contribution rather than itself. A branch or sustained on-the-ground activity is the foreign company operating directly — for tax purposes a permanent establishment, which must register and pay profit tax on the result attributable to its Uzbek activity. Because the tax on the substance converges, the choice is usually made by everything else: banking, licensing and contracting run more smoothly for a local entity, and a representative office — the accredited, non-trading presence — cannot carry a business. The accreditation procedure sits in its own legislation; the practical comparison for most founders ends at the LLC.

Should a foreign company open a branch or an Uzbek LLC?

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