New limits on foreign investments in 2026: analysis of changes in the foreign exchange legislation of Uzbekistan

The Ministry of Justice has registered amendments to foreign exchange legislation: limits on foreign investments have increased to $200,000. Foreign investment limits grew 20-fold — from $10,000 to $200,000 per year for private enterprises. Accounting digitalization through the FERUz system removes administrative burden but requires restructuring of internal workflow. The right to conduct operations through secondary accounts creates new opportunities for corporate financial management. The changes open a window for strategic expansion into international markets — provided there is correct accounting and legal support.

Regulatory context

The Ministry of Justice of the Republic of Uzbekistan registered amendments to the Regulation on the procedure for performing certain foreign exchange operations related to capital movement (Reg. No. 2536-3). The document introduces systemic changes to the regulation of cross-border corporate investments and simplifies currency control. The amendments affect three key blocks: investment operation limits, accounting procedures in banks, and the choice of a settlement account for operations. Each carries direct consequences for corporate accounting, tax planning, and internal control.

Analysis of changes and new investment limits

The previously effective single threshold of $10,000 per year was clearly insufficient for full-scale foreign expansion. The new limits are differentiated by enterprise type and operation purpose. All limits are calculated per calendar year.

Formation of charter fund, equity participation, opening branches and representative offices:

• Enterprises without state share: former limit — $10,000, new limit — $200,000.
• Enterprises with state share: former limit — $10,000, new limit — $100,000.
• Individuals: former limit was not established, new limit — $10,000.

Replenishment of working capital of foreign branches and representative offices:

• Enterprises without state share: former limit — $10,000, new limit — $100,000.
• Enterprises with state share: former limit — $10,000, new limit — $50,000.

Increasing limits to $200,000 creates realistic conditions for opening trading houses, operational offices, and subsidiary structures in neighboring countries without the need to obtain a special permit from the Central Bank. Previously, the $10,000 threshold covered only minimal registration expenses.

Digitalization of accounting: transition to FERUz

The abolition of the paper journal for capital movement operations and corresponding physical folders with document copies marks a shift in the accounting paradigm. Registration of all operations will be carried out through the Central Bank's information system FERUz. This means increased transparency and traceability of each operation in real time, automated control over limit compliance without manual reconciliation, and reduced processing time in banks. Simultaneously, it raises requirements for primary documentation quality, as all data is fixed in a single digital database. For company accounting, this requires a review of internal regulations regarding the preparation and archiving of supporting documents for currency operations.

Abolition of link to main settlement account and use of secondary accounts

Previously, it was mandatory to conduct capital movement operations exclusively through the bank where the main settlement account was open. This requirement has been abolished. Now an enterprise has the right to independently choose an agent bank for a specific operation based on conditions, conversion rates, and payment speed. This enables the distribution of foreign exchange flows among several banks. However, it intensifies the need for centralized accounting of currency operations to eliminate unintentional exceeding of annual limits when using different accounts across different banks. Business entities are now also entitled to carry out capital movement operations through secondary settlement accounts, expanding corporate liquidity management flexibility.

Impact on accounting, reporting, and tax implications

Every foreign investment operation triggers a chain of accounting consequences that must be accurately reflected:

Accounting for financial investments (NAS 12 / IFRS IAS 28, IFRS 9): Equity participation in foreign companies is subject to recognition in the balance sheet at fair value or using the equity method, depending on the degree of influence.

Exchange rate differences: All operations in foreign currency generate exchange differences, which must be classified and reflected in accordance with NAS 22 (IFRS IAS 21).

Tax implications: Dividends and other income from foreign investments are subject to taxation. The applicability of double taxation treaties depends on the host country of the investment.

Consolidation: Opening a foreign branch or subsidiary structure creates an obligation to prepare consolidated financial statements.

Risks and areas of attention

Limit liberalization does not imply a reduction in regulatory requirements. On the contrary, the transition to the digital FERUz system increases transparency and, with it, the likelihood of detecting violations in case of incorrect accounting. Key risks include: exceeding the annual limit when operating through multiple banks without centralized accounting; incorrect operation classification (e.g., a loan instead of an investment); errors in primary documentation (in digital registration via FERUz, document discrepancies can block an operation); and incorrect enterprise qualification (with or without state share), which directly impacts the applied limit.

Recommendations for business

It is recommended to immediately audit the current corporate status and clarify whether there is a state share in the share capital. Companies should update their accounting policies to incorporate the procedures for tracking foreign investments, exchange differences, and consolidation reporting. It is important to align procedures with the servicing bank in advance, clarifying the configuration of FERUz processes and the checklist of required documents.

Strategically, businesses should evaluate the feasibility of international expansion, as the new limits render entry into foreign markets financially viable. When utilizing multiple banks, establish an internal control system and maintain a unified registry to prevent limit violations. Obtaining timely tax advice to evaluate double taxation treaties with the target country is also crucial.

Frequently asked questions

Is the $200,000 limit per operation or per year? For the entire calendar year. The sum of all operations of this type during the year must not exceed the established limit.

If we have both a branch and equity participation, are the limits combined? No. Operations for charter fund formation/equity participation and for working capital replenishment of a branch have separate, independent limits.

Is it necessary to obtain Central Bank permission for operations within the new limits? Operations within the established limits are conducted through an authorized bank and registered in FERUz without needing a separate Central Bank permit. The current procedure should be verified with your bank.

Conclusion

Amendments to foreign exchange legislation mark a qualitative shift in the conditions for international activity of Uzbek enterprises. Limit growth, digitalization via FERUz, and the separation from the main account shift regulatory logic toward greater trust in business while maintaining transparent digital control. At the same time, liberalization demands better internal accounting. Enterprises that leverage these opportunities with professional support can secure a tangible competitive advantage in international markets.