16.07.2021

Five Things to Know About Registering Business in Tajikistan

Registering a business in Tajikistan can be a daunting task for foreign companies and individuals, as there are requirements that at first glance are not so obvious without consulting the registering authority or local law firm.

Below are five things that parties interested in registering a business in Tajikistan must know.

1. If the Chief Executive Officer (CEO) and/or any employee is a foreign citizen, then after the completion of registration, it is necessary to apply for a license allowing the employment of foreign citizens.

Based on the Tajik legislation, a CEO, a head of a branch or a subsidiary is called a “Director” or “General director”.

Another regulatory prerequisite to keep in mind is the requirement to have an in-house lawyer. An in-house lawyer can be hired for the purpose of obtaining the license (e.g., from a legal firm) and afterward dismissed.

2. The company, branch or representative office must have a physical (actual) address, since Tajik laws do not recognize the concept of a virtual address. Moreover, the rented premises must be equipped as an office, and that will be verified by the registering authority.

Sharing the premises is allowed, provided that the premises is larger than the established square and is correctly divided.

Finding suitable premises from abroad is quite difficult (language barrier, outdated information on websites, absence of website, etc.), so having a local consultant can streamline the process of finding and securing premises.

3. Foreign documents required for registration are subject to apostille / legalization (does not apply to CIS countries), translation into the state language that must be notarized by a Tajik notary.

It is worth noting that as the quality of translation in Tajikistan at best is average, so proofreading of the translation by a law firm is required to help avoid unnecessary delays and questions due to the quality of the translation.

4. According to the law, the documents must be submitted to the registering authority either by the CEO or by the third party based on a power of attorney. In practice, the registering authority prefers (requires) the CEO to submit the documents in-person as they will be taking photos of the CEO for record purposes and on occasions conduct a short interview.

Since the documentation in Tajikistan is carried in the state language, and so is the interview is conducted in the state language and the employees of the registration authority do not speak English (only Tajik and Russian), therefore, there is a need for an intermediary who will assist with the documentation and negotiations with the registration authority.

5. Registration of a subsidiary of a foreign legal entity, a branch or a representative office of a foreign legal entity on average takes from one to two months.

Navigating through the legislation and regulatory requirements of a new country can be a challenging and time-consuming endeavor. Knowing the basics will provide the foundation for the first step in the right direction. As the next step, decide on a competent law firm with a proven track record to be your trusted partner throughout the business registration and operation.

Locations
Practice areas
Author: Bahodur Nurov
Location:
Dushanbe, Tajikistan
Industry:
Banking & Finance
Construction and Infrastructure
Practice area:
Corporate and M&A
Data Protection & Privacy
Dispute Resolution
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