Foreign ownership restrictions / limitation of foreign investments and equity in corporations in Tajikistan

1) Are there any restrictions on foreign ownership in companies?

The legislation of Tajikistan does not impose any restrictions on foreign participation in companies.

2) Is government approval required for foreign investment in local companies?

When creating companies, foreign investors do not need to obtain approval from state authorities to invest in local companies.

However, when investing in existing companies, prior approval is required from the Antimonopoly Service of Tajikistan.

3) Which sectors are subject to special rules or restrictions for foreign investors?

There are prohibitions and restrictions for foreign investors in such industries in which national interests are secured, also in the mining of precious metals.

4) Can foreign persons own 100% of a limited liability company or joint-stock company?

Yes, foreign persons in Tajikistan may own 100% shares in LLCs and 100% shares in JSCs.

5) Are beneficial ownership rules applicable to foreign participants?

In Tajikistan, beneficial owner information is requested when registering companies (including foreign branches and representative offices).

6) Are there any quotas or thresholds on foreign ownership in strategic companies?

According to the Law of the Republic of Tajikistan  “On Investments”, foreign investors are subject to prohibitions and restrictions, which will be determined when registering such companies or acquiring an interest in such companies.

7) Is disclosure of foreign shareholders/participants required when registering a company?

Yes, when registering a company (including foreign branches and representative offices) in Tajikistan it is obligatory to disclose information on foreign participants of the companies being established.

8) Are there any restrictions on the acquisition of real estate by foreign legal entities?

Legislation does not grant ownership of real estate to foreign legal entities.

9) Are there any business or office localization requirements for foreign investors?

No, there are no such requirements at the legislative basis. However, it is necessary to have a physical presence in Tajikistan when carrying out the licensed activity.

10) Are sanctions or other restrictions applied to investors from specific countries?

There are no such requirements at the legislative basis.

Authors: Kamoliddin Mukhamedov, Aziz Juraev