Formation of wholly owned subsidiary in a form of LLC

The formation of the LLC with a sole participant is allowed in Uzbekistan[1]. The only limitation to this is when the sole participant of the LLC is represented by a company having not more than one participant[2]. Due to this, theoretically, the foundation of the LLC by [FOREIGN INVESTOR] may be prejudiced by this limitation of Uzbekistan law.

However, the above limitation is applicable only to companies incorporated in Uzbekistan. Normally, any provisions of Uzbek law relating to procedural issues of incorporation of local companies are regarded as mandatory by the registration authority. There is, therefore, the risk that the above limitation may be given a cross-border effect and may be used by the Uzbek registration authority as a legal ground for refusal to register of the LLC.

As a conclusion of the above said, it sh...

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Formation of wholly owned subsidiary in a form of LLC

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