The document is prepared in line with the Programme of measures on implementation of the Concept on further deepening of reforms and forming civil society in the country.

The document is aimed at creating necessary legislation base for developing family entrepreneurship in various spheres as important form of small and private businesses, strengthening legal guarantees for small businesses, creating new jobs.

The law consists of 8 chapters and 40 articles. The document said that family entrepreneurship is entrepreneurial activity, carried out by family business, directed at receiving income at own risk and property responsibility.

Family entrepreneurship is based on principles of agreement freedom, voluntariness and non-admission of forced labour.

Family enterprise is subject of family entrepreneurship, carrying out production and realization of goods (works, services) on the base of general property of participants of family enterprise, including general (share or share) property of habitation, as well as their own work.

Family enterprise is organizational-legal form of business entity and it belongs to small entrepreneurship. Family enterprise can carry out activity only as legal entity.

Family enterprise has solitary property and can purchase and use property and conduct personal non-property rights, undertake liabilities, can be plaintiff and defendant at courts.

The document said that family enterprise can recruit workers in line with legislation of Uzbekistan. The law added that number of employees cannot be higher than the size, set for small enterprises and microfirms. At the same time, family enterprise should have at least two workers.

Family enterprise can use attracted property in line with the legislation, the draft law said.

Firm names of family enterprises should consists of its name and words “family enterprise”, or shortened “OK”.

Participants of family enterprise can be spouses, their blood and stepbrother and stepsisters with their spouses, able-bodied children and grandchildren with spouses, uncles and aunts, parents of spouses.

Head of family enterprise will represent the company in its relations with legal entities and individuals, the document said.

Head of the family enterprise is one of participants of the company, who received right from others to represent their interest in the business activities.

In case of temporary loss of work ability, head of the family enterprise can authorize of one of participants to carry out his/her ability after agreeing with other participants of the family business.

The document added that head of the family enterprise cannot be head of other family enterprise.

Family enterprise can carry out any activity in line with the legislation of Uzbekistan. Family enterprises should obtain licenses to those activities, which are licensed in line with the legislation.

Family enterprise cannot carry out activities, which are related to production of goods, imposed by excise tax, and mining of natural resources, imposed by tax for use of entrails, as well as activity, which envisages payment of fixed tax for legal entities or single land tax.

The enterprises can carry out activity related to use of poisonous and radioactive materials, equipment of high pressure and other equipment with high danger for people and environment. List of banned materials and equipped will be determined by the Cabinet of Ministers of Uzbekistan.

The size of the charter capital of the family business is determined by the participants of the family enterprise. At the same time, the charter capital cannot be lower than tenfold size of minimal salary in Uzbekistan.

The contribution to the charter can be money, securities, other property or property rights or other rights, which have money valuation. The money valuation is carried out in line with the agreement of its participants.

Participants of the family enterprise will decide on increasing or decreasing the charter capital of the family enterprise through introduction of changes to the constituent agreement.

The draft law also sets rights and liabilities of the head and participants of the family enterprise, order of taxation and distribution of income. The document also clarifies preferences, benefits and guarantees, provided to small enterprises, will be also extended for family enterprises.

The draft law said that the Government guarantees observance of rights and protection of interest of family enterprises.