In accordance with a resolution of the Cabinet of Ministers, additional measures have been introduced to further improve the system of management of industrial zones.
The resolution approves a Regulation establishing the procedure for equity participation by the directorates of industrial zones of the Republic of Karakalpakstan, regions, and the city of Tashkent with land lease rights in the construction of ready-made buildings and facilities (industrial mortgage mechanisms). These measures are aimed at ensuring the placement of projects intended to organize services for participants of industrial zones.
Scope of Application
The established procedure for formalizing joint ownership of land plots with lease rights by industrial zone directorates applies to projects with a total cost exceeding the equivalent of USD 100,000.
Key Regulatory Provisions
The approved Regulation defines clear procedures for:
Land and Capital Participation Requirements
Under the Regulation, a land plot intended to be contributed to the authorized capital of a business entity must be registered in the state register as the property of the industrial zone directorate.
At the same time, the share of the directorate in the authorized capital of the business entity formed in the shape of the value of the land lease right may not exceed 49 percent, ensuring balanced participation and preventing controlling dominance by public entities.
Investment Agreement Framework
The conditions governing joint activities of participants within the authorized capital of the business entity must be clearly stipulated in an investment agreement. This agreement serves as the primary legal instrument regulating cooperation between the industrial zone directorate and private partners.