Definition of NGOs

The Constitution specifies various forms of associations – a political party, public association, mass movement, trade union, scientists’ society, women’s organization, organization of veterans and youth, creative union, religious organization and other associations of citizens, registered in accordance with the law (Articles 10, 34, 56, 59, 60, 61 of the Constitution).

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Definition of NGOs

The Constitution specifies various forms of associations – a political party, public association, mass movement, trade union, scientists’ society, women’s organization, organization of veterans and youth, creative union, religious organization and other associations of citizens, registered in accordance with the law (Articles 10, 34, 56, 59, 60, 61 of the Constitution).

The term a “non-governmental organization” is applied in the legislation of Uzbekistan as a “non-state non-commercial organization” (NNО) (Law “On Non-State Non-Commercial Organizations” dated April 14, 1999). It is implied that such an organization is a self-governing organization established on a voluntary basis by individuals and /or legal entities not aimed at generating income (profit) as the main aim of its activity and not distributing the received profit among participants or members. Non-commercial organizations can be established in the form of a public association, public foundation, institution and also associations of legal entities – unions, created by non-commercial organizations with the purposes of coordination the activity or some other forms stipulated by the legislation (In the Civil Code there was also specified a self-government body of citizens and a consumers cooperative).

Founding of NGOs

Public association is created upon an initiative of not less than five citizens. Public association establishment initiators convene a founder’s congress, conference or general meeting, at which they adopt a charter and establish managerial bodies (Art. 8 of the Law “On Public Associations”). Public foundation is established by citizens or legal entities based on voluntary property donations transferred by founders into the foundation’s property (Art. 75 of the Civil Code and Art. 12 of the Law “On Non-State Non-Commercial Organizations”). Organization in a form of institution is created by individuals or legal entities being institution’s owners (Art. 13 of the Law “On Non-State Non-Commercial Organizations”, Art. 76 of the Civil Code). Association of legal entities – association or union – is established upon an initiative of not less than two non-state non-commercial organizations (Art. 15 of the Law).

Aims that may be pursued by NGOs, and rules applicable to members

Non-state non-commercial organization is created for protection of rights and lawful interests of individuals and legal interests, other democratic values, achievement of social, cultural and educational aims, satisfaction of and spiritual other non-material needs, carrying out charitable activities and other public useful aims. Public association unites citizens on the basis of commonality of their needs for satisfaction of spiritual and other non-material needs. Public foundation pursues charitable, social, cultural, educational or other public useful goals but does not have membership and is established by individuals and/or legal entities (Art. 13 of the Law “On Non-State Non-Commercial Organizations”, Art. 76 of the Civil Code). Associations of legal entities – associations or unions – are created upon an initiative of not less than two non-state non-commercial organizations with the purposes of coordinating the activity (Art. 15 of the Law “On Non-State Non-Commercial Organizations”). Thus, among the enumerated forms of organizations the concept of membership of individuals is applicable only to public associations.

Functioning of NGOs without state registration

The Constitution requires obligatory registration of public associations in accordance to the order established by the law (Art. 56 of the Constitution). The Civil Code considers public association as a non-commercial organization being a legal entity, i.e. after getting registered by the state (Art. 40 of the Code). Theoretically civil legislation permits conclusion of various agreements, one of which can be an agreement between citizens on mutual obligations and rules of non-formal association. However, envisioned by the Criminal Code responsibility for organization of illegal public associations and inclination for participation in the activity of such associations makes this idea dangerous (Articles 216 and 216-1 of the Criminal Code).

Registration requirements for NGOs

Public association registration is made in accordance with the Rules for Consideration of Applications for Registration of Public Associations’ Charters. For the state registration of charter or regulations of a public association it is required to submit an application signed by managerial body members with providing their full names, elected position, year of birth, place of residence and telephone to a registration body (Art. 11 of the Law “On Public Associations”).

Three copies of the following documents must be enclosed to the registration application (Item 2 of the Rules for consideration of applications on registration of charters of public associations acting on the territory of the Republic of Uzbekistan):

- Public association charter;

- Minutes of the founders meeting, conference, congress at which the charter was adopted;

- Payment bill, certifying registration fee payment;

- Information on the founders: full name, year of birth, place of residence;

- Information on managerial body members, specifying their full names, elected position, year of birth, address and telephone number (the legislation prohibits holding of more than one office in managerial bodies of other associations);

- Declaration of sources of financing, including publishing activity and its content;

- Lesser’s letter of agree on providing the premises.

Documents must be verified by a notary or by issued it body. Application is submitted within a monthly period from the day of charter adoption by a general meeting or founders’ congress (Art. 11 of the Law “On Public Associations”) Registration application is considered within a two months period from the date of submitting all documents in Uzbek and Russian languages (Art. 23 of the Law “On Non-State Non-Commercial Organizations”).

The fee for registration of public associations is foreseen. Its amount depends on the territory of the organization activity: international public associations – 20 minimum salaries and a fee in a hard currency in the amount of 100 US dollars, countrywide and inter-oblast associations – 20 minimum salaries (approximately 100 US dollars), othеr (inter-rayon, city, and village (Kishlak – small settlement )) – 10 minimum salaries (50 US dollars) (Item 3 of the Resolution of the Cabinet of Ministers dated March 12, 1993).

Authorized state bodies and NGO registry

Registration of public associations, which activity is spread over the territory, starting from a village till several rayons or the entire oblast shall be registered by oblast justice departments. International, countrywide and inter-oblast public associations shall be registered by the Ministry of Justice (Item 1 of the Rules for Consideration of Applications on Registration of Charters of Public Associations Acting on the Territory of the Republic of Uzbekistan).

Information on registered by the state organizations is entered into the Unified State Registry of Legal Entities. The registry shall specify the date of establishment, name and location, managerial bodies, area of activity, authorized representatives of a legal entity (Art. 24 of the Law “On Non-State Non-Commercial Organizations”). The Registry is open for public but users tell that there is a restricted access in practice. Apart from registration in bodies of justice organizations are registered by statistics and tax bodies (Art. 33 of the Law). Public associations’ registration data is transferred to relevant bodies of state statistics within a ten-day period (Item 16 of the Rules).

Denial of registration to NGOs

It is prohibited to deny registration due to inexpediency. There can be denial of registration because of the following reasons (Art. 12 of the Law “On Public Associations”, Art. 25 of the Law “On Non-State Non-Commercial Organizations”):

-  Aims of association establishment contradict the law (violent change of the constitutional order, undermining of sovereignty, integrity and safety of the state, infringement of constitutional rights and freedoms of citizens, propaganda of war, social, national, racial and religious hatred, encroachment on health and moral of citizens, creation of military units and so on);

- There was submitted not a complete list of documents or documents were formulated not in compliance with the established order;

- They failed submitting documents within a two-month period after conducting a meeting;

- There was a violation of the organization establishment procedure;

- The information provided in the founding documents was not correct;

- The organization has the same name as the earlier registered one;

- The organization name or symbol infringe the moral, national and religious feelings of citizens;

- Founding documents contradict the Constitution and legal acts.

Some of the justifications are not defined clearly or there is a reference to articles numbers of laws making a subjective assessment of registration body employees. In case of denial applicants shall be notified in a written form with specification of legislation provisions, to which the charter contradicts. It is not clear whether there will be provided the article number and the name of the act or provided a detailed explanation.

Denial to registration is not an impediment for the repeat submitting of documents under condition of elimination of reasons. Consideration of the repeat application shall be made in accordance with the general procedure. In denial to registration or re-registration upon completion of a three month period after taking a decision on suspension of documents without consideration the fee is not returned (Items t and 8 of the Resolution of the Cabinet of Ministers dated March 12, 1993).

Branch offices of NGOs

Branches and representative offices are autonomous sub-branches of a legal entity situated outside the place of its location carrying out all or part of its functions. Branches and representative offices can pass through state registration with obtaining the status of a legal entity or act without it (Art. 9 of the Law “On Non-State Non-Commercial Organizations”). Registration of branches is made by relevant bodies of justice based on documents submitted and certified by the central managerial body of an organization and also verified by a notary copy of certificate on organization state registration (Art. 22 of the Law).

Operational requirements for international (foreign) NGOs

In legal acts there is no clear differentiation between legal entities of the Republic of Uzbekistan opening branches outside the territory of the state and foreign organizations opening their branches on the territory of the Republic of Uzbekistan. The activity of organizations creating on the territory of the Republic of Uzbekistan branches (subsidiaries, structural sub-divisions) is regulated by the law “On Public Associations in the Republic of Uzbekistan” (Art. 24 of the Law “On Public Associations”). The activity of foreign organizations can also be implemented in accordance with an international agreement, which will have a priority over the national legislation (Art. 25 of the Law).

Up to December 2003 international organizations were registered only at the Ministry of Foreign affairs. Registration of charters and structural sub-divisions of international public associations is made by the Ministry of Justice. The activity of international public associations and their branches, which failed to register their charters at the Ministry of Justice and its bodies in localities, is prohibited (Art. 11 of the Law). The name of an organization shall not coincide with any other one registered earlier (Items 1 and 5 of the Rules).

For representative offices and branches of foreign non-state non-commercial organization it is necessary to submit a certificate on registration of the head organization and the text of the charter translated into the national language (Art. 22 of the Law “On Non-State Non-Commercial Organizations”). For registration of an organization in the status of an international one it is necessary to file additionally minutes of meetings, statements of decisions and other documents certifying existence of organizations in other states (Item 2 of the Rules).

The registration fee for international public associations includes the payment in the national currency in the amount of 20 minimum salaries (approximately $100) and the payment in hard currency in the amount of $100 (Item 3 of the Resolution of the Cabinet of Ministers dated March 12, 1993).

Re-registration requirements for NGOs

Public associations are obliged within a monthly period to inform the registration body on the changes and amendments in the charter and also changes in location. Re-registration is made by a registration body after submitting of the set up for registration documents and attachment of a report on the work done for the last year (Items 13 and 14 of the Rules). Documents must be verified by the notary or certified by bodies issued these documents. Changes and amendments into the founding documents are subject to state registration in accordance and within the periods established for registration of non-state non-commercial organization. In case of transformation of an organization into an international one or its branch it is obligatory to come through re-registration (Art. 27 of the Law “On Non-State Non-Commercial Organizations”).

The re-registration fee and also approval of amendments and changes into the charter constitutes 50% of registration fee: for international organizations – 10 minimum salaries in the national currency ($50) and $ 50 for countrywide and inter-oblast organizations – 10 minimum salaries ($50), other – 5 minimum salaries ($25) (Item 6 of the Resolution of the Cabinet of Ministers dated March 12, 1993).

Right of appeal of NGOs

Denial in registration can be appealed to court and considered in accordance with the procedure established by the Civil Procedural legislation of the Republic of Uzbekistan. Infringement of the registration period can also be appealed to court (Art. 26 of the Law “On Non-State Non-Commercial Organizations”). Denial in registration of an international, republican and inter-oblast public association can be appealed to the Supreme Court and local associations – to oblast and Tashkent city courts (Art. 12 of the Law “On Public Associations”).

Authorized state bodies granting financial and other benefits to NGOs

The legislation does not define bodies granting support to organizations defining only possible receivers. Youth and children organizations are recognized as materially and financially supported by the state and offered preferential tax policy; children organizations are granted the right to use the premises of schools and outclass institutions, clubs, culture palaces and houses, sport and other facilities free of charge or on preferential terms. The law also establishes that activities of public associations are carried out mainly during not working hours of their members and funded by those associations (Art. 5 of the Law “On Public Associations”).

Foreign funding of NGOs

The legislation does not prohibit foreign financing. Non-commercial organizations can enter international associations, maintain direct international contacts and relations, and conclude relevant cooperation agreements (Art. 5 of the Law “On Non-State Non-Commercial Organizations” and Art. 23 of the Law “On Public Associations”). Among the sources of financing of non-commercial organizations there can be property contributions and donations and other takings not prohibited by the legislation (Art. 29 of the Law “On Non-State Non-Commercial Organizations”).

From the first quarter of 2004 there was introduced the Unified State Statistics Reporting on the received by legal entities and individuals “free of charge assistance” in the form of financial resources, technical assistance, grants, humanitarian assistance from international, foreign government and non-government organizations (Resolution the Cabinet of Ministers “Оn measures aimed at upgrading of efficiency of accounting of financial means of technical assistance, grants and humanitarian assistance received from international, foreign government and non-government organizations” dated February 4, 2004). The law prohibits receiving the foreign financial and other material assistance by organizations pursuing political aims, envisioning a possibility of expropriation of those funds by the state. Organizations pursuing political aims are prohibited from being involved into publishing activity and have printing bodies (Articles 18 and 19 of the Law “On Public Associations”).

Tax exemptions for NGOs

According to assessment of local organizations stipulated by the legislation tax concessions are inconsiderable and seldom applicable but the information on them can be found in rayon tax departments.

In accordance with the Tax Code the taxable income (profit) of non-commercial organizations is decreased by an amount directed at charter activity. Organizations are exempt from property and land tax if they are not used for entrepreneurial activity (Item 6 Art. 31, Art. 92 and 102 of the Tax Code). Due to the fact that numerous non-commercial organizations entirely direct the attracted funds for rendering free of charge services, the provided by the Tax Code preferences do not have special importance. The beneficiaries of foreign material and technical assistance are exempt from the bank commission fees in servicing by the National bank for External Economic Activity of the Republic of Uzbekistan and the State Joint Commercial Bank “Аsаkа” (Resolution the Cabinet of Ministers “Оn Measures Aimed at Upgrading Efficiency of Accounting the Financial Means of Technical Assistance, Grants and Humanitarian Assistance Received from International, Foreign Government and Non-Government Organizations” dated February 4, 2004).

Reporting requirements for NGOs

Non-state non-commercial organization maintains accounting of results of its activity and in accordance with the established order submits reporting to statistics and tax bodies (Art. 33 of the Law “On Non-State Non-Commercial Organizations”). Any legal entity submits monthly, quarterly and annual reports. The existing rules require submitting of a report on the organization activity for the expired year, declaration on the activities sources of financing and expenditures funds and also the information on the number of members into the local offices of the Ministry of Justice annually by the February 10 (Item 17 of the Rules for consideration of applications on registration of charters of public associations acting on the territory of the Republic of Uzbekistan). However, another item of the Rules requires submitting copies of all organization’s decisions and the list of scheduled activities on a monthly basis to the registration body (Item 12 of the Rules).

Apart from reporting requirements the legislation grants considerable authorities to the public prosecutor office and registration bodies to control organizations activity, their observation of charters provisions. Financial bodies control sources of financing and revenues, allocation of funds and taxes payments in accordance with the legislation. Controlling bodies are authorized to request copies of taken decisions and have access to conducted activities, receive explanations of organization members and other citizens about charter observation. Supervision over observation the laws by public associations is the competence of public prosecutor office (Art. 20 of the Law “On Public Associations”).

Termination, dissolution, and liquidation procedure for NGOs

Non-commercial organization activity can be suspended by the court in case of infringement of the Constitution and laws, committing activities contradicting the charter goals. Public prosecutor office and bodies of justice submit to organization managerial body a statement on violations and establish the period for their elimination. If within this period violations are not eliminated they submit to the court a statement on suspension of the organization activity for a period up to six months.  During this time an organization is banned organizing public events, use bank deposits with an exception for operational expenses, labor agreements, compensation of losses caused by its actions, payment of fees, suspended founder’s right in mass media (Art. 35 of the Law “On Non-State Non-Commercial Organizations”). The law stipulates a possibility of re-start of the activity after elimination of violations but does not specify the procedure.

Organization liquidation is possible upon its own initiative or decision of the state. In liquidation upon an initiative of the organization together with the registration body there is established a liquidation commission.  Liquidation in accordance with the court procedure is made depending on the organization status. For an international public association, its branch, subsidiary, countrywide or inter-oblast public association – by the Supreme Court upon a statement made by the general public prosecutor office, Ministry of Justice, Ministry of Finance, Chief state taxation department and other authorized by the state bodies. Decision made by the Supreme Court is not subject to appeal. Local organizations are liquidated upon a decision made by the Tashkent city court and oblast courts. Decisions of the latter can be appealed at the Supreme Court (Art. 22 of the Law “On Public Associations”).

Participation in law-drafting that affects the status of NGOs

Until 1999 public organizations were actively involved into law-making activity. Recently only the so-called “pro-governmental” organizations and governmentally organized NGOs – GONGOs enjoy such an opportunity.

This entry was written by the OSCE ODIHR Expert Dmitry Kabak with assistance of the non-governmental organizations Legal Aid Society and Legal Training Center (Uzbekistan), which completed the ODIHR questionnaire. The author extends gratitude to Vyacheslav Konorev http://www.pravo.uz for assistance in search of legal acts.

Posted: April 2006

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