EOR vs company setup in Uzbekistan
Compare Employer of Record with a foreign enterprise and a representative office — time to first hire, setup, accounting, cost over time and exit.
Which path fits the first hires
EOR employs people in Uzbekistan when you do not have a local company. Opening a foreign enterprise (an LLC with foreign ownership) or a representative office is a longer commitment: registration, a bank account, local accounting and reporting, and formation time.
Comparison
| Factor | EOR | Representative office | Foreign enterprise |
|---|---|---|---|
| Time to first hire | Business days after documents and fit are clear | Weeks to months of registration | Months, including banking and accounting setup |
| Local entity | Not required | Yes, without commercial activity | Yes |
| Can trade and invoice locally | No | No | Yes |
| Local accounting | Inside the EOR employment | Your overhead | Your overhead |
| Corporate tax return in Uzbekistan | None for you | Limited, within the office’s activity | Full local obligations |
| Monthly cost | Salary, 12% social tax and the EOR fee (from USD 249) | Salary, taxes and office running costs | Salary, taxes, accounting, audit and office costs |
| Ending it | Per employee, under the Labor Code | Office closure | Company liquidation |
Formation rules and timelines depend on counsel and the authorities. The table is a decision aid, not legal advice.
Decision checklist
- Headcount. One to twenty people usually favours EOR. A larger team spreads the fixed cost of an entity.
- Time horizon. If you are testing the market for a year or two, EOR keeps the exit simple.
- Local revenue. If you will sell to customers in Uzbekistan, you need your own company.
- Control. If you want a local legal presence for licences or tenders, choose an entity.
Signals it is time to open your own company
- The team in Uzbekistan has grown and keeps growing
- You start signing contracts with local customers or suppliers
- The EOR fees over a year are higher than running an entity with an accountant
Moving from EOR to your own entity
Employees move with new contracts from your company; their service history and leave balances are settled or carried over as agreed. We plan the timing with you so pay is not interrupted.
Request a proposal, read Uzbekistan EOR or check the employment cost.
Questions companies ask
When is EOR a better start than a local company?
EOR usually fits the first hires when you do not yet need your own entity in Uzbekistan: employment can start without registering a company, opening a bank account or hiring a local accountant. A foreign enterprise or a representative office fits a longer operation where you want your own local employer or need to trade locally.
Does EOR stop me from incorporating later?
No. Many companies start on EOR and open a foreign enterprise when the operation is proven. Employees can then move to your entity with a new contract. The timing is planned case by case.
Request an EOR proposal for your team in Uzbekistan
Tell us whether candidates are ready, the role, the headcount and the target start. We confirm fit before we send a proposal.