Doing Business in Tajikistan: A Comprehensive Guide for Investors and Entrepreneurs

1. Economic Landscape and Prospects of Tajikistan

Understanding the macroeconomic context is fundamental for any business considering entry into the market. Tajikistan’s economy has shown steady growth in recent years, although it remains vulnerable to external factors.

Recent Economic Indicators and Growth Drivers

Tajikistan’s economy has maintained robust growth, averaging more than 7.1% over the past decade. In 2024, real GDP growth reached 8.4%, almost matching the 2023 level, with services and industry as the leading sectors. Industry expanded by 20%, while agriculture grew by 10.6% in 2024.

A major driver of this growth is the substantial inflow of remittances, peaking at 49% of GDP in 2024. These remittances have fueled domestic consumption and contributed to a sharp reduction in poverty: the poverty rate (measured at the international poverty line of $3.65/day) dropped from 32% of the population in 2009 to about 9.1% in 2024. However, despite the overall decline in poverty, inequality has risen since 2021, particularly in rural areas, where the Gini coefficient reached 39 in 2023. This increase in inequality is largely attributed to uneven distribution of remittances and disparities in education levels. Inflation remained relatively low at 3.4% in 2024.

Key Economic Sectors and New Opportunities

The country’s economy is mainly based on mining, metalworking, and agriculture. The main agricultural export products are raw cotton and dried fruits. Tajikistan has extensive untapped natural resources, including gold, silver, antimony, copper, coal, and zinc, as well as construction materials.

The National Development Strategy of the Republic of Tajikistan until 2030 envisions a transition from a predominantly agrarian economy to an industrial, digital, and environmentally sustainable one. Infrastructure development, especially in transport, telecommunications, digital networks, and logistics, remains one of the priority areas. Digital transformation is considered a key strategy to overcome geographical constraints and reduce trade costs by more than 13%, increasing efficiency and transparency. Adventure and eco-tourism are also emerging investment areas, thanks to the country’s mountainous terrain and rich wildlife.

The World Bank’s portfolio in Tajikistan is largely focused on the energy sector (50.3%), followed by water, transport, education, and agriculture, highlighting strategic areas of investment and development. The International Finance Corporation (IFC) also supports financial institutions, manufacturing, agriculture, services, and infrastructure.

Medium-Term Economic Forecasts and Associated Risks

Economic growth is expected to slow down but remain stable. Real GDP is projected to decline to 7.0% in 2025, 4.9% in 2026, and 4.7% in 2027, mainly due to the anticipated normalization of remittance flows. The IMF forecasts GDP growth of 6.7% in 2025. Inflation is expected to rise slightly to 3.9% in 2025, approaching the central bank’s target of 5% (+/-2).

The economy faces several risks, including Russia’s migration policy, global political instability, ongoing regional conflicts, and lagging domestic structural reforms. Tajikistan remains highly vulnerable to external shocks due to its heavy reliance on remittances, undiversified economy, and high risk of debt crisis. Public debt stood at 25.4% of GDP in 2024. To sustain growth, the country needs to attract more private investment, improve efficiency and accountability in the public sector, and strengthen resilience to climate change.

Key Economic Indicators of Tajikistan

The excessive dependence of the economy on remittances, which account for nearly half of GDP, is both the main driver of current growth and poverty reduction, as well as the most significant source of economic vulnerability. Any disruptions in these flows, such as those caused by changes in Russia’s migration policy or global instability, directly affect consumption, GDP growth, and fiscal stability. This means that businesses heavily reliant on domestic consumption face inherent volatility.

Despite a significant reduction in national poverty, rising inequality, especially in rural areas, highlights the uneven distribution of economic benefits. This can lead to social tensions and limit the expansion of a broad consumer base, particularly outside urban centers. For businesses, this means that while a consumer market does exist, it may be more segmented, with purchasing power concentrated in urban areas or among households receiving remittances, which limits broad market penetration.

As Tajikistan is a landlocked country and currently lags in digital development, digital transformation is not merely an efficiency upgrade but a fundamental strategy to enhance economic competitiveness, simplify trade, and integrate into global value chains. This underscores a significant area for investment and specialized consulting services.

3. Company Formation and Business Operations

The process of establishing a legal entity in Tajikistan involves several key steps and interactions with various regulatory authorities.

Company Registration Process

Legal Forms: Companies can be registered in several forms, primarily as Limited Liability Companies (LLC), Joint Stock Companies (JSC), or General Partnerships, each governed by local legislation and having its specific features. Individual entrepreneurs are also an option.

Required Steps:​

1. Choosing the company form: Select the appropriate legal structure based on business needs and liability considerations.

2. Obtaining a legal address: Must be confirmed by ownership documents or a lease agreement.

3. Preparing founding documents: Usually includes the company charter and the founding agreement, which may vary depending on the company type.

4. Submitting documents to the registration authority: Documents are submitted to the State Committee on Investment and State Property Management, which is responsible for business registration.

5. Obtaining a Taxpayer Identification Number (TIN): Every entrepreneur needs a TIN from the Tax Committee. Registration of an individual entrepreneur usually requires a personal visit to the local tax office, often through a “one-stop window,” and payment of a fee. This process may take about 20 days.

6. Corporate bank account: Opening a corporate bank account is necessary for managing operations and capital.

7. Registration with the Social Insurance Agency: All companies employing staff must register with the Social Insurance Agency to comply with social security legislation and pay social contributions.​

Key Regulatory Authorities:​

• State Committee on Investment and State Property Management: Responsible for business registration and attracting investments.

• Tax Committee: The main body for tax collection, payment control, and issuance of TINs.

• Ministry of Justice: Reviews and officially approves company names, prepares founding documents, and licenses certain types of activities.

• Social Insurance Agency: Registers employers and employees for social contributions.

• Unified State Register of Legal Entities (USRLE): Serves as the main source of information about companies, simplifying access for government institutions and private individuals.

Business Licensing and Permits

The Licensing and Permits Law defines types of activities that require permits or licenses, classified by activity type (e.g., trade, medical services, construction). The application process involves submitting applications, providing relevant documents, and undergoing inspections. Permits have a limited validity period and require timely renewal. The government has significantly reduced the number of required permits and licenses from 605 to 74 between 2011 and 2021, demonstrating a commitment to simplification.

Current Compliance Requirements for Businesses

After establishing a company, businesses must comply with ongoing obligations, including labor legislation, accounting, and regular reporting to government authorities. Regulatory authorities have the right to conduct inspections to ensure compliance with permit conditions and legislation. Fines are applied for violations.

Business Registration Checklist and Key Agencies

Despite the government implementing the “single window” principle and reducing the number of licenses, the process still requires interaction with several different government institutions, such as the Tax Committee, Ministry of Justice, Social Insurance Agency, and State Committee on Investment.11 This means that, although the number of obstacles has decreased, the complexity of navigating various bureaucratic structures remains.

The detailed, multi-step registration process, combined with ongoing compliance requirements and the need to obtain specific permits, highlights the value of local legal and consulting expertise. This is especially important to ensure adherence to evolving legislation and to prevent potential issues, as registering a foreign company can be a more complex process than for local founders.7

5. Labor and Employment Legislation

Tajikistan’s labor legislation is primarily governed by the Labor Code, which establishes the framework for employment contracts, working conditions, and social protection.

Overview of the Labor Code of Tajikistan

A written employment contract is mandatory for every worker and must specify the position, salary, working hours, and other employment terms. Standard working hours cannot exceed 40 hours per week, with a maximum of 12 hours per day. Reduced working hours apply to employees in hazardous conditions (35 hours/week), minors (24–35 hours/week depending on age), and persons with disabilities (maximum 6 hours/day). The current minimum monthly wage is 600.00 somoni (as of 2023). Overtime is defined as any work performed beyond standard working hours and is regulated by the Labor Code. The probation period for employees cannot exceed 3 months. Remote work is officially recognized and protected under the Labor Code, defined as work performed outside the employer’s location using information and communication technologies.

Employee Benefits

​Annual Leave: All employees are entitled to a minimum of 24 calendar days of paid annual leave. Employees gain leave entitlement after 11 months of continuous employment in one company. Certain categories, such as those under 18 or persons with disabilities, receive 30 calendar days. It is prohibited to deny leave for two consecutive years.

Maternity Leave: Women are entitled to 70 calendar days of paid maternity leave before and 70 days after childbirth. This period can be extended in case of difficult childbirth (86 days) or the birth of twins or more children (110 days).

​Paternity Leave: Fathers are entitled to 10 calendar days of paid leave for child care.

Parental Leave: Parents are entitled to 3 calendar days of paid leave on the occasion of a child’s birth.

Public Holidays: Tajikistan observes 16 national holidays.

Social Security Contributions

Social security contributions are mandatory. The projected employer contribution rate is 20% of the employee’s earnings, and the employee contribution rate is 2% (projections for December 2025). These contributions fund state pensions, healthcare, and unemployment benefits.

Termination of Employment

Termination of an employment contract must be based on legal grounds stipulated by the Labor Code.

​Main grounds for termination: Liquidation of the organization; staff reduction; change of owner; employee's unsuitability for the position held (due to poor performance of duties or health condition); repeated failure to perform or improper performance of job duties by the employee without good reason; employee's absence from the workplace without good reason for more than 3 hours during the working day; termination of the contract with a part-time employee who has another main job, for the purpose of hiring a full-time employee; serious violation of the Labor Code of Tajikistan and other regulatory documents by the manager; employee's appearance at the workplace in a state of alcoholic or other intoxication; employee's failure to comply with safety regulations, resulting in a serious accident or injury; negative results of the probationary period.30

Notice Periods: Employers must provide at least 1 month’s notice for termination due to inadequate qualifications or health reasons, and 2 months for company closure or workforce reduction. During the notice period, employees are entitled to one paid day off per week to search for new employment.

​Severance Pay: Employees are entitled to severance pay upon termination of the employment contract, which must be no less than three times the employee’s average monthly salary. Compensation in lieu of notice may be paid for the remaining notice period.