Сhecking Uzbek Counterparty

As with any transaction, it is vitally important to verify your counterparty to avoid problems with the execution of contractual terms, fulfillment of payment obligations, and the possibility of recovering debts in case of default. In our practice, many foreign companies, who contacted us, have encountered such legal issues when working with their Uzbek partners.

Since Uzbek law does not require companies to maintain reserves equal to the value of potential transactions, foreign companies may face difficulties in collecting debts from Uzbek entities. Accordingly, checking Uzbek counterparty prevents foreign parties from having issues in the future.

To mitigate these risks, our firm offers a “counterparty check” service, which includes checking:

• Extract from the trade registry

• Stability (sustainability) rating of the company

• Financial results

• Assets

• Intellectual property rights

• Subsidiaries, if any

• Litigation history

• Outstanding debts subject to enforcement of court judgments

• Bankruptcy status

It is also crucial to verify the authority of the person signing an agreement, as counterparties may challenge the validity of contracts concluded without the consent of shareholders.

If you need a high-quality legal analysis of your Uzbek counterparty, please contact us at info@fairlex.uz.