ABOUT TAJIKISTAN

Amongst all the countries in Central Asia, Tajikistan, officially the Republic of Tajikistan, is a mountainous, landlocked nation. Known for its breathtaking Pamir Mountains, deep cultural heritage, and vast hydropower potential, Tajikistan gained independence from the Soviet Union in 1991. The capital and largest city is Dushanbe, serving as the political, economic, and cultural center. According to the World Bank, Tajikistan is classified as a Low-Income Country, with its economy heavily reliant on remittances from migrant workers, agriculture, and aluminum production.

The currency of Tajikistan is the Tajik Somoni (TJS). As of today’s exchange rates (June 2025), 1 Tajik Somoni is approximately 7.60 Indian Rupees. The population of Tajikistan is estimated at approximately 10.3 million in 2024. Tajikistan shares land borders with Afghanistan to the south, Uzbekistan to the west, Kyrgyzstan to the north, and China to the east. As a landlocked country, it does not have any maritime borders or direct access to seaports; therefore, it relies on regional transport corridors, often through neighboring Uzbekistan, Kazakhstan, or ports in Pakistan and China for international trade. The official language is Tajik (a variety of Persian), while Russian is widely used for inter-ethnic communication and in government and business circles. English proficiency is generally limited, though increasing among younger generations in urban areas. The majority of the population practices Islam, predominantly Sunni. Major international airports include Dushanbe International Airport (DYU) and Khujand Airport (LBD), which provide air links to regional and some international destinations.

The standard corporate income tax rate in Tajikistan is 18%. To attract foreign direct investment, Tajikistan offers various incentives, particularly within its Free Economic Zones (FEZs) and for investments in priority sectors. These incentives are overseen by the State Committee on Investment and State Property Management (SCISPM). Key incentives can include:

• Tax Exemptions: For businesses operating within FEZs, often including exemptions from corporate income tax, VAT, customs duties, and social taxes for specific periods.
• Customs Duty Benefits: Exemptions or reductions on imported equipment, raw materials, and technologies for approved investment projects.
• Investment Protection: The government has laws in place aimed at protecting foreign investments, though enforcement and transparency can sometimes be a concern.
• Sector-Specific Incentives: Special benefits for investments in hydropower, mining, agriculture, and tourism.

Opesh Group of companies can assist in the due diligence process, including financial planning, registration, exploring business options, and if required, even helping you find a suitable rental property for your office or residence.

Establishing a business in Tajikistan involves navigating its legal and regulatory framework. The most common legal entities for foreign investors include Limited Liability Companies (LLC) and Joint Stock Companies. A Branch Office is also an option for foreign companies. Generally, 100% foreign ownership is permitted in most sectors under the Foreign Investment Law, though investors should be aware of potential challenges related to legal transparency and enforcement, as well as bureaucratic processes.

In case an investor is planning to establish an LLC or any corporate business setup in Tajikistan, Opesh Group will be helping you in taking the right decision for setting up your business in Tajikistan and we will also guide you about how to follow the procedure while formulating your company in Tajikistan.

Types of Business which can be started in Tajikistan:

• Hydropower & Energy: Tajikistan possesses immense, largely untapped hydropower potential, crucial for its own energy security and becoming a regional energy exporter. Opportunities exist in dam construction, power generation, and transmission infrastructure.
• Mining: The country is rich in mineral resources, including gold, silver, lead, zinc, antimony, and coal. Investment opportunities exist in exploration, extraction, and processing of these valuable minerals.
• Agriculture & Agro-processing: A vital sector focused on cotton, fruits (apricots, grapes), vegetables, and cereals. Opportunities lie in modernizing farming techniques, developing food processing industries, and expanding exports.
• Tourism: With its stunning mountain landscapes (Pamirs), ancient Silk Road sites, and ecotourism potential, Tajikistan offers significant untapped opportunities in hotel development, tour operations, and related services.
• Infrastructure Development: Ongoing needs for investment in transportation networks (roads, railways), energy transmission lines, and logistics infrastructure to improve connectivity.
• Textiles & Apparel: Leveraging its cotton production, opportunities exist in yarn spinning, fabric manufacturing, and garment production for export.

Advantages of Starting Business in Tajikistan:

• Immense Hydropower Potential: Offers clean energy resources for domestic use and export.
• Rich Mineral Resources: Untapped or under-exploited deposits of valuable metals.
• Strategic Location (Regional Transit): Although landlocked, it serves as a potential transit route between Central Asia, Afghanistan, and beyond.
• Growing Market (Regional Integration): Efforts towards regional economic integration with neighboring Central Asian countries.
• Government Focus on FDI: Government expresses commitment to attracting foreign investment in key sectors.
• Affordable Workforce: Relatively low labor costs.
• Untapped Tourism Potential: Unique natural beauty attracting niche tourism.

Imports & Exports: Tajikistan’s trade balance is typically in deficit, heavily reliant on imports.

Major items which are exported from Tajikistan:

• Aluminum (primary product from TALCO)
• Gold
• Cotton Fibers
• Precious Metals (e.g., silver)
• Fruits and Vegetables
• Electricity (seasonal)

Major items which are imported in Tajikistan:

• Petroleum Products
• Machinery and Equipment
• Foodstuffs (e.g., grain, sugar)
• Chemical Products
• Vehicles
• Consumer Goods

Major items traded between Tajikistan and India (as of June 2025): Trade between Tajikistan and India is relatively small but growing, driven by a focus on pharmaceuticals and agricultural products.

• Exports from Tajikistan to India: Primarily include cotton, aluminum, dry fruits, and some raw materials.
• Imports in Tajikistan from India: Predominantly consist of pharmaceuticals, tea, agricultural machinery, textiles, and some consumer goods.

Manufacturing: Tajikistan’s manufacturing sector is relatively underdeveloped, with a significant portion of its industrial output dominated by a few large enterprises.

• Aluminum Production: Tajikistan Aluminum Company (TALCO) is a major enterprise, relying on imported alumina.
• Textiles: Primarily cotton ginning and some yarn and fabric production, often for export.
• Food Processing: Small-scale processing of fruits, vegetables, and dairy products for local consumption.
• Cement Production: Growing due to construction needs. The government is seeking investment to diversify and modernize its manufacturing base.

Mining: Mining is a key sector for Tajikistan, with significant untapped potential in various minerals.

• Gold: A major precious metal resource, with several active mines.

• Silver: Significant deposits, often co-located with lead and zinc.

• Lead and Zinc: Important non-ferrous metal resources.

• Antimony: Tajikistan is a significant global producer of antimony.

• Coal: Reserves for domestic energy needs.

• Other Minerals: Exploration continues for other non-ferrous and rare earth metals.

• GDP = $15.54 billion (nominal, 2025 est. IMF)

• GDP Growth = 6.8% (2024 est. IMF); 6.0% (2025 forecast, IMF)

• Ease of doing business rank = The World Bank’s ‘Doing Business’ report has been discontinued. In its last edition (2020), Tajikistan ranked 106th out of 190 economies. While the government has made efforts to improve the business climate, challenges persist in areas like contract enforcement, property registration, and access to finance.

• GDP per Capita = $1,475 (nominal, 2025 est. IMF)

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