When a company needs an external contractor, there are four lawful formats: a self-employed person, a sole proprietor, a civil-law contract with an ordinary individual and an employment contract. They differ in taxes, documents and risks. Below is a comparison under the rules in force from 1 January 2026.
1. Comparing the formats
| Self-employed | Sole proprietor | Civil-law contract | Employment contract | |
|---|---|---|---|---|
| Contractor registration | online, free, QR-code certificate | state registration | not required | not required |
| Activity types | only the 72 listed types | wider, under sole proprietor rules | any lawful work or service | any job function |
| Tax on the payout | 1%, withheld by the company | 1% up to 1 billion UZS, paid by the proprietor | 12% personal income tax, withheld by the company | 12% personal income tax, withheld by the company |
| Company social tax | none | none | usually 12% | 12% |
| Documents | contract, act, e-invoice | contract, act, e-invoice | contract, act | employment contract, HR records |
| Guarantees for the contractor | no employment guarantees | no employment guarantees | no employment guarantees | leave, sick pay, dismissal protection |
2. Example: a job worth 10 million UZS
| Format | Contractor receives | Taxes | Company cost |
|---|---|---|---|
| Self-employed | 9,900,000 | 100,000 (1%, withheld by the company) | 10,000,000 |
| Sole proprietor | 9,900,000 after paying own tax | 100,000 (1%, paid by the proprietor) | 10,000,000 |
| Civil-law contract | 8,800,000 | 1,200,000 income tax + 1,200,000 social tax | 11,200,000 |
| Employment contract | 8,800,000 | 1,200,000 income tax + 1,200,000 social tax | 11,200,000 plus leave and sick pay costs |
The calculation is simplified: it ignores industry benefits and special regimes. But the order of the difference is clear: for the same contract amount the company spends 1.2 million UZS (about 11%) less, and the contractor receives 1.1 million UZS more. If the goal is the same take-home amount (9.9 million UZS), a civil-law contract would cost the company about 12.6 million UZS, roughly 20% more.
3. When each format fits
Self-employed
Fits one-off and project tasks if the activity is on the list of 72 types: delivery, IT development, design and video editing, SMM, online consulting, marketplace sales, agricultural work, passenger transport with a licence card. The company withholds 1% and reports per contractor.
Sole proprietor
Needed when the activity is not on the self-employed list. From 2026 the list no longer includes, for example, hairdressing, photo and video shooting, tutoring, translation and copywriting, real estate services, car repair, and general construction work for individuals. Such contractors can work with a company as sole proprietors.
Civil-law contract with an individual
Suits rare one-off orders from people without a status. It is the most expensive option for the company: it withholds personal income tax and usually pays social tax.
Employment contract
Mandatory if the person performs an ongoing function on your schedule, under your control and is built into your staff structure. No civil-law format will protect against reclassification here.
4. Points to watch
- A self-employed person cannot at the same time be your employee or an employee of any other business entity. Moving a staff member "to self-employment" with the same duties almost certainly leads to reclassification.
- Many self-employed activity types are permitted only for services to individuals. Such a contractor may not fit an order from a company.
- Above 1 billion UZS of annual income, both the self-employed and sole proprietors switch to VAT and profit tax, and the calculation changes.
This material is for reference and reflects the legislation of the Republic of Uzbekistan as of October 2026. Before acting on a specific situation, check the current wording of the acts on lex.uz or consult a tax adviser.