Tajikistan: The Law on Social Entrepreneurship
PUBLISHED: JANUARY 2025
In January 2025, the Republic of Tajikistan enacted a new Law on Social Entrepreneurship, which establishes a foundation for the development of Social Enterprises in the country. But additional legal reforms will be necessary before the law is fully implementable and impactful, as this brief explains.
Prior to the law’s enactment, there was no legal basis for Social Entrepreneurship under Tajik law. The new legislation changes that, creating criteria for registration as a Social Enterprise, establishing definitions for key terms, and explicitly guaranteeing state protection and support for enterprises that support socially vulnerable groups. Importantly, the law also:
- Allows both individuals and legal entities to register as Social Enterprises and potentially benefit from state preferences.
- Makes clear that existing public associations can be considered Social Enterprises when they meet certain requirements
- Does not make registration mandatory for entities and persons carrying out activities which might be considered Social Entrepreneurship.
- Envisions a “designated state body” that will register and regulate Social Enterprises, though it does not name this body.
ICNL has not identified any provisions in the law which would have a negative impact on Social Enterprises, but the text does have several practical gaps. These will need to be filled by additional legislation before Tajikistan’s Social Enterprise system is fully operational. For example, the law:
- Does not create a procedure for adding applicants to the newly-established Registry of Social Enterprises.
- Envisions “tax and customs benefits and other state preferences” for registered Social Enterprises, but does not yet specify what these incentives are.
- Fails to define instances where the state is obligated to provide other types of support, such as grants, training, and material assistance.
The authors of this briefing recognize that state support to Social Enterprises must be fiscally responsible, but note that the law will have little practical effect without real incentives. Establishing a roadmap for the upcoming reforms, setting timelines, and committing to the development of necessary legislative changes in a participatory manner could serve as important next steps to establishing a thriving Social Entrepreneurship sector in Tajikistan.
Prior to the law’s enactment, there was no legal basis for Social Entrepreneurship under Tajik law. The new legislation changes that, creating criteria for registration as a Social Enterprise, establishing definitions for key terms, and explicitly guaranteeing state protection and support for enterprises that support socially vulnerable groups. Importantly, the law also: