Using an Agent or Distributor 

A local agent may have a better sense of Tajikistan’s market and the location of potential consumers.  The agent can establish a presence in Tajikistan with very little startup cost and circumvents the need to navigate the often difficult and frustrating process of establishing a new business entity in Tajikistan.  The local agent will be familiar with the primary markets of Dushanbe and Khujand – the major cities and markets of the country.

A local distributor will need startup support from its U.S. partner to be able to effectively reach out to clients and transfer skills and knowledge.  The U.S. company should expect to support its Tajik partner in a nationwide campaign to promote its goods.  Most U.S. companies are not fully aware of the market conditions and market peculiarities in Tajikistan.  Promotion and product materials must be available in either Tajik or Russian.  

Sales of many U.S. goods originate from neighboring hubs such as Almaty, Bishkek, Tashkent, Moscow, Dubai, and Istanbul. 

American products are often viewed as prestige items and have a reputation for higher quality and durability than more familiar Russian products.  Especially among youth markets, U.S. brands are increasingly popular.

Establishing an Office

U.S. companies wishing to establish a presence in Tajikistan are encouraged to contact the U.S. Embassy in Dushanbe for guidance.  The U.S. Embassy website is https://tj.usembassy.gov/.  We strongly advise interested U.S. companies to retain legal counsel to assist with the business registration process.  The U.S. Embassy economic section maintains a list of international and Tajik consulting companies that offer professional legal advice on business registration, licensing, and business operations in Tajikistan, but is not able to provide references or recommendations for listed companies.  

The first step in setting up an office is to establish a legal presence.  Tajik law provides three options for establishing a legal presence: (i) a representative office, (ii) a branch office, and/or (iii) a legal entity established under the laws of Tajikistan.  A representative office may perform informational and liaison functions of the company.  It can open a bank account, rent an office, and provide visa support, but it cannot engage in trade and commercial activities.  Branch offices maintain a close connection with the parent company.  Branch offices may perform any function, including representational functions.  Representative and branch offices are not separate legal entities; therefore, the parent company may be held liable.  

Additional information on the registration and opening of a representative office can be found at http://businessguide.tpp.tj/

The U.S. Embassy highly recommends that businesses solicit experienced and well-established legal counsel when registering a company.  The Tax Committee of the Government of Tajikistan organizes official registration of legal entities.  Tajikistan’s Department of Registration of Legal Entities and Individual Entrepreneurs is responsible for Single Window state registration.  More information can be found on the website of the Tax Committee of the Government of Tajikistan.  

For the latest Investment Climate Statement (ICS) which includes information on investment and business environments in foreign economies pertinent to establishing and operating an office and to hiring employees, visit the U.S. Department of Department of State’s Investment Climate Statements website.

Direct Marketing

Direct marketing is one of the most effective techniques in Tajikistan and has been demonstrably effective at major cultural or sports events and in door-to-door outreach.  Tajikistan’s unreliable postal system discourages mail marketing.  The Mary Kay, Avon, Oriflame, and Faberlic cosmetics distributors are active mainly in Dushanbe and Khujand, and there is opportunity for development in direct marketing.

There are several local advertising firms based in Dushanbe.  Television, radio, outdoor advertising, and weekly newspaper publications are the primary advertising venues.  For business services, brand recognition campaigns are usually conducted using outdoor advertising. 

There are several traditional media options.  Although there are no private television stations with nationwide coverage, some small private television companies exist in smaller towns.  In Dushanbe, there are 12 FM radio stations and one cable television network, which re-broadcasts up to 80 satellite channels in Dushanbe.  Much of the population uses satellite dishes to receive a variety of TV programs, mainly from Russia and Uzbekistan.  The largest private marketing and advertisement company in Tajikistan is Total Advertising Group (http://www.tag.tj/).

Internet and social media platforms are the key instruments for direct marketing and sales, with social media used for direct marketing and sales.  Tajikistan’s internet penetration rate stood at 40.1 percent of the total population at the start of 2022, but the fixed broadband connection is still very limited. 

Joint Ventures/Licensing

Creating a joint venture with a foreign corporation is one of the options of cooperation with local Tajik firms.  The Tajik government encourages attraction of foreign investments through creation of joint ventures but strategically considers local ownership as priority.  Joint ventures are established as limited liability partnerships (LLP) or as a joint stock companies (JSC).  

Between 1998 and 2022, Tajik authorities registered more than 800 companies with foreign participation. Chinese, Russian, Uzbek, Kazakh, Turkish, Iranian, and South Korean joint ventures are active in the country.  The majority of an estimated 73 U.S.-Tajik companies (according to the 2022 list from State Committee on Investments and State Property Management) are owned by Tajik citizens who immigrated to the United States and transformed their Tajik companies into joint ventures to maintain their business activities in Tajikistan.  Companies with foreign participation exist in the banking, finance, mining, industry, energy, telecommunications, textiles, and food processing sectors.  Some large-scale companies conduct operations through their registered subsidiaries in Cyprus, the British Virgin Islands, and other off-shore tax havens.  From 2011 to 2022 the government and international financial institutions worked to reduce the number of permissions and licenses required for business activities in Tajikistan from over 600 to an estimated 70.   Updated information on the legal issues and processes required for registration is available at https://andoz.tj/Registration.  

Express Delivery

Several international freight forwarders operate in Tajikistan:  

• Move One Relocations as agent/representative of AES Move Relocations, Dubai, UAE  
• Globalink Logistics Group Ltd. as agent/representative for Globalink Multimodal Transportation systems, Dubai, UAE,  
• Gosselin Mobility Tajikistan as rep for GovLog, Antwerp, Belgium  
• Dunyo LLC under brand Dunyo Cargo 
• Express Partner & Logistics LLC 

In June 2017, the Government of Tajikistan shut down international express couriers, including DHL, United Parcel Service, TNT Express, and Pony Express.  In 2021 DHL renewed its operations in Tajikistan through partnership with a local company with limited services.  Two local companies

Due Diligence

U.S. companies should not take shortcuts in evaluating business opportunities and should pay serious and detailed attention to selecting local partners.  Basic business information about company structure, ownership, ethical business practices, and credit worthiness are not always easy to find.  Conducting proper due diligence is essential.

Traditionally, businesses in Tajikistan are based on family ties and personal connections.  Finding a reliable, credit-worthy business partner in Tajikistan requires due diligence, caution, and attention to a potential partner’s business practice, achievements, and reputation.  U.S. firms are advised to verify trade references offered by potential partners, check banking records and correspondent account capability with Western banks and verify the personal bona fides of key company officers. 

The U.S. Embassy may be able to provide general or anecdotal background on a specific company or individual but cannot conduct due diligence for interested investors.  A number of local and international consulting and law firms offer due diligence services to investors in the country.  While Embassy Dushanbe is not a Commercial Partner Post, it can assist you in contacting the U.S. Department of Commerce to obtain its International Company Profile Service.