ПРАВОВЫЕ ОСНОВЫ ЛЕГИТИМАЦИИ СУБЪЕКТОВ ПРЕДПРИНИМАТЕЛЬСТВА

International Law, Business and Political Science Journal ISSN-L 3235-9799 E-ISSN 3235-9799 IF(Impact Factor) 13.24 https://journallaw.totalh.net/ Volume: 11. Issue 12 November 2025 1 ПРАВОВЫЕ ОСНОВЫ ЛЕГИТИМАЦИИ СУБЪЕКТОВ ПРЕДПРИНИМАТЕЛЬСТВА Бердикулов Машраб Руководитель направления "Управления бизнесом" Ташкентский Международный университет Кимё Независимый исследователь Ташкентского государственного юридического университета e-mail: [email protected] 0000-0001-9024-5746 Аннотация Статья посвящена исследованию правовых основ легитимации субъектов предпринимательства, их роли в обеспечении законности и устойчивости деловой активности. Рассматриваются правовые механизмы регистрации и государственной регистрации предпринимателей, корпоративной идентификации и правового признания индивидуальных и юридических лиц, осуществляющих предпринимательскую деятельность. Анализируются нормативно-правовые акты, регулирующие создание, функционирование и контроль за деятельностью предпринимателей, включая Гражданский кодекс, законы о предпринимательстве и налоговом регулировании. Особое внимание уделено вопросам защиты прав субъектов предпринимательства, обеспечения прозрачности их деятельности и соблюдения требований по финансовой и юридической отчетности. На основе сравнительно-правового подхода выявляются тенденции гармонизации национальных правовых режимов и рекомендации по совершенствованию законодательства с целью повышения инвестиционной привлекательности и снижения административных барьеров. Ключевые слова: легитимация предпринимателей, правовой статус, государственная регистрация, корпоративная идентификация, предпринимательская деятельность, правовое регулирование, защита прав субъектов, инвестиционная привлекательность, административные барьеры, законность. Berdikulov Mashrab Head of Business Management Faculty Kimyo International University in Tashkent Independent researcher Of Tashkent state University of law e-mail: [email protected] 0000-0001-9024-5746 International Law, Business and Political Science Journal ISSN-L 3235-9799 E-ISSN 3235-9799 IF(Impact Factor) 13.24 https://journallaw.totalh.net/ Volume: 11. Issue 12 November 2025 2 LEGAL FOUNDATIONS FOR THE LEGITIMATION OF ENTREPRENEURIAL ENTITIES Abstract The article is devoted to the study of the legal foundations for the legitimation of entrepreneurial entities and their role in ensuring the legality and stability of business activities. It examines the legal mechanisms for registration and state registration of entrepreneurs, corporate identification, and the legal recognition of individuals and legal entities engaged in entrepreneurial activities. The analysis covers regulatory acts governing the creation, functioning, and oversight of entrepreneurs, including the Civil Code, laws on entrepreneurship, and tax regulations. Particular attention is given to issues of protecting the rights of entrepreneurial entities, ensuring transparency in their operations, and complying with financial and legal reporting requirements. Using a comparative-legal approach, the article identifies trends in the harmonization of national legal frameworks and provides recommendations for improving legislation to enhance investment attractiveness and reduce administrative barriers. Keywords: legitimation of entrepreneurs, legal status, state registration, corporate identification, entrepreneurial activity, legal regulation, protection of rights of entities, investment attractiveness, administrative barriers, legality. Introduction In the modern global economy, the legitimation of entrepreneurial entities represents a key determinant of their sustainability, competitiveness, and legal security. The process of legitimation extends beyond the formal acquisition of legal status; it reflects the interaction between legal regulation, social recognition, and institutional trust. In the context of rapid globalization and digitalization, legitimacy has become a crucial element of corporate reputation, market credibility, and business adaptability to regulatory and societal change [1]. For the Republic of Uzbekistan, the issue of entrepreneurial legitimation is particularly relevant due to the ongoing transformation of its economic and legal systems. Over the years of independence, the country has implemented consistent reforms aimed at liberalizing the business environment and ensuring its transparency. Key legislative acts — including the Law “On Licensing, Permitting and Notification Procedures” (2021, No. 701), the Law “On Competition” (2012, No. ZRU-319), and the Law “On Guarantees of Freedom of Entrepreneurial Activity” (2012, No. ZRU-328) — have created the fundamental legal basis for free and fair entrepreneurship [2]. These International Law, Business and Political Science Journal ISSN-L 3235-9799 E-ISSN 3235-9799 IF(Impact Factor) 13.24 https://journallaw.totalh.net/ Volume: 11. Issue 12 November 2025 3 reforms seek to balance economic liberalism and state oversight, ensuring the protection of both market participants and public interests. At the same time, the process of legitimation cannot be reduced merely to registration or licensing procedures. It must encompass broader aspects — including social legitimacy, ethical business conduct, and public trust. In this regard, it is necessary to distinguish between formal-legal legitimacy, which is achieved through compliance with the law, and social-value legitimacy, which depends on the public perception of the entrepreneur’s contribution to economic and social welfare [3]. Such an approach corresponds to Max Weber’s theory of legitimate authority, according to which legitimacy arises not only from legal conformity but also from the recognition and acceptance of authority or norms by society [4]. In the Uzbek context, this dual nature of legitimacy manifests itself through the simultaneous pursuit of administrative simplification and enhanced accountability. For example, reforms in the field of licensing and notification procedures have been directed toward minimizing entry barriers for new businesses, while maintaining rigorous monitoring of compliance during ongoing operations [5]. This shift from preemptive control to performance-based oversight reflects the broader goal of improving the quality of governance and strengthening the legal environment for entrepreneurship. Accordingly, the purpose of this article is to explore the legal foundations of the legitimation of entrepreneurial entities in Uzbekistan through the lens of both legal doctrine and social recognition theory. The study analyzes national legislation, theoretical approaches of domestic and foreign scholars (including D.A. Akbarov, H.P. Abulqosimov, R.T. Nuraliev, I.V. Ershova, E.V. Trofimova), and comparative experience in developing legal systems. The research aims to identify how Uzbekistan’s legal framework for entrepreneurship can ensure a balance between freedom of enterprise, legal responsibility, and public legitimacy — creating a transparent and trusted environment for sustainable business development. Methodology The methodological basis of this research is grounded in a doctrinal legal analysis combined with systemic, comparative, and sociological approaches, allowing for a comprehensive understanding of the legal and social dimensions of entrepreneurial legitimation in Uzbekistan. The study relies primarily on official legal sources, ensuring the reliability and verifiability of its findings. First, the formal-legal (doctrinal) method is employed to interpret and analyze the International Law, Business and Political Science Journal ISSN-L 3235-9799 E-ISSN 3235-9799 IF(Impact Factor) 13.24 https://journallaw.totalh.net/ Volume: 11. Issue 12 November 2025 4 hierarchy and interaction of legal norms that regulate entrepreneurship, licensing, and state supervision in the Republic of Uzbekistan. This method enables the differentiation between lex generalis norms—such as the Law “On Guarantees of Freedom of Entrepreneurial Activity” (No. ZRU-328, 2012)—and lex specialis norms, including the Law “On Licensing, Permitting and Notification Procedures” (No. ZRU-701, 2021) [6]. It also allows the identification of how subsidiary acts—such as decrees of the President and resolutions of the Cabinet of Ministers—integrate within the legal hierarchy, ensuring compliance with constitutional principles and the rule of law. Second, the systemic approach is applied to examine the interconnection between legal legitimation and social legitimacy of entrepreneurship. This approach facilitates the understanding of how legal recognition (registration, licensing, certification) interacts with societal factors—such as trust, transparency, and public accountability— that determine the social acceptance of business entities [7]. In this context, the research refers to Weber’s theory of legitimate authority and its application to modern governance, emphasizing that legitimacy arises not solely from formal legal compliance but also from the societal recognition of entrepreneurial activity as fair and beneficial [8]. Third, the study incorporates a comparative-legal method, which allows for an analytical juxtaposition of Uzbekistan’s legal mechanisms of business legitimation with selected foreign jurisdictions, particularly those of the European Union, OECD countries, and post-Soviet legal systems. This comparison does not imply normative transplantation but rather serves to contextualize the evolution of Uzbekistan’s legal reforms within the global discourse on business freedom, regulatory simplification, and legal certainty [9]. In addition, a teleological (purposive) interpretation is used to evaluate the alignment between Uzbekistan’s legal policies on entrepreneurship and its constitutional objectives of economic liberalization and sustainable development. This interpretive approach makes it possible to assess how the national framework of entrepreneurial legitimation contributes to the fulfillment of strategic goals defined in the Development Strategy of New Uzbekistan (2022–2026) and the Sustainable Development Goals (SDG 8 and SDG 16), focusing on inclusive economic growth and the strengthening of legal institutions [10]. Finally, the research adopts elements of the sociological method by integrating theoretical insights from both domestic and foreign scholars—such as D.A. Akbarov, H.P. Abulqosimov, R.T. Nuraliev, I.V. Ershova, and E.V. Trofimova—who have International Law, Business and Political Science Journal ISSN-L 3235-9799 E-ISSN 3235-9799 IF(Impact Factor) 13.24 https://journallaw.totalh.net/ Volume: 11. Issue 12 November 2025 5 explored the intersection between legal regulation, social trust, and market behavior [11]. This ensures a multidimensional perspective on the legitimation process, recognizing that legal norms function effectively only when supported by social consent and institutional credibility. Thus, by combining doctrinal precision, systemic reasoning, and teleological interpretation, the methodology ensures both legal depth and practical relevance, allowing for a nuanced assessment of how the legal framework of Uzbekistan can reinforce the legitimacy—both formal and social—of entrepreneurial entities. Research The research explores the legal, institutional, and social foundations of the legitimation of entrepreneurial entities in the Republic of Uzbekistan, identifying the mechanisms through which legality and social recognition of business activities are established and maintained. It focuses on the relationship between formal legal legitimation—achieved through compliance with the system of registration, licensing, and permitting procedures—and social legitimacy, which is grounded in public trust, ethical conduct, and corporate responsibility. From a legal standpoint, the legitimation of business entities in Uzbekistan is primarily governed by the Law “On Licensing, Permitting and Notification Procedures” (No. ZRU-701, 2021), the Law “On Guarantees of Freedom of Entrepreneurial Activity” (No. ZRU-328, 2012), and the Law “On Competition” (No. ZRU-319, 2012) [12]. These acts collectively form the legislative basis for the recognition of entrepreneurs as lawful and socially responsible participants in the market. The adoption of these laws marked a significant transition from a command-administrative model to a market-oriented regulatory framework, aimed at reducing bureaucratic barriers and strengthening the rule of law in economic relations [13]. Recent reforms have been directed toward simplifying administrative procedures and enhancing transparency in the licensing process. In particular, the Presidential Decree No. PF-5690 (May 11, 2019) “On Measures to Radically Improve the System of Licensing and Permitting Procedures” introduced a digital licensing platform and replaced many prior approval requirements with notification-based mechanisms [14]. This reform reflects a broader shift toward the post-control model, where government oversight focuses on monitoring compliance during business operation rather than on pre-entry barriers. Such an approach corresponds to international best practices recommended by the OECD and World Bank Doing Business reports, which emphasize that simplified and transparent licensing enhances both legal predictability and International Law, Business and Political Science Journal ISSN-L 3235-9799 E-ISSN 3235-9799 IF(Impact Factor) 13.24 https://journallaw.totalh.net/ Volume: 11. Issue 12 November 2025 6 entrepreneurial legitimacy [15]. At the same time, the formal-legal dimension of legitimacy must be reinforced by societal acceptance and trust. As Max Weber’s theory of legitimate authority suggests, legitimacy arises not only from legal conformity but also from the recognition of authority by those subject to it [16]. Transposing this concept to entrepreneurship, one can distinguish between formal legal legitimacy, based on adherence to laws and regulations, and social legitimacy, which depends on public perception of entrepreneurship as ethical, transparent, and beneficial to the community [17]. This dual nature of legitimacy is particularly relevant for transition economies, where public attitudes toward business are often shaped by historical distrust of private ownership and market institutions. In Uzbekistan, this challenge is addressed through policies promoting corporate social responsibility (CSR), business ethics, and public accountability. The Law “On Social Partnership” and the National Anti-Corruption Strategy 2021–2025 underline the importance of collaboration between government, civil society, and business associations in ensuring lawful and transparent entrepreneurship [18]. In this sense, legitimation operates as a two-way process: the state provides legal guarantees and institutional recognition, while businesses, in turn, demonstrate responsible conduct and compliance with social and ethical standards. Furthermore, the study draws upon the works of leading Uzbek scholars—such as D.A. Akbarov, H.P. Abulqosimov, and R.T. Nuraliev—who emphasize that legal legitimation of entrepreneurship is a fundamental precondition for economic modernization and sustainable development [19]. Comparative insights from Russian and European legal doctrine (e.g., I.V. Ershova, E.V. Trofimova) reinforce the argument that legitimacy is both a legal status and a social process of continuous validation by the state and society [20]. Thus, the research identifies three essential pillars of entrepreneurial legitimation in Uzbekistan: 1. Legal recognition — the establishment of lawful status through registration, licensing, and state supervision; 2. Institutional trust — the consistency and transparency of administrative procedures; 3. Social acceptance — the development of ethical and responsible business behavior recognized by society. These dimensions collectively form the integrated model of legitimation, which International Law, Business and Political Science Journal ISSN-L 3235-9799 E-ISSN 3235-9799 IF(Impact Factor) 13.24 https://journallaw.totalh.net/ Volume: 11. Issue 12 November 2025 7 can strengthen the credibility of entrepreneurship, improve investor confidence, and contribute to the formation of a transparent and competitive market economy. Discussion The findings of the research reveal that the legitimation of entrepreneurial entities in Uzbekistan is not a static legal status but a dynamic process that integrates legal, institutional, and social dimensions. This process reflects the interaction between state authority, market institutions, and public perception, each contributing to the formation of a legitimate and trustworthy business environment. From a legal-institutional perspective, Uzbekistan has made substantial progress in establishing a coherent framework for entrepreneurial legitimation. The implementation of the Law “On Licensing, Permitting and Notification Procedures” (2021) and the Presidential Decree (2019) represents a critical step toward improving administrative transparency, minimizing corruption risks, and facilitating market entry for new businesses [21][22]. By introducing a digital platform for licensing and notifications, the state has institutionalized a “one-stop-shop” principle, aligning national procedures with OECD and World Bank recommendations for reducing bureaucratic burdens [23]. Nevertheless, despite these reforms, the formal recognition of entrepreneurs remains insufficient without accompanying measures that foster social legitimacy. Empirical studies and reports by the Center for Economic Research and Reforms (CERR) show that many small and medium-sized enterprises (SMEs) in Uzbekistan face challenges related to public trust, administrative pressure, and inconsistent enforcement of regulations [24]. In such circumstances, legitimation must evolve beyond the legalistic notion of compliance toward a holistic concept encompassing ethical behavior, corporate transparency, and accountability to society. The theoretical framework of Max Weber’s concept of legitimacy provides valuable insight into this process. Weber distinguished between legitimacy based on legal-rational authority—rooted in formal rules—and legitimacy derived from social acceptance of those rules [25]. Applying this distinction to entrepreneurship implies that a business can be lawful but still lack legitimacy if it fails to meet societal expectations or ethical norms. Therefore, the effectiveness of legal reforms in Uzbekistan must be evaluated not only by the number of registered enterprises or simplified procedures but also by the level of public confidence in these businesses and in the institutions that regulate them [26]. In this context, corporate social responsibility (CSR) plays an increasingly significant role as a mechanism of voluntary legitimation. According to the UNDP International Law, Business and Political Science Journal ISSN-L 3235-9799 E-ISSN 3235-9799 IF(Impact Factor) 13.24 https://journallaw.totalh.net/ Volume: 11. Issue 12 November 2025 8 Uzbekistan Report (2022), enterprises that integrate social and environmental considerations into their strategies enjoy greater institutional support and reputational stability [27]. CSR initiatives—such as ethical labor practices, community investment, and transparent reporting—serve as instruments of “social licensing”, which complement the state’s formal licensing framework. This dual approach—combining legal authorization with social validation—ensures that entrepreneurship operates as a socially integrated institution rather than merely an economic function. However, challenges persist. The enforcement of anti-corruption measures and the implementation of ethical business standards often depend on the quality of governance and the level of judicial independence. Despite the National Anti-Corruption Strategy 2021–2025, cases of selective enforcement and regulatory discretion undermine the perception of fairness in the business environment [28]. Strengthening judicial guarantees for entrepreneurs and expanding the role of business ombudsman institutions are essential steps toward improving legitimacy in both legal and social senses. Comparative analysis with European Union (EU) and OECD member states further demonstrates that legitimacy in entrepreneurship correlates strongly with regulatory predictability, public access to information, and stakeholder participation in decisionmaking processes [29]. For example, the EU Small Business Act (SBA) emphasizes the principle of “Think Small First,” which ensures that legislative and regulatory processes consider the impact on SMEs before adoption [30]. Implementing similar participatory mechanisms in Uzbekistan would enhance the perception of entrepreneurship as a socially beneficial and legally secure activity. Therefore, the discussion underscores that legitimation should be viewed as a multilevel construct encompassing: 1. Legal legitimation – ensured by compliance with the regulatory framework and recognition by state authorities; 2. Institutional legitimation – achieved through transparent, consistent, and predictable administrative practices; 3. Social legitimation – derived from ethical standards, CSR engagement, and public trust. The interaction among these three dimensions forms the foundation of sustainable entrepreneurship, where legal compliance is harmonized with societal values and institutional integrity. In Uzbekistan, the evolution of such a model requires continued alignment of national legislation with international norms, capacity-building within regulatory institutions, and the promotion of an ethical business culture supported by International Law, Business and Political Science Journal ISSN-L 3235-9799 E-ISSN 3235-9799 IF(Impact Factor) 13.24 https://journallaw.totalh.net/ Volume: 11. Issue 12 November 2025 9 civil society. Conclusion The analysis of the legal foundations for the legitimation of entrepreneurial entities in Uzbekistan demonstrates that the process of legitimization extends beyond the sphere of formal legal recognition to encompass deeper institutional and social dimensions. Legitimacy in entrepreneurship is achieved not only through compliance with statutory norms but also through the establishment of trust between the state, the business community, and society. This multidimensional approach is essential for the formation of a sustainable and transparent business environment capable of supporting the country’s long-term development strategy. The research confirms that Uzbekistan has made significant progress in developing a comprehensive regulatory framework for entrepreneurship. Key reforms—such as the Law “On Licensing, Permitting and Notification Procedures” (2021), the Law “On Guarantees of Freedom of Entrepreneurial Activity” (2000, as amended 2022), and the Presidential Decree (2019)—have established the legal basis for the recognition, protection, and equal treatment of business entities [31][32][33]. These instruments reflect the government’s intention to align national regulation with international standards of economic governance, including the OECD’s recommendations on regulatory simplification and the World Bank’s principles of ease of doing business [34][35]. At the same time, the study highlights that formal legal compliance does not automatically produce social legitimacy. Many enterprises still encounter institutional obstacles, administrative opacity, and insufficient legal protection, which weakens public confidence in both the entrepreneurial sector and the institutions supervising it. This finding is consistent with sociological theories of legitimacy, such as Weber’s concept of legal-rational authority and Habermas’s theory of communicative action, which emphasize that the legitimacy of institutions depends not only on legality but also on social acceptance and transparency in decision-making [36][37]. To consolidate both legal and social legitimacy, Uzbekistan’s policy framework must focus on several key priorities: 1. Enhancing rule of law and judicial protection for entrepreneurs. Effective legitimation requires not only regulatory clarity but also credible enforcement. Strengthening the independence of economic courts and ensuring the impartiality of dispute resolution mechanisms would increase investor confidence and protect property rights [38].