The Authorized Capital of Joint-Stock Companies and its Impact on Tax Relations

Corporate governance in Uzbekistan is closely tied to the regulation of authorized capital and its interaction with tax relations, which together shape financial stability and investment attractiveness of enterprises. The legislation of the Republic of Uzbekistan defines strict requirements for the formation, minimum thresholds, and management of authorized capital in joint-stock companies, limited liability companies, banks, and enterprises with foreign investment. These rules are directly connected to tax policy, dividend distribution, and reinvestment practices, thereby influencing corporate decision-making and financial sustainability. Despite numerous legal provisions, inconsistencies remain in the implementation of dividend policies, assessment of non-monetary contributions, and synchronization of accounting practices with legislative requirements, creating challenges for enterprises with significant state shares. This article aims to analyze the role of authorized capital in corporate governance and assess its impact on taxation and financial management within the framework of Uzbek legislation. The analysis reveals that authorized capital serves three main functions guarantee, initial fund, and a signal of enterprise reliability while also highlighting common errors in accounting practices and the need for clearer regulatory procedures regarding dividend allocation and capital increases. By combining legislative review with practical accounting cases, the study underscores the institutional and procedural gaps in authorized capital management, especially in state-owned enterprises. The findings suggest that improving dividend policies, ensuring accurate asset evaluation, and aligning accounting with statutory requirements will enhance the investment climate, corporate transparency, and long-term development prospects of enterprises in Uzbekistan.