Company registration in Kazakhstan

Kazakhstan is a rapidly developing jurisdiction, including through foreign investment. The country has all the necessary conditions for this, which make it relatively easy for investors to enter the region. Certain bureaucratic formalities are required, but the wide range of benefits within the jurisdiction compensates for this.

Advantages of registering a company in Kazakhstan

If you intend to start the process of opening a company in Kazakhstan, the final implementation of this solution makes available many of the benefits provided within the region:

• advantageous location of the jurisdiction;
• rapidly growing economy;
• loyal and very favorable environment for foreign investors;
• the average tax burden on business;
• opportunity to register a legal entity quickly without cumbersome bureaucracy;
• availability of qualified workers with a relatively low cost of their involvement in the production processes;
• availability of mineral deposits (coal, oil, chrome ore, manganese ore).

A specific list of benefits received after incorporation of a Kazakh legal entity depends on the chosen industry and the case’s background. The specialists of Prifinance are ready to recommend individual solutions to the issue.

Forms of doing business and legal presence in Kazakhstan

The decision to buy a business in Kazakhstan or create a new one can be implemented in the following formats:

• A Limited Liability Company is the most optimal idea for organizing a Kazakhstan business remotely registered. Both individuals and legal entities can act as participants. The liability of participants of this type of Kazakh legal entity is limited solely to the amount of individual contributions. Simplified accounting and reporting rules apply to this type of Kazakh legal entity. To form the charter capital, the calculation must be made concerning the monthly calculation index (MCI) amount. In 2022 the size of authorized capital for LLC should be at least 100 Monthly Calculation Index (MCI), and the measure of 1 MCI – 3180 tenge. Nevertheless, there are restrictions for this Kazakh legal entity to carry out certain activities, which only large enterprises can engage in, such as insurance, production, and trade of excisable goods.
• A joint-stock company is a type of legal entity, which implies compliance with stricter accounting and reporting rules, but provides an opportunity to raise significant capital. The financial obligations of shareholders are also limited to the value of their shares, which can be freely alienated from third parties. The amount of the share capital must be determined, taking into account the minimum threshold of 50,000 MCI.
• A branch is a business option available to foreign entrepreneurs, which implies that they conduct the same types of commercial activities as in the state of initial registration. Simplified accounting and reporting rules apply to a branch.
• A representative office is a variant of the non-commercial presence of a foreign legal entity, under which it is forbidden to conduct commercial activities but is allowed to monitor and analyze local markets.

Procedure for registering a legal entity

Registration of a company in Kazakhstan is carried out by passing several registration steps:

1. Determination of commercial priorities and preparation of a business plan for the future Kazakh legal entity.
2. Drawing up a decision on the foundation of a legal entity.
3. Obtaining INN by the founders of the future legal entity.
4. Selection and reservation of a business name for the future Kazakh company.
5. Search and execution of the official legal address for the Kazakh company.
6. Preparation and execution of constituent and registration documents.
7. Formation of registration documents package, including the document on payment of registration fee.
8. Registration of a company for tax and social contribution payment purposes.
9. Opening of a bank account.
10. Registration of additional permits and licenses.

Prifinance specialists are ready to develop a personalized incorporation plan for your business case. Provide input data for individual consultations on the issue.

Legislation and regulatory environment

Kazakhstan provides equal conditions for entrepreneurship for both local citizens and non-residents. The country is open to investment, and the launch of commercial projects does not involve bureaucratic formalities. Therefore, starting a company in Kazakhstan in some cases can be conducted both locally and globally. Only certain regulated activities will require additional permits and licenses.

The tax system of Kazakhstan

The option of registering a company in Kazakhstan should be considered along with the following taxation nuances:

• Corporate tax – 20%
• PIT – 10%
• VAT – 12%
• Withholding tax – (1) dividends – 15% (2) interest – 15% (3) royalties – 15%
• Capital Gains Tax – (1) corporate – see corporate tax (2) individual – see personal income tax.

How Prifinance specialists can assist

If you plan to create or buy a business in Kazakhstan, the specialists of Prifinance are ready to help with the practical implementation of the decision, among other things:

• analyze your business priorities in the region, as well as the background of the case;
• collect all necessary data to start the process of company registration;
• prepare and execute the founding documents and necessary registration forms following the legal requirements;
• apply for registration and finalize negotiations with the state officials in the field;
• to provide comprehensive legal support in the process of opening and supporting operations on the bank account of the enterprise;
• to help with all the issues that may arise in the enterprise’s functioning.

Send introductory information to develop customized solutions. Prifinance lawyers, with their many years of expertise, will help you with your business needs.