Doing business in Kazakhstan involves understanding the business environment, choosing the right legal structure, and following the company registration process.
Kazakhstan is Central Asia’s largest economy and offers a strategic location, pro-investment policies, and a competitive tax structure.
Here is a general overview of how to do business in Kazakhstan:
1. Understand the Business Environment
- Key Sectors: The economy is diverse, with major opportunities in energy (oil, gas, and renewables), mining, metals, transportation, logistics, and agriculture.
- Government Support & Incentives: The government actively seeks foreign investment and offers incentives, particularly within Special Economic Zones (SEZs) and industrial zones. These can include:
- Exemption from Corporate Income Tax, Property Tax, and Land Tax (often 0% for companies in SEZs).
- Exemption from customs duties on imported equipment.
- Simplified procedures for visas and work permits for foreign employees.
- Challenges: Foreign investors sometimes cite concerns about bureaucracy, the need for improved rule of law, and the occasional favoring of domestic companies in procurement.
2. Choose a Business Structure
The most common structures for foreign businesses are:
| Business Structure | Description | Key Features |
| Limited Liability Partnership (LLP) | The most popular choice for small and medium-sized businesses. | Limited liability for partners. Minimum authorized capital for small business LLPs can be 0 KZT. |
| Joint Stock Company (JSC) | Preferred for larger enterprises planning to raise capital through public or private share issuance. | Requires a higher minimum charter capital and more extensive reporting and regulatory compliance (e.g., mandatory annual audit). |
| Branch Office | An extension of the foreign parent company. | Can conduct commercial activities but is not a separate legal entity. |
| Representative Office | Restricted to non-commercial activities, such as market research and promotion. | Not allowed to conduct direct sales or commercial activities. |
3. Key Steps for Company Registration (LLP for Foreigners)
The process typically takes around 5 to 7 business days (though practical timelines, including preparatory steps like obtaining required identification, can be longer):
- Obtain Individual Identification Number (IIN) and Electronic Digital Signature (EDS):
- IIN: A unique personal number required for the director and founders to pay taxes and interact with government services.
- EDS: An electronic signature necessary for online company registration and interacting with the e-government portal (eGov.kz).
- Note: Recent changes often require personal presence in Kazakhstan to obtain the IIN and EDS, or for visa extensions/TRP. Foreign founders also typically need a C5 business immigrant visa to register a commercial entity.
- Choose and Approve a Company Name: The name must be unique and registered with the Ministry of Justice.
- Determine the Legal Address: A registered physical office address in Kazakhstan is mandatory.
- Prepare Incorporation Documents: This includes the Charter (Articles of Association), Memorandum of Association, shareholder agreements, and notarized/apostilled copies of foreign founders’ documents with Kazakh and Russian translations.
- Submit Documents for Registration: This can be done online via the eGov.kz portal (often faster for simple structures) or at a Public Service Center (PSC).
- Obtain Business Identification Number (BIN): Automatically issued upon successful company registration.
- Open a Corporate Bank Account: Mandatory for conducting business transactions.
- Register for Taxes and VAT:
- Select the tax regime (general, simplified, etc.).
- Mandatory VAT registration is required if annual turnover exceeds a certain threshold (currently over 20,000 Monthly Calculation Indices, subject to change).
- Obtain Licenses and Permits: Depending on the business activity (e.g., finance, construction, mining), specific licenses or permits from regulatory bodies will be required.