Opening a bank account in Kazakhstan

04.07.2024

Opening a corporate bank account in Kazakhstan

Introduction

Establishing a corporate bank account in Kazakhstan offers significant advantages for international companies and investors. Firstly, the sophisticated online banking system ensures convenient and efficient access to the account and the management of financial transactions. Local banks provide high-quality services, including mobile banking, which facilitates seamless account management from any location globally.

Additionally, Kazakhstan is notable for its low rejection rates in opening accounts for non-residents, making the process of establishing a business account in Kazakhstan more predictable and less burdensome. The presence of the company director is not required for account opening, significantly simplifying the procedure for foreign enterprises.

Another significant advantage is access to international payment systems like MasterCard and Visa. Over 95% of all transactions in Kazakhstan are processed through these systems, ensuring a high level of integration with global financial markets. This makes Kazakhstan an attractive platform for conducting business with international partners.

Kazakhstan has entered into Double Taxation Avoidance agreements with over 50 countries, significantly reducing the tax burden on companies operating across multiple jurisdictions. This facilitates a favorable environment for international business and investment.

Establishing a business bank account in Kazakhstan grants a company significant financial flexibility and access to international payment systems, mitigates tax risks, and simplifies account management through an advanced internet banking infrastructure.

Preparation for opening a corporate account in Kazakhstan

List of required materials

To open a business account in Kazakhstan, you must provide certain materials. The main ones include:

articles of association;
registration certificate;
minutes or decision on the appointment of a director;
manager's identity card;
power of attorney for a representative (if available).

Evidence of economic activity in Kazakhstan may also be required, such as an office lease agreement or letters from local business partners.

Standards and requirements for materials

To successfully open an account in a Kazakh bank, the materials provided must meet certain standards and requirements:

Apostille and legalization

Documents issued abroad must be apostilled in accordance with The Hague Convention. The apostille certifies the authenticity and legal conformity of the document in the issuing country. If the country is not a party to The Hague Convention, consular legalization through the Embassy of Kazakhstan in the issuing country will be required.

Translation of materials

All documents written in a foreign language must be rendered into Kazakh or Russian. These translations should be certified by a notary to establish legal validity and ensure their acceptance in banks and government offices in Kazakhstan.

Adhering rigorously to these stipulations will ensure the seamless acceptance of all submitted materials and facilitate a smooth account opening process without delays.

The process of creating a corporate bank account in Kazakhstan

Choosing the optimal bank

The initial stage in the process of setting up an account for businesses in Kazakhstan involves selecting the most suitable financial institution. Kazakhstan hosts several leading banks that provide a comprehensive range of services for corporate clients.

People's Bank of Kazakhstan (Halyk Bank)

Halyk Bank holds leading positions in the country's financial market and offers a variety of services for businesses, including cash flow management, lending, and asset management. The bank is renowned for its reliability and extensive network of branches and ATMs, ensuring convenience and accessibility.

Kazkommertsbank

This bank provides specialized products for corporate clients, such as corporate loans, liquidity management, and trade finance. Its strong market reputation makes it attractive to businesses aiming for efficient financial management.

Bank CenterCredit

Bank CenterCredit offers a variety of services for small and medium-sized businesses, including loans, deposits, cash management, and internet banking. The bank is known for its flexible terms and individual approach to each client.

Sberbank of Kazakhstan

The subsidiary of Russia's Sberbank, Sberbank Kazakhstan, provides comprehensive banking services for businesses, including loans, deposits, cash management, and international payments. A developed network of branches and ATMs ensures the accessibility and convenience of the bank's services.

Key points when choosing a bank

When opening a bank account for a business in Kazakhstan, there are several important factors to consider:

Ease of service: ease of access to branches and ATMs, as well as high-quality online service, are important. The more points of presence of the bank, the easier it will be to manage your account.
Cost of services: it is necessary to carefully analyze the tariffs for opening and servicing an account, commissions for transfers and other operations. For example, opening an account can cost from 10,000 to 20,000 KZT (22–44 USD), and monthly maintenance can cost from 5,000 to 15,000 KZT (11–33 USD).
Bank reputation: the reliability and stability of the bank, as well as customer reviews play a significant role. Highly rated banks, such as Halyk Bank and Kazkommertsbank, provide confidence in the safety of funds and high quality of service.
Services provided: it is important to consider the availability of additional services such as foreign exchange, lending, trade finance and asset management. These options can greatly facilitate business management and contribute to its development.

The selection of a bank for opening an account requires meticulous analysis and a deliberate approach. Our experts are ready to provide comprehensive support and consultations at every stage, starting from the bank selection and ending with the preparation of necessary documents. Contact us through the "Contacts" section on our website to obtain more information and commence the account opening process for your business.

Submitting an application

The process of applying for opening a corporate account at a Kazakhstani bank involves several stages. Initially, it is necessary to complete the bank-provided forms and questionnaires. These forms contain information regarding the organizational structure, founders, executives, and intended activities of the entity.

The length of time it takes to process an application depends on the bank and how comprehensive the papers are. Typically, the process takes from one to two weeks. In certain instances, the bank could ask for more details to confirm the information.

Specifics for non-residents

The procedure for opening a business account in a Kazakhstani bank for foreign legal entities may involve additional steps. These steps are necessary to comply with local requirements and ensure transparency.

Obtaining a BIN (Business Identification Number)

BIN is required for all legal entities conducting activities in Kazakhstan. Foreign organizations can obtain BIN remotely through online platforms or with the assistance of legal intermediaries. This number is essential for all tax and financial transactions.

Possibility of remote account opening

Many Kazakhstani banks offer a service for remote account opening for non-residents. This allows foreign entities to open an account without physical presence at the bank. To do this, it is necessary to provide a complete set of electronic documents, which are then verified by the bank.

Features for foreign clients

Foreign clients must provide additional documentation to open an account, including founding documents translated into Kazakh or Russian and notarized. Evidence of economic activity in Kazakhstan, such as office lease agreements or letters from local partners, may also be required.

Approximate tariffs and commissions

Account opening fee: 10,000 – 20,000 KZT (22–44 USD).
Monthly account maintenance: 5,000 – 15,000 KZT (11–33 USD).
Commission for interbank transfers: 0.1% – 0.2% of the transfer amount.
Commission for currency conversion: 0.5% – 1% of the conversion amount.

Thus, the process of opening a corporate account in a Kazakhstani bank requires the completion of a series of procedures and the provision of a comprehensive package of materials confirming the legitimacy and economic activity of the organization. The possibility of remote account opening and obtaining a BIN without personal presence makes this process accessible to foreign clients.

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Advantages and disadvantages of opening an account in Kazakhstan

Advantages

One of the key advantages of opening a corporate account in a Kazakhstani bank is the presence of a sophisticated internet banking system. Kazakhstani banks actively invest in technology, providing their clients with convenient access to account management through the internet. This includes capabilities for conducting payments, monitoring transactions, and real-time financial management. For instance, banks like Halyk Bank and Kaspi Bank offer extensive online banking features, enabling businesses to efficiently oversee their financial operations from anywhere in the world.

Access to international payment systems is another significant advantage, enabling companies to conduct cross-border transactions and receive funds from overseas partners without delays. Kazakhstani banks actively collaborate with these payment systems, ensuring swift and reliable transaction processes. Over 95% of all transactions in Kazakhstan are processed through MasterCard and Visa, underscoring high levels of integration with the international financial system.

Minimal account opening rejections rates. Low rejection rates are a defining feature of opening a business account in Kazakhstan. Kazakhstani banks that offer attractive account opening conditions aim to draw in new customers, including Sberbank Kazakhstan and Bank CenterCredit. This makes it easy and predictable for most businesses, even international ones, to open a business account in a Kazakhstani bank.

Disadvantages

Establishing a business account in Kazakhstan has several disadvantages, one of which is the need to verify economic existence. Companies must provide evidence that they are genuinely conducting business in Kazakhstan. This may include office lease agreements, letters from local partners, or other documents verifying the existence of real activities in the country. These requirements can be burdensome for companies that are just starting their operations in Kazakhstan and do not have substantial presence in the country.

The need to obtain recommendations from Kazakhstani companies represents an additional challenge associated with the condition to provide such endorsements. Banks may request these letters to guarantee the reliability and business reputation of new clients. Acquiring such recommendations can be difficult, especially for foreign companies entering the Kazakhstani market without established business connections in the country.

Therefore, creating a business account at a Kazakhstani bank involves certain challenges even with the many advantages, such low account opening rejection rates, access to foreign payment solutions, and sophisticated internet banking infrastructure. Companies must be prepared to confirm economic presence and obtain recommendations from local partners. These factors should be considered when planning to open a business account in a Kazakhstan bank.

Deposit insurance and asset protection

Deposit insurance is an essential component of the depositor protection system in Kazakhstan. Opening a business account with a Kazakhstani bank entails mandatory deposit insurance, providing additional security for clients. Deposits of individuals and legal entities are insured under the mandatory deposit insurance system, regulated by the Agency for Regulation and Development of the Financial Market of Kazakhstan.

Deposit insurance system in Kazakhstan covers deposits up to a specified amount set by legislation. As of 2024, the maximum insurance coverage is 10,000,000 KZT (approximately 22,000 USD). In case of bank insolvency, depositors can receive compensation for their funds up to this limit. This system applies to both individuals and legal entities, enhancing the safety of opening a corporate account in a Kazakhstani bank.

The insurance sector of Kazakhstan is characterized by stringent capitalization requirements for insurance companies, rigorous supervision of their operations, and mandatory adherence to international financial reporting standards. These measures enhance confidence in insurance companies and ensure protection of client interests. The regulatory oversight is carried out by the Agency for Regulation and Development of the Financial Market of Kazakhstan, which conducts continuous monitoring and inspections to guarantee the financial stability of companies and their ability to fulfill obligations to clients.

Thus, the system of financial regulation and security in Kazakhstan is upheld through the activities of the Agency for Regulation and Development of the Financial Market of Kazakhstan, stringent legislative requirements, and deposit insurance. These mechanisms create favorable conditions for conducting business and protecting client interests, making opening a business account in a Kazakhstani bank safe and attractive for companies.

Conclusion

Opening a corporate bank account in Kazakhstan offers numerous advantages, including a highly developed online banking system, access to global payment systems, and minimal rejection rates. These conditions make Kazakhstan attractive to international enterprises seeking efficient financial management and business expansion. It is important to note that successful account opening requires confirmation of economic presence and recommendations from local business partners.

Regulatory bodies such as the Agency for Regulation and Development of the Financial Market of Kazakhstan, along with deposit insurance systems, foster a stable and secure business environment. Companies opting to open a corporate account in a Kazakhstani bank can rest assured of the safety of their funds and the professionalism of service. Thus, choosing Kazakhstan as a financial partner can strategically benefit companies aiming for long-term growth and international cooperation.

Our experts are always ready to provide comprehensive support and deliver exhaustive information at every stage of opening a corporate bank account in Kazakhstan. We offer an integrated approach, starting from initial consultation to complete assistance throughout all procedures, including preparation of necessary documentation, interaction with banks, and clarification of all legal nuances.

We understand that the account opening process can be complex and requires specific knowledge and experience. Therefore, our team consists of professionals with deep expertise in local requirements and practices. We will assist you in selecting the most suitable bank, preparing and submitting all necessary documents, and provide advice on compliance with all legal and regulatory requirements.