Interested in starting a business from scratch? Looking for a profitable project for investment? If you are, then registering a company in Kazakhstan or registering an account with a Kazakh bank is exactly what you need in 2023.
So, let’s take a closer look at what it takes to open a business in the Republic of Kazakhstan and what registration criteria one must meet.
Located in the central part of Eurasia, Kazakhstan is an independent European state with a rich history. The country is washed by the Aral and Caspian Seas. The Republic of Kazakhstan is the 9th largest country in the world; it is also the most secure place for doing business in the CIS.
Kazakhstan borders on Kyrgyzstan, Uzbekistan, Turkmenistan, Russia, China and Mongolia. The key sectors of the Kazakh economy include engineering, metallurgy, extraction and export of natural resources, production of chemicals, agriculture and tourism. The capital of Kazakhstan is the city of Nur Sultan. The largest cities are Taraz, Aktobe, Almaty, Karaganda and Pavlodar. The official languages are Kazakh and Russian. The state currency is the tenge (KZT).
Kazakhstan is a member of the EAEU, UN (UNESCO, IMF and others), SCO, OSCE, OIC and other international organizations.
BENEFITS OF OPENING A BUSINESS IN KAZAKHSTAN
A report released by the Doing Business magazine gives Kazakhstan the following positions in the rating of countries with the most favorable business climate:
- 36th in terms of ease of registering an enterprise;
- 35th in terms of ease of obtaining a building permit;
- 28th in terms of ease of doing business;
- 18th in terms of ease of registering property;
- 4th in terms of ease of enforcing contractual terms;
- 1st in terms of ease of protection of minority shareholders.
If you are going to open a company in Kazakhstan in Kazakhstan, you should keep in mind the following advantages of doing business in this country:
- rapidly developing economy;
- stable political situation;
- convenient location;
- well-developed banking system;
- ease of obtainment of a residential permit and citizenship in Kazakhstan (5 years of residence);
- simplified visa regime;
- focus on attracting foreign capital;
- startup-friendly environment for startups and any types of businesses;
- skilled labor force;
- low tax burden;
- more than 40 DTA agreements with European, Asian and Arab countries;
- fast and extremely simple procedure for registering a business.
Those wishing to register a company in Kazakhstan or open a corporate account with a Kazakh bank should pay close attention to the following sectors of the Kazakh economy: construction, real estate, services, food processing, IT and gambling.
TYPES OF COMPANIES IN KAZAKHSTAN
Setting up an enterprise in Kazakhstan does not require a lot of time. You can start a business from scratch in Kazakhstan within only 14 days. Please note that you can open the following types of companies:
- a Joint Stock Company (PC);
- a Limited Liability Partnership (LP);
- a Representative Office (RO);
- a Branch (B).
If you want to open a company in Kazakhstan remotely, you are highly recommended to stick with an LP. What makes it popular with foreign businessmen is that it places minimum registration requirements on applicants. Also, an LP is easy to manage and the tax burden that an LP owner must bear isn’t that heavy.
If you want to establish a Kazakh company and open an account with a Kazakh bank, you will need to fulfill the following requirements:
- come up with a unique name; if a name is in Latin, it must be transliterated into Kazakh/Russian;
- have at least one founder (legal entities);
- have at least one director (preferably a resident of any EAEU countries);
- have at least one shareholder (legal entities);
- have a minimum authorized capital of 100 Kazakhstani tenge (KZT));
- have a registered office and address;
- have an audit commission comprised of 1-5 members of an LLP conduct an audit.
Those seeking to register a company in Kazakhstan remotely will need to provide the following documents:
- a passport and a copy of a beneficiary's passport;
- a bank statement bearing a wet seal (in English) or a utility bill confirming a beneficiary's address.
Procedure for registering a company in Kazakhstan involves several stages:
- obtaining a C5 business visa (for individuals);
- translating a passport into Russian and Kazakh and notarizing the translation;
- obtaining a tax ID (TIN);
- obtaining an e-signature.
OPENING AN ACCOUNT WITH A KAZAKH BANK
One of the prerequisites for registering a business in a jurisdiction includes opening an account with a Kazakh bank. The following Kazakh banks are considered the most prestigious and trustworthy:
THEIR KEY ADVANTAGES INCLUDE:
- Prompt opening of personal and corporate accounts.
- Making payments in more than 5 freely convertible currencies (EUR/USD/GBP/JPY/CHF and others).
- Providing a wide range of banking, insurance and credit services.
- Inexpensive tariffs.
- Reliable data protection system.
- High level of confidentiality.
- 24/7 access to accounts via a mobile phone, as well as Internet and SMS banking.
Resident companies are taxed on profits earned outside of Kazakhstan, while non-resident companies operating through a permanent establishment in Kazakhstan are taxed on profits earned in Kazakhstan.
THE FOLLOWING TAXES APPLY:
- Income tax is 20%. A reduced corporate tax of 6% applies to income of legal entities specializing in production of agricultural products.
- For companies, engaged in exploration and production of natural resources (oil, gas) a progressive tax rate is provided (from 0 to 30%).
- VAT is 12% or 0% (when exporting goods).
- Dividend tax is 5-15%.
If you are going to register a company in Kazakhstan remotely, you should definitely consider doing it in one of the country’s free economic zones: Astana - New Town, Aktau Seaport, Pavlodar, Khorgor - Vostochnye Vorota and 7 other free economic zones.
Please note that all of them exempted from corporate taxes or enjoy special tax benefits.
HOW TO OPEN A BUSINESS IN KAZAKHSTAN?
Considering opening a company in Kazakhstan? Need a consultation on opening an account with a Kazakh bank? Looking for help with registering an office in Kazakhstan? Please consider contacting YB Case.