Establishing an IT company in Kazakhstan

Launching an IT business in Kazakhstan may constitute a profitable entrepreneurial avenue for those seeking access to financial opportunities, sophisticated digital infrastructure, and a skilled talent pool. This article explores the advantages of this jurisdiction for IT entrepreneurs and the process of establishing your own IT company in Kazakhstan.

Kazakhstan is actively developing its IT industry to strengthen national economic growth and global competitiveness. Registering an IT business in Kazakhstan potentially offers multiple benefits:

• Low barrier to entry. Kazakhstan provides relatively low business launch and operating expenses compared to developed nations. This includes advantageous tax rates, affordable labour, and other financial incentives.
• Skilled talent pool. Situating an IT company in Kazakhstan permits access to a substantial base of highly qualified information technology specialists and an active IT business community.
• Innovation opportunities. As Kazakhstan's IT marketplace remains emergent, plentiful opportunities exist to build innovative products and solutions, including pioneering software, online platforms, AI applications, etc.
• Minimal competition. The nascent Kazakh IT sector means new products and services can be tested and commercialised with limited competition. The restricted player base enables the introduction of novel concepts to dominate specific niches.

Moreover, Kazakhstan's geographic position furnishes a strategic conduit between East and West alongside Eurasia and beyond, facilitating international connectivity and integration within the global digital economy. The government actively invests in developing IT infrastructure countrywide.

Kazakhstan's participation in international IT collaborations also endorses the country as an attractive base for tech ventures, with the state founding technology parks to further cement Kazakhstan's status as a vital contributor to the international IT industry.

Promising IT business sectors in Kazakhstan

As in numerous countries, Kazakhstan's IT industry encompasses various strategic directions. The most viable niches for founding IT enterprises in Kazakhstan include:

• Engineering custom software and applications represents a fundamental IT sector. Opportunities exist to target both domestic and international clientele.
• Developing and integrating IoT solutions for system monitoring, management and optimisation across industries is an emergent field.
• Constructing AI systems alongside advisory services around implementation constitutes a growth area as companies digitally transform.
• Apps and hardware for augmented and virtual reality integration across business functions offer ample innovating scope as these technologies proliferate.
• Delivering IT consulting, software engineering outsourcing, technical support and other services to overseas customers is a sustainable model.
• Processing and analysing expansive datasets, alongside building tools to uncover operative insights, provides value for enterprises progressing digital strategies.
• Constructing educational applications, games, and corporate e-learning platforms is a stable niche as remote working/learning expands.
• Developing critical information infrastructure protection solutions and data security software aligns with greater data governance/privacy legislation.
• Furnishing cloud storage, SaaS and bespoke solutions for public agencies taps into surging cloud adoption trends locally and abroad.

Launching an IT company in Kazakhstan

Kazakhstan's IT sector presents notable opportunities for overseas entrepreneurs. Establishing a cybersecurity or artificial intelligence company in Kazakhstan offers governmental support, extensive consumer access courtesy of advantageous geographic positioning, and future expansion prospects.

In general, several prerequisites and stages dictate opening an IT enterprise in Kazakhstan:

We remind you that this information represents the process of registering an IT company in Kazakhstan only in very general terms. We would be happy to offer a profound overview according to your needs.

Establishing an IT company in the AIFC Kazakhstan

The AIFC represents a rapidly developing financial and technological hub, furnishing IT enterprises with abundant growth and prosperity opportunities. The AIFC Technology Centre constitutes a pivotal entity furthering economic advancement in Kazakhstan and the broader Central Asian region.

Owing to its favourable legal climate, tax incentives, capital access and developed infrastructure, the AIFC has evolved into an optimal location for founding IT ventures in Kazakhstan.

Two principal avenues exist for registering IT companies within the AIFC Kazakhstan jurisdiction:

1. Incorporating a new entity
2. Domiciling an existing overseas IT company

Selecting a corporate structure for an IT company in Kazakhstan

When founding an IT enterprise in AIFC in Kazakhstan, the appropriate corporate structure must be determined. A Limited Liability Partnership (LLP) represents the most common entity, restricting partner liability to their invested capital contributions.

• At least two partners are obligatory.
• No prescribed min. share capital.
• Capital can be contributed in any currency (e.g. Tenge or US Dollars). In-kind capital contributions are also permissible.
• The liability exposure for LLP partners is constrained to their respective capital investments.

Typically, AIFC company registration entails a rapid timeframe of a few working days.

Companies can also establish an AIFC presence through “transfer” mechanisms, retaining legal identity while redomiciliation from overseas jurisdictions into Kazakhstan.

Benefits of redomiciliation to the AIFC Kazakhstan

Relocating an existing overseas company to the AIFC Kazakhstan jurisdiction also carries advantages:

• Safeguards concluded corporate agreements.
• Confers AIFC preferences entitlements alongside formal Kazakh residency.
• Progressive corporate issue regulation.
• Provides modern office space and world-class IT facilities.
• Backing from governmental bodies.
• 0% corporate income tax and no capital gains levies.
• Direct access to international investors and funding channels.
• Can list securities on the AIX exchange platform.
• Personnel training and development opportunities.

For all legal aspects related to company incorporation, document/contract execution, software intellectual property protection, and more — YB Case consultants can provide full support.

Registering an IT company in Astana Hub

Astana Hub fosters high-technology ventures to empower national economic growth. As Central Asia's largest international IT startup complex, Astana Hub delivers worthwhile incentives for founding IT firms. Registering an IT enterprise with Astana Hub enables tax advantages like corporate income and value-added tax exemptions.

To leverage these benefits, companies must incorporate as an LLP legal entity and attain Astana Hub's technology park membership status. Priority activity areas dictate qualifying for Astana Hub participation (our specialists can elaborate on the specifics).

Key privileges unlocked through obtaining Astana Hub technology park membership status:

• Nil CIT rate and VAT liability.
• Simplified visa applications for overseas staff with no foreign employee number restrictions.
• Over 900 member IT corporations and startups collaboration network.

Concurrently pursuing Astana International Financial Centre registration may furnish additional advantages by harnessing incentives from both platforms, pending application approvals. This can encompass rental discounts for using park facilities, governmental procurement opportunities, alongside other IT company support measures within Kazakhstan. To fully understand procedural nuances, expert AIFC IT business legal assistance proves valuable.

Government support mechanisms for IT startups in Kazakhstan

The Kazakh government furnishes an array of grants and subsidies to aid IT enterprises across various objectives, including novel product development, international market expansion, and global exhibition participation. For example, the Digital Kazakhstan initiative offers up to 500 million Tenge in grants for IT companies executing projects within strategic spheres. Similarly, the Business Roadmap 2025 programme subsidises IT business expenditures on software and hardware assets.

Moreover, Kazakhstan hosts numerous venture capital funds actively investing in promising IT startups to advance the country's technological entrepreneurship ecosystem.

Notable IT startup venture funds in Kazakhstan

QazTech VenturesA government-backed VC fund created to finance high-potential Kazakh technology startups alongside providing expert advice and guidance to founders.

Baiterek Ventures A VC pillar of the national innovation development agenda, funding and assisting startups across industries like IT.

Halyk VenturesA private VC investor targeting high-upside projects across the economy, encompassing the IT segment.

QamCare Ventures. Specialises in healthcare and digital health startups including IT solutions for medicine and related fields.

Conclusion

Presently, Kazakhstan signifies a premier jurisdiction for incorporating IT sector companies. Several drivers contribute to the country’s appeal to IT entrepreneurs:

• Government programmes and privileges encourage overseas IT specialists to attract diverse expertise, enabling industry advancement.
• Electronic public services modernisation enhances citizen/business accessibility and government interaction efficiency.
• High-profile Astana-located IT expos spotlight opportunities for global leaders and innovative firms, showcasing Kazakh IT potential.
• The development of high-bandwidth networks, technology parks and other infrastructure establishes favourable IT business conditions and talent attraction.

For reliable assistance with legally registering an IT enterprise in Kazakhstan, direct support services from YB Case technical specialists prove advantageous.