Company registration in Astana - New City

Introduction

Businesses may avail themselves of the myriad boons provided by the Astana-New City Special Economic Zone by enrolling a company there. The zone, operational since 29 June 2001, primarily facilitates the adoption of state-of-the-art edifice technology and draws investors, both of which foster the economic enlargement of Kazakhstan's capital. The zone encompasses more than 15,500 hectares when you encompass Industrial Park No1 and the Administrative and Business Centre.

The objective of the FEZ was to stimulate the creation of innovative commodities and amenities, as well as to enhance the expansion of high-productivity manufacturing establishments, encompassing inventive and competitive enterprises, and to accelerate Astana's economic advancement through attracting investment and infrastructure enhancement. The locality has enticed over 187 billion tenge in investment during its lifespan, with more than 2,837.4 billion tenge allocated to construction. Consequently, numerous specialized sectors have emerged, including those involved in generating diesel and electric locomotives, passenger carriages, armaments, and optic mechanisms; those extracting auric fluid; and those fabricating furniture, construction materials, and implements.

The Astana-New City FEZ presents investors enticing utility remittance circumstances, which enhance the allure of their investments. To aid companies operate more effectively, utilities such as aqua, warmth, electric power, and effluence have preferential prices.

Significantly, the statute prohibits the immediate enrollment of enterprises in FEZs. To acquire entry to a range of advantages, such as fiscal and tariff privileges, investment encouragements, and additional perks, entrepreneurs must undergo the procedure of securing FEZ participant status. Not only does this categorization offer the chance to capitalize on enhanced infrastructure and advantageous amenities, but it also enables participation in a dynamic economic association that fosters swift growth and heightened competitiveness on the worldwide platform.

Advantages of company registration in Astana - New City

Tax incentive system

A thorough set of ordinances governing its entire extent of operation provides the Astana-New City Special Economic Zone its distinctive lawful nature. The levy statute, tariff regulations, terrain rules, and labor ordinances of the Republic of Kazakhstan all contain provisions that affirm this stance. The principal objective of this regime is to aid in establishing an atmosphere where crucial endeavors for the nation's economic expansion may be introduced and upheld.

Businesses and lone proprietors alike may relish considerable tax breaks when they establish shop in the Astana-New City FEZ, owing to the zone's designated business tax haven status. For companies working on pioneering projects, there are a plethora of momentous benefits. For instance, if labor costs constitute 70% of their aggregate expenditures, they won't incur profit tax on earnings derived from fundamental operations linked to precedence sectors. Other advantages encompass a total waiver from immovable property tax, land tax, land use disbursements, and societal contributions.

Stratified pecuniary incentives, grounded on the notion of commensurability between capital outlay and benefits conferred, have been instituted for enterprises enrolled in Astana-New Metropolis from the onset of 2024. This marks a noteworthy novelty. Pursuant to this principle, FEZ participants are categorized into three cohorts contingent on the magnitude of the capital project. This facilitates tailoring of methodologies to foster investment across diverse economic domains.

• A endeavor descends into Division "A" if its venture does not outstrip trio million periods the each month computation indicator, which is roughly 25.5 million dollars (or 11,076,000,000 KZT) pursuant to the treasury legislation.
• The worth descends anywhere betwixt 3,000,000 and 14,500,000 (roughly 25.5 million to 118 million dollars) for division "B".
• "C" - more than 14,500,000, or approximately 118 million dollars.

The industrial potency of the FEZ may be augmented by categorizing ventures in specific sectors as "B" with reduced investment, such as edibles, fabrics, and attire.

Category "A" tax inducements may endure up to 7 lustrums, category "B" up to 15 lustrums, and category "C" up to 25 lustrums, ensuring that investment endeavors will be bolstered over the long term. Notably, the supplementary stipulations are applicable to agreements concluded after 1 January 2024, further enticing investors to transact business in the Astana-augmented City FEZ.

Generally, enrolling a corporation in FEZ "Astana - New City" is an astute maneuver because it unlocks opportunities to diverse fiscal and administrative advantages, possesses its own distinct legislative framework, and garners backing from the government. All of these elements collaborate to promote enterprise, novel concepts, and overseas investment, thereby enhancing the economy and rendering it more varied.

Customs benefits

Initiating business activities within the Astana-New City Special Economic Zone opens up special advantages for businessmen and investors, primarily related to the favourable customs regime, which is an important element for international activity. The territory of this FEZ applies a unique customs procedure, thus providing significant benefits for organisations engaged in export-import operations.

A momentous boon for enterprises commencing their endeavors in FEZ "Astana - New City" is the implementation of a nihil per centum rate on import custom duties for commodities imported into its domain. This enables a substantial abatement in logistical expenditures and custom declaration formalities, thereby easing the importation of materials, apparatus, and constituents requisite for production, as well as streamlining the execution of investment ventures.

In the context of the untrammeled realm customs procedure, commodities translocated to the Astana-New City territory obtain the standing of extramural wares in regards to the customs dominion of the Eurasian Economic Union. In the context of the untrammeled realm customs procedure, commodities traversed within the Astana-New City territory obtain the standing of extramural wares in regards to the customs dominion of the Eurasian Economic Union. This implies that such wares are absolved from customary customs levies, imposts, and nontariff edicts, which constitutes a momentous simplification for enterprises involved in transnational trade ventures.

Consequently, the introduction of the free zone customs procedure in FEZ "Astana - New City" forms favourable prerequisites for the expansion of international business, providing enterprises with the opportunity to reduce operating costs and strengthen the position of their products in global markets. This contributes not only to the inflow of foreign investments into the district economy, but also supports local entrepreneurs in their endeavours to expand internationally.

Attracting foreign labour force

Establishing an enterprise in Astana - New City provides businessmen with significant preferences, including economic and administrative benefits, among which the facilitated procedure for attracting foreign personnel stands out. In the context of globalisation and the desire to adapt the world's best practices and knowledge, the ability to easily attract highly qualified specialists from abroad provides a significant competitive advantage for FEZ operations.

According to the norms of migration legislation, foreign employees employed in organisations registering activities in the FEZ "Astana - New City" and launching projects with a total cost above 1 million monthly estimated figures, during the period of construction and installation works and for a year after the commissioning of the facilities, have the opportunity to work without being bound by quotas for foreign labour and without the need to obtain special permits.

This provision significantly simplifies the process of recruitment of employees to work in FEZ "Astana - New City" This provision significantly simplifies the process of recruiting employees to work in the Astana-New City FEZ, allowing enterprises to form teams of highly professional specialists from different countries of the world to implement ambitious and high-tech projects without restrictions. The abolition of quotas and permits for the use of foreign labour contributes to the formation of multicultural teams, exchange of unique knowledge and experience, which ultimately increases the innovative and technological level of projects implemented in the FEZ.

Hence, the inauguration of a venture in the FEZ "Astana - New City", considering the facilitation of enticing foreign personnel, inspires financiers to cultivate their entrepreneurial endeavors in Kazakhstan, granting entry to a worldwide pool of aptitude and specialists imperative for the triumphant execution of avant-garde notions and undertakings. This stratagem not only fosters the economic advancement of the nation via the influx of overseas investments but also fortifies the stance of Kazakhstani commerce on the global stage, amplifying its competitiveness.

Priority areas of activity in FEZ Astana - new city

Establishing a company in the Astana - New City SEZ is a favourable strategy for companies seeking to develop their activities within a high-tech and innovative economic space. Special Economic Zone Astana - New City emphasises a variety of priority areas of activity, providing unique business opportunities in a wide range of industries. These areas cover both production and socially important spheres, contributing to the comprehensive development of the region and improving the quality of life of the population.

Establishing a company in the Astana - New City FEZ in the manufacturing sector provides enterprises with preferences in such key areas as the production of other non-metallic mineral products, machinery and equipment, household electrical appliances, and rubber and plastic products. These sectors are characterised by high potential for innovation and development, providing a foundation for technological progress within the country's economy.

Moreover, the fabrication of chemical manufacture commodities, metallurgy, along with the fabrication of electrical and luminary apparatus are vigorously burgeoning within the paramount realms. These realms exert a pivotal influence in the configuration of the region's industrial capacity and bolster the nation's export capacity.

The fabrication of comestibles, ligneous pith, cellulose, parchment, carton, and furnishings is also encompassed in the roster of paramount sectors, which underscores the FEZ's dedication to bolstering and cultivating manufacturing amenities for both indigenous and overseas markets. This secures variegation of the economy and engenders fresh vocations.

The establishment of a firm in Astana - New City FEZ in the field of construction and commissioning of infrastructure facilities, including social facilities such as hospitals, schools, kindergartens, sports complexes, emphasises the importance of creating a quality living environment for the population. This area contributes to the improvement of the city's social infrastructure and provides favourable conditions for life and development.

In the milieu of the progression of high-tech and pioneering domains, heed is accorded to the fabrication of motorcarriages, railcar engines, aerial and celestial craft, along with pharmaceutical commodities and electronical constituents. These domains are pivotal to the enhancement of the nation's erudite and technological prowess and foster Kazakhstan's assimilation into the global economy as a fabricator of superior and rivalrous wares.

Thus, establishing a firm in the Astana - New City FEZ opens up broad prospects for entrepreneurs to develop business in various sectors, contributing to strengthening the country's economic potential and creating new opportunities for investment and innovation.

Legal aspects and registration procedure

Choice of legal form of the enterprise and basic requirements

In order to obtain the status of a participant in the Astana-New City FEZ, entrepreneurs have access to various legal forms for company registration in Kazakhstan, which promotes diversity of business initiatives and stimulates economic development of the region. One of the most common forms is limited liability partnerships (LLPs), which have a flexible structure and relative ease of organisation. Examples of such companies include Ultra Build, DK Kurylys Astana, NurAltynOrda, Kasumi, KAZBUILD PRO, and Astana Industrial Park, demonstrating the diversity of industries and activities within the LEZ.

In addition to LLPs, entrepreneurs can choose other forms for setting up their enterprises in Kazakhstan. For example, joint stock companies (JSCs) provide ample opportunities to attract investment and expand business by issuing shares. This is particularly relevant for large companies seeking to attract a wide range of investors and develop in the global market.

Furthermore, solitary proprietors (IE) are sought after amidst petite enterprises and entrepreneurs who favor a solitary guise of conducting their enterprise. This guise is distinguished by a more straightforward enrollment and administration procedure, rendering it appealing for nascent ventures and diminutive undertakings.

Commercial Partnerships (CP) are also sought, notably in the instance of collaborative commercial endeavors by multiple stakeholders. This configuration enables the streamlined orchestration of partnership dynamics and allocation of accountability among project participants.

Thus, the variety of legal forms of enterprises for registering a company in Kazakhstan and obtaining the status of a participant in the territory of FEZ "Astana - New City" provides entrepreneurs with the opportunity to choose the optimal structure for the implementation of their business ideas and projects in various industries and spheres of activity.

The main stages of the company's foundation in Kazakhstan

Registering a company in Kazakhstan opens up unique opportunities for entrepreneurs to develop their business in one of the most dynamically developing economic centres of the region. However, this process requires a careful and systematic approach.

Setting up a business in Kazakhstan requires careful planning and a number of sequential procedures. However, successful completion of all stages of registration opens up many promising opportunities for entrepreneurs to develop their business in this dynamic region.

Registration with tax authorities

Starting a business in Kazakhstan represents an important stage in the development of entrepreneurial activity in the region. Once a company has been successfully incorporated, the main priority is to register with the tax authorities. This process involves several key steps that define the tax strategy and ensure proper bookkeeping.

Once a company's registration with the government authorities is complete, entrepreneurs go to the tax office to obtain a certificate of registration. This document confirms the inclusion of the company in the taxpayer base and is essential for any commercial activity in the region.

Simultaneously with obtaining the registration certificate, the company must choose the most appropriate taxation system for itself. Depending on the nature of the business, the company's turnover and other factors, entrepreneurs can choose between different taxation systems, such as general taxation system, simplified taxation system or unified tax on imputed income.

The right choice of taxation system plays a key role in financial planning and effective management of a company's tax liabilities. Therefore, before making a decision, entrepreneurs are advised to conduct a thorough analysis and consultations with our company's tax professionals.

Procedure for obtaining the status of Astana - New City FEZ participant in 2024

In order to become a participant of the special economic zone "Astana - New City" in 2024, it will be required to provide a comprehensive set of documentation in printed and electronic form, demonstrating the candidate's compliance with certain criteria.

• Candidate form: should be filled out according to the template adopted by the regulatory body.
• Extract from the state chronicle: exemplifies the enrollment (or alteration of enrollment) of the establishment.
• Identification credential of the chief of the enterprise: a replica of the identification credential of the chief of the candidate enterprise is furnished.
• Copy of the founding documents: reflects the legal structure and legal basis of the organisation.
• Protocol on the intention to operate in FEZ: copy of the minutes of the management body of the organisation.
• Report on financial results: those wishing to obtain the status of "Astana - New City" participant should submit a report for the past financial year, certified by signatures of responsible persons. Organisations operating for less than a year should submit a report as of the last reporting date.
• Project cost-effectiveness analysis: must comply with the requirements of the regulator. Information technology and innovation projects require a detailed justification.
• Account statement and financial statement: shows the financial transactions and credit history of the company.
• Tax liability certificate: issued by the tax office, confirms the existence or absence of debts.
• Documents confirming the financing of the project: in accordance with accepted norms.
• Site planning project: required for construction plans.

• Non-residents and companies that are not registered as taxpayers in Kazakhstan should provide proof of non-registration.
• Foreign organisations must submit notarised translations of documents into Kazakh and Russian with legalisation.

In customary, to procure the stature of a contender in the Astana – New City FEZ, it is imperative to proffer an exhaustive array of papers affirming the lawful position of the aspirant, along with their fiscal and investment preparedness to execute the undertaking within the FEZ.

Contemplation of the petition by the accredited entities of the SEZ

In the method for acquiring participant status in the distinctive economic zone "Astana - New City", the governing authority of the SEZ meticulously adheres to a sequential algorithm of procedures, observing the designated time limits for every phase. The inaugural measure is to present a petition to the enrollment ledger on behalf of the governing authority and its immediate dissemination on the portal of the sole coordination center on the day of its reception. This methodology guarantees transparency of the complete process and notifies the populace about individuals aspiring to ingress the SEZ.

The subsequent phase encompasses scrutinizing the entirety and adherence of the tendered papers with entrenched norms. The tendered petition is evaluated pursuant to the acknowledged regulations and benchmarks for scrutinizing endeavors, and predicated on this scrutiny, within ten operational days from the date of tendering the petition, a determination is reached to consummate an accord for executing undertakings within the SEZ.

After enregistering of the accord, on the subsequent laboring day, the presiding council of the FEZ dispatches a duplicate of the accord to a solitary synchronization hub and publishes data about the consummated accord on its official webpage. Subsequently, the solitary synchronization hub, having obtained a duplicate of the accord, is mandated, within quintuple laboring days, to incorporate data about the fresh entrant in the "Astana - New City" registry and dispense a corroborative dossier about the condition of the SEZ entrant or input it into the registry of associations engrossed in adjunct functions, contingent upon the specifics of the supplicant's labor.

The subsequent day subsequent to inscribing an entry in the ledger, the sole coordination center apprises the petitioner and the governing corpus of the allocation of the condition of a SEZ entrant or condition linked with a peculiar sort of undertaking. Moreover, fiscal authorities obtain notification of the recent entrant to assure fiscal supervision.

This succession of ultimatums plays a pivotal role in attaining the efficacy and efficacy of the complete process for allotting the standing of a contender in "Astana - New City" from the juncture of petition to the juncture of formal acknowledgment, guaranteeing the feasibility of inaugurating the endeavor utilizing the tax advantages furnished by the SEZ.

Confirmation of the availability of financial support for conducting activities in the FEZ

In the process of acquiring participant status in the special economic zone "Astana - New City", providing evidence of financial preparation for the implementation of the project is one of the main tasks. Applicants ambitiously aiming to be included in the list of participants in the SEZ or to engage in non-core activities within its framework must provide proof of availability of funds amounting to at least ten percent of the total estimated cost of the project. There are several mechanisms for this, including direct financing, guarantees from banks, obligations with evidence of the financial strength of the guarantor, the provision of collateral, or the conclusion of an insurance policy. Applicants are given freedom in the method of securing funding, giving scope for choice according to their financial situation.

At the same time, FEZ participants whose territories intersect with the borders of the customs zone of the Eurasian Economic Union are exempt from these financial requirements. With receipt of the status of a participant in "Astana - New City" or the status of an entity conducting non-core activities, there is a need for further confirmation of funding for the rest of the project. This confirmation must be completed within two years for projects of normal size and up to three years for large projects whose cost significantly exceeds the statutory limits. This approach ensures that projects not only start, but are effectively brought to completion within the agreed time frame, making participation status in Astana - New City a solid basis for further development and contributing to economic progress in the zone.

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Financial aspects

Opening a corporate bank account

Opening a corporate bank account is an important step when establishing a company in the Astana - New City FEZ. This process provides the ability to conduct financial transactions, receive payments from customers, pay salaries to employees and other monetary transactions.

Opening a corporate bank account is an integral part of the process of establishing a company in the Astana - New City FEZ and allows for the effective management of the company's finances and the fulfillment of its operational needs.

Financial planning for running a business

Starting a business in the Astana-New City FEZ requires careful financial planning to ensure the successful operation and sustainable development of the company. This process includes several key aspects that entrepreneurs should consider when developing their financial management strategy.

First of all, entrepreneurs must analyze the current financial situation and determine the start-up capital required to start a business. This includes the costs of registering a company, renting an office or production facility, purchasing equipment, paying staff and other operating expenses.

When registering a company in “Astana – New City”, you should develop a budget and draw up a financial plan, which defines all the company’s income and expenses for a certain period of time. It is important to consider not only current expenses, but also to plan a reserve fund in case of unforeseen situations or possible costs in the future.

Particular attention should be paid to forecasting the company's income. Entrepreneurs must conduct market research and assess the potential demand for their goods or services, as well as study competitors and determine their competitiveness. Based on this data, you can develop a marketing and sales strategy that will attract customers and ensure a stable revenue stream.

Finally, financial planning involves developing a strategy for investing and managing a company's capital. Entrepreneurs must determine priority areas for investing funds, and also take into account possible risks and expected returns from investments.

Careful financial planning is a key element of starting a business in the Astana-New City FEZ. This allows entrepreneurs to effectively manage the company’s finances, minimize risks and ensure the sustainable development of their enterprise.

Accounting

Registration of a company in the FEZ "Astana - New City" implies a key element - mandatory accounting, which plays a decisive role in the successful management of a business, and must comply with international standards and local legislation.

The initial stage of accounting activities consists of selecting an experienced accountant or auditing company specializing in working with organizations within the FEZ. The right choice of a professional guarantees compliance with all accounting requirements, taking into account the specifics of the enterprise.

Next comes the determination of the appropriate accounting system for the firm, which can range from a traditional accounting system to more simplified methodologies, depending on the size and focus of the business.

The key attention when maintaining accounting records in “Astana - a new city” is paid to the accurate recording and execution of all primary financial documents, which includes control over invoices, cash documents, certificates of work performed and other materials reflecting the company’s business operations.

Preparing financial statements on a regular basis is also an integral part of accounting. This includes the preparation of balance sheets, income statements, cash flows and other documents necessary to assess the financial position of the company and maintain effective management.

Following tax rules has a special place in accounting. An accountant must have in-depth knowledge of the tax system and monitor any changes in legislation to ensure the accuracy of tax calculations and their timely payment.

Thus, a detailed and professional approach to accounting not only ensures financial transparency of the company’s activities, but also contributes to compliance with legal requirements, contributing to the stable development of business in the Astana - New City FEZ.

Financing and lending opportunities

Opening a company in the FEZ “Astana - New City” presupposes the availability of certain financial resources for starting and subsequent development of the business. However, sometimes the capital required may exceed the entrepreneur's own funds, so it is important to explore the financing and lending options that may be available.

One of the ways of financing may be to attract investments from private investors or venture funds. This can be especially true for start-ups and innovative projects that can attract the attention of investors due to their potential for growth and profitability.

Another way of financing is to receive government or international grants and subsidies. In various countries and regions, there are programs to support small and medium-sized businesses that can provide financial support in the form of grants for the development and establishment of a business in Astana - a new city.

In addition, entrepreneurs can approach banks or financial institutions to obtain loans or loans to develop their business. Depending on the size and nature of the company's activities, as well as its credit history, various types of lending may be available, including short-term and long-term loans, lines of credit, etc.

It is also worth considering the possibility of attracting investment through crowdfunding platforms or online platforms for finding investors. These platforms provide an opportunity for entrepreneurs to present their business plan and attract funding from a wide audience of investors.

Conclusion

In conclusion of the article on registering a company in the Astana - New City Free Economic Zone in 2024, it is worth emphasizing that this process represents a significant opportunity for entrepreneurs and investors seeking to expand their activities and take advantage of the benefits offered by one of the most promising economic zones in Kazakhstan. Entering a business into this specialized economic zone provides access to a unique infrastructure, tax incentives, simplified business procedures and the ability to attract highly qualified foreign specialists without unnecessary bureaucratic obstacles.

Taking into account a wide range of priority areas of activity, the Astana - New City FEZ attracts companies from various industries, including high-tech manufacturing, construction, medical equipment, pharmaceuticals, as well as IT and many other areas. This contributes to the creation of a strong ecosystem for innovation and technological development, providing firms with a strong foundation for growth and expansion into international markets.

In 2024, registration of a company in Astana - New City is not just a legal act of creating a business, but a strategic step towards participating in the development of the economy of Kazakhstan, using advanced technologies and attracting investments. Thus, for entrepreneurs looking for new opportunities and striving for innovation, Astana - New City offers attractive conditions for the implementation of ambitious projects, contributing to the economic prosperity and social development of the region.

Experts from our organization provide detailed advice and full support for the successful completion of the process of opening a company in the Astana - New City Free Economic Zone. To contact us, choose a method convenient for you from the "Contacts" section.