Company registration in Chemical Park Taraz

Intro

Launching a business within the specialised economic zone "Chemical Park Taraz" offers significant prospects for businessmen aiming at progress in the field of chemical production. This FEZ, established on 13.11.2021, has an area of about 500 hectares in the Shu district of Zhambyl region with the main mission of encouraging the launch of new enterprises for the production of chemical goods using innovative and efficient technologies.

It should be realised that there are no opportunities for direct business registration within Chemical Park Taraz. Instead, companies are offered the opportunity to become participants in this special economic zone. This article deals specifically with the procedure for becoming a participant in the Chemical Park Taraz FEZ.

Phases of company registration in FEZ Chemical Park Taraz

In order to become part of the Chemical Park Taraz FEZ innovation and industrial community, potential participants must demonstrate that they meet strict criteria and submit a set of documents that demonstrate their willingness and ability to contribute to the development of the zone. As part of the Chemical Park Taraz FEZ application process, applicants go through a multi-stage review process where every aspect of their business plan is scrutinised.

At the first stage, the application is based on a questionnaire, which must be completed in accordance with the requirements developed by the authorised body. This document acts as the primary source of information about the applicant and their intentions in the LEZ.

Next, an important step is the submission of a certificate confirming the state registration of the company in Kazakhstan. This document not only confirms the legality of the business, but is also the basis for further progression through the stages of obtaining the status.

During the application process, copies of the statutory documents must also be submitted, including the ID card of the first director and the charter of the legal entity, which indicate the structure and management rights in the company.

The decision of the company's highest governing body to operate in the Chemical Park Taraz FEZ is a key document confirming the strategic intention to utilise the benefits provided by the FEZ.

Financial statements for the last reporting year, signed by authorised persons, give the FEZ management company an understanding of the financial stability and prospects of the applicant.

The feasibility study of the project, which fulfils the established requirements, allows assessing the potential benefits and contribution of the project to the development of FEZ Chemical Park Taraz.

For projects related to the development and implementation of new technologies, a detailed justification of the project is required, emphasising its innovativeness and importance for the industry.

Specialisation of activities in FEZ "Chemical Park Taraz"

Starting a business in the Chemical Park Taraz FEZ represents a significant step for entrepreneurs wishing to develop projects in the chemical industry. One of the key aspects to consider when planning activities in this specialised economic zone is to identify the types of activities that can be carried out within Chemical Park Taraz.

First of all, it should be taken into account that FEZ "Taraz Chemical Park" specialises in attracting and supporting chemical industry enterprises. This means that launching a business in this zone is ideal for companies engaged in the development, production and processing of chemical products. This specialisation allows the unique advantages of the FEZ, such as tax benefits, simplified customs clearance procedures and access to the necessary infrastructure, which together create favourable conditions for the development of chemical production.

Business registration in FEZ "Taraz Chemical Park" also provides for the possibility of implementing projects directed at innovative development of the chemical industry. This may include development of new materials, introduction of advanced technologies into production processes and creation of high quality products that will be in demand in both domestic and international markets.

In addition to the traditional production of chemicals and materials, companies may consider opportunities in areas closely related to the chemical industry, such as pharmaceuticals, fertilisers, plastics and synthetic fibres. This wide range of opportunities makes the Taraz Chemical Park FEZ an attractive platform for businesses seeking innovation and development in the chemical industry.

Benefits for enterprises in FEZ "Chemical Park Taraz"

Establishing a business within the Taraz Chemical Park FEZ gives entrepreneurs access to significant tax privileges to avoid paying taxes such as corporate income tax, land tax, property tax and payments for the use of land plots. With the start of 2024, a tax policy innovation came into force introducing a phased increase in tax exemptions in line with the volume of investment, providing an additional incentive for investors. The size and duration of these incentives are directly related to the amount of investment in the projects of those wishing to register a company within the Chemical Park Taraz FEZ.

Different categories of tax incentives have been proposed depending on the value of the project:

• Category A is for projects with investments up to an amount equal to 3,000,000 times the monthly settlement figure as at 1 January of the current year (KZT 3,692), which means a maximum investment of less than approximately KZT 11.076 billion (approximately USD 25.5 million).
• Category B covers projects with investments between 3,000,000 and 14,500,000 times the monthly calculation figure, equivalent to investments between approximately KZT 11.076 billion and approximately KZT 53.534 billion.
• Category C includes projects with investments in excess of 14,500,000 times the monthly settlement figure, starting from an amount in excess of KZT 53.534 billion.

From 1 January 2024, the following terms of validity of tax incentives are established: for category A incentives are provided for up to 7 years, for category B - up to 15 years, and for category C - up to 25 years, while the terms should not exceed the total duration of the agreement on activity in FEZ and the period of operation of the firm in FEZ "Chemical Park Taraz".

This system of classification and granting privileges emphasises the government's commitment to attract and support investment projects of different scale, especially those that can stimulate the introduction of innovative solutions and strengthen the economic base of the country in the context of FEZ "Taraz Chemical Park".

Conclusion

In conclusion of the article on company registration in FEZ "Chemical Park Taraz", it should be emphasised that this economic zone offers unique opportunities for entrepreneurs and investors seeking to develop their business in the chemical industry. The specialised economic zone "Chemical Park Taraz" not only provides access to the necessary infrastructure and resources, but also offers significant tax incentives that can significantly reduce companies' operating costs and increase their investment attractiveness.

The initiative of the Government of Kazakhstan to create optimal conditions for entrepreneurial activity in special economic zones, including by facilitating registration and licensing procedures, as well as applying an individual approach to tax incentives depending on the size of investments, is clear evidence of the country's desire to attract investment and stimulate the development of advanced sectors of the economy.

Starting a business in FEZ "Taraz Chemical Park" provides entrepreneurs with extensive opportunities to implement projects in the chemical industry, which, in turn, can have a significant impact on the progress of the chemical industry in this region and contribute to the strengthening of Kazakhstan's economic influence at the global level. The importance of in-depth analysis of all available benefits and requirements when planning operations within the FEZ cannot be underestimated, and the peculiarities of legislative regulation and criteria for doing business in this zone should be taken into account.

Our organisation offers comprehensive consulting services and support at all stages of setting up an enterprise in FEZ "Taraz Chemical Park". Please contact us using a convenient way of communication indicated in the "Contacts" section.