Company registration in Khorgos - East Gate

Establishing a company in the Khorgos - East Gate FEZ provides entrepreneurs with many significant bonuses. First of all, it opens access to the dynamically developing markets of China and other Asian nations with insignificant customs obstacles and simplified administrative procedures. In addition, businesses are able to take advantage of favourable terms on utility bills, which helps reduce operating costs. Finally, government support and attractive investment offers create a favourable climate for the development and growth of business activity.

This article will provide a detailed analysis of the Khorgos-Eastern Gateway FEZ company registration process, from highlighting the key benefits of the zone to reviewing specific registration steps. We will characterise the tax and customs preferences available to businesses and highlight the infrastructural advantages that make the zone desirable for businessmen.

Overview of Khorgos FEZ - East Gate

The Khorgos - Eastern Gateway Special Economic Zone was established on 29 November 2011 as part of Kazakhstan's strategic plan to strengthen economic ties with neighbouring countries and increase trade flow through its territory. This project was conceived as a key element in the development of the New Silk Road, the modern equivalent of the historic trade route linking East and West.

• Development of cross-border trade and economic co-operation between Kazakhstan and China, and other Asian and European countries.
• Stimulation of export-oriented industries and attraction of capital investments from abroad.
• Activation of entrepreneurial and investment activity in the region.
• Development of transport infrastructure, improvement of logistics capabilities.
• Assistance in solving socio-economic problems of the Almaty region and improving the life of the local population.

Geographical location and area of Khorgos - East Gate

The Khorgos - East Gate Special Economic Zone occupies a strategically momentous site in Panfilov precinct of Almaty region of the Republic of Kazakhstan, directly contiguous to the state verge with China. This geographical locality furnishes unparalleled prospects for intercontinental commerce and conveyance logistics, engendering unmediated entrance to principal export-import passages interlinking eastern and occidental markets.

The FEZ encompasses a complete expanse of 608.56 hectares, furnishing an extensive realm to house fabrication and logistic conglomerations, depositories, alongside infrastructure and amenity edifices. This expansiveness not merely expedites the evolution of extant enterprises in the Khorgos - East Gate Zone but also proffers copious prospects for novel stakeholders and commercial endeavors endeavoring to exploit the perks of functioning within the distinctive economic enclave.

Khorgos - East Gate's locale on the frontier with Cathay renders it a pivotal nexus in a lattice of global conveyance thoroughfares, encompassing the One Belt, One Road and Trans-Caspian International Transport Route projects. This grants the precinct a propitious stance to partake in inter-border commerce, alluring enterprises implicated in the exportation and importation of commodities amidst Asia, Europe, and farther realms.

Strategic importance of FEZs for the economy of Kazakhstan and the Eurasian Economic Union

Khorgos - East Gate performs a pivotal function in Kazakhstan's economic tactic directed at fortifying its stance as a transit hub between Asia and Europe. The FEZ acilitates heightened intercontinental commerce, draws foreign capital, and generates fresh employment, thereby spurring economic advancement not solely in the locality but also across the entire nation. For the Eurasian Economic Union, the zone embodies a significant nexus of expansion and amalgamation, bolstering economic bonds between constituent nations and collaborators across the Eurasian continent.

Main industries in the "Khorgos - Eastern Gateway" zone

The Khorgos - East Gate specialized economic territory is actively burgeoning in prime sectors including logistics and conveyance, trade, light manufacturing, fabrication of cutting-edge commodities, along with excursionism and amenities industries. The Khorgos - East Gate FEZ furnishes unparalleled economic incentives, fiscal exemptions, and entry to sophisticated infrastructure, rendering it an enticing site for global investors and entrepreneurs aspiring to fortify their footholds in the European and Asian marketplaces.

The development of these industries within the FEZ not only contributes to the economic growth and diversification of Kazakhstan's economy, but also strengthens its role as an important transit and trade centre on the Eurasian continent.

Cost of public utilities in FEZ "Khorgos - Eastern Gate"

• Water costs KZT 140 per cubic metre, excluding VAT; heat is priced per gigacalorie;
• Electricity is provided at a tariff of 24.33 tenge per kilowatt hour, the price includes VAT;
• Wastewater disposal services cost 68.55 tenge per cubic metre, VAT excluded.

Advantages of company registration in FEZ Khorgos - East Gate

Registering a company in the Khorgos - East Gate Special Economic Zone (SEZ) offers businesses a number of significant advantages, making it one of the most captivating investment zones in Kazakhstan and beyond. Freezone participants are provided with privileges including tax breaks, simplified customs control, enhanced infrastructure facilities and government support.

Benefits and tax preferences

Firms registered in the Khorgos-Eastern Gateway FEZ have access to numerous tax incentives that reduce financial pressures and accelerate their development. These incentives include:

• Full corporate income tax exemption, which enables the freed-up funds to be invested in business expansion.
• Property tax exemption, reducing the operating costs of businesses located in the zone.
• Reduced land tax rates, easing the financial burden on investors in construction and infrastructure development.
• Cancellation of VAT on the import of equipment, raw materials and supplies required for production activities in the FEZ.

Customs privileges and simplification of the declaration process

Organisations operating in Khorgos-Eastern Gateway benefit from simplified customs procedures and benefits, which facilitates faster movement of goods across the border:

• No customs duties and taxes on goods and equipment imported for production needs.
• Simplified customs declaration procedures, minimising time costs and simplifying the import and export process.
• Possibility to use special customs regimes, such as temporary import, re-export, and processing in the customs territory, which provides additional flexibility in doing business.

Infrastructural advantages: transport, logistics, availability of resources

Khorgos-East Gate FEZ has a well-developed infrastructure that provides companies with easy access to transport and logistics networks:

• Location on key transport routes provides direct access to international markets, simplifying logistics and reducing transport costs.
• The availability of modern warehousing and manufacturing facilities allows for rapid start-up and expansion without significant upfront investment in construction.
• Availability of resources, including energy and water, at competitive tariffs reduces operating costs.

State support and investment incentives

Government support and investment incentives further increase the attractiveness of the Khorgos - East Gate freezone for business:

• State grants and subsidies for the implementation of projects, especially in priority sectors of the economy.
• Assistance in obtaining financing and loans for projects realised within the FEZ.
• Counselling and administrative support at all stages of registering and running a business, which facilitates bureaucratic procedures.

Conditions and procedure for establishing a company in FEZ "Khorgos - Eastern Gateway"

Incorporating a company in the Khorgos-Eastern Gateway Freezone is a process that requires careful preparation of documents and following certain procedures. Below is a detailed overview of the stages of incorporation and the required documentation.

Documents required for company registration in "Khorgos - Eastern Gate"

To start the process of company registration in Khorgos - East Gate FEZ, the following package of documents must be prepared and submitted:

1. Application for registration of the company, which specifies the basic information about the company, including the intended name, legal address, information about the founders and managers.
2. Founding documents (charter, memorandum of association) confirming the legal status and management structure of the company.
3. Copies of passports of the founders and managers of the company, as well as their contact details.
4. Business plan describing the essence of the proposed activity in FEZ, expected production volumes, investments, plans for job creation and projected financial indicators.
5. Documents confirming financial solvency (bank statements, audit reports).
6. Consent to the processing of personal data of all participants in the process.

Steps of the business registration process in Khorgos - East Gate

The process of registering a company in Khorgos - East Gate FEZ includes the following steps:

Compliance with these conditions and procedures ensures successful registration and further conduct of business in FEZ "Khorgos - Eastern Gateway", opening before the company all the advantages of working in one of the most dynamically developing economic zones of Kazakhstan.

YB CASE specialises in providing business registration services within the Khorgos - East Gate Special Economic Zone. The company's experts have extensive knowledge of corporate law and international business, and therefore provide highly qualified assistance throughout the registration process.

YB CASE's services include drafting all required documents, providing advice on tax and customs issues, as well as assistance in creating business plans and strategies for effective operation within the FEZ. In addition, YB CASE offers legal support to already registered companies, including corporate governance, intellectual property protection and labour law compliance.