Registering a company in Kyrgyz Republic

27.09.2023

Company registration in the Kyrgyz Republic

For fast communication

with a consultant

Price

from 1300 USD

Registration period in days: 7

Kyrgyzstan

stands as a distinctive economic zone with promising prospects for potential investors. The country has exhibited a keen interest in attracting foreign investments and continues to foster economic growth. Its receptiveness to foreign capital, stable macroeconomic conditions, and favorable tax policies collectively position Kyrgyzstan as an enticing destination for international business ventures.

Key sectors of the economy encompass agriculture, light and food industries, and mining. The government actively engages in regional trade partnerships, thereby facilitating the expansion of foreign economic ties.

Kyrgyzstan's foremost advantage for foreign investors is its economic accessibility. The nation actively encourages investments by granting foreign companies access to its resources and markets. This affords investors the ability to conduct business activities with minimal hindrances and impediments.

The location in Central Asia confers upon it strategic importance as a transit and trade hub. Positioned at the crossroads of the East and West, Kyrgyzstan serves as a linchpin for the development of trade relationships and international cooperation. Investors recognize this as a unique opportunity to tap into diverse markets and forge partnerships.

Remote Company Registration in Kyrgyzstan

Process Stages	Description
Preparation of Documents	Investors compile all necessary documents required for company registration remotely.
Submitting an Application	The application and accompanying documents are transmitted to the state registration authorities via electronic platforms.
Consideration of the Application	Registration authorities review the submitted documents and evaluate the application.
Completing Registration	Upon approval of the application, the investor receives a company registration certificate.

Advantages of Remote Business Registration in Kyrgyzstan

Time Savings:

Remote registration eliminates the need for physical presence in the country, enabling investors to save valuable time that can be directed towards other crucial business processes.

Convenience and Accessibility:

Electronic registration platforms are accessible round the clock, allowing investors to submit applications and upload documents at their convenience, irrespective of geographical location.

Cost Reduction:

Remote registration obviates the necessity for expenses associated with travel, such as flights and accommodations. This results in significant cost savings for investors.

The process of remote company registration in Kyrgyzstan represents a convenient and contemporary approach. It grants investors the flexibility and time savings essential for establishing their business in the country.

Technical Aspects and Tools for Remote Registration

To facilitate remote company registration in Kyrgyzstan, investors can leverage various technical aspects and tools, streamlining the process and reducing bureaucratic hurdles. Here are key aspects and tools that investors should utilize:

1. Online platforms:
1. Government registration authorities offer online platforms where investors can apply for company registration and upload required documents. This eliminates the need for physical visits to offices and expedites the application process.
2. Electronic signatures:
1. The use of electronic signatures enables investors to sign documents and statements online, ensuring the legal validity and security of the registration process.
3. Electronic interaction with registration authorities:
1. Those seeking remote business registration in Kyrgyzstan can communicate with state registration authorities through electronic communication channels. This includes receiving updates on registration status and requesting necessary documents.
4. Digital support services:
1. Dedicated online portals furnish investors with vital information on document requirements, registration steps, deadlines, and required payments. This aids investors in navigating the process and avoiding errors.
5. Electronic payments:
1. Investors can employ electronic payment systems to facilitate the payment of government fees and charges. This not only saves time but also resources, streamlining the financial aspect of registration.

These technical aspects and tools significantly enhance the convenience, speed, and efficiency of remote company registration in Kyrgyzstan. They work to diminish bureaucratic barriers and offer investors the flexibility to register at their convenience, sparing them unnecessary complications in the process.

Forms of Legal Entities in Kyrgyzstan

This consolidated table provides a structured overview of the forms of legal entities and the steps involved in opening a branch, registering a CJSC, an LLC, and an OJSC in Kyrgyzstan.

Forms of Legal Entities in Kyrgyzstan	Opening a Branch in Kyrgyzstan	Registration of a Closed Joint Stock Company (CJSC) in Kyrgyzstan	Registration of a Limited Liability Company (LLC) in Kyrgyzstan	Registration of an Open Joint Stock Company (OJSC) in Kyrgyzstan
Description	A branch is a structural subdivision of the parent company that can conduct commercial activities in Kyrgyzstan on behalf of and in the interests of the parent company.	A CJSC is a limited liability company where participants hold shares and stakes in the authorized capital.	An LLC is a company in which participants hold shares in the authorized capital and are liable only to the extent of their contributions.	An OJSC is a company where shares can be publicly sold.
Steps
Choosing a Name		A unique company name that meets legal requirements and is not already in use.	A unique company name that complies with legal requirements and does not duplicate existing names.	A unique company name that adheres to legal requirements and does not duplicate existing company names.
Preparation of Documentation	The parent company's constituent documents, a decision to establish the branch, and notarized translations.	The company's charter, a decision to establish the CJSC, information about the founders, and notarized translations.	The charter, a decision to establish an LLC, information about the founders and their respective shares in the authorized capital, and notarized translations of these documents.	The charter, a decision to establish an OJSC, a list of founders indicating the number of shares, the value of shares, and their share in the authorized capital.
Submitting an Application	Submit a branch registration application to the state registration authority, either online or in person.	Apply for state registration of the CJSC with the state registration authority, either online or in person.	Submit an application for the state registration of the LLC to the state registration authority. This application can be submitted either online or in person at the office.	Submit an application for the state registration of the OJSC to the state registration authority. This application can be submitted either online or in person at the office.
Registration	The state registration authority reviews the documents and registers the branch.	The authority reviews documents and, upon successful verification, issues a registration certificate.	The state registration authority reviews the provided documents and information. Upon successful verification, a certificate of LLC registration is issued, confirming the legal existence of the company.	The state registration authority reviews the provided documents and information. Upon successful verification, a certificate of registration for the OJSC is issued, confirming the company's legal existence.
Opening a Bank Account	Open a corporate bank account in Kyrgyzstan, providing the branch registration certificate.	Open a corporate bank account for the CJSC in a Kyrgyzstan bank, providing the registration certificate.	Open a corporate bank account for the LLC with a bank located in Kyrgyzstan. Provide the registration certificate and any other required documents as requested by the bank.	Open a corporate bank account for the OJSC with a bank located in Kyrgyzstan. Provide the registration certificate and other documents as required by the bank.
Receiving a Seal and Stamp		Get the official seal and stamp for the company from specialized organizations.	Obtain the official seal and stamp for the LLC from specialized organizations. These are typically required for formal documentation and contracts.	Obtain the official seal and stamp for the OJSC from specialized organizations. These are typically required for formal documentation and contracts.
Tax Registration	Notify the tax authorities of the branch's opening and comply with local tax regulations.	Register the CJSC with the tax service and obtain a tax identification number (TIN). Notify the tax office of the start of business activities.	Register the LLC with the tax office and receive a tax identification number (TIN). Notify the tax office of the commencement of business activities to ensure compliance with tax regulations.	Register the OJSC with the tax service and receive a tax identification number (TIN) to comply with tax regulations.
Registration in Statistics		Register the company with the statistics agency to obtain a statistical number.	Register the LLC with the statistics agency to obtain a statistical number. This step is necessary for statistical reporting and compliance with data collection requirements.	Register the OJSC with the statistics authority to obtain a statistical number for reporting and data collection purposes.
Additional Steps				Registration with the National Securities Commission. Publication and official registration of shares. Registration in the register of shareholders.
Summary	Opening a branch in Kyrgyzstan can be an attractive option for foreign companies seeking to conduct business in Kyrgyzstan while maintaining strong ties with the parent company. Branches offer several advantages, including a simplified organizational structure and the ability to leverage the resources and experience of the parent company.	Registering a closed joint stock company in Kyrgyzstan allows for the creation of a limited liability organization with the right to engage in trade and commercial activities. Participants in a CJSC are not personally liable for the company's debts, and the authorized capital serves as a guarantee for fulfilling obligations.	Registering an LLC in Kyrgyzstan allows for the creation of an organization in which participants have limited liability and are not personally liable for the company's debts. The authorized capital of an LLC serves as a guarantee for fulfilling obligations.	Registering an Open Joint Stock Company in Kyrgyzstan allows for the attraction of investments through a public offering of shares. The distribution of shares among shareholders grants them specific rights and a share in the authorized capital of the company.

Preparation and Localization of Documents for Foreign Businessmen in Kyrgyzstan

Foreign businessmen looking to establish a company in Kyrgyzstan must provide specific documents and ensure they are translated into the country's official language. Proper compliance with local laws is crucial. Here's the procedure for preparing and localizing documents for foreign businessmen:

Collection of necessary documents:
1. Personal data of the foreign businessman:
  1. Copy of passport with basic information.
2. Visa documents and residence permit (if applicable):
  1. Copies of visa documents should be provided if there are visa requirements to stay in Kyrgyzstan.
3. Authority:
  1. If the businessman plans to act through a representative, an appropriate power of attorney is required.
4. Financial solvency:
  1. Supporting documents such as bank statements or financial guarantees.
Translation of documents:
1. Referring to an Official Translator:
2. Documents should be translated into the official language of Kyrgyzstan by a qualified translator.
3. Certification of Translations:
4. Translations may require notarization or an apostille (certification of documents for use abroad).
Apostille or legalization:
1. If the country of the foreign entrepreneur is a party to The Hague Convention, an apostille (special confirmation of the document) may be required.
2. If your country is not a party to the convention, documents may require legalization at the Kyrgyz Embassy.

Note:

Document requirements and procedures may change, so it's crucial to contact legal advisors or Kyrgyz authorities for the most up-to-date information on document requirements and translations for foreign entrepreneurs.

Taxation in Kyrgyzstan

Understanding the Kyrgyz tax system is essential for running a successful business. Here's a detailed overview of the taxation system in Kyrgyzstan:

1. Corporate Income Tax (Profit Tax):
- Rate: Corporate income tax is levied at 10% on company profits.
- Taxable Base: The taxable base is the profit earned by the company after deducting all expenses and applicable tax benefits.
- Declaration and Payment: Companies are required to file an annual tax return and pay corporate income tax accordingly.
2. Value Added Tax (VAT):
- Rate: Kyrgyzstan applies a VAT rate of 12%.
- Taxable Base: VAT is imposed on domestic sales of goods and services, unless they fall under exemptions or are subject to a 0% tax rate.
- Declaration and Payment: Companies must regularly file tax returns and remit VAT payments in accordance with the tax authorities' requirements.
3. Taxes on Dividends and Interest:
- Rate: The tax rate on dividends and interest is set at 10%.
- Payment of Tax: Tax on dividends and interest is paid by the originating company before the payment is accrued to the foreign recipient.

It's important to note that the tax system may undergo changes, so staying informed about legislative updates is crucial. Before commencing business activities in Kyrgyzstan, it is highly recommended to consult experts to ensure you have the most up-to-date information regarding tax obligations and declaration procedures.

Opening a Corporate Bank Account in Kyrgyzstan

Opening a corporate bank account in Kyrgyzstan involves several steps and requirements:

Choosing a credit institution:
1. Research and select a bank that aligns with your business needs and offers the required services.
Preparation of necessary documents:
1. Constituent Documents: Provide copies of the company's official documents, including the memorandum of association, articles of association, and other documents confirming its legal status.
2. Identification Documents: Submit copies of the passports of members of the company's executive body.
3. Confirmation of Legal Address: Include official documents that confirm the company's registered address, such as a lease agreement, certificate of ownership, or other proof of legal address.
4. Business Plan or Activity Description: Some banks may request a business plan or a brief description of the company's main activities.
5. Power of Attorney: If a company representative is acting on behalf of the company to open the account, provide a power of attorney confirming their authority.
6. Documents on Financial Stability (for Existing Companies): Include bank statements, annual reports, or other documents that confirm the financial stability and reliability of the company.
7. Registration Certificate: Provide a copy of the document confirming the state registration of the company.
8. Tax Registration Certificate: Include a copy of the document confirming the company's registration with the tax authorities.
Submitting an application to open an account:
1. Send an application to the selected credit institution along with all the required documents.
Analysis of provided documents:
1. The bank will analyze and verify the submitted materials and data.
Meeting with a bank representative:
1. In certain circumstances, you may need to meet with a representative of the bank to clarify details.
Completing the process:
1. Once the bank has reviewed all documents and the necessary conditions are met, a corporate account is created.

Please note that while the process of opening a corporate bank account in Kyrgyzstan is generally standard, different banks may have varying approaches and requirements. It's essential to carefully provide all required documents and follow the guidance of the selected bank to successfully complete the process.

Features of Doing Business in Kyrgyzstan

Understanding the cultural characteristics and showing respect for local traditions are crucial for successful business interactions in Kyrgyzstan:

Respect and Courtesy: Respect and courtesy hold significant value in business communications. A handshake is a common greeting, and it's customary to offer a cup of tea before starting business discussions.
Family Values: Family values are highly regarded in Kyrgyzstan's culture. Building long-term relationships with business partners, including attending personal events, can strengthen business ties.
Hierarchy and Respect for Elders: Demonstrating respect for the hierarchy within an organization and showing reverence to senior colleagues or partners is important.
Business Attire: Business attire is typically formal, although this may vary depending on the specific industry.

It's critical to remember that successful business relationships in Kyrgyzstan are built on mutual respect, tolerance, and a willingness to adapt to cultural nuances.

Final Recommendations and Conclusion

Starting and developing a business in Kyrgyzstan can be successful by following key recommendations:

Thorough research: Conduct comprehensive market analysis to understand local needs and the competitive landscape. Tailor your business to local conditions and consumer preferences.
Professional advice: Seek guidance from legal and business advisors for expert advice on company registration, taxation, and other legal matters.
Selecting the right company form: Choose the legal entity form that aligns with your business goals and needs.
Compliance with laws and tax obligations: Adhere to local laws and meet tax obligations on time to avoid issues with government agencies and maintain a positive company image.
Cultural adaptation: Consider local cultural characteristics when conducting business and communicating with local partners. Mutual respect and understanding significantly impact the success of business interactions.
Strategic planning: Develop a clear business plan outlining goals, marketing strategies, financial projections, and action plans.
Build professional connections: Participate in business events, forums, and seminars in Kyrgyzstan to make valuable professional connections and expand your network.
Innovation and adaptation: Be prepared for market changes and adapt quickly to new demands and trends.
Consider cultural holidays and customs: Account for local holidays and customs when planning business activities to maintain positive relationships with local partners.
Continuous learning: Stay updated on changes in legislation and the business environment while continuously developing and elevating your skills.

Qualified lawyers are available to provide detailed advice and comprehensive support when registering a business in Kyrgyzstan. To contact them, you can fill out the feedback form.

Following these recommendations will help you navigate the business landscape in Kyrgyzstan successfully and build strong, lasting relationships with local partners.