Incorporation of a company in Ontustik

01.03.2024

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Price

3200 USD

Registration period in days: 5

The Special Economic Zone (SEZ) "Ontustik" is an unparalleled commercial podium forged to invigorate the economic advancement of the meridional territory of Kazakhstan. From its inception, this autonomous expanse has been fervently drawing investment and fostering the progression of advanced, competitive enterprises, particularly in the textile, cotton refinement, chemical, and petrochemical domains.

Setting up a business in the Ontustik FEZ unveils a plethora of noteworthy perks for innovators and financiers. Primarily, these encompass fiscal privileges that markedly alleviate the pecuniary encumbrance on enterprise. Secondly, streamlined protocols for enrollment and acquiring authorizations enable the prompt commencement of endeavors and mitigate administrative impediments. Thirdly, ingress to sophisticated infrastructure and advantageous tariffs for aqua, electricity, gas, and sanitation curtails operational expenditures and enhances the competitiveness of fabricated goods. Ultimately, being situated in an FEZ fosters assimilation into global economic interactions and unveils fresh markets for exports.

In this article we shall meticulously examine the procedure of enrolling a corporation in the FEZ "Оңтүстік", from compiling the requisite papers to securing inhabitant status. Additionally, we shall deliberate upon the principal merits of engaging in commerce within this region, comprising fiscal privileges, entry to infrastructure, and growth prospects.

Overview of FEZ "Ontustik"

The Ontustik Special Economic Zone (SEZ) is a pivotal constituent of Kazakhstan's economic advancement tactic, aimed at invigorating economic proliferation, luring investments, and nurturing the nation's export capability. Instituted on 1 July 2005, the Ontustik FEZ stands as a significant initiative to enhance economic dynamism in the southern sector, notably in the urban center of Shymkent and Sairam district.

The inception of the Ontustik Freezone is the culmination of the Kazakh government's aspiration to broaden the nation's economy, diminish reliance on commodity exports, and foster an environment for the proliferation of cutting-edge and competitive enterprises. The selection of site in the Sairam district of Shymkent is deliberate: this locality boasts advanced infrastructure, availability of adept labor reservoirs, and a propitious geographical stance, rendering it an optimal venue for industrial and commercial advancement.

Location and square footage

The special economic zone "Оңтүстік" is located on an area of 200 hectares in Sairam district, which is within the urban agglomeration of Shymkent. This strategic location provides convenient access to major transport arteries, including roads and railways, which is critical for logistics and export-import operations.

Objectives of FEZ " Оntustik" creation

The creation of the Special Economic Zone "Ontustik" is directed at several key objectives:

Stimulating the economic growth of the region. The zone was created to accelerate the development of South Kazakhstan and its integration into the global economic system.
Development of advanced industries. The main objective is to establish efficient and competitive industries in the Ontustik freezone, including those using high technology.
Attracting investment. The Ontustik FEZ offers favourable conditions for investors, which contributes to the inflow of capital and improvement of the economic climate in the region.
Improving the social situation and supporting industries. The zone focuses on addressing social issues and supporting key industries such as textiles and chemicals, leading to job creation and economic development.

In general, the objectives of the creation of FEZ "Ontustik" reflect Kazakhstan's desire to modernise its economy, increase its competitiveness in the international arena and improve the socio-economic situation in the region.

Advantages of company registration in FEZ "Ontustik"

Enrolling a corporation in the Special Economic Zone "Ontustik" unveils a plethora of momentous benefits for businesspersons, which might emerge as pivotal elements for the triumph and advancement of a venture.

Tax benefits and preferences

Enterprises enrolled in the Ontustik SEZ are authorized to a variety of fiscal encouragements that may substantially diminish their fiscal encumbrance. These encompass diminished revenue duty tariffs, immunity from value-added taxation, tariffs, and levies on inbound consignments of machinery and substances essential for manufacturing undertakings. Such actions enable enterprises to notably economize assets and allocate them towards commercial evolution and amplification.

Simplified registration and authorisation procedure

The Ontustik FEZ offers a simplified mechanism for registering companies and obtaining the necessary permits to conduct business. This means less bureaucracy and quicker start-up of projects. Simplified procedures help to reduce the time required to prepare and submit documents and speed up the decision-making process by regulatory authorities.

Access to developed infrastructure at favourable tariffs

Enterprises in the Ontustik special zone have access to necessary infrastructure, including water, electricity, sewerage and gas supply, at reduced tariffs. Availability of developed infrastructure with favourable terms of provision makes the production process more economically viable and helps to reduce the companies' operating costs.

Opportunities for business development and expansion

FEZ "Ontustik" actively supports companies by offering various business support and incentive programmes, including assistance in attracting investments. Firms have the opportunity to participate in state and international projects, receive financial and consulting support, which contributes to their further growth and development. Also, thanks to the creation of a favourable investment climate, companies can more easily attract external financing to expand their activities.

All these advantages make the Ontustik FEZ attractive for entrepreneurs and investors wishing to develop their business in Kazakhstan, especially in such promising sectors as textiles, cotton processing, chemicals and petrochemicals.

Stages of company registration in FEZ "Ontustik"

Registering a company in the Special Economic Zone " Ontustik" is a process that requires a careful approach and thorough preparation. Below are the main steps to be followed for successful registration.

Stage 1

Preparation of necessary documents

The first step is to collect and prepare all the necessary documents that are required to register a company in FEZ Ontustik. These usually include:

Application for registration in freeson.
Constituent documents of the company (charter, registration documents, certificate of state registration).
Business plan of the project, including description of activities, projected production and export volumes, plan for job creation.
Documents confirming the financial stability of the company.
Consent to the processing of personal data.

Stage 2

Submitting an application for registration to the managing company of FEZ "Оңтүстік"

Once all necessary documents have been prepared, the next step is to submit the application for registration to the managing company of FEZ "Ontustik". The application and related documents can be submitted either electronically or in person, depending on the requirements of the management company.

Stage 3

Passing the verification and approval process

After submission of the application and documents, the process of their verification by the FEZ management company begins. During this period, the submitted business plan may be analysed, the company's compliance with FEZ goals and objectives may be assessed, and financial stability and other criteria may be checked. If necessary, the management company may request additional documents or clarifications.

Stage 4

Obtaining FEZ resident status and relevant benefits

Upon completion of the inspection and in case of a favourable decision of the management company, the business is granted the status of a resident of FEZ "Ontustik". From that moment on, the company is entitled to all the envisaged benefits and preferences, including tax exemptions, simplified business procedures and others.

Tariffs for infrastructure services in Ontustik

The following tariffs for key infrastructure services, including VAT, have been set in the special economic zone "Ontustik":

Water supply. The tariff for water consumption is 40.38 tenge per cubic metre. This provides enterprises in the Ontustik zone with access to the necessary resource for production and domestic needs at an optimised cost.
Electricity supply. The cost of electricity for FEZ residents is set at 14.02 tenge per kilowatt-hour. This tariff allows companies to plan their energy consumption expenditures more efficiently and reduce operating costs.
Sewerage. Sewerage services are provided at a tariff of 153.24 tenge per cubic metre per hour. This includes the cost of wastewater disposal, which is important for maintaining environmental standards and sustainable production.
Gas supply. The tariff for gas is 35.8 tenge per cubic metre per hour, making it an affordable source of energy for production and heating needs.

These imposts manifest FEZ Ontustik's dedication to furnishing its denizens with a propitious commerce milieu, diminishing their fabrication expenditures, and bolstering their competitiveness in the marketplace. Enhanced cost of foundational amenities stands as one of the pivotal aspects enticing investments and fostering the evolution of establishments within the distinct economic precinct.

YB CASE offers utilities for enrollment of establishments in the Special Economic Zone "Ontustik". Thanks to its far-reaching expertise and finesse in the realm of corporate jurisprudence and economic statutes, YB CASE extends comprehensive succor for the progression of enterprise enrollment in the zone. Patrons are tendered a complete gamut of utilities, ranging from formulation of the requisite manuscripts, advisories on tariff and excise quandaries, to aid in procuring the stature of a dweller of FEZ "Ontustik" with ensuing ingress to prerogatives. YB CASE furnishes a tailored demeanor to each venture, which endeavors to streamline the enrollment methodology and curtail plausible hazards.