Enterprise registration in Pavlodar

In this article, we will conduct an analysis of the unique characteristics of this free economic zone, key aspects associated with enterprise registration in the Pavlodar SEZ, and significant factors that entrepreneurs seeking to conduct business in this area should pay attention to.

Overview of SEZ Pavlodar and its impact on the regional economy

Established on November 29, 2011, the Special Economic Zone Pavlodar stands as a strategically pivotal project aimed at accelerating economic progress not only within the Pavlodar region but also across Kazakhstan as a whole. Occupying 3300 hectares within the Northern Industrial District of Pavlodar, this region was chosen due to its cutting-edge infrastructure and abundant natural resources, rendering it an optimal location for industrial advancement.

History of the creation of the SEZ and its goals

The forming of the Pavlodar SEZ appeared as a strategic response to the urgent necessity for economic diversification in Kazakhstan, seeking to minimize dependence on raw material exports and stimulate the growth of high-tech industries. The key goals of the zone include:

• The incentivization of progress in the realms of chemistry and petrochemistry. SEZ aims to provide conditions for the growth of enterprises within Pavlodar territory engaged in intensive resource processing and producing high valued goods.
• The incorporation of Kazakhstan's commodities into the world economic cycle, amplifying the growth of the export capacity and competitiveness of domestically produced goods in international markets.
• The creation of an enticing investment environment, engaging both local and international contributors through tax incentives, simplifying administrative procedures and enhancing infrastructure development.

Impact on the economic prosperity of the area

SEZ Pavlodar has a key influence on the economic expansion of the Pavlodar domain and the whole of Kazakhstan, adding to:

1. The attraction of financial investments. Since its inception, the SEZ has garnered generous investments into the regional economy, resulting in the opening of new enterprises within the Pavlodar domain and the creation of additional job possibilities.
2. The advancement of industry. Emphasizing high-tech and environmentally friendly productions contributes to the modernization of the region's industrial sector.
3. Enhancing infrastructure. The development of the SEZ incentivizes the construction of new and the modernization of working infrastructure assets, encompassing roads, energy, and communication networks.
4. Elevating the workforce's qualification. Projects undertaken within the Pavlodar SEZ necessitate highly skilled professionals, thus catalyzing the development of educational programs and upskilling initiatives for the local populace.
5. Expanding export potential. Manufacturing competitive products within the SEZ expedites the augmentation of export volumes and fortifies Kazakhstan's position in international markets.

Legislative basis of SEZ Pavlodar

The regulation of the SEZ Pavlodar and other similar domains in Kazakhstan is facilitated through an extensive array of legislative acts, spanning from the Constitution to peculiar laws and stipulations. This normative framework presents the legal foundation for their activity, delineating the rights and obligations of stakeholders while also incorporating approaches for state assistance and oversight.

The Constitution, as the supreme law of the land, establishes the fundamental principles governing the structure and operation of state institutions, the protection of rights and freedoms of citizens, as well as key aspects of economic policy. It serves as the bedrock for the creation of special economic conditions in SEZs, including conducting business in Pavlodar, aimed at economically stimulating the region.

Law “On Special Economic and Industrial Zones” of April 3, 2019.

This regulatory act plays a central role in the management of SEZs on the territory of Kazakhstan, establishing:

• Legal principles of organization and operation of SEZ.
• The zone management system, including the tasks and powers of management organizations.
• Privileges and advantages for SEZ entities, comprising tax breaks, customs simplifications and criteria for attracting workers from abroad.
• Rules for conducting business in the unconstrained zone, including requirements for contributors and projects.
• Mechanisms of state control and supervision over the activities of SEZs.

In addition to the standards mentioned above, the functioning of the Pavlodar SEZ is also influenced by additional laws and regulations, including:

• Tax Code norms establishing criteria for providing tax advantages to SEZ entities.
• Customs regulation rules relating to procedures for the import and export of goods, performance of work and provision of services within the SEZ.
• Labor regulations outlining the employment terms and conditions for international staff.
• Environmental standards that define environmental standards for projects carried out in the SEZ.

Tariffing of services in SEZ Pavlodar

Pertaining to conducting businesses within the Pavlodar domain, participants have access to essential services such as water supply, heating, and electricity. Regulated tariffs for these services play a significant role in cost calculations for production processes. The following are detailed specifics regarding each of the tariffs.

Technical supply with water

• Tariff: 22.55 KZT per m³

This statement encompasses the provision of water essential for production needs, equipment cooling, and fulfilling sanitary-hygienic functions within companies operating in the Pavlodar zone.

Heat supply

• Tariff: 5227.63 KZT per Gcal

The provision of heating is essential for warming production and administrative buildings, as well as for technological processes requiring maintenance of specific temperature regimes. The specified tariff enables companies in the Pavlodar SEZ to plan expenses for heating, considering the necessity of thermal energy for their production needs.

Electricity supply

• Tariff: 16.04 KZT per kWh

Electricity supply is a critically vital resource for any manufacturing activity, facilitating equipment operation, lighting, as well as energy for office needs. The tariff for electricity for companies in the Pavlodar zone is set at a level that enables zone participants to optimize their electricity expenses while simultaneously ensuring high reliability and quality of power supply.

Advantages of registering a company in SEZ Pavlodar

Registration of a company in the SEZ Pavlodar unveils a plethora of substantial advantages for investors, fostering accelerated business development, reduction of expenditures, and streamlining numerous processes.

Tax benefits and preferences

• Exemption from corporate revenue taxCompanies registered in the Pavlodar SEZ are exempt from paying corporate income tax, resulting in significant savings and enabling reinvestment of funds into business development.
• Exemption from property taxThe advantage for zone participants in the form of a zero rate of property tax significantly alleviates the financial burden for enterprises, which is particularly valuable for large-scale investment initiatives with substantial assets.
• Zero VAT on imported commodities The exclusion of VAT for materials and equipment imported into the territory of the SEZ intended for production purposes. This measure helps reduce expenses for acquiring necessary resources and equipment for project implementation.
• Tax incentives on land and customs dutiesPrivileges regarding land tax and exemption from paying customs duties on imported equipment. These incentives further reduce the initial investments required to launch and further develop production capacities.
• Streamlined hiring of foreign workers Companies in the Pavlodar SEZ can attract foreign specialists without quotas and permits, thus simplifying the international recruitment process and exchange of expertise.

Infrastructure benefits

• Advantageous positionThe Pavlodar SEZ is situated in the Northern Industrial District of Pavlodar city, ensuring easy access to key transportation arteries, encompassing railway and highways, thereby simplifying logistics and reducing transportation costs.
• Resource availabilityOwing to closeness to primary resources and energy reserves, entities in Pavlodar can considerably minimize costs on materials and energy, which is a crucial factor for industrial production.
• Cutting-edge infrastructure The Pavlodar SEZ offers enterprises a developed infrastructure, encompassing energy supply, water supply, heating, and communications, which helps reduce initial contributions in preparing the production site.

Collectively, these advantages create favorable conditions for launching and developing business within the Pavlodar SEZ, incentivizing investment attraction and stimulating regional economic growth.

Comprehensive outline of the company registration procedure in SEZ Pavlodar

Registering an entity in the Pavlodar SEZ is a multi-stage process that demands a meticulous method to documentation preparation and compliance with prescribed protocols. Below is a detailed description of the registration stages.

YB CASE company offers professional services for company registration in Pavlodar. Our specialists possess profound knowledge and experience in corporate law and economic regulation, enabling effective support throughout the registration process. YB CASE guarantees a personalized approach to each client, providing comprehensive consulting and legal services, from business plan development and preparation of necessary documentation to obtaining the status of a participant of the SEZ Pavlodar and subsequent operational support for the company.