Company registration in Saryarka

In Kazakhstan's economic strategy, special economic zones (SEZ) play a pivotal role in attracting financing and stimulating entrepreneurial operations. Among them, the Saryarka SEZ holds a distinctive position, offering unique conditions for the development of enterprises across various sectors.

This article is intended for businessmen and legal entities interested in registering and conducting business within the Saryarka SEZ. It encompasses all aspects, ranging from general information about the zone to a step-by-step guide on company enrollment, including legal intricacies, required papers, registration timelines, and stages.

General details about the Saryarka unrestricted domain

On November 24, 2011, the Saryarka SEZ was created as part of Kazakhstan's strategy to diversify the economy and attract contributions. The selection of the zone's location in Karaganda and the adjacent areas of the Bukhar-Zhyrau region of the Karaganda region was driven by the existence of developed infrastructure, abundant resources, and strategically advantageous positioning, fostering a favorable environment for industrial operations and business initiatives within Saryarka.

Territorial characteristics

The Saryarka territory spans 595.01 hectares, encompassing an Industrial Park dedicated to metallurgy and metal processing covering 534.9 hectares, along with Subzone No.1 "Silicon Valley" occupying 60.11 hectares. This territorial structuring fosters the creation of an optimal space for diverse industrial pursuits, granting companies in Saryarka access to essential infrastructure and opportunities for their expansion.

Main activities in SEZ Saryarka

In the Saryarka Special Economic Zone, emphasis is placed on key sectors vital for Kazakhstan's economic advancement, fostering and incentivizing their development. Among these are:

• metallurgy;
• metalworking;
• logistics;
• transport;
• high-tech production;
• energy;
• mechanical engineering;
• chemical industry;
• environmental technologies.

Based on market demands and integration into the global economy, SEZ stimulates the advancement of these sectors by offering specialized conditions for operations.

The SEZ Saryarka actively incentivizes projects aimed at revitalizing the industrial park, implementing new technologies, and enhancing product competitiveness, supporting Kazakhstan's pursuit of establishing an innovative and environmentally sustainable economy. This facilitates investment attraction, job creation, and improvement in the quality of life for the population.

Overview of the benefits of registering a company in Saryarka

Registration of a company in the SEZ Saryarka unveils a plethora of significant advantages for entrepreneurs and investors, fostering the successful development of businesses. These advantages cultivate a favorable environment for the inception and growth of companies operating across diverse industrial and technological sectors. Presented below is an overview of the key benefits of registering a company in Saryarka.

Collectively, these advantages make the Saryarka domain an appealing platform for company formation, offering unique conditions to stimulate investments, foster innovative development, and promote international collaboration.

Cost of tariffs in the Saryarka domain

The economic conditions in the Saryarka SEZ make it attractive for businesses not only due to tax and customs incentives but also because of competitive tariffs on utility services.

• For each cubic meter of water supplied through distribution networks, a fee of 170.3 KZT is charged.
• The price for electricity transmission is set at 0.82 KZT per kilowatt-hour.
• In the absence of alternative access, the tariff for using the railway approach for transportation is 3,610 KZT for each wagon-kilometer.

These measures contribute to cost optimization for business operations in Saryarka, enhancing their attractiveness to investors and stimulating economic activity in the region.

The Saryarka SEZ actively fosters industrial and innovative growth in Kazakhstan, providing comprehensive support to businesses at various stages of development. Creating the foundation of such an economic region enhances the nation's economic capabilities and unveils prospects for both local and foreign investors.

Step-by-step process for establishing a company in Saryarka

The enrollment of a company in the SEZ Saryarka entails several stages and necessitates meticulous preparation of documentation and adherence to specific steps. Here is a comprehensive outline of the process of establishing a company in Saryarka:

Submitting a request and documents to the SEZ management entity

After preparing the business plan, it is essential to deliver an application for establishment in the Saryarka SEZ to the zone's management entity. The application must be accompanied by a set of papers:

• an accomplished application form based on an example authorized by the appropriate authority;
• an extract on the enrollment (or re-registration) of the entity in governmental registers;
• a copy of the identity card of the CEO of the organization;
• a duplicate of the organization's constituent paper;
• a duplicate of the official record detailing the resolution made by the company's highest governing body regarding the commencement of activities within SEZ;
• a copy of the balance sheet for the past year, signed by the CEO of the company or his proxy, and by the chief accountant.

If the applicant organization's operation spans less than a year at the time of document submission, financial statements are provided for the latest reporting period, provided they are available.

• Analysis and justification of the economic efficiency of the proposed project, meeting the criteria established by the responsible department.

Candidates intending to participate in the SEZ in the information and communications technology (ICT) and innovation sector are demanded to submit a comprehensive project justification.

• A bank document about transactions on the applicant’s accounts and a credit score from the credit history bureau.
• An official document issued by the tax authority at the organization's registered location confirming the status of tax and obligatory payment liabilities.
• Confirmation of project financing that meets the conditions set out in paragraphs 16 and 17 of this document.
• Project documentation for the development of the territory, if the project involves the construction of facilities.

For international companies not registered as taxpayers in the Republic of Kazakhstan at the time of document submission and lacking resident status, it is necessary to provide a document of non-registration as a taxpayer from local tax establishments.

Project assessment by an expert council

The delivered documents and business plan undergo evaluation by the expert council of the Saryarka SEZ, which assesses the project's alignment with strategic objectives and zone requirements. Additional information or clarification of the company's activities in Saryarka may be required during this period.

Company registration

Upon obtaining the status of a participant in the SEZ, the enterprise must undergo state registration in compliance with established procedures if it has not been previously registered.

Acquiring the status of a SEZ participant

After the expert council ratifies the project, the applicant receives participant status within the Saryarka SEZ. At this stage, an agreement is concluded between the participant and the managing company, specifying the rights and obligations of the parties, as well as the conditions for granting incentives and preferences.

After the establishment of the firm in Saryarka, it can proceed to open bank accounts and commence its operations within the territory of the unconstrained economic zone.

Following the fulfillment of all the aforementioned procedures, the enterprise situated in Saryarka is poised to initiate its operational endeavors within the Saryarka SEZ, leveraging the accorded preferences and incentives to bolster business expansion.

YB CASE company offers professional services to facilitate the company registration process within the Special Economic Zone Saryarka. The experts at YB CASE possess profound knowledge and experience in corporate law and the intricacies of operating within SEZ, enabling them to efficiently address tasks of any complexity related to business registration.

Providing a comprehensive service package entails preparing the required documentation, offering juridical consultation on registration aspects, and assisting at every stage of acquiring the participant status in the SEZ Saryarka. YB CASE ensures a personalized approach to each client, aiming to fully accommodate the specificity and needs of their business.