Company registration in Qyzyljar FEZ

Introduction

Doing business in the Qyzyljar FEZ is a key consideration for companies looking to enter a vibrant economic environment. Established on 11 October 2019, the Qyzyljar FEZ is located on 197.3 hectares of land within Petropavlovsk and is a strategic initiative to support the economic growth of the city and the region, which aims to accelerate the inclusion of Kazakhstan's national economy into the international economic system.

It should be realised that it is not possible to directly register a business directly in the Qyzyljar FEZ. Instead, there is an opportunity for companies to obtain the status of a participant of the zone. The main point of this process is to grant FEZ participant status.

Doing business in this special economic zone provides entrepreneurs with access to many privileges, including the creation of highly productive industries, the development of new products, which helps to attract capital investment and strengthen international status. It also contributes to improving the legal framework for market relations, introducing best management and economic practices and addressing social issues.

The objectives of establishing FEZ Qyzyljar cover not only raising the economic potential of Petropavlovsk and the surrounding areas, but also activating the role of Kazakhstan's economy in the global arena. This includes the formation of favourable conditions for high-tech and competitive enterprises, which will eventually lead to attracting investment and improving the living standards of citizens. Thus, the launch of a company in the Qyzyljar FEZ is not only beneficial for business, but also contributes to the socio-economic development of the region.

Main areas of activity in FEZ Qyzyljar

Opening a business in Qyzyljar FEZ is a strategically important step for companies seeking to develop in mechanical engineering and metallurgy. These industries are key areas of activity within the Qyzyljar Special Economic Zone due to the region's desire to create a high-tech and competitive manufacturing sector. Doing business in this zone provides unique opportunities for companies, including access to preferential taxation, simplified procedures for obtaining permits and licences, as well as government support in the form of investment incentives and infrastructure support.

Specialisation in mechanical engineering and metallurgy in the Qyzyljar FEZ allows companies to take advantage of local production and scientific and technical potential. The development of these industries within the special economic zone is directed at meeting domestic market needs as well as strengthening the country's export potential. Registration of a company in FEZ Qyzyljar in the field of mechanical engineering and metallurgy implies active introduction of innovative technologies, modernisation of production and improvement of the quality of manufactured products, which together contribute to increasing competitiveness at the international level.

System of preferences for enterprises registered in FEZ Qyzyljar

A company's entry into the Qyzyljar FEZ provides access to key tax privileges that significantly increase the attractiveness for investment and contribute to the development of the region's economy. According to the Law of the Republic of Kazakhstan No 242-VI dated 3 April 2019, companies carrying out activities recognised as a priority are entitled to full exemption from corporate tax on profits derived from such activities, property and land ownership taxes, as well as reduced social tax for those engaged in the "Park of Innovative Technologies", provided that the share of labour costs is not less than 70% of the organisation's total costs.

From 2024, the FEZ will apply a gradation of tax incentives depending on the amount of investment. Depending on the amount of invested funds, projects are divided into categories A (up to USD 25.5 million), B (up to USD 118 million) and C (over USD 118 million) with the corresponding terms of benefits - from 7 to 25 years.

For example, obtaining membership status in the Qyzyljar FEZ provides companies with access to a range of tax and customs benefits, making it an attractive choice for investors seeking to develop their business in Kazakhstan.

Stages of establishing a company in Qyzyljar FEZ

In order to become a participant of Qyzyljar FEZ, interested parties must take the initiative by preparing and submitting a set of documentation that will be carefully reviewed by the FEZ management organisation. In this context, the key steps to becoming a Qyzyljar FEZ participant are:

• Submission of the application is the initial stage where the applicant submits a questionnaire designed according to the format prescribed by the regulatory authorities. This action initiates the process of consideration for inclusion in the list of FEZ participants.
• The official registration of the company is documented through the submission of a certificate of state registration, which is a confirmation of the legality of the business.
• Personal documents of the management and the company's charter are submitted as copies, which serve as evidence of the structure and management of the business.
• Financial statements prepared for the previous financial year and signed by the responsible persons show the economic situation of the enterprise.
• Development of the feasibility study of the project is required to assess its efficiency and compliance with the FEZ objectives for becoming a participant of Qyzyljar.
• Specific requirements for projects in the field of innovation and technology include the submission of a project justification emphasising its significance and contribution to the development of the sector.

Additional documents, such as bank statements and tax discipline certificates, strengthen the applicant's position by demonstrating its financial stability and social responsibility. Proof of financing and site planning for potential construction further emphasise the seriousness of the applicant's intentions.

Thus, the process of obtaining the Qyzyljar FEZ participant status requires careful preparation and submission of a full set of documents, which provides the basis for a balanced and fair consideration of each application.

Conclusion

Registering a company in the Qyzyljar Special Economic Zone is an important step for entrepreneurs seeking to maximise their business operations in the Republic of Kazakhstan. This process provides unique opportunities for business development due to a number of tax and customs benefits provided by the legislation for FEZ participants. However, it is important to note that registering a firm in the Qyzyljar FEZ requires a careful approach and a thorough understanding of the relevant regulations.

Planning the utilisation of tax and customs preferences available to FEZ residents is also an important aspect. This requires an in-depth analysis of current tax legislation and customs regulations in order to integrate these preferences into the overall business strategy in the most effective way.

YB CASE specialists are ready to provide detailed advice and full support at all stages of launching a business in Qyzyljar FEZ. We will provide professional support in preparing the necessary documentation, company registration, obtaining the status of FEZ participant, as well as in all matters related to the use of preferences provided by the zone. Our goal is to make the process of starting your business as simple and efficient as possible. For more information and to start co-operation with us, you can choose a convenient method of contact from the "Contacts" section on our official website.