Company registration in FEZ TURAN

Introduction

Registering a company in FEZ "TURAN" is a strategically important step for businesses seeking to expand their operations and obtain significant tax and customs benefits. Opening a company in FEZ "TURAN" requires a careful study of the selection criteria, which are determined by the managing body of the zone and directed at attracting investment in priority sectors of the region's economy.

It should be noted that it is not possible to directly register a company in the TURAN Special Economic Zone (SEZ). However, an alternative possibility is offered - the registration of the quality of a participant of this zone. The main focus of the article, oriented on the process of business organisation in FEZ TURAN, implies exactly the procedure of granting the status of a participant.

The key aspect, which should be paid attention to when planning to start a business in FEZ "TURAN", is the compliance of the company's activity with the established priorities of the zone development. This means that companies engaged in construction and tourism have a better chance of successfully passing the selection process. It is important that participants' projects contribute to the diversification and modernisation of the local economy, creating new jobs and increasing the country's export potential.

Another critical factor is financial stability and whether the company has a clear business plan demonstrating its ability to realise the planned project. The FEZ "TURAN" Governing Body carefully analyses the financial performance of applicants, their experience in the relevant industry and their potential for long-term development. This ensures that only viable and promising projects that can make a significant contribution to the regional economy are attracted to the zone.

Opening a company in FEZ "TURAN" requires careful preparation and strategic planning. Companies seeking to become part of this unique economic zone must pay special attention to meeting the established selection criteria, including business direction, financial sustainability, environmental responsibility and potential for long-term development. These factors play a crucial role in successfully passing the selection process and becoming a resident of FEZ "TURAN".

Stages of company registration in FEZ "TURAN"

For candidates seeking to become participants of FEZ "TURAN", there is a specific set of requirements for the documentation needed to formalise the status. The process starts with careful preparation and submission of documents, which is a key step to successfully obtaining the participant status. In the context of obtaining the status of FEZ "TURAN" participant, the following documents are of crucial importance:

• A formalised questionnaire from the applicant must be completed in strict compliance with the requirements set by the authorised body, serving as a starting point for the application to be considered.
• An official certificate confirming the state registration of the legal entity, including information on any re-registrations, showing the legal status of the company.
• The identity document of the director, together with a copy of the company's articles of association, are essential to confirm the management structure and organisational framework.
• The decision of the supreme management body to operate within FEZ "TURAN" indicates the strategic decision of the company to take advantage of the opportunities offered by this free zone.
• The financial results report for the last year, signed by the management, is a key element reflecting the financial stability and readiness of the company to participate in the FEZ.
• A project feasibility study that meets the approved criteria is fundamental to demonstrating the viability and benefits of the project in the FEZ context.
• For projects focused on innovative technologies, a detailed feasibility study is required, indicating the relevance of the project to the industry and FEZ "TURAN".

It is also important to note the following additional aspects:

• Financial documents, including statements and reports, confirm the economic activity and creditworthiness of the company.
• A certificate of absence of tax debts guarantees the financial integrity of the company before the state budget.

Plans and sketches of the proposed area for project implementation, if it includes construction of facilities, provide a visual representation of land use.

Access to FEZ infrastructure and resources

Registration of a company in FEZ "TURAN" opens unique opportunities for companies specialising in construction or tourism to develop and expand their business. Special Economic Zone "TURAN" offers access to developed infrastructure and resources, which is a significant advantage for the participants of the zone.

For construction companies, business registration in FEZ "TURAN" can be a catalyst for growth, as the zone offers access to land plots for construction with already connected communications, which greatly simplifies the start and conduct of construction works. In addition, the availability of specialised warehousing and production facilities can optimise logistics and reduce the cost of storing materials and equipment. Access to qualified workforce is also important, which is ensured through cooperation with local educational institutions and training centres.

For companies in the tourism sector, opening a company in FEZ "TURAN" provides opportunities for the creation and development of tourist complexes, hotels and entertainment centres on favourable conditions. FEZ "TURAN" has unique natural and historical objects that can attract tourists from different countries. Access to FEZ infrastructure, including transport networks, communications and technological solutions, allows creating high quality and competitive tourism products. In addition, special economic conditions and tax incentives help to reduce operating costs and increase the investment attractiveness of tourism projects.

System of benefits for business in FEZ "TURAN"

The preferential system in FEZ "TURAN" is realised on the basis of the principle according to which the amount of benefits granted is proportional to the volume of investments. Thus, the duration of tax benefits directly depends on the amount of invested funds. The process of opening a company in FEZ "TURAN" and the application of tax exemptions depend on the value of the realised project, which is classified as follows:

• Category A includes projects up to 3,000,000 times the monthly estimate (approximately $25 million).
• Category B covers projects between 3,000,000 times and 14,500,000 times the monthly estimate (between $25 million and approximately $118 million).
• Category C is for projects above 14,500,000 times the MRP (above US$118 million).

From the beginning of 2024, the duration of tax incentives will be 7 years for category A projects, 15 years for category B projects and 25 years for category C projects, not exceeding the term of the contract for conducting activities in FEZ.

In addition to tax exemptions, those wishing to obtain the status of participant in FEZ "TURAN" are granted customs privileges, including exemption from import duties and taxes, as well as the possibility of attracting foreign labour force without quotas and special permits in some cases.

Consequently, the preferential programme of FEZ "TURAN" creates attractive conditions for launching and implementing investment projects, contributing to economic progress and attracting foreign investment to Kazakhstan.

Conclusion

Registering a company in FEZ "TURAN" provides entrepreneurs and investors with promising opportunities to develop their business on favourable terms. This special economic zone stands out from others with its substantial tax and customs exemptions and access to modern infrastructure, making it an ideal place to launch projects in many sectors of the economy.

However, in order to effectively integrate into an FEZ and fully capitalise on the benefits offered, it is necessary to carefully plan all the steps and thoroughly understand all the details of the registration process and applicable legislation. In this aspect, YB CASE specialists are ready to offer comprehensive information and support throughout the whole process of establishing a company in FEZ "TURAN". We provide qualified assistance in the preparation of all required documents, selection of the appropriate legal form for the business, as well as advice on tax and customs issues.

To start co-operation and to get more information about the possibilities of obtaining the status of FEZ "TURAN" participant, we invite you to contact us through the preferred communication channel indicated in the "Contacts" section of our website. Our experts are ready to advise you on all matters of interest and support you in the implementation of your project.