top of page

Company in Kazakhstan: key advantages, how to register


One of the popular options for business relocation and relocation from Russia is Kazakhstan. Why do entrepreneurs choose this direction?


In 2022, many domestic entrepreneurs decided to move their business abroad. In 2023, the trend continues. Business owners are still wondering which country to choose to open a company and continue to develop their business in new geopolitical conditions.

Kazakhstan, which is a key foreign trade partner of Russia and at the same time an important player in the global economy, is becoming one of the popular destinations for moving a business and opening an enterprise in a new country.


Thanks to its favorable location, Kazakhstan is an international hub and ensures the circulation of goods and services from China and Asia with the markets of Europe and Russia. The World Bank's 2022 Doing Business Index ranks Kazakhstan 28th out of 190 countries in terms of ease of doing business and ranks it as the best country for protecting the rights of minority investors with small stakes. The tax base in the republic is lower than in Russia: VAT is 12%.


Below we will talk about how to open a business in Kazakhstan.


Registration of a legal entity


We have the opportunity to register a business in Kazakhstan remotely, upon provision of a power of attorney, which will reduce the time required and quickly register as a legal entity.

To register a legal entity, we will need a local cell number to receive an SMS code, which we will issue in the client’s name. Local mobile communication will also be needed when registering a bank account.


The following main organizational and legal forms of organizations in Kazakhstan are distinguished:

  • Joint-Stock Company;

  • representation;

  • branch;

  • A limited liability partnership is an analogue of a Russian LLC.


The first step towards registering a company is to obtain an individual identification number, which is an analogue of the Russian TIN. We can obtain an IIN based on a power of attorney from the client and a passport.


After receiving an individual identification number, 2 digital signatures are issued. The first is for authorization, the second is for signing documents. These signatures are suitable for reporting and signing documents within the country.


The next step after receiving the IIN will be the registration of the LLP on the website of the electronic government of the Republic of Kazakhstan. When registering, you must provide a legal address. The legal address of the LLP must be linked to the physical address of the office of the future LLP, since the tax authorities, when registering an LLP, come out and personally check whether the registered LLP has a physical address. In addition, when opening an LLP account, the bank will also ask you to provide an office lease agreement.

After completing the LLP registration procedure on the website, the business identification number (BIN) of the legal entity is received within 15 minutes. Further, on the basis of a power of attorney from the client, we receive an electronic signature at the public service center, which in the future will be regularly required in the activities of the LLP.

Features of business organization


Opening a bank account

To open a business in Kazakhstan, you must have an account with a local bank.

  • To open an account you will need the following documents:

  • company charter;

  • decision to open a limited liability partnership from the Kazakh tax service;

  • a screenshot of an extract from the e-government website about successful registration actions;

  • help from eQonaq - a specialized information system for interaction between places of accommodation of foreign citizens and government agencies.


Taxation

There are 2 main tax regimes in Kazakhstan:

generally established tax regime;

a special tax regime based on a simplified declaration - an analogue of the simplified regime in Russia.


The generally established regime allows for business without restrictions on turnover, type of activity and number of employees.


With the simplification, corporate and social taxes are lower than the generally established ones, although only companies with no more than 30 employees and income of no more than 73 million tenge for six months will be able to use this regime.

You must not violate the deadlines for submitting documents to the tax office, otherwise a warning and account blocking will follow after the first quarter. Fines will follow.


Advantages of doing business in Kazakhstan

Kazakhstan has created the most favorable environment for doing business and easy conditions for people with citizenship of EAEU countries to stay. Russians have the opportunity to live and work without a visa and conduct business in comfortable conditions.

The following are the main advantages of doing business in Kazakhstan:


  • The country has a softer tax regime compared to Russia: VAT is 12%. In Russia and Belarus, VAT is 20%, and in China - 17%;

  • business registration is one of the simplest in the world, state fees for registering small and medium-sized enterprises have been abolished;

  • excellent work of government online services and electronic government, Most services are provided remotely;

  • minimum number of business inspections;

  • One of the main advantages of doing business in Kazakhstan is the absence of a language barrier. All communications with authorities and services take place in Russian, which greatly simplifies activities.


Ariela Consulting has huge experience in companies registration in Kazakhstan and the tax sketching for international groups of companies including Kazakhstan entities. We can help you and provide a full set of professional services related to company corporate and tax structuring.


7 views0 comments

Comments


bottom of page