How did I open a business in Kazakhstan after moving from Russia?

Getting Started in Marketing

At the beginning of my journey, I immersed myself in the field of marketing, promoting various goods and services on the Avito platform. Over time, I began to realize that I had accumulated significant experience in the field of digital marketing, and I had the idea of starting my own venture. In 2018, I founded a creative agency providing internet promotion services for small and medium-sized businesses.

Moving and new horizons

By 2022, a significant part of my team was already outside Russia, but our business was still growing successfully in the online space. Soon I began to think about moving, too, and in the end I chose Kazakhstan, although I had originally considered Armenia. I had friends and acquaintances there, and I spent six months carefully studying the peculiarities of life and culture in that country. Thanks to my ethnic roots, I managed to obtain a second citizenship through the repatriation process.

Market analysis

Having analyzed all the pros and cons, I came to the conclusion that Armenia is a wonderful place for a quiet life and relaxation, but for doing business, especially in digital marketing, things are quite different. The mentality of the local population and their market is different from the Russian realities. For example:

• The development of online commerce in Armenia leaves much to be desired.
• Many people prefer shopping in physical stores where they can visually examine items and haggle.

Moving to Kazakhstan

In my search for more comfortable conditions for business, I made the final decision to move to Kazakhstan, and I have not repented of this step. The locals have similar consumer habits to Russians. Moreover:

• The market in Kazakhstan is less susceptible to the economic fluctuations and restrictions that regularly arise in Russia.
• Many social networks closed to us are available in Kazakhstan.
• There is significant interest in marketing services.

Study of the business environment

Our team has studied the business environment in Kazakhstan in detail and has come to the conclusion that the number of clients wishing to receive qualified marketing support far exceeds the demand in Russia.Legislationandtaxation systemhere also have a lot in common with Russian ones, which makes the adaptation process much easier. I realized that it was necessary to act quickly and decisively.

Preparing for launch

In Almaty, at the train station, we started preparatory work. In 2022, all of our company's activities moved to an online format, which meant that the planned move would not harm our business. So I decided to develop my business already in the new country.

Relocation and market analysis

I moved to Kazakhstan on September 26, 2022. In the first stage, we conducted a thorough analysis of local competitors and consumer preferences, realizing that it was most appropriate to focus on the middle and high price segments. It proved to be more efficient and promising to work in this direction.

Strategy and budget

Based on our findings, we formulated a strategy and prepared a budget for opening a new agency, allocating about one and a half million rubles. In order to thoroughly understand the legal nuances, we decided to contact a local lawyer. His help was essential to launch our business directly with minimal difficulties in line with Kazakhstani legislation.

Parallels in the legislation of Kazakhstan and Russia

In the process of studying the legal framework in Kazakhstan, I noticed that the local laws were very similar to those in Russia, which made the process of setting up our new agency much easier. Having subscribed to a Telegram channel dedicated to investment, immigration and various aspects of real estate, I began active preparations for moving to Almaty with my family.

Finding accommodation and adaptation

Upon arrival in a new country, I allocated a few days to finding suitable accommodation and adapting to life in our new city. As soon as we found a cozy apartment in the center of Almaty, I began to study the bureaucratic procedures and the banking system.

Choice of legal form

First of all, together with our lawyer, we decided on the best organizational and legal form for our business. For companies in the field of information technology and digital services in Kazakhstan, the most commonly chosen form is LLP (limited liability partnership).

From my point of view, this form, similar to the Russian LLC, is the most convenient for doing business at this time. An LLP offers many advantages, especially for foreign entrepreneurs, such as:

• Participants are liable solely to the extent of their contributions to the share capital.
• It is possible to have an unlimited number of founders.
• An LLP may open branches or representative offices both within and outside Kazakhstan.
• A partnership interest can be sold to another person.
• Managing corporate affairs is fairly easy.
• The reorganization proceeds with minimal difficulty.

Information on individual entrepreneurship

As we had originally also considered opening a sole proprietorship (sole proprietorship), we soon learned that according to current local laws foreign citizens are not allowed to register a sole proprietorship. Therefore, opting for an LLP turned out to be the only viable option.

LLP registration process

To establish an LLP, categories must be defined in accordance with the Entrepreneurial Code of the Republic of Kazakhstan (Article 24). This is important for setting the minimum amount of authorized capital and the amount of the registration fee at the outset.

Small businesses are defined as organizations with an annual income of no more than 3,000 MRP (which is approximately 10.35 million tenge or 100.3 thousand euros) and no more than 100 employees. In turn, large companies have revenues of over 3 million MRP and more than 250 employees, while medium-sized companies may not fall into any of the categories.

Opening a corporate bank account

The next step was to open a corporate bank account in one of the banks in Kazakhstan, which is a mandatory step for company registration. In practice, this process turned out to be quite simple.

The documents required to create a corporate account with a bank in Kazakhstan include a number of mandatory papers, which ensures the successful completion of this process. First of all, you will need a passport or other identification document of the account holder. For foreigners holding a residence permit in Kazakhstan, it is mandatory to provide a TIN certificate.

It is important to know that an application to open an account usually requires the use of a form provided by the bank itself. The process of obtaining a TIN can be done online, and the document itself can be requested from the Kazakh consulate located in Moscow. More detailed information can be found on the official website of the embassy, as well as in the population service centers (CSC).

Business registration and international relocation

Completing the process of international business relocation involves registration with a specialized agency. Not all entrepreneurs are willing to spend time setting up a legal entity in Kazakhstan and sometimes prefer to work with local clients through companies registered in Russia. While this is possible, it may be less efficient in the long term.

Advantages of registering a business in Kazakhstan

Registering a business in Kazakhstan gives your company legal status in the eyes of local authorities and significantly increases the confidence of Kazakhstani consumers. Registered foreign enterprises receive not only legal protection, but also the opportunity to participate in state and international tenders, which creates additional advantages.

Stages of business registration

The procedure for registering a company consists of several steps, which include:

• choice of legal address;
• preparation of the necessary constituent documents;
• Completion of all relevant applications.

It is important to note that the following is required to register a business in Almaty:

• Application for company registrationsigned by the founder or his authorized representative;
• Constituent documentssuch as the charter of a legal entity, depending on the chosen organizational and legal form (e.g. LLP, JSC and others);
• Identification documentsfounders and managers: copies of passports and proof of registration at the address (e.g., lease agreement or certificate of ownership of real estate);
• Taxpayer Identification Number (TIN)of your company;
• Confirmation of opening a corporate accountat a local lending institution;
• Proof of payment of all mandatory state duties and fees. For 2023, the cost of registering an LLP is 6.5 MRP (22,425 tenge, or about 45 euros). Micro and small enterprises are exempt from this fee.

Recommendations for registering a business

It is worth noting that the list of documents for registering a business in Kazakhstan is in many respects similar to that required by entrepreneurs in Russia. Nevertheless, based on my own experience, I strongly recommend that you consult a local lawyer or business consultant before starting the paperwork. This will help to avoid possible trouble and speed up the process of starting a business, which in turn will save you time and money.

Conclusion

At the conclusion of my journey, which started with working as a promotion specialist and led to the creation of my own creative agency, I realize how important the chosen stages and places along the way are. Moving to Kazakhstan in 2022 was not only a logical step in terms of business strategy, but also a key moment in my life that opened up new horizons.

The experience in Armenia contributed to a deep understanding of local markets and consumer habits. Although I found this country attractive, the realities of doing business determined my choice in favor of Kazakhstan. Here I saw an opportunity to adapt and expand my business in a more promising environment, where the laws and market were conducive to growth and the level of interest in digital services left a lot of room for maneuver.

Advantages of moving to Kazakhstan

• Convenient legal framework for starting a business.
• The company registration process has been simplified as much as possible.
• Interest in digital services and marketing is growing.

Kazakhstan not only provided me with the necessary legal framework for starting a business, but also made the process as convenient as possible. I highly appreciate the steps I had to take, from analyzing the market to choosing a convenient legal form for doing business. Direct interaction with local government agencies and banks once again confirmed that all the conditions for a successful business exist here.

Strategy and growth

Now that my agency is fully functioning in Almaty, I look forward to the future with confidence. I know that there are many challenges ahead, but the experience I have gained over the years in the promotion field and the support of my team give me confidence. I will make every effort to do my job better, bring new things to the local market and achieve high results by building not only business ties, but also friendships with local clients and partners.

Advantages of doing business in Kazakhstan

• Variety of customer engagement opportunities.
• Similarity of legislation with the Russian legislation.
• Growing interest in marketing services, especially in the middle and high end of the market.

So, looking back, I realize that these transformations are simply necessary to develop and close the gaps that arise in the process of business activity. Moving to another country, experiencing new cultures and approaches to doing business has enriched me as an entrepreneur and as a person. The doors that have opened before me in Kazakhstan give me the opportunity to continue on this exciting path, which will undoubtedly make my life brighter and richer.