How to open a company in Kazakhstan: steps and features of the process

Introduction to starting a business in Kazakhstan

An important aspect related to starting a business in Kazakhstan requires special attention, and the first thing to discuss is the time needed for company registration. Provided that all documents are prepared in advance, the process can take just one to two days. This is indeed fast, but the speed directly depends on how thoroughly you prepare the necessary documentation.

Remote company registration

The next important question is about the possibility of opening a company remotely. The answer is positive: this process can indeed be carried out without physical presence. The company's director or their authorized representative, acting on the basis of a power of attorney, can initiate the registration of a legal entity remotely. If the director is unable to visit the office for any reason, a power of attorney must be issued to a lawyer or attorney located in Kazakhstan.

The certification of such a power of attorney can be carried out by a notary in the applicant's country of residence, for example, in Russia. An important point: the power of attorney must be accompanied by identity documents, such as a foreign passport, which also needs to be notarized.

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Initial steps for business relocation

Now let's consider the initial steps for relocating a business. Before making any decisions, it's important to think through several key questions in advance:

• What will your company's name be?
• How many employees do you plan to hire?
• In which industry do you intend to work?
• What organizational and legal form will you choose?

At this stage, you have the option to open a branch of an existing company or create a completely new legal entity, such as a Limited Liability Partnership (LLP) or a Joint Stock Company (JSC). Each of these forms has its own characteristics, which we will discuss in detail in the following materials.

Popular options for starting a business

Today, establishing a new independent enterprise in Kazakhstan is the most common option, as it is often easier than opening a branch. When establishing a new legal entity, you will only need to report under the laws of Kazakhstan. At the same time, if you decide to open a branch, you will have to report in both Kazakhstan and Russia.

Obtaining an Individual Identification Number (IIN)

After you clarify all the above questions and obtain a SIM card from a local mobile operator, you can move on to the next step – obtaining an IIN, an Individual Identification Number.

The next step requires your attention and is related to obtaining an Individual Identification Number (IIN). Currently, Kazakhstan is actively digitizing public services, and most of them have become available in electronic form. The IIN is the first step in starting a business, as well as in obtaining all the necessary certificates and documents, including the issuance of an electronic digital signature. It is important to note that obtaining an IIN is essential for both businesses and all foreign citizens who wish to start their own business in the country.

How to obtain an Individual Identification Number (IIN)

You can obtain an Individual Identification Number (IIN) in any region of Kazakhstan by visiting the Public Service Centers (PSC). Previously, it was possible to order an IIN online, but now, due to the increase in the number of migrants, the presence of the applicant or their legal representative is mandatory. Therefore, to successfully open a business in Kazakhstan, you should carefully follow all the aforementioned recommendations and requirements.

Creation of conditions for foreign citizens

Due to the increasing demand from citizens, special facilities have been organized in public service centers to provide services exclusively for foreign nationals. As of today, the process of obtaining an Individual Identification Number (IIN) takes just one working day.

The process of obtaining an Individual Identification Number (IIN)

To apply for an Individual Identification Number (IIN), it is necessary to present a foreign passport. If the documents are submitted by proxy, not only a notarized copy of the passport is required, but also a certified translation of the passport into Kazakh and Russian.It should be noted that a domestic Russian passport is not suitable for this procedure.

Legal entity registration

After a foreign citizen receives their Individual Identification Number (IIN), the next step will be the state registration of a legal entity or the accounting of a branch or representative office through the government services portal. Once the applicant obtains the IIN and an electronic digital signature (EDS), which can actually be obtained later, it is necessary to register the legal entity electronically.This procedure will take no more than 15 minutes.

What is needed for registration?

When registering a legal entity, it is necessary to provide information about its founders and governing bodies, as well as to submit the founding agreement and the company's charter if it falls under small or large business categories.

• Small entrepreneurs do not need to submit statutes or regulations for legal entities, including branches and representative offices.

Legal address of the company

It is important to emphasize that a company's registered office can be anything, but it must actually be used to conduct business. It can be your home address or the address of your rented premises.It is important that the provided address is not fake, as there may be checks by the tax authorities of the Republic of Kazakhstan.

The size of the authorized capital

The amount of authorized capital depends on the legal form of the business. When registering an LLP (limited liability partnership) as a small business entity, the minimum permissible level of authorized capital will be quite small.

• A limited liability company can be classified as a micro, small, medium, or large enterprise;
• The status of a company is determined by several factors, such as average annual revenue, average annual number of employees, and types of activities, which can be significant in certain situations.

Confirmation of belonging to a category

Special attention should also be paid to the fact that the confirmation of belonging to a certain category of LLP is carried out by the entrepreneur himself. The set of documents required for registration depends on this category.

Making a decision about your company's status requires attention and careful completion of information to avoid potential issues during the registration process.

General Provisions

Article 24 on entrepreneurial activity in Kazakhstan specifies that microenterprises may be represented by small businesses based on private initiative. These entities must have an average of no more than 15 employees per year or an income that does not exceed 30,000 times the monthly calculation index (MCI) established in the law on the republican budget as of January 1 of the current fiscal year when such activity is carried out.

Small business

Small businesses include individual entrepreneurs who are not legal entities, as well as legal entities engaged in commerce. These groups should have an average of no more than 100 employees and should not generate income exceeding 300,000 times the monthly calculation index (MCI).

Medium-sized enterprise

Medium entrepreneurship includes both individual entrepreneurs and legal entities with 100 to 250 employees. Their annual income ranges from 300,000 to 3,000,000 times the MRP.

Large business

Large enterprises include both sole proprietors and legal entities exceeding one or both criteria:

• the average number of employees over 250 people
• The annual revenue exceeds 3,000,000 times the monthly calculation index.

Classification of economic activities

In Kazakhstan, there is a unified classifier of economic activities, according to which each business is assigned a code known as OKED. This code can be selected from a specialized list.

Hiring specialists such as lawyers and accountants can be done on a long-term basis or through civil law agreements. Currently, outsourcing of personnel and legal services is becoming increasingly popular, and there are no strict limitations in this regard. For example, if you have ten employees in a Russian company, they can continue their work remotely after the business transfer to Kazakhstan. However, it is important to remember that all employment contracts must be registered in the electronic contract system. This can be done by either an HR employee or an invited specialist. The process of registering employment agreements in the enbek system must be completed within five days.

Obtaining a business identification number

Once the registration is complete, your legal entity is assigned a unique business identification number (BIN). This number is issued by the competent authorities of Kazakhstan for foreign companies.

Electronic digital signature (EDS)

The fourth stage involves obtaining an electronic digital signature (EDS). For this, you will need an individual identification number (IIN), which allows you to apply for the EDS necessary for working with most government institutions in the country, as well as for processing various transactions. You can obtain the EDS either by visiting a public service center in person or online through the portal.

You will need a Kazakhstani mobile number to register on this portal.

Company registration confirmation

In the fifth step, you need to confirm your company's registration, which is done by receiving a registration notification. After that, you need to complete several steps:

• Ordering printing from one of the specialized companies that handle its production usually takes about an hour.
• to draft the founders' protocol and the order for the appointment of the director;
• prepare statutory documents (Articles of Association and Memorandum of Association);
• to register in the tax office of Kazakhstan.

Opening a checking account

The sixth step involves visiting the bank to open a current account for your organization. With a complete set of documents, you can approach the bank, and the account opening process usually takes about an hour. All financial transactions for legal entities in Kazakhstan are conducted exclusively in cashless format. You can also set up mobile banking on your phone, which will allow companies to quickly generate invoices and receive payments.

Charter capital

The seventh stage involves transferring the necessary amount to the specified account, which will serve as the authorized capital. This amount must be adequate to the organizational and legal form of your business and sufficient for its functioning (payment of bills, salaries to employees). The received details can be immediately used for business activities and indication in contracts. It is important to take into account that the amount required for current and operational needs varies for different legal entities and depends on their specifics. Each company has its own needs and criteria that affect the amount of authorized capital.

Conclusion

In concluding our discussion about the process of opening or registering a company in Kazakhstan, I would like to emphasize that this can be a key step towards a successful business in this dynamically developing region. Preparing all the necessary documents and clearly following the steps I mentioned will save time and effort.

Important steps of registration

It is important to remember that for effective company management, it is necessary to think ahead about the name, legal structure, and number of employees. Therefore, it is advisable to evaluate all possible options in advance and choose the most suitable one.

• Obtaining an Individual Identification Number (IIN)This step is mandatory for all foreign citizens wishing to do business in the country.
• Choosing between opening a branch of an existing company and creating a new legal entity.
• An appeal to professional lawyers for assistance in understanding the features and advantages of each form.

Electronic format and ease of the process

Moreover, using an electronic format for registration and obtaining necessary documents significantly simplifies the process, making it faster and more convenient. This is an important point for those who wish to minimize the time spent when starting their business.

Key points

Taking into account local legislative norms and requirements regarding authorized capital and reporting is a key factor for successful business operations and further development.

As you can see, starting a business in Kazakhstan is not a complicated process if approached with the right preparation and action plan. I am confident that by following these recommendations, you will be able to register your company quickly and efficiently, which will serve as a great foundation for further growth and successful operations.