Kazakhstan is a Central Asian country located in the northern part of the region, bordered by Russia, China, Kyrgyzstan, Uzbekistan, and Turkmenistan. It is the largest landlocked country in the world and the ninth-largest country by area. The official language is Kazakh and the currency is the Kazakhstani Tenge (KZT). Kazakhstan has a population of around 18 million people and its capital and largest city is Nur-Sultan (formerly Astana).
Kazakhstan has a mixed economy, with a large state sector and a significant private sector. The country has abundant natural resources, including oil, gas, and minerals, which have been the major drivers of economic growth in recent years. The oil and gas sector accounts for a significant portion of Kazakhstan’s GDP and exports. The mining sector, which includes the production of metals such as copper, gold, and zinc, is also a significant contributor to the economy. The agricultural sector, which mainly focuses on livestock and grain production, also plays an important role in the economy.
Kazakhstan has made significant efforts to diversify its economy, particularly by developing its manufacturing and services sectors. The government has implemented various measures to support foreign investment, such as tax incentives and a simplified business registration process. The country has also established several free economic zones which provide benefits such as tax exemptions, customs duties exemptions and simplified registration procedures.
Types of business and paid-up capital requirements
In Kazakhstan, there are several types of business structures that can be used to register a company. The table below reflects the legal business formats and the capital requirement of each.
| S# | Type of company | Local Name | Min. paid-up capital required |
| 1. | Limited Liability Company | товарищество с ограниченной ответственностью (TOO or OOO) | €0.02 |
| 2. | Join Stock Company | акционерное общество (AO) | €20,000 |
| 3. | Sole Proprietary | индивидуальный предприниматель (IP) | No minimum capital required |
It’s important to note that the minimum paid-up capital requirements and regulations can change over time, so it’s best to check with the relevant authorities for the most up-to-date information.
Process & Costs of registering a company
The process of registering a company in Kazakhstan typically involves the following steps:
Choose a company name
The company name must be unique and can’t be the same as or similar to the name of an existing company.
Obtain a legal address
The company must have a legal address in Kazakhstan, which can be a physical office or a virtual one.
Prepare the company’s articles of association
The articles of association must be prepared in accordance with the laws of Kazakhstan and must include information about the company’s name, legal address, and the names of the company’s founders.
Register with the state
The company must be registered with the relevant state authorities, such as the Ministry of Justice or the local registration and licensing department.
Obtain a tax identification number
The company must obtain a tax identification number from the local tax office.
Obtain licenses and permits
The company may need to obtain licenses and permits from various government agencies, depending on the nature of its business activities.
Open a bank account
The company must open a bank account in Kazakhstan in order to conduct financial transactions.
Register for social security and pension contributions
The company must register for social security and pension contributions for its employees.
The process of registering a company in Kazakhstan can take several weeks to several months, depending on the type of company and the services required. It’s important to consult a legal expert for more details and to know about the most up-to-date requirements.
Cost involved in registering a company in Kazakhstan
The cost of registering a company in Kazakhstan can vary depending on the type of company and the services required. However, some of the main costs associated with registering a company in Kazakhstan include:
State fee for registering the company
This fee is typically around €50 for a limited liability company (LLC), and €100 for a joint-stock company (JSC).
Notary fees
These fees are typically around €30 and are required for certifying documents and signatures.
Legal services
If you use a lawyer or legal firm to assist with the registration process, their fees will vary but can be in the range of €100 to €200
Other costs
There may be additional costs associated with registering a company in Kazakhstan such as translation fees, courier fees, and costs associated with opening a bank account.
Benefits & difficulties of doing business in Kazakhstan
The benefits to be realized and probable difficulties in the course of establishing and running business operation in Kazakhstan are discussed in detail below.
Benefits
There are several benefits of doing business in Kazakhstan, which include:
Strategic location
Kazakhstan is located at the crossroads of Europe and Asia, making it an ideal location for businesses looking to expand into new markets.
Natural resources
Kazakhstan has abundant natural resources, including oil, gas, and minerals, which can provide opportunities for businesses in the extractive industries.
Growing economy
Kazakhstan has a growing economy and a relatively stable political environment, which can provide a favorable environment for businesses looking to invest in the country.
Government support
The government of Kazakhstan has implemented various measures to support foreign investment, such as tax incentives and a simplified business registration process.
Skilled workforce
Kazakhstan has a well-educated workforce, with a significant proportion of the population fluent in English and other languages, which can provide a competitive advantage for businesses looking to establish operations in the country.
Multicultural society
Kazakhstan is a multicultural society, which allows businesses to access a diverse consumer base and can help companies to expand regionally and internationally.
Free Economic Zones
Kazakhstan has several free economic zones that provide benefits such as tax exemptions, customs duties exemptions and simplified registration procedures.
Difficulties
It’s important to note that while Kazakhstan has many opportunities for business, it’s likely for a new business, especially for foreigners, to face some adversities. These should be considered as a prudent step before investing in the country.
Bureaucracy
Doing business in Kazakhstan can be challenging due to the bureaucracy and red tape involved in the registration and operation of a business.
Lack of transparency
There can be a lack of transparency in the business environment in Kazakhstan, making it difficult for businesses to navigate the legal and regulatory landscape.
Corruption
Corruption can be a problem in Kazakhstan, and businesses may encounter bribery and other forms of corruption when dealing with government officials.
Lack of infrastructure
Some areas of Kazakhstan can have a lack of infrastructure, which can make it difficult for businesses to transport goods and services.
Economic downturn
Kazakhstan has been affected by the global economic downturn, which has led to a decrease in foreign investment and a decline in the value of the currency.
Language barrier
Some difficulty may arise with language, particularly in rural areas, since not all people may speak English or other languages fluently.
Cultural differences
Business practices and cultural norms in Kazakhstan can be different from those in other countries, which can make it challenging for foreign companies to adapt to the local business environment.
It’s important to be aware of these challenges and to seek professional advice and support to navigate the business environment in Kazakhstan. It’s also important to conduct a thorough market research and a legal consultation to identify potential risks and challenges before starting operations.
Cost of doing business in Kazakhstan
The cost of doing business in Kazakhstan can vary depending on factors such as the type of business, location, and the services required. However, some of the main costs associated with doing business in Kazakhstan include:
Rent and utilities
The cost of renting office space and paying for utilities such as electricity, water, and internet can vary depending on the location and the size of the office.
Staffing
The cost of hiring and retaining employees in Kazakhstan can vary depending on factors such as the level of education and experience of the employees, as well as the cost of benefits and social security contributions.
Taxes
Kazakhstan has a relatively high corporate income tax rate of 20%, as well as other taxes such as value-added tax (VAT) and property tax.
Legal and accounting services
The cost of legal and accounting services can vary depending on the services required, but businesses may need to pay for services such as company registration, tax compliance, and accounting services.
Insurance
The cost of insurance can vary depending on the type of coverage required, but businesses may need to pay for coverage such as liability insurance and workers’ compensation insurance.
Transportation and logistics
The cost of transporting goods and services within Kazakhstan and internationally can vary depending on factors such as distance, mode of transport and the cost of fuel.
