So you’ve decided to start a new company in Kazakhstan? Now is a great time to enter this growing economy. There are many elements that you need to consider before starting a business. This article outlines the essential information for company formation and starting a business in Kazakhstan Central Asia.
Kazakhstan Company Formation
Before applying for company formation in Kazakhstan, you will need to ensure that all the essential incorporation documents are completed and readily available. In Kazakhstan, there is less reliance on digital means; therefore, physical legal documents may be required. Starting a new company in Kazakhstan has many benefits, and now is an effective time to build a new company.
The AIFC Court currently provides a common law court system based on the principles of English law for the first time in Central Asia. This provides business owners with more flexibility than the Kazakhstan Law System.
What are the options for company formation Kazakhstan?
There is a range of business structures that you can use for your Kazakhstan company formation. There are some more commonly used, and these include:
Limited Liability Partnership (LLP)
A Kazakhstan limited liability partnership is a popular method of company formation. It involves the company being labelled as its own entity rather than having a parent company.
One benefit of using a limited liability partnership company set up in Kazakhstan is that the company takes liability over the directors. This means that personal assets are generally not at risk. Limited liability companies can be established by one director of any nationality. The director is responsible for all business activities.
Joint Stock Companies (JSC)
There are two types of stock companies that you may run, open or closed. When forming a closed joint stock company, you must ensure there are fewer than 100 shareholders. If you have over 100 shareholders, the company must be restructured into an open joint stock company.
There are no legal restrictions on the number of shareholders you can have in an open joint stock company. However, once you reach over 500 shareholders, you receive large public joint stock company status. You must meet various requirements and follow regulations when operating as a Kazakhstan joint stock company, and these change based on your joint stock company status.
A Kazakhstan representative office can only be used by an existing company, which will act as a parent company to the representative office.
A Kazakstan representative office is able to be 100% foreign-owned. Despite ownership freedom, there are restrictions on trading. For example, you are not allowed to sell products or services within Kazakhstan. A representative office can instead be used to promote the business and its products and services. You are also free to conduct market research activities within Kazakhstan.
Similarly to a representative office, a branch office can only be used alongside an existing company. A branch office can be used to trade within Kazakhstan. As a foreign parent company, a local representative in Kazakhstan must be appointed to oversee business operations. The branch office must also have a registered office in Kazakhstan.
What are the benefits of starting a business in Kazakhstan?
Depending on the business type you plan to operate, there are many benefits to consider. Operating in Kazakhstan gives you access to a wide range of markets.
Protection of Intellectual Property
Intellectual property protection allows individuals to be recognised for their work. Ensuring this protection means supporting the future of your Kazakhstan company. You can protect a range of elements relating to your company through trademarks and other protection types.
Business protection through the law system
The English Law System protects the business in a safe and secure international legal system to resolve civil and commercial disputes.
Access to the Central Asian Market
Having access to wide markets can help to accelerate your business’ success. The Central Asian market is a fantastic place to do business.
Depending on the business structure you choose to use, you may benefit from 100% ownership.
Company formation in Kazakhstan is currently a cost-effective business plan. The market is set to boom over the next few years, so now is the best time to establish your Kazakhstan business. Kazakhstan is a fast-developing country with an impressive economy.
How to register a company in Kazakhstan
The company incorporation process in Kazakhstan is simple, and with the required documents, it doesn’t often take long. At AIFC Specialists, we can support you with all aspects of Kazakhstan company formation. We will take care of everything involved in Kazakhstan company registration so that you can continue working on your business.
Establish your business structure
The first step involves selecting a business structure. The most popular business structures are Limited Liability Partnerships, Joint Stock Companies, Branch Offices and Representative Offices. There are limitations to each of these structures, so it’s important to seek advice and find one that works for you. We’re happy to offer advice on company structure.
Once you have selected an appropriate business structure for your company, you will need to outline the most important business details. These include, but are not limited to:
- Business name
- Business address
- Provide details for at least one shareholder, founder and director of the business
- Meet the minimum authorised capital requirement for your selected business structure
Company registration in Kazakhstan
- Beneficiary passport and bank statement
- Suitable visa
- Tax code
- Digital signature
After registering the company successfully, you will need to open a company bank account. You should conduct research into this and find a national bank that meets your requirements. AIFC Specialists can offer you full support in selecting the right bank. We will consider all features and benefits of each bank and assess whether they are appropriate for your business.
Company formation in Kazakhstan is set to boom. Around 3,000 companies will be incorporated into the AIFC in the next two years. Each company will have a safe harbour and gateway to the world’s fastest-growing region.
Now is the right time to set up your company in Kazakhstan. Our specialist team can support you with all aspects of company formation. Get in touch with us today to establish your business in a growing market.