Astana International Financial Center (AIFC) is a specialized hub that grants fin. organizations access the marketplaces of Eurasia, providing safe roots and creating a separate legal base. This is an advanced financial institution based in Kazakhstan, connecting the economies of the central region of Asia, the Caucasus, Mongolia, China, the Middle East and the EU. Low taxes and benefits help to boost the competitive advantages of market players, and ensure the attractiveness of doing business there. The center also provides extra benefits for both large companies and new firms in the market. Let’s look at the peculiarities of business registering in AIFC.
What is AIFC and what does it give to businesses
AIFC is a specialized hub in the city of Αstana, where special legal regulation is applied. It offers a range of the following features and services:
- Capital market of Kazakhstan;
- Banking and insurance;
- Access to Central Asian markets, global and local companies and funds;
- Asset and cash management;
- Head offices.
How to start a business in AIFC?
There are three ways to join AIFC:
- Incorporating a new entity with the center;
- Incorporation of a foreign company / partnership incorporated in any country / jurisdiction other than AIFC as a recognized company / partnership;
- Redomicylation is a form of reorganization of an entity that changes the jurisdictiοn and legal address of the company.
According to the current regulations, registered entities can conduct both licensed and unlicensed operations in AIFC. Market activity and provision of support services require a license. They are listed below:
Market activity
- Exchange Management;
- Managing a Clearing House;
- Managing a digital asset trading system;
- Managing a crowdfunding credit / investment platform;
- Managing a private finance platform;
Support services
- Legal;
- Auditory;
- Accounting;
- Consulting;
- Credit assessment services;
Regulated activities
- Investment activity as a principal / manager / intermediary;
- Investment management;
- Provision / organization of custody;
- Trust Services / Trust Management;
- Organization of investment transactions;
- Islamic banking business;
- Insurance intermediation;
- Managing a representative office;
- Providing a loan / consulting / organizing a credit line;
- Providing money services;
- Effecting / execution of insurance contracts;
- Takaful business;
- Opening and maintaining bank accounts;
- Payment system management;
- Management of a multilateral / organized trading mechanism / facility.
Advantages of registering with the MFC
Separate Legal System
The AIFC Committee, which regulates fin. services, is an pooled regulative body that approves organizations. It guarantees a safe environment for all AIFC members. The AIFC approach fully complies with the global trends of leading jurisdictions and allows for 100% foreign participation.
Common Law Rules
AIFC in Kazakhstan is the primary organization in the region to provide entities a full-fledged legal ecosystem for investing. Its acts were developed on the basis of common law and comply with the norms of the worldwide financial hubs. The AIFC court does not depend on Kazakhstan’s judicial system and offers a flexible approach to dispute resolutions.
Flexibility in Regulating Corporate Issues
- No linking the number of shares to the amount of dividends / votes;
- Freedom to create share classes;
- Voting agreements with shareholders in a certain way;
- Various forms of financing.
AIFC Sandbox
The AIFC sandbox is a special framework that allows firms to test new financial services, as well as services regarding regulatory technologies (RegTech), without immediately becoming the subject of the entire set of regulatory requirements.
Fintech Lab provides companies with a great chance to analyze regional markets with minimal resources and a presence at AIFC to explore and test FinTech and Regtech products in an environment with real customers. A number of advantages include the following:
- simplified tax integration regime;
- 0% individual income tax;
- no capital gains taxes;
- 0% corporate income tax.
If you are interested in doing business in Kazakhstan or want to open a company in AIFC, please contact our specialists for advice.
You can see our current offers in the categories “Cryptocoins and licensing of cryptocurrency operations”, “Ready-made companies”, “Banks for sale” and “Licenses for sale”.