If you intend to open your own commercial project in this jurisdiction, then we recommend that you pay attention to a limited liability partnership. Doing business in Kazakhstan in this form gives the entrepreneur the opportunity to take advantage of the privilege in the form of minimum rules for registration procedure. Among other things, the process of organizing and managing this company is also simple and convenient. In addition, a small tax burden is imposed on these enterprises in comparison with other forms of establishing commercial structures. Below, we’ll take a closer look at such issues of doing business in Kazakhstan: opportunities, challenges and suggestions.
Requirements for starting a business in Kazakhstan
- A company name must be selected, and drawn up in Latin. It needs to be translated into Kazakh.
- Company needs to have at least 1 founder, 1 director (it is desirable that this position be a resident of the jurisdiction) and 1 shareholder.
- Availability of initial capital in minimum determined amount.
- Address registered in Kazakhstan.
According to the provisions of the legislative framework of Kazakhstan, the structure, the main purpose of which will be to make a profit from certain operations, can be established in the following forms. Thus, forms for best business in Kazakhstan are next-mentioned.
- AO. To establish an enterprise in this form, you will need a minimum capital and one director in the company. In addition, the company needs a resident shareholder. Necessary documentation should be legalized by notary and have Kazakh version. An annual audit is also required.
- LLP. This is the most common legal form used by local entrepreneurs to set up commercial projects. Peculiarity of this structure in Kazakhstan is that the owners of such a company will not be held liable if the company incurs losses. The organization can be created by 1 partner, regardless of residence.
- Representative branch. Such an enterprise may be wholly owned by foreign corporation. Nevertheless, company is not permitted to carry out sales transactions within Kazakhstan. Thus, such a firm can only be involved in market research and promotion activities of the parent organization.
Taxes in Kazakhstan
Legislation there is subject to frequent changes. That is why it is especially important to structure tax planning in a reliable way. With the help of a competent organization of this aspect, the enterprise will be able to easily cope with the constant amendments to the legislative provisions. In doing so, firms will be able to avoid the significant costs required for structural changes to the internal infrastructure of deals.
Compared to international standards, income tax there is quite low. However, the penalties for non-payment of tax fees and late filing of reports are too high. Firms pay corporate tax at a rate of 20%. VAT is 12% or zero in the case of product exports. Dividends are taxed at a variable rate of 5-15%.
If you want to start a business in Kazakhstan, please contact our specialists. We have been helping entrepreneurs establish businesses and obtain business permits in hundreds of jurisdictions for many years. We can also offer you a wide range of ready-made companies for sale. Our specialists are highly qualified and are true professionals in their field.
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