How can a foreigner open a company in Kyrgyzstan?

Kyrgyzstan is a jurisdiction open to foreign investment. The country offers unrestricted opportunities for development in all economic sectors. The local legal system creates a favorable environment for starting and developing businesses, reflected in low tax rates and an absence of unnecessary bureaucratic red tape.

Since 2025, Kyrgyzstan has been steadily transforming from a "quiet economic periphery" into a magnet for IT specialists, fintech startups, and creative entrepreneurs. The government continues to simplify company registration in Kyrgyzstan, reducing taxes for participants in the High-Tech Park (HTP) and Creative Industries Park (CIP). Banks are also becoming more open to foreign clients and digital nomads.

Advantages of Opening a Company in Kyrgyzstan

Over the past decade, Kyrgyzstan has developed policies aimed at creating a favorable environment for new businesses and foreign investors. Improved infrastructure and increased stability have created a platform for stimulating organizations, which could free up Kyrgyzstan's resources and contribute to the continued robust growth the country has seen in recent years.

Specific advantages of doing business in Kyrgyzstan include:

Access to the EAEU and WTO, double taxation agreements

Kyrgyzstan is a member of the Eurasian Economic Union (EAEU). EAEU policies, including the free movement of goods and services throughout the union, mean that companies operating in Kyrgyzstan have full access to a market more than 20 times the size of the country itself, including economic superpower Russia. Free trade agreements are also in place with other countries, including China and Turkey.

The country has a simplified hiring policy for EAEU citizens. Companies can hire citizens from EAEU member states (Russia, Kazakhstan, Armenia, and Belarus) without the need for work permits or quotas.

Kyrgyzstan has double taxation treaties with 34 countries.

Tax Incentives

The low corporate tax rate is fixed. Companies engaged in gold mining and refining pay no corporate tax, and leasing companies enjoy a reduced tax rate.

There are simplified taxation options for small businesses, including sole proprietors, based on a percentage of turnover.

Businesses operating in innovative technologies, food, energy, agricultural products, assembly, and exports can receive a reduction in corporate income tax to zero, as well as exemptions from sales tax, property tax, and land tax.

Utility costs, rent, and wages are significantly lower than in many Western countries.

Free economic zones (FEZs) in Naryn, Bishkek, Karakol, Maimak, and Leilek also offer tax breaks and other incentives for businesses operating within their territories.

The legal framework allows for the repatriation of profits and Dividends.

Promising Industries

Kyrgyzstan has enormous potential for development in both green energy and tourism. The country's natural resources and landscapes are ideal for hydropower and active recreation, but neither has yet been fully developed.

Companies entering these sectors in Kyrgyzstan have virtually unlimited growth potential. Furthermore, Kyrgyzstan is committed to developing the light, food, and mining industries.

Investments and Legal Framework

The government prioritizes attracting foreign direct investment and has simplified procedures for this purpose.

The Foreign Investment Law provides a liberal legal framework to protect foreign investors from expropriation and nationalization. Under Kyrgyz law, foreign investors are granted "national treatment," which provides them with the same rights and conditions for economic activity as local investors.

Foreign investors generally do not require special government permission to invest in local companies. However, it is important to note that some sectors, particularly those considered strategic or subject to licensing requirements, may require prior approval or additional regulatory procedures.

Foreign investors are not required to have local offices and can manage companies remotely, although a legal address is mandatory.

In most sectors, foreign individuals and legal entities can own 100% of a local company without requiring a local partnership or special government permission.

Business Environment

The business registration process is simplified. Kyrgyzstan also offers simplified customs procedures to entrepreneurs.

The economy is rich in resources, with significant mineral and gold reserves, and rapid growth in the mining, manufacturing, and energy sectors.

Free economic zones offer direct access to infrastructure such as electricity, transportation, and telecommunications.

Business Structures

Limited Liability Company (LLC) — the liability of participants is limited to the amount of their contributions. The powers of the LLC's governing bodies are not regulated in detail by law, which allows for greater flexibility in the decision-making process. The minimum authorized capital is 1 som. The number of participants cannot exceed 30 people. A minimum of one director and one shareholder are required.

Joint-Stock Companies (JSC) — are required to issue shares in the national currency of Kyrgyzstan. The minimum authorized capital of a joint-stock company is 100,000 soms.

• Open Joint-Stock Company (OJSC) — the consent of other participants is not required to transfer shares. A JSC has the right to conduct a public subscription for the shares it issues and freely sell them under the terms established by law.
• Closed Joint-Stock Company (CJSC) — the alienation of shares to third parties without the consent of the other shareholders is prohibited. The number of shareholders cannot exceed 50.

Branch and Representative Office.These are structural divisions of foreign companies that may conduct commercial activities in Kyrgyzstan. A branch has the right to conduct commercial activities, while a representative office is limited to exclusively non-commercial functions. There are also a number of restrictions regarding branches and representative offices. The term of operation of a branch or representative office is limited to the activities of the parent company. In addition, a branch or representative office cannot obtain a license for certain types of activities or the provision of certain types of services. In this case, an individual can register a legal entity.

Financial and Legal Requirements

There are no minimum capital requirements. The minimum authorized capital is 1,000 soms, which can be contributed throughout the year.

There are no requirements for the director's or founder's place of residence in Kyrgyzstan.

Foreigners do not need to be present in Kyrgyzstan to register a company. All necessary procedures can be completed remotely, by power of attorney.

The Russian language has equal legal status with Kyrgyz; official document flow and interaction with government agencies can be conducted in Russian.

As a general rule, to register a local legal entity, a foreign founder must submit the following documents to the Ministry of Justice of the Kyrgyz Republic (the registering authority):

• Registration application;
• Decision on the establishment of a local company;
• Extract from the state register of legal entities regarding the foreign company - founder / passport of a foreign citizen - Founder;
• A copy of the passport of the head of the local company.

Guide to registering a company in Kyrgyzstan

Limited Liability Company (LLC)

• Preparing constituent documents, such as the charter and minutes of the founding meeting.
• Registering with the tax office and obtaining a tax identification number (TIN).
• Paying the state fee and registering in the trade register.
• Opening a bank account in the name of the LLC.
• Registering with the pension fund and social insurance fund.

Joint Stock Company (JSC)

• Preparing constituent documents, including the charter and minutes of the founding meeting. Meetings.
• Registering with the tax office and obtaining a Taxpayer Identification Number (TIN).
• Paying the state fee and registering in the trade register.
• Opening a bank account in the name of the company.
• Registering with the pension fund and social security fund.

Representative Office/Branch

• Preparing documents confirming the right to represent the company or establish a branch.
• Registering with the tax office and obtaining a Taxpayer Identification Number (TIN).
• Paying the state fee and registering in the trade register (for a branch).
• Opening a bank account in the name of the representative office or branch.
• Registering with the pension fund and social security fund.

Business Registration Timeframes

Company registration in Kyrgyzstan for Russian citizens typically takes approximately 10 business days. A similar period applies to opening a branch or representative office of a foreign company. It is important to note that the timeframe may be extended due to the need to translate documents into Kyrgyz.

Each of these legal forms has its own characteristics and requires specific procedures in accordance with Kyrgyz law.

Tax Reporting and Payments

Kyrgyz companies pay corporate tax at a rate of 10%, leasing companies at a reduced rate of 7%, and gold mining and refining companies at a rate of 0%. Personal income is taxed at a rate of 10% for both residents and non-residents.

Companies and individuals who are residents of Kyrgyzstan pay their tax liabilities either through monthly payments, third-party withholding, or a combination of both.

Companies resident in Kyrgyzstan are required to withhold tax at a rate of 10% on payments to foreign companies, unless the rate is reduced by a double taxation treaty. However, Kyrgyzstan's 21 double taxation treaties minimize withholding tax on service fees, dividends, interest, royalties, and branch profits.

An individual is considered a tax resident if they are present in Kyrgyzstan for at least 183 days a year and are subject to tax in Kyrgyzstan.

Small businesses pay corporate income tax, interest tax, property tax, payroll tax, stamp duty, and value-added tax annually.

During the first 12 months, reporting and tax payments must be made monthly.

After the first year, companies can switch to monthly or quarterly reporting, depending on revenue.