Top 10 questions from clients when registering a business in Kazakhstan by foreign citizens and companies

REVERA Kazakhstan lawyers answered the most popular questions from non-resident clients of Kazakhstan that arise when registering a business in Kazakhstan.

1. Is it possible to open a company remotely?

Yes, you can. To do this, you need to issue a power of attorney to a representative, for example, a lawyer.

2. Can a foreign citizen be a director of a Kazakh company?

Yes, it can. There are no restrictions on the citizenship of the director. For other foreign workers, depending on their citizenship, permission to hire a foreign worker may be required. Such permission is not required for citizens of EAEU member states. Also, permission is not required for the first managers if the founder is a non-resident.

3. Is there an institute of corporate governance in Kazakhstan when the functions of director are performed by another company?

No, the director of an LLP can only be an individual or a collegial executive body consisting of individuals.

4. Is it possible to open a bank account for a created company remotely?

In practice, opening an account and carrying out the bank’s KYC procedure may require the presence of the director of the established company in person. Requirements depend on the specific bank.

5. What is the most popular organizational and legal form of a company?

LLP — limited liability partnership.

6. Are there requirements for the authorized capital?

Yes, there is. As a general rule, the size of the authorized capital is at least 100 MCI, as of the date of submission of documents for state registration.

At the same time, for small businesses (up to 100 employees, income up to 300,000 MCI), the size of the authorized capital can be 0 tenge. There are other exceptions to the general rule.

7. Are there any nuances when registering a company by a foreigner?

Yes, there is. As a general rule, to open a company, a foreign citizen needs a C5 visa. This rule does not apply to citizens of the EAEU member states, as well as those who have concluded agreements with Kazakhstan on visa-free entry and exit. Also, not all types of activities are entitled to be carried out by companies established by foreign citizens or companies. Such restrictions are established, for example, in the laws “On Security Activities”, “On National Security of the Republic of Kazakhstan”, “On the Mass Media”.

8. How long does it take to register a company and open a bank account?

The timing of company registration depends on the timing of receipt of documents from the foreign founder (power of attorney, decisions, copies of an extract from the trade register and statutory documents, etc.). After receiving documents and submitting documents to the Public Service Center, the company will be registered within 2 business days. KYC of banks for opening an account in practice can take from 1 to 15 working days depending on the bank and the length of the chain to the final beneficiary.

9. Is it possible to open a bank account in Kazakhstan for a foreign company?

Formally, there is no prohibition on opening an account in Kazakhstani banks for either foreign individuals or legal entities. At the same time, banks establish the conditions for opening such accounts, the procedure for completing KYC and other internal rules.

10. Are there preferential tax regimes in Kazakhstan?

Yes, there is. Preferential regimes offer different structures depending on the type of business activity. Astana Hub — IT business, AIFC — finance and fintech, SEZs — real sector. Also, under certain conditions, a legal entity can use a simplified tax regime (3% of turnover), use a retail tax (5%), or use the agricultural producer regime.