• Capital: Astana.
• Largest business and financial centre: Almaty.
• Currency: Kazakhstani tenge (KZT).
• Official language: Kazakh. Russian is officially used on an equal footing with Kazakh in state organizations and local government bodies.
• Population: over 20 million people.
• Time zone: UTC+5 throughout the country.

Kazakhstan provides access not only to the domestic market but also to the market of the Eurasian Economic Union. The country’s role in international transport routes between China and Europe enhances its importance for companies operating in the fields of trade, manufacturing and logistics.

Investors have access to special economic zones, investment incentives, the Astana International Financial Centre (AIFC) and the Astana Hub International IT Start-up Technology Park. Eligibility for incentives and special conditions depends on the type of activity, the location of the project and compliance with the established requirements.

Limited Liability Partnership (LLP). The most common form for private businesses. An LLP is a separate legal entity, and the liability of its members is generally limited to the value of their contributions to the share capital.

Joint Stock Company (JSC). This is used primarily by large enterprises, financial organizations and companies that need to raise equity by issuing shares. JSCs are subject to more complex requirements regarding governance, disclosure of information and reporting.

Branch of a foreign company. A branch is not a separate legal entity and acts on behalf of its foreign parent company. It may perform all or part of the parent company’s functions, including commercial activities as provided for in the branch’s regulations.

Representative office of a foreign company. A representative office is also not a separate legal entity. It is established to present and protect the interests of the parent company and, as a rule, is not intended to conduct commercial activities independently.

Legal entities are registered via the state registration system, including through the eGov.kz e-Government portal. A simplified procedure is available for most business entities; however, the actual time taken to commence operations also depends on opening bank accounts, tax registration, obtaining permits and complying with sector-specific requirements.

Where foreign founders are involved, supporting documents confirming the registration of a foreign legal entity or a document certifying the identity of a foreign individual are usually required. Foreign documents must be legalised or apostilled, unless otherwise provided for by an international treaty, and submitted with a notarised translation into Kazakh and Russian.

Certain types of activity are subject to licensing or require notification. A check of licensing requirements must be carried out before the relevant activity commences.

Kazakhstan’s tax system comprises corporate income tax, individual income tax, value added tax, social tax, property tax and other compulsory payments. Employers are also responsible for calculating and remitting pension, social security and health insurance contributions.

Non-residents are taxed on Kazakhstan-source income. The taxation regime depends on the nature of the income, the existence of a permanent establishment and the application of a double tax treaty. To benefit from treaty relief, the prescribed documentary and procedural requirements must be met.

Detailed rates and key tax rules are set out in a separate section of the Tax Guide to Kazakhstan.

Legal entities are required to maintain accounting records and prepare financial statements in accordance with Kazakhstani legislation and applicable financial reporting standards. The requirements depend on the organisation’s category, size, sector and status.

Mandatory audits apply to organisations specifically listed in the legislation, including certain categories of public-interest entities and regulated organisations. Additional requirements may be set out in sector-specific legislation, stock exchange rules, the rules of the Astana International Financial Centre, financing terms or contracts with investors.

Employment relations are governed by the Labour Code of the Republic of Kazakhstan. Employment contracts must be in writing and registered in the designated information system. Normal working hours should, as a rule, not exceed 40 hours per week.

In order to employ foreign workers, an employer may generally require a permit. Exceptions apply to citizens of member states of the Eurasian Economic Union and certain categories of foreign specialists. Special rules may also apply to AIFC Participants and Astana Hub Participants.

Astana International Financial Centre (AIFC). The AIFC provides a special legal and regulatory environment for financial, investment, fintech and professional services. Its legal framework is based on the principles, rules and precedents of the law of England and Wales and includes independent dispute resolution bodies. Separate tax and immigration conditions are provided for AIFC Participants, subject to compliance with the applicable requirements.

Astana Hub. Astana Hub participants engaged in priority activities within the information technology sector are eligible for tax and immigration benefits. To retain this status, requirements relating to the nature of activities, income and reporting must be met.

Special Economic Zones and Investment Incentives. Tax, customs and other incentives may be available for projects in priority sectors. Their application depends on the project parameters, location, investment volume and the conclusion of relevant agreements.

ECOVIS Kazakhstan provides support to foreign and local companies in the following areas:

• advice on choosing a business structure and entering the Kazakhstani market;
• coordination of the registration of a company, branch or representative office;
• tax advice and support for cross-border transactions;
• accounting and tax accounting, preparation of financial statements and payroll processing;
• audit of financial statements and other audit and related services;
• preparation of financial statements in accordance with International Financial Reporting Standards;
• advisory support for AIFC participants and Astana Hub participants;
• assistance with compliance with local reporting and internal control requirements.

Our team combines knowledge of Kazakhstani legislation and business practices with the international expertise of the ECOVIS network, helping clients to organise their operations in Kazakhstan and comply with the applicable requirements.