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Question to lawyer. 5 advices that will help foreigners with starting business in Kazakhstan


Question to lawyer. 5 advices that will help foreigners with starting business in Kazakhstan

We talked with a lawyer, a partner of the law firm MG Partners Almaty, and found out what questions entrepreneurs most often have when starting a business in Kazakhstan. Detailed answers in the article.

Meruert Zhunubayeva, 25 years, city — Almaty, partner of the law firm MG Partners Almaty, @mirazh__

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1. What form of running businesses choose in Kazakhstan?

Foreign citizens can register in Kazakhstan as an Individual Entrepreneur. But for this it is necessary to have residency in Kazakhstan — to issue a residence permit.

The most common form of doing business in the Republic of Kazakhstan is a Limited Liability Partnership or LLP. This is an independent legal entity, the founders of which can be both Kazakhstani citizens and companies, and foreign ones.

Foreign companies also often open branches or representative offices in the territory of the Republic of Kazakhstan. These are separate subdivisions located outside its location and performing the functions of the parent company. A branch has expanded powers compared to a representative office, and it can have its own income.

At the same time, representative offices and branches — are not independent legal entities. They remain part of the foreign company.

For Russians, the most understandable form is — LLP. This is an analogy for an LLC — a limited liability company.

2. Can foreign citizen be a headmaster of LLP? Do they need to have permission for work or work visa?

Foreigner citizen could be a headmaster of LLP, and they don’t need to have permission or work visa. After all, you can manage the company, as well as carry out labor activities, remotely, without a permanent stay in the Republic of Kazakhstan.

Moreover, if the headmaster is in the country, then he, like other foreign employees of the company, is subject to the rules for obtaining a work visa or work permit.

A work permit must be issued to all foreign citizens, except for citizens of countries that are members of the EAEU customs union — the Russian Federation, the Republic of Belarus, the Republic of Armenia, the Kyrgyz Republic.

If the founder is thinking about attracting a foreign worker, then the registration procedure should be started in advance. Based on the receipt of permission for the next year, the need should be declared to the state body in the current year.

3. For whom is easier to register a company: a foreign individual or a foreign legal entity?

In all cases there are their own characteristics.

If a company is opened by a foreign citizen, then it is necessary to initially obtain an IIN — an individual identification number, and only then proceed with the registration procedure.

For Russians, the IIN — is an analogy to the TIN. However, the IIN is associated with almost all spheres of a person's life in Kazakhstan, and not only with the tax authorities.

Foreign citizens — non-residents, are required to apply for a C5 visa before opening a company or buying an existing company. This is a visa for business-migrants.

Citizens of the states that signed the Treaty on the Eurasian Economic Union — the Russian Federation, the Republic of Belarus, the Republic of Kyrgyzstan, the Republic of Armenia, are subject to a visa-free regime!

If a subsidiary is opened by a foreign legal entity, then you must first obtain a BIN — a business identification number, and only then proceed with the registration procedure.

For Russians, BIN — is an analogy to OGRN.

Accordingly, in this case, the visa issue of the founders is excluded.

A subsidiary company in Kazakhstan cannot be created by a foreign company — a parent company with only one founder.

For example, a citizen of the Russian Federation opened a legal entity — LLC, now an LLC cannot open a company alone in Kazakhstan, but only jointly with other individuals or legal entities.

4. Is it possible to open a company remotely, being outside of Kazakhstan?

Yes, you can issue a power of attorney for a representative — a lawyer who will accompany the registration, from preparatory procedures to opening a registered legal entity account.

When opening a bank account without the personal presence of the director, a notarized or apostilled bank signature card is required. As a standard, the right of the first signature in the bank is vested in the director, so it is necessary to provide the bank with his data.

It is possible that the bank you have chosen may set its own rules and not open an account without the personal presence of the director. To do this, consult with managers in advance.

5. Should there be a legal address at the time of registration of the LLP? Can the apartment be used as an office?

When opening a company, you must provide the registration authority with the address where the company will be located, without supporting documents. The legal address can be not only an office, but also a residential building, an apartment, any premises, both owned and leased.

Confirmation of the legal address is a lease agreement, a sale and purchase agreement or another document confirming the right to use the premises.

If you plan to rent a room and the owner will be an individual, then you must obtain a notarized consent from the owner to provide the legal address of your company.

A legal address is required to work with government agencies. In this regard, it is not recommended to specify a fictitious address. The absence of representatives at the legal address can lead to withdrawal from VAT, blocking of accounts and other negative consequences on the part of the tax authorities.

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