Establishing Your Business Presence in Kazakhstan: A Strategic Guide

Kazakhstan offers international businesses a strategic gateway to Central Asian markets with its favorable business environment and growing economy. Establishing a subsidiary here provides significant advantages including limited liability protection, enhanced market credibility, and potential tax benefits that can strengthen your global expansion strategy.

Navigating Kazakhstan's Corporate Tax Framework

Kazakhstan's tax system offers flexibility through two primary regimes: the Simplified Tax Regime (STR) and General Tax Regime (GTR). Companies can select the most suitable option based on their operational scale, revenue thresholds, and business activities.

Simplified Tax Regime (STR)

The STR reduces administrative burdens for qualifying small and medium enterprises through two main approaches:

Patent-based system for individual entrepreneurs with annual revenue below 3,528 MCI (Monthly Calculation Index) without employees
Simplified declaration system for businesses with semi-annual revenue under 24,038 MCI and fewer than 30 employees

Both options feature reduced tax rates and streamlined compliance requirements, though certain restricted activities like financial services and consulting are excluded.

General Tax Regime (GTR)

The GTR applies to larger enterprises and those engaged in restricted activities, requiring comprehensive tax reporting including annual corporate income tax filings and quarterly social contribution payments.

Selecting the Right Business Structure

Foreign investors typically choose between Limited Liability Partnerships (LLPs) and Joint Stock Companies (JSCs) when entering the Kazakh market.

Limited Liability Partnership (LLP)

LLPs provide flexibility with separate legal identity from their founders. Key features include:

Profit distribution proportional to capital contributions
Ability to establish international branches
Simplified registration through the Egov.kz portal

Registration requires selecting appropriate OKED activity codes, determining tax regime, and appointing local management.

Joint Stock Company (JSC)

JSCs facilitate capital raising through share issuance with minimum authorized capital of 50,000 KZT. Compliance requirements include:

At least one resident director
Mandatory financial audits
Regular reporting to regulatory authorities

Company Registration Process

The registration timeline typically spans 10-25 days, involving these key steps:

Select business structure and reserve unique company name
Prepare founding documents and statutory address
Register with tax and social security authorities
Open corporate bank account
Obtain necessary activity licenses

For medium and large enterprises, minimum authorized capital must exceed 100 times the current MCI (3,932 KZT in 2025).

Market Entry Strategies for Foreign Companies

International businesses can establish presence through:

Subsidiaries: Independent legal entities with separate tax obligations
Branches: Non-independent entities where the parent company assumes full liability
Representative Offices: Limited activities without profit generation in Kazakhstan

Legal Framework and Compliance

Kazakhstan's corporate legal system, governed by the Civil Code and specialized corporate laws, establishes clear governance requirements including annual financial reporting deadlines and data protection obligations. Companies must submit audited financial statements by March 31st each year.

Alternative Employment Solutions

For companies seeking to test the market without establishing a legal entity, SailGlobal offers Employer of Record (EOR) services that handle local employment compliance, payroll management, and statutory benefits administration while you focus on core business operations.

Kazakhstan Company Registration Guide 2024: Business Setup & Tax Strategies