Doing business

Kazakhstan

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Tovarichtchestvo s ogranitchennoï otvetstvennostiou is a limited liability company. USD 471,000	no minimum. The liability is limited to the amount of share, except in the case of a bankruptcy caused by founders where the liability can be beyond the value of share capital.
Zakrytoye aktsionernoye obchtchestvo is a close cooperation joint stock company. USD 471,000	no minimum. The liability is limited to the amount of share, except in the case of a bankruptcy caused by founders where the liability can be beyond the value of share capital.
General partnership USD 1,000	No minimum Limited by contributions
Limited partnership USD 1,000	No minimum Limited by contributions

Business setup procedures

Setting up a company	Kazakhstan	Eastern Europe & Central Asia
Procedures (number)	6.0	6.3
Time (days)	19.0	16.3

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Kazakhstan.
Invest in Kazakhstan, Business Registration.
The competent organization: Ministry of Justice

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	15,775	13,771	9,961
FDI stock (millions USD)	59,645.6	72,547.1	81,351.8
Performance Index*, ranking on 141 economies	17	8	-
Potential Index**, ranking on 141 economies	44	-	-
Number of Greenfield investments***	60	46	-
FDI inwards (in % of GFCF****)	44.0	7.7	-
FDI stock (in % of GDP)	44.7	66.3	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Kazakhstan

Strong points: Kazakhstan needs to diversify its economy in order to reinforce its growth. It has to attract foreign investors in order to modernize the existing infrastructures, and to create new ones. The economic situation is relatively good, despite a financial sector affected by the financial crisis. Kazakhstan has a strong economic potential, a quality banking system, and remarkable political stability, since its independence.
Weak points: Heavy constraints weaken Kazakhstan's economic potential. These are: its landlocked status, its obsolete economic structures and also a an economy which is still not diversified enough. The oil windfall has impeded the structural reforms. Corruption is a negative factor, since Kazakhstan is ranked 145th out of 180 according to Transparency International.
Government measures to motivate or restrict FDI: Government policy has been encouraging foreign investment for nearly fifteen years (thanks to the December 1994 and February 1997 laws ) with measures such as reduction and even waiver of taxes for 5 years, a State subsidy, partial or total exemption from duties and taxes on equipment, raw materials and other material necessary for the establishment of the investment. The Investment Code of January 2003 guarantees equality between foreign and local investors, protection of the investors' rights and arbitration for disputes. In practice, there are stability guarantee clauses, guarantees against nationalisation or expropriation and the right to repatriation of profits. The Kazinvest agency (website in Kazakh language) plays a major role for the foreign investors who must present their project there.

Procedures relative to foreign investment

Freedom of establishment: Consult the foreign investment laws on the website Kazinvest.
Acquisition of holdings: The acquisition of the majority shareholding of a Kazakh company is authorised under reserve of obtaining an aithorisation beforehand from Ministry of Justice.
Obligation to declare: The Kazkhstan Investment Promotion Center in the country imparts information on the authorisations necessary for company establishment.
Competent organization for the declaration: Kazinvest
Requests for specific authorizations

Finding assistance for further information

Investment aid agency: The Foreign Investment Council of the Ministry of Industry and Commerce of the Republic of Kazakhstan
Kazakhstan Development Bank
Kazyna Development Fund
Kazakhstan Investment Fund
Kazinvest (Kazakhstan Investment Promotion Centre)
National Investment Funds
Other useful resources: Investment Fund
Center for Promotion of Investments
Department for Companies and Industries of the Karaganda region.
"Company creation" department on the website of the Uralsk city.
Department for Companies and Industries of the Kostanay region.
Department for Companies and Industries of the Atyrau region.
Department for Companies and Industries of the Pavlodar region.
Department for Companies and Industries of the Almaty region.
Department for Companies and Industries of the North-West region of Kazakhstan.
Department for Companies and Industries of the Eastern Kazakhstan region.
Department for Companies and Industries of the South Kazakhstan region.
Department for Companies and Industries of the Akmola region.
Department for Companies and Industries of the Aktioubinsk region.
Department for Companies and Industries of the Qyzylorda region.