Q: Is it possible to open-up and run a 100% foreign capital enterprise in Kazakhstan, or is it necessary to establish a partnership with a Kazakhstan firm? If so, what should be the minimum share of Kazakhstan entity in such a partnership?
A: There are two ways to start up your business in Kazakhstan: to establish a company with 100% foreign capital or to establish a joint venture (JV) with local company. No minimum local or foreign stake is required. Both types of companies can operate in all spheres of Kazakhstan’s economy.
Q: Could it be possible to establish a company in Kazakhstan as a subsidiary of our parent company based in the United Kingdom or elswhere?
A: Yes, it is possible. Although under the Kazakhstan law, the subsidiary of the foreign company is not a legal entity, therefore it is advisable to establish and incorporate a new legal entity in Kazakhstan for full-fledged operations in the country.
Q: Is it possible to employ 100% foreign staff or we have to employ a minimum of local personnel?
A: You need to justify and obtain a work permit for each and every foreign employee. Qualification and quantity limits may be applied as per the annual foreign workers’ quota.
A: The corporate tax rate is 30%.
Q: What benefits the Government of Kazakhstan offers to Foreign Investors?
A: According to the Investment Law the Government provides support and investment preferences in priority sectors of economy. Investor may apply for an investment preference allocating capital into fixed assets. Investor can also obtain corporate, property and land taxes exemptions for the period of 1-5 years.
1) Corporate tax – taxpayer can attribute to deduction from cumulative annual assets costs of fixed assets (such as capital assets and intangible assets, shown in accounting balance and assets that are used for annual aggregate profit).
2) Land and property taxes – there are preferences and benefits related to the newly purchased land to be used for implementation of the investment project.
A: You can find a list of priority investment projects on our website. Investment projects worked out in accordance with the Innovative Industrial Development Strategy will get a maximum support.
Such industries as tourism, oil-and-gas machine building, food processing and textiles, transport logistics, metallurgy and construction materials are priority clusters and will determine the long-term economic development of Kazakhstan, what is underlined in the President Nazarbayev’s Address to the Nation.
A: The profit from investment projects is secured by Investment law and can be fulfilled after all taxes paid and duties cleared.
Q: What is the cost of electricity and natural gas?
A: Average Cost for Electric and Gas Supply (in USD)
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Electro power
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Gas
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Per KW
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Per M3
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0.03-0.04
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0.09
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Q: What is the minimum wage (labor cost)?
A: Minimum Wage in Kazakhstan 6600 tenge (approx 50 US$)
Q: How can I find more about Kazakhstan?
A: Please browse through our website, look through the Country Profile or contact us.
Q: How can I get there? Do I need a visa to go to Kazakhstan for business purposes?
A: Yes, you do. Visa procedures have been drastically simplified, particularly for citizens of 28 countries (US, EU, Japan, Singapore, etc). Please contact the London based Kazakhstan Travel Center for air tickets, accomodation and travel advices. Please also visit our website for visa requirements.
