State registration of legal entity, including VAT registration
Agency: Public Registration Center or e-government website
Registration of small and medium enterprises (SME) and large business entities is performed based on a “one-stop-shop” principle: all the registration documents should be submitted to one state authority, the Public/Population Service Centers.
The list of the required documents includes the following:
- A notification on commencement of entrepreneurial activity for small companies or standard application for medium companies;
- Copies of IDs;
- The decision on establishment of the company or the protocol of the constituent Assembly;
- For large-sized business entities – a receipt or other document confirming payment to the budget of the fee for state registration of legal entities; and
- Power of attorney (if applicable).
SMEs are exempted from payment of a registration fee as of January 1, 2015.
The relevant justice authority shall issue an electronic certificate of state registration of a company not later than 1 day following the day of submission. If documents are filed online via electronic government portal the state registration shall be performed within 1 hour from the moment of documents submission. In order to register online, entrepreneurs need to obtain an electronic signature. An electronic signature can be obtained at public registration centers on the day of company registration if the founders do not have it already. It is common for entrepreneurs to have an individual e-signature or have an ID with a chip. To validate a new signature, in-person presence in the center is required.
Besides individual electronic signature of company founders, the company should also obtain an electronic signature. It can be obtained in the Public/Population Service Center on the same day as company registration itself. After obtaining electronic identification, company name check can be quickly performed at the Service Center to ensure the name is unique and available. Registration of a company takes as little as 15 minutes and the electronic registration certificate can be printed out, sealed and signed by the registrar at the same time.
Starting from January 1, 2018, during the incorporation through electronic platform, it is possible to apply for VAT registration, opening a bank account and registration for the obligatory insurance of life and health for employees. However, additional documents need to be submitted to the banks and insurance after such application. Furthermore, application for VAT registration can be submitted together with the incorporation application when the documents are provided in person, and this option is now widely used in practice. If company applies for VAT registration during incorporation, it will obtain the VAT registration certificate on the next business day from the day of submitting the application. Company must register as a VAT taxpayer if the turnover within a calendar year exceeds 30,000 MCI (KZT 75,750,000 in 2019).
Time and cost: 2 days, no charge
Make a company seal
Legal obligation to make company seal was abolished as per Law “On introduction of amendments and additions to certain legal acts on the issues of massive improvement of conditions for conducting entrepreneurial activity in the Republic of Kazakhstan” on December 29, 2014. Furthermore, on August 31, 2016, the National Bank adopted new Rules for opening accounts in accordance with which the standard form of the form with the signature sample of the authorized person and the company’s seal was changed, and seal is no longer requested for opening the bank accounts. In 2018, Kazakhstan prohibited state bodies and financial organizations to demand a seal from private business entities.
However, in practice the majority of companies continue making a company seal to interact with counterparts (suppliers and clients).
Time and cost: 1 day, KZT 5,000 – KZT 8,000
Open the current account in the bank
Agency: Commercial Bank
Based on Art. 25 of the Law No. 11-VІ “On payments and payment systems”, legal entities must have bank accounts to operate. To open a current account, the founder typically must provide the bank with the following documents:
- Cards with sample signatures and an imprint of the company seal.
- Copy of the state registration certificate of legal entity from the registration body of the Ministry of Justice of the Republic of Kazakhstan.
- Copies of identity documents for person(s) listed on the signature card(s) and company founders.
- Application for bank account setup (bank-provided form).
The exact list may vary depending on a specific bank.
It is possible to submit an application for electronic opening of a bank account on the web-portal “e-government” at the stage of registration of a legal entity. For electronic opening of a bank account it is necessary to submit:
- An application;
- Application for accession to the Agreement between bank and client;
- The bank questionnaire;
- The Charter;
- Samples of signatures;
- Order and decision on appointment of the head of a legal entity;
- Trust (in case of filing a legal entity from a trustee).
However, the majority of newly incorporated companies continued visiting the bank in person in order to open a bank account.
Time and cost: 1 day, no charge
Register for the obligatory insurance of life and health for employees
Agency: Insurance Company
Each employee should have employer-paid insurance according to the Law On Obligatory Insurance of The Liability of the Employer for Life and Health Tort to The Employee in Discharge of Labor and (Official) Duties (February 7, 2005) that became effective on July 1, 2005.The amount of insurance premium payable by an employer depends on insurance risks and wages. To assess risks, the insurance companies place all insurable personnel into three categories: administrative, operational, and support. Amounts of the insurance premium vary from 0.04% to 9.99%. The employer is obliged to conclude a contract of compulsory insurance of the employee against accidents with the insurer during the first decade of the month following the month in which the company commenced the activity.
Payment of insurance premium (set out in an insurance agreement) is required.
- The amount of the insurance premium depends on insurance risks and the amount of annual payroll fund and is calculated as the amount of insurance coverage multiplied by an insurance tariff which as set out by the law in the range of 0.12% to 2.96%.
- Insurable personnel is not divided into three categories (administrative, operational and support) as previously for the purposes of risk assessment.
- An employer is required to get an insurance policy within the first 10 days of the month following the month of company registration.
Since January 1, 2018, according to the Law of the Republic of Kazakhstan No. 49-VI dated 27 February 2017 “On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Improving Civil, Banking Legislation and Improving Conditions for Entrepreneurial Activity” there is an opportunity for small and medium-sized business entities to apply for conclusion of the agreement on compulsory insurance of employee from accidents upon performance of labor duties by them electronically along with submission of application on state registration of the company via “electronic government” web-portal.
Time and cost: 1 day (simultaneous with previous procedure), no charge