Kazakhstan

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:

DOING BUSINESS

 


Local business incentives - Legal forms of companies - Registration and licensing procedures - Legal framework - Foreign exchange control - Regulations concerning equity investment - FDI inflows - Expertise of the political risk

Local business incentives

Within the framework of t he JOP programme (Joined Venture Programme) small and medium-sized companies can benefit from financing aids for the different steps of its setting up and development of new entities. To find out about procedures enabling to benefit from these aids, companies should contact the European Commission. Indeed, The European Commission promotes this programme, evaluates and supports the projects.

 

Legal forms of companies

Form Number of partners/shareholders Minimum and/or maximum capital Liability Registration fee Release of financial documents
Tovarichtchestvo ogranitchennoï otvetstvennostiou is a Private Limited Company. No minimum. No minimum capital. Liability is limited to the amount contributed. In the case of a bankruptcy caused by the founders, liability can be beyond the initial capital value. About USD 2,000. No
Zakrytoye aktsionernoye obchtchestvo is a close joint-stock company. No minimum. No minimum capital. Liability is limited to the amount contributed. In the case of a bankruptcy caused by the founders, liability can be beyond the initial capital value. About USD 2,000. No

Registration and licensing procedures
Only foreign capital companies, duly registered with the Ministry of Justice, are allowed to carry out a commercial activity and legal acts in Kazakhstan.

Foreign exchange control
As for currency exchange regulation in Kazakhstan, free conversion of foreign currencies is carried out as well as the right to repatriate (free of tax) profits generated by the activity, and invested capital with no period of time during which the latter must remain within the territory. However, repatriations require an authorization from the Central Bank.

Regulations concerning equity investment
A majority holding interest in the capital of a local company in Kazakhstan is legal provided that an authorization is issued by the Ministry of Justice.  


Foreign Direct Investment inflows in Kazakhstan

FDI inflows 2003 2004 2005 World rank (*)
2005
FDI inflows (USD million) 2 092 4 113 1 738 26/141
Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.

 

Last modified in 2006 - ongoing update
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