Establishing a business in Kazakhstan

Establishing a business in Kazakhstan is generally no more challenging than in countries such as Ukraine or other Russian-speaking markets. However, there are less possibilities to use electronic services than for example in the EU. This means that paper documents must be gathered and shipped to Kazakhstan during the establishment process.

Usually, companies choose from three options:

– A representative office enables the parent company to perform actions such as marketing or advertising in Kazakhstan. The representative office can only have expenses such as marketing expenses and salaries, but no income-generating activity i.e. their own sales.

– A branch office allows the parent company to perform the same business activities that the parent company is performing. The branch office can have its own income, so it differs from the representative office in that way. The representative office and branch office are not separate legal entities, they are a part of the parent legal entity. This means that the parent entity carries full financial and legal responsibility for their activities.

– A Limited Liability Partnership or LLP (TOO in the local terminology) is a separate legal entity that can perform a full variety of business activities in Kazakhstan. Establishing a company in the form of a LLP can be done by physical persons or legal persons (the parent company abroad). This is the usual choice for companies that want to establish a daughter company in Kazakhstan. For establishment, the following documents are required:

1) decision to establish an LLP from the parent entity
2) an extract from the commercial register for the parent entity
3) a power of attorney for your legal representative in Kazakhstan
4) passport of the director of the parent company

The above documents need to be apostilled.

5) The company charter in English, Russian and Kazakh languages
6) Lease agreement and documents for the new company´s premises
7) Data on the director of the new LLP
8) Bank details of the parent company, its legal address
9) the desired name of the new LLP

It´s highly recommended to use the services of a legal firm when establishing a company in Kazakhstan to help with the process. Some of the documents, such as the charter and power of attorney require local expertise to formulate. 

In case you would like assistance in expanding your business to Kazakhstan, feel free to contact Leinonen and we will help you with the process.

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