SiteHeart
faq-image

Information sheet. Holding business in the Republic of Kazakhstan.

Majorlegal organizational forms

Major and commonly used business dealing forms in RoK are as follows:

1) legal person Limited Liability Partnership  “LLP”;

2) physical person Sole Proprietor “SP”;

3) registration of business unit under Head legal entity “Branch or representation office”.

Of courses there are other forms, though less attractive but necessary and convenient in certain cases. Well, what makes the above mentioned forms so convenient? 

Limited Liability Partnership

The most commonly used in the country, the reason is that members are not responsible for the Partnership’s obligations and shall bear risks of losses related to the Partnership’s activity within the extent the cost of deposits made by all of them.    

The founders of LLP could be physical persons, legal entities, RoK residents and non-residents, in any proportion of participatory interests, unless otherwise provided under certain normative and legal acts. The registration authority – RoK Justice bodies and tax authorities. 

Sole Proprietors

Physical persons may register their entrepreneurial activity in tax agencies having executed a Sole Proprietor registration certificate and chosen special tax treatment. Special tax treatments are tickets valid for one occasion, patent, work based on simplified declaration which implies covering major tax types in the form of two payments that in some cases may be carried out beforehand. Here we have many details and opportunities for choosing a proper tax treatment type but overall idea is that work in SP form is the simplest one and basically bears most eased tax burden, small and micro business prefer working in SP form.             

“LLP” and “SP” shall also choose status under which they prefer to carry out their activity

LLP may be subject of small, middle-sized and large scale business. SP may be subject of small, middle-sized and large scale business. Small business is characterized by staff number not more than 50 people, assets per annum don’t exceed 60 000 monthly calculation indexes, middle-sized business is characterized by staff number up to 50 people, assets per annum don’t exceed 325 000 monthly calculation indexes, whereas large scale business has no limitation. Small business shall not be entitled to carry out: activity related to turnover of narcotic substances,psychotropic substances andprecursors; production and (or) wholesale realization of excisable products; activity for grain storage atgrain reception centres; arranging lotteries; activity in the area of gambling and show-business; activity in production, treatment and realization of oil, oil products, gas, electric and heat energy; activity related to turnover of radioactive materials; banking activity (or certain types of banking operations) and activity at insurance market (except for the insurance agent activity); auditing activity; professional activity at equity market; loan office activity; security activity. Minimum authorized capital for small business subjects shall be at least 100 KZT, and that for medium-sized and large scale business subjects shall be at least 100 monthly calculation indexes.

Branches and representation offices

Branches and representation offices are business units of the head enterprise which are not legal entities, they are located beyond the head enterprise location and intended for protecting and representing interests of the legal entity, making transactions and other legal actions on its behalf. Divisions and representation offices of foreign companies may be opened according to the same procedure as that for business units of Kazakhstani companies. Branches and representation offices shall have their own office stamp, settlement account and pay local taxes.        

Taxation

The following tax types are envisaged for LLP. Individual income tax, social tax, compulsory pension contributions, social allocations, value added tax, environment pollution due. It’s required to submit reporting statements and cover payment for imposed taxes and other mandatory payments on a quarterly basis.  

Upon year end performance it’s required to deliver reporting statements and provide payment of corporate income tax, transport tax, land tax and property tax. Basic tax rates for the current year of 2011:

MCI (monthly calculation index) 1 512 KZT

MOS (minimum official salary) 15 999 KZT

Refinancing interest rate is 7,5% (since 09 March, 2011, however subject to change)

CIT (corporate income tax) 20% of net profit.

IIT (individual income tax) 10% of one employee’s official salary; it shall be calculated by a certain formula.

Social tax 11% of one employee’s official salary; it shall be calculated by a certain formula.

Social allocations shall be 5% of one employee’s official salary; it shall be calculated by a certain formula.

VAT (value added tax) 12% of the cost of a particular commodity or service.

Branches and representation offices

Due to the fact that branches and representation offices are not legal entities themselves, payment of major taxes shall be provided by the legal entity which created such branch or representation office.

At the legal entity’s discretion its branches and representation offices may be deemed as payers of:

- individual income tax.

- social tax

- tax of vehicles;

- land tax;

- property tax.

Payment of individual income tax and social tax on behalf of branches and representation offices shall be provided to the corresponding budgets wherever such branch or representation office is located. Payment of land tax and property tax shall be provided to the local budget wherever such land piece and property of such branch or representation office is located.    

Information on taxation of branches and representation offices is abstract and doesn’t bear detailed informational load, since taxation depends on particular activity type, chosen treatment type and business specificity.      

Licences and other approval documents

Certain activity types subject to licencing as established under RoK law “Concerning licencing”.  Licences are required for carrying out the activity types in the following areas:

1) industry;

2) nuclear power utilization;

3) turnover of toxic substances;

4) technical safety;

5) transport;

6) turnover of narcotics, psychotropic substances and precursors;

7) providing informational security;

8) special technical means required for arranging operative and investigative activities;

9) turnover of ammunition, defense technology and certain types of weaponry, explosive substances and items with use of explosives;

10) cosmos space use;

11) informatization and communication;

12) education;

13) mass communication media;

14) rural business and forestry, land management, land surveying and cartography;

15) health care;

16) touristic business;

17) gambling business;

18) veterinary;

19) judicial and forensic activity;

20) culture;

21) financial area and activity connected with concentration of financial resources;

22) architecture, town building and construction;

23) manufacturing state symbols of the Republic of Kazakhstan;

24) customs affairs;

25) production and turnover of ethyl  spirit and alcohol products, manufacturing tobacco products;

26) activity related to using currency values;

27) goods export and import.

The following licences shall be executed – general licences– required for performing certain activity types issued without validity period limitation; - one time only licences - required for performing a certain business operation within limits of set approved period, volume, weight or number (in physical or money terms); - operating licences;

The licence form and enclosures hereto shall be established by the Government of the Republic of Kazakhstan.

Поделиться в соц сетях