Kazakhstan - Establishing an Office Kazakhstan - Establishing an Office
Registration is the first step that should be undertaken by a company wishing to operate with a physical presence in Kazakhstan. Depending on the type of business, a company has several options in terms of its legal entity in Kazakhstan. The most typical are branch office, limited liability partnership, or joint-stock company. Representative offices are also used as an initial step to enter the market but are not recognized as separate legal entities and cannot undertake commercial activities. There are a number of U.S. and local service providers that can assist companies establish a legal entity in Kazakhstan; see the U.S. Embassy Commercial Section’s Business Service Providers’ listing.
The government utilizes a “one-stop-shop” for registration and requires documents to be submitted to the local department of the Ministry of Justice. The latter sends all the required documents to the relevant statistical and tax committees via a computerized network. The process should take no more than ten days for registration, but according to the World Bank it takes 12 days on average.
The required package of documents includes, but is not limited to, application for registration, by-laws of the entity to be registered, by-laws of the foreign partner of the joint venture, application form, and documents confirming address. In reality, the registration process might take much longer than the specified time above. Usually the reason for delay is submission of an incomplete package of registration materials, a subjective interpretation of the requirements, or a failure of the government’s computer system. Turning in all requested materials from the start will facilitate processing. There is also a registration fee that varies depending on the type of organization being registered. It is recommended that experienced and well-established legal counsel be used to register a company.
Domestic telephone service is adequate; international service is reliable in major cities but expensive. Mobile phone services, both GSM and CDMA, are available in most cities throughout Kazakhstan. Internet service is currently available at most locations in Kazakhstan. Broadband solutions are available in major cities via cable or satellite, but still expensive. Office equipment (fax machines, telephones, and photocopiers), parts, and service are readily available in major cities of Kazakhstan. Russian is the language of commerce. With the exception of Almaty, Nur-Sultan, Atyrau and several other major cities, it is difficult to find professional English-speaking staff. Training is an essential component to any start-up operation.
Companies interested in working in the oil sector, as well as various types of sub- contractors for the oil majors, may consider opening representative offices in the Caspian Sea region cities of Atyrau, Aktau, or other cities in western Kazakhstan located near the major oil fields.
There is a lack of quality office space in this region and most of the companies tend to establish offices in apartments. The cost per square meter is generally the same as in Nur-Sultan.