Foreign Ownership Restrictions in Kazakhstan

Subsoil sector — transfer permit and state pre-emption right

Kazakhstan's Subsoil and Subsoil Use Code No. 125-VI dated 27 December 2017 does not impose an absolute cap on foreign ownership of subsoil use companies. A transfer requires a permit under Article 44 unless an exemption applies; on strategic subsoil plots the state has a priority right under Article 43. Bond Stone manages the permit and state pre-emption right process on all subsoil sector investment mandates.

Banking sector — regulatory approval required

There is no general cap on foreign ownership of a bank: residents and non-residents may found one (Law on Banks and Banking Activities, Art. 9). Holding 10% or more of the voting shares, or control, needs the prior written consent of the Agency for Regulation and Development of the Financial Market (ARDFM) (Art. 9(2)). A major participant may not be registered in an offshore zone on the ARDFM's list, subject to an exception for subsidiaries of rated non-resident banks (Art. 9(4)). A foreign bank may open a branch if its total assets are at least USD 10 billion and the other conditions in Art. 15 are met; the branch needs a permission and a universal licence.

Insurance sector — regulatory approval

Holding 10% or more of the voting shares of a Kazakhstani insurer needs the prior consent of the ARDFM (Law on Insurance Activity, Art. 26). A foreign insurer may establish a subsidiary, subject to capital and licensing requirements, or a branch if it has total assets of at least USD 5 billion and at least ten years of experience and the ARDFM has a cooperation agreement with its home supervisor (Art. 30-1).

Mass media — 20% foreign ownership cap

Foreign individuals, foreign legal entities and stateless persons may not directly or indirectly own, use, dispose of or manage more than 20% of the shares or interests in a legal entity that owns a mass medium in Kazakhstan or operates in this field (Law on Mass Media No. 93-VIII, Art. 15(2); Law on National Security, Art. 23(6)(3)). The 2024 Law replaced the Law of 23 July 1999. Because the limit covers indirect holdings and management as well as ownership, any structure with a Kazakhstani partner must be tested for foreign participation at every level.

Telecommunications — 49% limit for long-distance and international operators

Foreign persons may not together hold more than 49% of the voting shares or interests in a long-distance or international operator that owns land lines, unless the Government decides otherwise on the conclusion of the communications authority, agreed with the national security bodies (Law on National Security, Art. 23(6)(7)). Acquiring more than 10% of an organisation that owns or operates such a line needs the consent of the communications authority and the national security bodies (Art. 23(6)(6)). Foreign persons may manage or operate trunk lines only through a Kazakhstani legal entity (Art. 23(6)(4)). The sector is regulated by the Ministry of Artificial Intelligence and Digital Development.