Company formation in Kazakhstan. Licenses and Dissolution

 Updated: April 28, 2021

There a lot of factors that have to be looked at before setting up a business and company formation in Kazakhstan. All of them are tremendously affect the type and scale of business form.

In this chapter we would explore the opportunities of each type of business form, share our practical thoughts on strategy of entering the international companies to Kazakhstan market based on examining of our realized projects of establishing the commercial presence and furthering the business activity for international subsoil use, pharmaceutical and trade companies.

We will next consider the features of license-permit procedure in a relevant subchapter.

Chapter will be finalized by examining the particularities arising out of voluntary business dissolution. We’ll not discuss here the bankruptcy analysis which you may find in the relevant “Dispute Resolution” chapter.       

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We remind that you can get initial legal advice through the email or by phone call.    

Defining the business model and other pertaining legal nuances is a critical initial step of any company formation that mostly affects the success of a business.

Through the years we have built a solid practice of a company formation in Kazakhtan reinforced by our corporate litigation expertise. In this chapter we highlight the issues related to interpretation and implementation of a corporate law and associated legal practices.   

Below for your consideration we offer an exclusive opinion piece on company formation in Kazakhstan. 

In this subchapter we share our recommendations and experience.

To learn more about company formation please follow the link:  

Company Formation in Kazakhstan. Joint venture, branch and representative office registration.

In previous chapter we illustrated the legal issues related to legal entities registration, with a light introduction of advantages which may benefited from a branch (or representative) office registration if used as an initial part of strategy for entering the market.

We have brought to your attention our realized projects by illustration of entering the international pharmaceutical companies into Kazakhstan market.

In this chapter we will highlight the intricacies of a branch and representative office registration for international offices.

To learn more about branch (representative) office registration please follow the link:  

Legal aspects of branch (representative) office registration in Kazakhstan.

In previous subchapter we tried to discover and address specificities of a company formation and branch (representative) office registration. If you have any further questions or would like to start the incorporation in Kazakhstan, Ukraine or Uzbekistan, we’ll be happy to assist you.

In the next subchapter is a brief introduction to a non-trivial issue that should be taken into consideration.

To learn more about drafting founding documents please follow the link:  

Company formation in Kazakhstan. Drafting founding documents (Articles of Association (AoA), Shareholders Agreement (SA), Regulations for Branch (representative) Office

In all its activities, the business undergoes all sorts of changes associated with business development, which is often associated with a change in participants, setting in motion or reducing the authorized capital.

Throughout its life time the business undergoes all sorts of changes towards business development, which is often associated with a change of shareholders, company name, increasing or reducing authorized capital. 

Keeping update the founding documents affects a number of important processes. Government agencies identify legal entities in accordance with their statistical data. These indicators include such information like category of the business, type of activity in accordance with the classifier of types of economic activity, the number of employees and other important assessment criteria that affect monitoring by state bodies.

To learn more about corporate change registration please follow the link:  

Company formation in Kazakhstan. Changing business name, address, changes in the ownership

Those sensitive sectors of the economy, in which national security, law and justice, environmental protection, property, life and health of citizens are in priority, are under additional administration expressed in licensure for certain types of activities in such areas like healthcare, alcohol manufacture and retail, production of tobacco products, construction, subsoil use, import and export.

Licensure is a procedure that verifies the business against qualification requirements, the presence of which predetermines the ability to render services or produce goods.

To learn more about business licenses and permits please follow the link:  

Company formation in Kazakhstan. Business licenses and permits 

The business life cycle is affected by many factors, including the unique business idea, urgency of goals and objectives, profitability, and competition. Typically, the average life-span of firms is no more than 10 years. About half of all start-ups survive five years or more and about one-third survive 10 years or more. 

In any case, if a decision is made to wind up the business, liquidation process provides for a certain procedure, deviation from which would entail incalculable consequences, and therefore, we recommend you to engage experts in this particular field.

To learn more about voluntary liquidation and dissolution please follow the link:  

Company formation in Kazakhstan. Voluntary liquidation of the legal entity. Dissolution of branch and representative offices.