Business in Kazakhstan

Doing business in Kazakhstan offers opportunities in a rapidly developing economy. Here are some specific considerations for entering Kazakhstan:

  1. Cultural and Social Dynamics:
    • Cultural Respect: Kazakhstan has a diverse cultural landscape. Show respect for local customs, traditions, and etiquette.
    • Hospitality: Hospitality is highly valued. Building personal relationships through hospitality can be important in business interactions.
  2. Legal and Regulatory Landscape:
    • Legal Structure: Choose an appropriate legal structure for your business, such as a Limited Liability Partnership (LLP) or a Joint Stock Company (JSC).
    • Foreign Investment Laws: Familiarize yourself with foreign investment regulations and legal requirements for doing business in Kazakhstan.
  3. Language Considerations:
    • Kazakh and Russian: While Russian is widely spoken, especially in business settings, learning some Kazakh phrases can demonstrate cultural respect.
  4. Infrastructure Development:
    • Transportation: Kazakhstan is investing in improving its transportation infrastructure. Consider logistics and transportation challenges when planning your operations.
  5. Natural Resources and Industries:
    • Resource-Rich Economy: Kazakhstan is rich in natural resources, including oil, gas, and minerals. Industries related to these resources present significant business opportunities.
    • Diversification: The government is actively working on economic diversification. Explore opportunities beyond the extractive industries.
  6. Digital Economy:
    • Digital Adoption: The country is adopting digital technologies. Utilize digital marketing and online platforms to reach a wider audience.
  7. Customs and Import Regulations:
    • Customs Duties: Understand customs duties and import regulations. Compliance with customs procedures is crucial for efficient trade.
  8. Workforce Dynamics:
    • Skilled Workforce: Kazakhstan has a well-educated workforce. Invest in talent development and consider local hiring practices.
  9. Banking and Finance:
    • Banking Services: Establish relationships with local banks. Understand local banking practices and financial regulations.
  10. Political Stability:
    • Stable Political Environment: Kazakhstan has maintained political stability. Stay informed about political developments that may impact your business.

Demonstrating cultural awareness, building local relationships, and staying informed about market dynamics are key to success in this dynamic Central Asian market.

Reach out to us, and we will:

  • Undertake market research on the business climate, customer behavior, market trends, and other factors that are important for the success of your business in Kazakhstan
  • Create a business plan for your establishment in Kazakhstan
  • Develop a go-to-market strategy for Kazakhstan

General information

Capital: Astana

Population: 19,000,000

Official language: Kazakh and Russian

Main religion: Islam

Currency: The Kazakhstani tenge (KZT)

Time zone: UTC+6

Economy of Kazakhstan

GDP per capita: $10,373

Economic growth: 4,3%

Unemployment: 4.9%

Inflation: 20.3%

FDI Inflow: $166.4 billion

Business in Kazakhstan

Popular type of legal entity: Limited liability partnership (LLP)

Minimum number of shareholders for LLP: 1

Terms of company registration: 2 weeks

Minimum share capital: depending on the size of the business

Restrictions for foreigners to start a business: No

A local director required: Yes

Corporate tax: 20%

VAT: 12%

Benefits and challenges

Benefits: considerable agricultural potential; consistently high growth, low cost of living and doing business, strategic geographic location

Challenges: corruption, political and economic instability, undeveloped court system

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