www.pwc.kz Doing Business Guide Kazakhstan June 2016 PWC IN KAZAKHSTAN www.pwc.kz Almaty Office: Astana Office: PwC PwC 34 Al-Farabi Ave. Kabanbay Batyr Avenue 15/1 Building A, Business Centre “Q2”, 4th floor 4th Floor 4th floor Almaty, 050059, Astana 010000 Republic of Kazakhstan Republic of Kazakhstan Main office number Main office number Tel: +7 (727) 330 3200 Tel: +7 (717) 255 0707 APPENDICES Please see Appendices A through C for key facts and tax and legal information. OUR LEADERS Mark Hannye Dana Inkarbekova Michael Ahern Managing Partner, Country Managing Partner, Partner, Leader of Tax & PwC Eurasia PwC Kazakhstan Legal Services, Eurasia Tel: +7 (727) 330 32 00 Tel: +7 (727) 330 32 00 Tel: +7 (727) 330 32 00 Email: [email protected] Email: [email protected] Email: [email protected] Doing Business Guide June 2016 TABLE OF CONTENTS 1 KAZAKHSTAN – A PROFILE ............................................................................................................ 6 1.1 Government Structure ....................................................................................................... 6 Overview ............................................................................................................................... 6 The President ........................................................................................................................ 6 National Government ......................................................................................................... 6 Local Government ............................................................................................................... 7 The Parliament ..................................................................................................................... 7 Courts ..................................................................................................................................... 8 1.2 Legal System ....................................................................................................................... 8 Legislative Framework ....................................................................................................... 8 Hierarchy of normative legal acts .................................................................................. 10 International Agreements ................................................................................................ 11 1.3 People ................................................................................................................................. 12 Population ........................................................................................................................... 12 Language ............................................................................................................................ 12 1.4 Economy ............................................................................................................................ 13 General Overview .............................................................................................................. 13 Transportation ................................................................................................................... 14 1.5 Foreign Trade .................................................................................................................... 15 2 BUSINESS ENTITIES ........................................................................................................................... 16 2.1 Legal Framework .............................................................................................................. 16 2.2 Limited Liability Partnership ......................................................................................... 17 2.2.1 Overview ......................................................................................................................... 17 2.2.2 Governing Bodies ......................................................................................................... 17 2.2.3 Charter capital .............................................................................................................. 18 2.2.4 Liquidation .................................................................................................................... 18 2.3 Joint Stock Company ...................................................................................................... 19 2.3.1 Overview ......................................................................................................................... 19 2.3.2 Governing Bodies ......................................................................................................... 19 2.3.3 Share capital .................................................................................................................. 20 2.3.4 Public company ............................................................................................................ 21 2.3.5 Liquidation .................................................................................................................... 21 2.4 Registration Process ........................................................................................................ 22 2.5 Branches and Representative Offices ........................................................................... 23 2.6 Consortium ....................................................................................................................... 23 2.7 Corporate restructuring .................................................................................................. 24 2.7.1 Merger ............................................................................................................................. 24 2.7.2. Division ......................................................................................................................... 25 3 FOREIGN INVESTMENT ................................................................................................................... 26 3.1 General Overview ............................................................................................................. 26 PwC 2 Doing Business Guide June 2016 3.2 Public-Private Partnership ............................................................................................. 28 3.3 Special Economic Zones ................................................................................................. 29 4 FOREIGN CURRENCY MARKET AND FOREIGN CURRENCY RULES ......... 31 4.1 Overview ............................................................................................................................ 31 4.2. Transaction notification with the NBK ........................................................................ 32 4.3. Transaction registration with the NBK ....................................................................... 32 4.4. Contract record number ................................................................................................ 32 5 BANKING AND FINANCE ................................................................................................................. 34 5.1 Banking System ................................................................................................................ 34 5.2. License and requirements ............................................................................................. 35 5.3 Insurance system ............................................................................................................. 35 5.2 Capital Markets ................................................................................................................ 36 6 LABOUR RELATIONS .......................................................................................................................... 37 6.1 Employment contract ...................................................................................................... 37 6.2 Working Conditions ........................................................................................................ 37 6.3 Social Security System .................................................................................................... 38 6.4 Foreign Personnel ............................................................................................................ 38 6.5 Secondment and intercorporate transfer ..................................................................... 39 7 OIL AND GAS, MINING ...................................................................................................................... 41 7.1 Legal Regime ..................................................................................................................... 41 7.2 Subsoil Use Right ............................................................................................................. 41 7.3 Granting of subsoil use right by the state ..................................................................... 42 7.4 Transfer of the Subsoil Use Right .................................................................................. 42 7.5 Transfer of the Subsoil Use Right Restrictions ............................................................ 42 7.6 Participation of the State ................................................................................................ 43 7.7 Local Content ...................................................................................................................