Business in Kazakhstan: features, conditions of registration, tips and tricks
The Republic of Kazakhstan is an independent state with a large-scale territory, which forms international business relations. Currently, the economy of Kazakhstan is developing dynamically, conditions are provided for the rise and expansion of small and medium-sized businesses. In addition, the great advantage of this country lies in its rich content of minerals such as, for example, uranium or oil. Kazakhstan is an excellent arena for doing business.
Peculiarities of doing business in Kazakhstan
The main thing is that your own business does not contradict the cultural norms and disciplinary orders prevailing in this republic. This rule mainly applies to advertising and travel agencies.
It is preferable to start your own business with the most popular and generally accessible spheres of activity, reliable and proven over the years: production or trade. Despite the serious competition, the limit of integration is much lower here, and it is much easier to acquire financial support from the state than it seems.
Small and medium business for this country is quite valuable and privileged. Big entrepreneurs have never been deprived of government support either. In the latter, considerable investments are being introduced both from foreign partners and through state investments.
At the moment, the main source of income in the country is the oil refining industry and metallurgy. Kazakhstan is engaged in the export of large quantities of gas, oil and metal.
Business immigration to Kazakhstan
Many serious businessmen strive to immigrate to this country, not only for the successful promotion of their company, but also for a stable stay in it with family members.
Citizens of the CIS countries have the right to enter the territory of Kazakhstan without a visa. It is only necessary to have a passport. Visa-free immigration entitles a foreigner to stay in Kazakhstan for 90 days. After this period, the citizen should legalize residence in the relevant authorities.
The government of Kazakhstan does not welcome mass immigration. To move to this country, a citizen must have a reason, for example:
- doing business;
- getting married;
- looking for a job;
- getting an education.
Starting a business in Kazakhstan is a good idea, since all conditions have been created for this in the country. The government encourages the initiative of active people who want to have their own business by actively introducing appropriate programs. Moreover, the economy of the state is developing, as a result of which the standard of living and purchasing power rises.
Benefits of Doing Business in Kazakhstan
It's worth starting with the fact that the registration procedure with the tax authority has been simplified to clear and fast processes. The license can be obtained without much difficulty.
Also in Kazakhstan there are many banks with high ratings and no sanctions. All this is complemented by a well thought out tax system that does not overload the entrepreneur's budget. In addition, there are also certain benefits. In a word, it is easier to open and develop a business in Kazakhstan than in other CIS countries.
In order to attract young people to entrepreneurship, the authorities are initiating the launch of various programs aimed at supporting citizens and non-residents of the country who have decided to start their own business.
Those who open a business in Kazakhstan mainly choose between an individual enterprise (IE) and a limited liability partnership (LLP). These are the most popular and convenient organizational and legal forms on the territory of a given state.
What you need to know about IP
It doesn't take much effort to register a business in Kazakhstan using the form of an individual enterprise. At the same time, there are a number of features of doing business that you need to pay attention to:
- Paying corporate tax for individual entrepreneurs will need to be at a rate of 10%.
- The ability to work under a patent is available. With this scheme, there is no need for accounting.
- An entrepreneur cannot have more than 25 employees.
- A simplified tax return can be used if necessary.
- A cash register is required if goods are sold, on the sale of which excise duty must be paid. In all other cases, its presence is optional.
- IE can be sold as a separate property of the entrepreneur. It is important to understand that with such a decision, the company's reputation can be nullified.
- An individual entrepreneur is responsible for all debts with his property.
- The company can be removed from the simplified taxation system. This happens on condition that the quarterly income is above the mark of 10 million tenge (approximately 54 thousand USD).
Choosing such a form of doing business as an individual enterprise is better for those who are going to build their own business alone, that is, without partners.
The aspiring entrepreneur may find that small businesses are the same in every country. Tire fitting in Astana is no different from that in Moscow, and grocery stores in Minsk and Yerevan can only be distinguished by the labels on the goods. However, some business ideas for beginners in Kazakhstan in 2021 need to be adjusted taking into account local specifics and government policies.
For example, in the Republic of Kazakhstan, franchises of all kinds of directions are very developed - from children's goods to atmospheric water generators. It is easier for an entrepreneur to get a detailed guide on how to start a small business in Kazakhstan than to step into the new and unknown.
Of course, working under a popular brand is much easier. You will receive advice on working with suppliers, pricing policy and retail outlet design. But your own business is one of those that can be opened for business in Kazakhstan, so it is interesting that you conquer the market on your own, gain invaluable experience and maintain independence.
Cozy coffee shop
The popularity of coffee has grown tenfold in recent years and has not yet reached its limit. Along with it, the culture of drinking this drink is also growing, making the opening of a small coffee house looks like a promising small business idea for beginners in Kazakhstan.
Opening an establishment for 15–20 seats is quite within the power of a beginner thinking about how to open a coffee shop from scratch. A suitable room for this must meet several requirements:
- Proximity to traffic, recreation or shopping malls;
- Ground floor with separate entrance;
- Large windows or shop windows; <
- Availability of parking and outdoor area;
- Suitability for use as a catering establishment, about which you need to obtain an appropriate expert opinion from the SES.
It is possible that the hall of the future coffee house needs renovation - however, do not rush to order template options from the builders. Visitors are attracted not only by coffee and renovation: half of the success of this business idea in Kazakhstan in 2021 is made up of a cozy atmosphere, a musical background, a special mood in the interior - this can be achieved with the help of relatively low costs. Standard furniture will also not add zest to the establishment, because the owners often attract designers and find use for their own artistic talents. To open a business, you need to purchase and decorate in the chosen style several tables, a bar counter, a coffee showcase, two or three bar stools.
The main cost item is the coffee machine. For a load of 150-200 cups a day, look for semi-pro equipment (about $ 1,500). If the coffee shop turns out to be more popular, you will have to purchase a professional model (up to $ 5,000). Fortunately, suppliers often offer cars for rent at a nominal price, provided that they purchase 3-5 kg of coffee or several sets of coffee (coffee beans, cups, packed sugar) monthly. In addition, the coffee machine needs service and cleaning twice a year ($ 100).
Despite the initial investment of 10-12 thousand dollars, this new idea for business in Kazakhstan pays for itself in a year and a half, and the product margin is 200-300%. An additional item of your income can be the sale of grain coffee of various varieties and equipment for its preparation.
This is interesting! In the Doing Business 2021 ranking, the country ranks 35th, which is 6 points higher than in 2021.
Business idea for Kazakhstan apartments for rent
As you know, housing in different capitals of the world is quite expensive. This also applies to Kazakhstan.
A rented apartment is not cheap. Renting out apartments is quite an acceptable and successful business.
Apartment owners who want to receive a stable, and even easy income, can choose this business option. But this offer can be promising if you have your own apartment.
And if you decide to first take out a loan, buy an apartment, and then rent it out, then this is not the best business. After all, these investments cannot be so profitable.
In order to recoup such an idea, it will take more than one year. And if a mortgage is also involved in this business, then the net profit will have to wait long enough.
The danger in this type of business is that property prices are volatile. They are constantly jumping up and down.
Besides, it should be borne in mind that tenants are not always friendly. And the owner will have to invest money from time to time in redecorating the apartment.
It is profitable to rent out housing that you have inherited or purchased for a pittance.
You can always make money in an apartment where no one lives. If, of course, you yourself have a place to live. But even in this case there is another option for renting an apartment - daily or hourly.
Incomes are much higher here, but be prepared for more hassle. After all, you have to constantly look for tenants, clean the apartment more often, and make repairs also faster.
Kanat Ayaganov, one year old, hometown - Omsk, owner of WedPeople magazine and PhotoKukhnya photo studio
I moved to Astana on January 14, 2021 from Omsk. I came here periodically for work, and I liked the rhythm of the city, its people. I saw and see great potential and prospects that can be realized in Astana. I also have two children, and I wanted to create good conditions for their development.
The main difficulty was to decide to move and leave the already ready and well-established business. I began to analyze the market in which I was going to work, to take actions to achieve my goals.
I have two directions in business - a family photo studio “Fotokuhnya” and a wedding magazine and agency WedPeople. Both cases bring positive energy and make people happy. We become a part of each client's story. It is important for me that customers are satisfied, so we try to improve the service and exceed expectations in both directions.
We become part of every customer's story
During my travels to Kazakhstan, I noticed a shortage of qualified professionals in the wedding industry. Therefore, five years ago I launched the 3 LIMONA KZ project, which still pleases many newlyweds.
There are peculiarities when doing business by foreign citizens in Kazakhstan. As a citizen of another country, I do not have the right to be the sole founder of the magazine - I can only have 30% in publishing. This can become a serious problem, but I was lucky - I have relatives living in Astana who agreed to help and were part of the magazine's share.
Kazakhstan is a promising market, many areas have not yet been mastered. There are many event organizers in Astana, but most of them work at a low level - without taste and ideas. We try to make a meaningful and more expensive product from any budget. It is important for us that the budget is optimized correctly.
Kazakhstan is close to me, because I am Kazakh. I feel at home here, it seems to me that I have lived here for a long time. I have visited 17 cities of Kazakhstan - the people of Kazakhstan are good-natured, responsive and decent. I like Almaty, I always come there with pleasure, but I also have warm feelings for Astana.
Astana is a city of young people who came to conquer the capital from all over Kazakhstan.
There are many similarities and differences between Kazakhstanis and Russians. The expression "The East is a delicate matter" applies to Kazakhstan. I am still getting used to and adapting to the local mentality.
In the future, I plan to move my parents to Kazakhstan and develop the scale of my business.
Rustyam Azhgeldeev, one year old, hometown - Astrakhan, entrepreneur