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How to Register a Sole Proprietorship in Kazakhstan

February 20, 2021
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The Republic of Kazakhstan is located in Central Asia. This country has a population of over 18 million, and it is the ninth largest country in the world. Its economy is the strongest performing economy in Central Asia, and its GDP rate is at $9,686. In Kazakhstan, the major factor in improving international trade are small and medium enterprises. 

Disclaimer: Be aware that this article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.

Sole proprietorship in Kazakhstan

A sole proprietorship is the simplest structure that could be chosen for the beginning of a business. It is a business type owned and run by one individual without a difference between the manager and the owner. Citizens of Kazakhstan can operate as sole proprietors without registering as a legal entity. But at the point where they hire employees, they must get registered as a sole proprietor.

How to register a sole proprietorship

This is a very straightforward process that lasts no more than a day. You should only send a notification on the commencement of activities as a sole proprietor. The notification is submitted in an online format to the Electronic Government or in-person to the district offices of the State revenue body

The documents you will need to register a sole proprietorship are:

  • Identity card
  • Address
  • Photograph
  • List of business activities

For the business name, you can use either your name or a fictitious trade name.

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Taxation and registration for tax in Kazakhstan

You can choose either a special tax regime (for example, a patent, a simplified declaration) or the generally established tax procedure. 

If your revenue for six months exceeds KZT 1,400, you can choose a simplified declaration, which must be submitted every six months. Tax deductions will be at the 3% rate of the revenue. 

Corporate income tax

Corporate income tax is applied to the income entities operating via permanent establishments in Kazakhstan and receiving Kazakhstan-sourced income. The CIT rate is 20%, and you will be required to submit an annual CIT return by March 31 of the year following the reporting year.

VAT

The Value Added Tax is at 12%, and it is calculated for all the goods and services. 

You can register for tax and get your Tax Identification Number online by filling a form and signing an electronic digital signature.