Kazakhstan
Kazakhstan dominates Central Asia economically and politically, generating 60 percent of the region's GDP, primarily through its oil and gas industry; it also has vast mineral resources. Officially, it is a democratic, secular, unitary, constitutional republic with a diverse cultural heritage. Kazakhstan is a member state of the United Nations, the World Trade Organization, the Commonwealth of Independent States, the Shanghai Cooperation Organisation, the Eurasian Economic Union, the Collective Security Treaty Organization, the Organization for Security and Cooperation in Europe, the Organization of Islamic Cooperation, the Organization of Turkic States, and the International Organization of Turkic Culture.
Kazakhstan is one of the major exporters of oil, natural gas, and minerals in the world. Oil and metal exports together account for more than 70% of the total Kazakh export earnings and they represent the main engine of the country’s impressive economic growth in the recent years. Kazakh economy heavily depends on oil exports and this overdependence results in an unstable economic environment especially due to frequently fluctuating oil prices in international markets. Therefore, one of the key policy objectives for the Kazakh government is to employ an economic diversification initiative that will encourage investment in other industries and promote a well-balanced economic growth in every sector. Kazakhstan has also embraced economic policies aiming to stimulate its economy by promoting free trade practices, supporting small and medium-sized businesses, encouraging foreign direct investment, and increasing R&D in non-oil industries as well as in technology-based sectors, in addition to modernizing its energy industry.
Kazakh economy has demonstrated a remarkable rate of growth in the recent years. This trend is likely to continue in the next decade as a result of the country’s economic reforms and strategic development plans, which attract foreign direct investment to Kazakhstan. Furthermore, the abundance of valuable natural resources along with the prospects from oil reveals a bright outlook for the future economic condition in Kazakhstan.
Today, products made in Kazakhstan are exported to 117 countries. Last year, Kazakhstan ranked 52nd among 204 countries with a share of 0.23 percent of global exports. Mainly, the state exports raw materials. But, in the past 10 years, exports of services have almost doubled.
Since 1993, the Kazakh banking system has been formally arranged into two tiers, with the National Bank of Kazakhstan (NBK) comprising the first tier and all commercial banks, both private and state-owned, comprising the second tier.
Kazakhstan tax residents are subject to personal income tax on worldwide income, while non-residents are taxed on their Kazakhstan-source income only. An individual's income in Kazakhstan is taxed at a flat rate of 10% (dividend income taxed at 5% unless specifically exempted).
Kazakhstan has taken a leading position among CIS countries over recent years for the volume of direct foreign investment per capita.
The accepted legislation acts and organisational procedures have strengthened the investment attraction of the country and, accordingly, promoted inflow of foreign investments to the Kazakhstan economy. As the result, Kazakhstan has been the leader among the CIS countries for direct foreign investments per capita over several years and received the international rating of an investment class first among the CIS countries.
Practically all forms and stages of doing business in Kazakhstan are legally regulated. A large number of subordinate acts (instructions, orders, etc.), which are mandatory and binding, are in effect alongside with the principal statutory acts (laws, Government decrees, etc.).
With the country's rich oil and gas reserves and booming economy, many expats find doing business in Kazakhstan an attractive prospect. From mineral resources and space technology, to opportunities in agriculture and finance, Kazakhstan has a lot to offer. In the World Bank's Ease of Doing Business Survey for 2020, Kazakhstan achieved a rank of 25th out of the 190 countries surveyed. The country did particularly well in categories such as enforcing contracts (4th) and protecting minority investors (7th), but fell short in ease of trading across borders (105th). The most common complaint among expats doing business in Kazakhstan is the bureaucracy that seems to lurk around every corner. This is a legacy of the bygone Soviet era and is something that should be taken into account when planning business operations. Despite its lingering bureaucratic issues, Kazakhstan's economy is the largest in Central Asia and, as such, it is an excellent destination for those looking to do business.
Under Kazakhstan IP legislation, it is an exclusive right of an individual/company to reap the benefits of intellectual creative activities and means of individualization of a company, production of an individual/ company, works performed or services rendered thereby (including trade name, trademark, service mark, etc.). Intellectual property forms two groups: results of intellectual creative activity, and means of individualization of civil turnover participants, goods, works or services.
Exclusive right to the results of intellectual property-related activities or means of individualization is a property right of its owner to use the object of intellectual property by all means and at his/her discretion. Other persons would be allowed to use exclusive rights only subject to the owner's consent.
In order to protect a trademark or a patent from infringements, the owner of such IP needs to ensure their appropriate registration in Kazakhstan. Failure to register IP rights may easily lead to violation of such rights. Foreign individuals or companies may apply for registration of intellectual property only through a registered patent attorney (patent agent).
Kazakhstan's legal system classifies as a Romano-Germanic (continental) system of law.
The basic law having the highest legal force is the Constitution adopted in 1995 at a national referendum. The law currently in effect in Kazakhstan is the regulations of the Constitution, the Constitution-compliant laws and other legal acts, international treaties and other obligations of the Republic of Kazakhstan (RK), and the regulatory resolutions of the Constitutional Council and the Supreme Court. The international treaties ratified by Kazakhstan prevail over the national legislation and apply directly, unless the international treaty requires a special act to be issued in order for the treaty to apply.
Kazakhstan's law application and enforcement practice cannot boast uniformity. Same-level courts can issue different, sometimes contrary, judgments in similar disputes. This may to a certain extent be explained by the fact that, formally, judicial precedent is not the source of law in Kazakhstan. In practice, the provisions of regulatory legal acts often find different, sometimes mutually contradicting interpretation by different governmental agencies.
Currently, Kazakh legislation is going through the stage of harmonization with the unified supra-national legislation of the Eurasian Economic Union. The past several years witnessed the adoption of a large number of international treaties establishing the unified principles of governmental agencies' work and commercial activities regulation in the Union’s territory.
Our law firm VLO provides legal services for corporate and private clients in Kazakhstan. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
Kazakhstan is one of the major exporters of oil, natural gas, and minerals in the world. Oil and metal exports together account for more than 70% of the total Kazakh export earnings and they represent the main engine of the country’s impressive economic growth in the recent years. Kazakh economy heavily depends on oil exports and this overdependence results in an unstable economic environment especially due to frequently fluctuating oil prices in international markets. Therefore, one of the key policy objectives for the Kazakh government is to employ an economic diversification initiative that will encourage investment in other industries and promote a well-balanced economic growth in every sector. Kazakhstan has also embraced economic policies aiming to stimulate its economy by promoting free trade practices, supporting small and medium-sized businesses, encouraging foreign direct investment, and increasing R&D in non-oil industries as well as in technology-based sectors, in addition to modernizing its energy industry.
Kazakh economy has demonstrated a remarkable rate of growth in the recent years. This trend is likely to continue in the next decade as a result of the country’s economic reforms and strategic development plans, which attract foreign direct investment to Kazakhstan. Furthermore, the abundance of valuable natural resources along with the prospects from oil reveals a bright outlook for the future economic condition in Kazakhstan.
Today, products made in Kazakhstan are exported to 117 countries. Last year, Kazakhstan ranked 52nd among 204 countries with a share of 0.23 percent of global exports. Mainly, the state exports raw materials. But, in the past 10 years, exports of services have almost doubled.
Since 1993, the Kazakh banking system has been formally arranged into two tiers, with the National Bank of Kazakhstan (NBK) comprising the first tier and all commercial banks, both private and state-owned, comprising the second tier.
Kazakhstan tax residents are subject to personal income tax on worldwide income, while non-residents are taxed on their Kazakhstan-source income only. An individual's income in Kazakhstan is taxed at a flat rate of 10% (dividend income taxed at 5% unless specifically exempted).
Kazakhstan has taken a leading position among CIS countries over recent years for the volume of direct foreign investment per capita.
The accepted legislation acts and organisational procedures have strengthened the investment attraction of the country and, accordingly, promoted inflow of foreign investments to the Kazakhstan economy. As the result, Kazakhstan has been the leader among the CIS countries for direct foreign investments per capita over several years and received the international rating of an investment class first among the CIS countries.
Practically all forms and stages of doing business in Kazakhstan are legally regulated. A large number of subordinate acts (instructions, orders, etc.), which are mandatory and binding, are in effect alongside with the principal statutory acts (laws, Government decrees, etc.).
With the country's rich oil and gas reserves and booming economy, many expats find doing business in Kazakhstan an attractive prospect. From mineral resources and space technology, to opportunities in agriculture and finance, Kazakhstan has a lot to offer. In the World Bank's Ease of Doing Business Survey for 2020, Kazakhstan achieved a rank of 25th out of the 190 countries surveyed. The country did particularly well in categories such as enforcing contracts (4th) and protecting minority investors (7th), but fell short in ease of trading across borders (105th). The most common complaint among expats doing business in Kazakhstan is the bureaucracy that seems to lurk around every corner. This is a legacy of the bygone Soviet era and is something that should be taken into account when planning business operations. Despite its lingering bureaucratic issues, Kazakhstan's economy is the largest in Central Asia and, as such, it is an excellent destination for those looking to do business.
Under Kazakhstan IP legislation, it is an exclusive right of an individual/company to reap the benefits of intellectual creative activities and means of individualization of a company, production of an individual/ company, works performed or services rendered thereby (including trade name, trademark, service mark, etc.). Intellectual property forms two groups: results of intellectual creative activity, and means of individualization of civil turnover participants, goods, works or services.
Exclusive right to the results of intellectual property-related activities or means of individualization is a property right of its owner to use the object of intellectual property by all means and at his/her discretion. Other persons would be allowed to use exclusive rights only subject to the owner's consent.
In order to protect a trademark or a patent from infringements, the owner of such IP needs to ensure their appropriate registration in Kazakhstan. Failure to register IP rights may easily lead to violation of such rights. Foreign individuals or companies may apply for registration of intellectual property only through a registered patent attorney (patent agent).
Kazakhstan's legal system classifies as a Romano-Germanic (continental) system of law.
The basic law having the highest legal force is the Constitution adopted in 1995 at a national referendum. The law currently in effect in Kazakhstan is the regulations of the Constitution, the Constitution-compliant laws and other legal acts, international treaties and other obligations of the Republic of Kazakhstan (RK), and the regulatory resolutions of the Constitutional Council and the Supreme Court. The international treaties ratified by Kazakhstan prevail over the national legislation and apply directly, unless the international treaty requires a special act to be issued in order for the treaty to apply.
Kazakhstan's law application and enforcement practice cannot boast uniformity. Same-level courts can issue different, sometimes contrary, judgments in similar disputes. This may to a certain extent be explained by the fact that, formally, judicial precedent is not the source of law in Kazakhstan. In practice, the provisions of regulatory legal acts often find different, sometimes mutually contradicting interpretation by different governmental agencies.
Currently, Kazakh legislation is going through the stage of harmonization with the unified supra-national legislation of the Eurasian Economic Union. The past several years witnessed the adoption of a large number of international treaties establishing the unified principles of governmental agencies' work and commercial activities regulation in the Union’s territory.
Our law firm VLO provides legal services for corporate and private clients in Kazakhstan. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
