Deciding to establish a business location in the Kyrgyz Republic, also known as Kyrgyzstan, will open up doors to new business relationships, the opportunity to work with talented employees, and more. However, before you can start to realize these benefits, you need to set up your Kyrgyz Republic subsidiary, hire employees, and provide compensation and benefits.
G-P understands the challenges of global expansion, which is why we provide an alternative to entity setup. When you partner with an EOR like G-P, you can start hiring in minutes instead of spending months figuring out how to set up a Kyrgyz Republic subsidiary.
How to set up a Kyrgyzstan subsidiary
Learning how to set up a Kyrgyz Republic subsidiary can turn into a lengthy process, and failing to comply with any of the country’s laws could result in fines or delays.
Different regions or cities in the Kyrgyz Republic may operate like states with their own laws, costs, and availability. If you’re not familiar with the different locations in the Kyrgyz Republic, you should work with a consultant who can help you find the best place for your subsidiary.
You should also consider what activities you’ll pursue in the Kyrgyz Republic. The country has several different entity options for your incorporation, such as a limited liability company (LLC), public limited company, representative office, branch office, and more. It’s important to choose an entity that align with your business goals.
Companies often incorporate as an LLC since it provides the most flexibility. The steps to set up your Kyrgyz Republic subsidiary as an LLC include:
- Preparing your by-laws
- Creating an in-country bank account
- Creating contracts with the notary public
- Filing all required documents with the relevant justice authorities
- And more
Kyrgyzstan subsidiary laws
The Kyrgyz Republic’s subsidiary laws vary by both location and entity. LLCs require 1 director and 1 shareholder who can be of any nationality, but the sole shareholder cannot be a corporate entity. There is no minimum share requirement to set up this entity. An LLC cannot have more than 30 shareholders — otherwise, it has to be a joint stock company within 1 year or face liquidation.
Since LLCs operate like a resident company, you’ll be subject to the same Kyrgyz Republic subsidiary laws related to taxes. You’ll need to file an annual tax return and financial statements to stay compliant. Overall, it can take about 3 months to set up your Kyrgyz Republic subsidiary as an LLC.
Benefits of setting up a Kyrgyzstan subsidiary
Although it’s time-consuming, going through the Kyrgyz Republic subsidiary setup process will allow you to start working in the country. The limited liability structure will also help you protect your parent company and subsidiary, as each will operate somewhat independently from the other. That said, you can get more benefits out partnering with an EOR like G-P. We’ll help you start working in a fraction of the time without the hassle of entity setup.
Other important considerations
Setting aside the time and money you’ll need before incorporating can help make the process easier. Talk to your accounting department about the cost of the Kyrgyz Republic subsidiary setup process, and make sure you’re prepared for every fee. You should also clear your schedule to travel back and forth to the Kyrgyz Republic or work with another person in your company to manage the process.
If you set up a subsidiary of your own, we recommend working with an expert in Kyrgyz Republic subsidiary laws. An accountant, lawyer, or consultant can help you stay compliant and avoid any fines or delays.
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