Kazakhstan SubsidiaryReading Time: 3 minutes
Establishing a Kazakhstan subsidiary is arguably the most time-consuming and challenging part of an expansion. It’s also necessary to start a payroll, hire employees, and give out compensation and benefits. You have to follow Kazakhstan’s subsidiary laws and meet employment compliance laws while continuing to run your company.
Globalization Partners offers an easier solution through Kazakhstan subsidiary outsourcing. We can use our existing subsidiaries around the world to help you start working quickly instead of waiting months or up to a year. As the Employer of Record, we’re also responsible for compliance, so you can manage your business while we manage the risk.
How to Set up a Kazakhstan Subsidiary
The process of setting up a Kazakhstan subsidiary depends on the entity you choose, the location of your office building, and more. Different locations within Kazakhstan can have separate subsidiary laws like different states do. You should always research a potential location before deciding on it to see if it would be easy or difficult to incorporate there.
Kazakhstan will allow you to incorporate as one of several different entities, including a limited liability partnership (LLP), joint stock company, branch office, or representative office. Each different type of company has its own Kazakhstan subsidiary laws. However, the most popular type of company structure is an LLP because it minimizes risk.
The steps to set up your Kazakhstan subsidiary as an LLP include:
- Registering your legal entity with the state online or in person
- Getting a digital signature and tax registration at the Public Registration Center
- Notarizing certificate of state registration and other post-registration documents
- Opening a local bank account
- Registering for life and health insurance for employees
Kazakhstan Subsidiary Laws
It’s important to follow the Kazakhstan subsidiary laws related to an LLP to avoid costly fines or delays. LLPs are the most common legal entity because owners do not have unlimited liability for the partnership’s losses. If your business runs into any difficulty, your personal assets will not be subject to any risk if you incorporate as an LLP.
You will need a single partner of any nationality to set up your Kazakhstan subsidiary as an LLP. You also have to invest a minimum of $1 in the partnership’s capital and appoint an individual who will act as the director. All legal documents must get translated into either Kazakh or Russian. Finally, you have to notarize all translations before submitting them for incorporation.
Benefits of Establishing a Subsidiary
Establishing a subsidiary is a necessary part of an expansion for most companies. You can benefit from beginning to work in Kazakhstan. Many companies choose to set up their subsidiary as an LLP because it limits partners’ liability to the amounts they contribute to a charter fund.
Globalization Partners provides more benefits through Kazakhstan subsidiary outsourcing. You don’t have to establish a subsidiary when you choose us. As a global PEO, we have many subsidiaries around the world that you can use to expand faster. We’ll hire employees and assign them to work for you, use our payroll to pay your employees, and make sure you stay compliant throughout the entire process.
What Do You Need to Set up a Kazakhstan Subsidiary?
If you decide to go through the Kazakhstan subsidiary setup process on your own, you’ll need to employ an expert in the country’s subsidiary laws. You can either work with a current employee to learn these laws or choose to hire a consultant, lawyer, or other expert. Working with a global PEO like Globalization Partners will mean you get access to our entire team of experts.
We also recommend meeting with your accounting department and other company executives before beginning the incorporation process. On top of the overall fees, some steps may have costs, and your accounting department can make sure you have the necessary funds. Although it takes about four weeks to set up your LLP, it can take longer if you miss a deadline or misunderstand a step. It’s a good idea to work with other company executives to set aside the time everyone will need to travel back and forth to Kazakhstan.
Globalization Partners Can Help
Globalization Partners will free up your time to run your company without additional worry. Contact us today to learn more about Kazakhstan subsidiary outsourcing.