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.
Globalization Partners understands the challenges of a global expansion, which is why we provide Kyrgyz Republic subsidiary outsourcing services. When you work with us, you can start working in the country in as little as a day, and you won’t have to spend months figuring out how to set up a Kyrgyz Republic subsidiary. We’re here to manage the risk for your company, which means you can focus on growing your business.
How to Set up a Kyrgyz Republic 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. We recommend starting the process with several considerations about your company and location. 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 meets your business goals, as some will give you more or less freedom to operate in the Kyrgyz Republic.
Companies looking to work in the country like a local business 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 and
- Filing all required documents with the relevant justice authorities
- And more
Kyrgyz Republic Subsidiary Laws
The Kyrgyz Republic’s subsidiary laws vary by both location and entity. LLCs require one director and one 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 one 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 three months to set up your Kyrgyz Republic subsidiary as an LLC.
Benefits of Setting up Your Own 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 of Kyrgyz Republic subsidiary outsourcing through Globalization Partners. We’ll help you get started working in as little as a day using our existing PEO. We can also handle all Kyrgyz Republic subsidiary laws on your behalf so that you can operate without worrying about compliance.
What You Need for the Kyrgyz Republic Subsidiary Setup Process
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 who can handle 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 make sure you won’t face any fines or delays.
Globalization Partners Can Help
Globalization Partners is the company you can trust to make your expansion a breeze. Reach out to us today if you want to learn more about Kyrgyz Republic subsidiary outsourcing services.