Establishing a subsidiary is one of the most challenging parts of an expansion. Apart from learning all of Kazakhstan’s subsidiary laws, you’ll also have to start a payroll, hire employees, give out compensation and benefits, and meet all the employment compliance laws while continuing to run your company.
G-P offers an easier solution. You can bypass entity setup thanks to our Employer of Record (EOR) model, which enables you to start working quickly instead of waiting months to complete the subsidiary setup process.
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 may have separate subsidiary laws, which is why you should always research a potential location before deciding 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.
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 USD 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 setting up a Kazakhstan 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.
When partnering with G-P, you don’t have to establish a subsidiary. As a global EOR, we’ll hire employees and assign them to work for you, streamline payroll, and make sure you stay compliant throughout the entire process.
Other important considerations
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 task a current employee to learn these laws or choose to hire a consultant, lawyer, or other expert. Working with a global EOR like G-P grants you access to the largest team of HR and legal experts in the industry.
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 4 weeks to set up your LLP, it can take longer if you miss a deadline or misunderstand a step.
Enter new markets with G-P — no new entities required.
Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 Global Growth Platform™ to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.
Get in touch today to learn more about how we can streamline the global growth process.