Doing business in Kyrgyzstan
Population: 6.32 million
Surface area: 200,000 sq.km.
Doing Business 2020 rank: 80th
Kyrgyzstan is located in the heart of Central Asia. The capital is Bishkek. It has borders with Kazakhstan to the north, Uzbekistan to the west, Tajikistan to the southwest, and the People’s Republic of China to the east.
GDP growth in Kyrgyzstan during last decade averaged about 4.5% per annum. Kyrgyzstan exports commodities, mainly gold, copper, and agricultural products.
Kyrgyzstan has been a member of the Eurasian Economic Union (EAEU) since 2015. This has removed barriers between the key trading partners of Kyrgyzstan – Russia and Kazakhstan. The membership in the customs union between Russia, Belarus, Armenia, Kyrgyzstan, and Kazakhstan will boost trade flows and economic growth in the long term.
Kyrgyzstan has rich endowments, including beautiful nature, mountains, lake Issyk-Kul, mineral reserves, forests, arable land, and pastures. There is significant potential for the expansion of its agriculture sector, mining, textiles, tourism, and hydroelectricity generation.
Low labour costs, low cost of utilities such as fuel and electricity, abundant hydropower resources, good weather conditions for agriculture, attractive landscapes for tourism and overall competitive taxation and trade preferences with access to EAEU markets are all factors attractive for investors.
Foreign Direct Investment (FDI) is welcomed in every sector of the Kyrgyz economy without restrictions. Kyrgyzstan has adopted a clear foreign direct investment legal framework, low tax rates, and efficient business bureaucratic procedures. Corporate and personal income tax rates are low and profits are high, which encourage FDI.
Kyrgyzstan has a visa-free regime for 61 countries and simplified process for the short-term tourist visas for visits to Kyrgyzstan of a period of up to 1 month.