Amendments and additions introduced to the legislative acts regarding the state registration of rights to real estate and legal entities
On January 26, 2021, the President of the Republic of Kazakhstan signed the Law “On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on the State Registration of Rights to Real Estate and Legal Entities” No. 412-VI ЗРК (hereinafter – the “Law”). The Law came into force 07.02.2021.
Changes in the composition of participants / increase in the charter capital of a partnership are common grounds for re-registration of a partnership / notification of state bodies. In this regard, legal entities need to prepare and submit documents to state authorities within the period provided for by law for re-registration / notification in order to properly display the changes made to the state register.
Major changes to the Law relate to the following issues:
- The list of documents required for re-registration of partnerships due to the change in the composition of participants has been extended
According to the Law, it is required to submit an agreement on the transfer of the exiting participant’s right to the share in property (charter capital) of a partnership or its part in accordance with the laws of Kazakhstan and constituent documents in order to conduct the state re-registration of a partnership due to the change of its participants.
The exception is the partnerships in which the register of participants is maintained by a professional participant in the securities market.
If a party to the agreement on the transfer of the right of the exiting participant to share in property (charter capital) of a partnership or its part is an individual, such agreement is subject to notarization.
- Exclusion of administrative liability for violation of the term of registration of rights to real estate
The Law excludes Article 460 of the Kazakhstan Code “On Administrative Violations” which used to foresee the liability for persons / legal entities violating terms of registration of rights to real estate.
- Introduction of clarifications regarding the term for notification of the state authorities on increase of the charter capital
The Law stipulates that a standard one-month term for notification of the state authorities shall not be applicable to cases required for partnerships to notify the state authorities on increase of charter capital. Partnerships shall be obliged to notify the state authorities on increase of a charter capital within three months from the date of adoption of a relevant decision.