Legal Consulting in Kazakhstan
The SCHNEIDER GROUP provides it’s clients in Kazakhstan with the full scope of legal consulting. We provide legal support from set-up of a company and throughout a company’s operation in Kazakhstan. The SCHNEIDER GROUP’s legal professionals provide advice in various matters pertaining to:
- Civil law
- Labor law
- Corporate law
- Tax law
- Migration law
We are highly concerned about the quality of legal consulting services that we provide. That is why our legal professionals are lawyers with work experience in reputable international consulting and legal firms.
Company Registration in Kazakhstan
SCHNEIDER GROUP can help you to register a company in Kazakhstan and help you to choose the most suitable form of the legal entity (LLC, JCS) for your foreign business in Kazakhstan. We are also ready to consult you on various legal matters associated with the set-up of your subsidiary. Also, we can provide you with the support concerning the registration of your representative office or branch office in Kazakhstan. Our services include:
- Preparation of the required necessary documents to open a company,
- Submission of the documents to the state authorities and collecting them after the registration,
- Obtaining the company seal,
- Opening a bank account.
What should you pay attention to when you found your business in Kazakhstan? Foreign investors can conduct their activities in Kazakhstan (importing goods, rendering services, etc.) in different ways:
- Without registration of their companies in Kazakhstan,
- Via a representative office or a branch of a foreign company,
- Via a legal entity established in accordance with Kazakhstani legislation (a subsidiary).
Exporting goods to Kazakhstan or rendering services to Kazakhstani clients without the registration of a company seems to be quite a simple method to conduct business at first sight. However, in the process of rendering services, there can be such problems as obtaining necessary permits. Some tax questions also may need clarification (for example, the defining the exact place where services are rendered is important for VAT calculation). Furthermore, services rendered may lead to the set-up of a permanent establishment. Also, when goods are delivered to Kazakhstan, it is essential to fulfill tedious requirements of the customs office. For quite a long time, representative offices and branches were the most popular forms of a foreign companies’ presence in the Kazakhstani market. Today they still play an important role in the sales of goods and also in the implementation of large construction and assembly projects. However, they are not suitable for importing goods and their subsequent sales to clients. The necessity of setting up a Kazakhstani legal entity (a subsidiary) arises when you want to participate personally in such processes as importing and selling goods or certifing them in accourdance with local legislation. While deciding the form of a legal entity, it is essential to define in advance the way your subsidiary will be financed. The entire process of a company registration in Kazakhstan takes, as a rule, about 4 weeks.
Work Permit and Visa for Kazakhstan
Work permit in Kazakhstan
Foreign citizens who are seeking to be employed in Kazakhstan must obtain the work permit. A foreign citizen may sign an employment contract with Kazakhstani employer only after obtaining the work permit. The SCHNEIDER GROUP may provide our assistance in work permit obtaining for a foreign employee. The need for a work visa will be researched by us on the basis of local regulations and double treaties on visa regimes. We may provide you the following services:
- Consulting with respect to the whole procedure of work permit/work visa obtaining,
- Assisting in the proper choice of a job title and qualifications of the foreign employee,
- Review, amendment and preparation of all necessary documents to be submitted to Kazakhstani labor/migration authorities based on information provided by the company,
- Negotiating and contacting the labor/migration authorities on any issues related to the work permit/work visa,
- Submission of documents required by the labor/migration authorities for the work permit/work visa,
- Obtaining original work permit/work visa to Kazakhstan from labor/migration authorities.
The whole process of work permit obtaining usually takes from 2 to 4 months, while obtaining of work visa takes up to one week on the basis of a valid work permit.
Work / Business visa
Visa is required for foreign citizens and persons without nationality for entry to the territory of the Republic of Kazakhstan, unless other procedure is established by international treatis of the RK. The RK visa is stuck in the passport or another document acknowledged in the RK and certifying the identity, and gives the right to entry to and stay in the RK as well as exit from it or crossing the territory of the RK in transit. The basis of issuing visas of the Republic of Kazakhstan and extension of the term of their validity are letters-invitations executed in the established procedure from the inviting party — Visa Support.
Preparation and submission of reports related to foreign manpower
Please note that pursuant to Kazakhstani legislation an employer employing a foreign employee should submit special reports. These reports should be submitted to the labour authority of appropriate district till 25th of each month. Please also bear in mind that according to Kazakhstani labor legislation a company has to provide its employees with an agreement of compulsory insurance of employee during performance of labor activity. Any kind of internal changes, mostly related to salary have to be amended in form of additional agreements.
Registration with the migration police department
A residence permit is a document confirming the foreigner’s right of permanent residence in the Republic of Kazakhstan. Residence permit receiving is preceded by receiving the permanent stay permit. This certificate is issued for a term of 5 years and allows extension after expiration. A residence permit allows a foreign citizen to carry out labor activities at the whole territory of the RK and also releases the employer from fulfillment of special conditions.
Labor Law in Kazakhstan
Entering the Kazakhstani market can be challenging for foreign companies as they do not know all pitfalls of conducting business in Kazakhstan. We understand that foreign companies need an understanding of Kazakhstani business realities and how to organize their business in Kazakhstan in an efficient way.
We offer services related to HR-administration, which consists of set-up services and reoccuring administrative tasks. We will include the following services into the set-up of each employee:
- Collection of all required personal data of the employees (ID, tax registration, social code, home and registration address, etc.)
- Preparation of T-2 personal cards for each employee
- Preparation of employment order
- Preparation of staff and vacation schedules
- Filling out labor books
Once the set-up is completed, it is followed by regular HR support, which includes the following:
- Consulting with respect to and preparation of forms of internal HR orders regarding employees’ vacation, salary changes and bonuses, training, additional expenses, transfers, etc. based on the information provided by you
- Keeping of orders registers
- Consulting with respect to cases when addendums to employment agreements, notifications and applications are required from/to employees,
- Filling out labor books
- Introduction of changes into staff and vacation schedules
We would like to note that the HR documentation will be prepared in Russian. We also recommend you to conduct HR documentation in Kazakh language.
Labor relations normally arise out of labor contracts which must be conducted in written form. By general rule, a person may enter into labor relations upon reaching the age of 16. However, with written consent of one of the parents, trustees, guardians or adoptive parents, labor contract may be signed with:
- Citizens who have reached the age of 15 years, if they are gaining secondary education in a secondary education institutions
- Students who have reached the age of 14 years to perform work during extracurricular hours which is not a harmful to health and does not interfere with studies
- Persons under age of 14 years in cinematography, theaters, theater and concert organizations, and circuses to participate in the production and/or performance, without causing damage to the health and moral development, extracurricular work which is not harmful to the health and does not interfere with studies.
Labor contracts may not be entered into with foreign nationals and stateless persons temporarily staying in the Republic of Kazakhstan until the employer or the foreign worker obtains a foreign work permit from the local executive authority. According to law, labor contracts may be signed for the following terms:
- For an indefinite term
- For a fixed term of no less than one year. If a labor contract is extended it is deemed to have been
- concluded for an indefinite term. If a labor contract which is signed for a set period exceeding one year for such worker’s job duties, such contract is also deemed to have been entered for an indefinite term
- For the term of performance of a particular work
- For the term of replacement of a temporarily absent employee
- For the term of performance of seasonal work
Labor contracts with chief executives of legal entities (Director, General Director, etc.) and other members of their executive bodies are normally signed by the owner of the legal entity’s property – the employer – or its authorized representative. Such labor contracts, as opposed to labor contracts with other employees, may be terminated at the option of the owner of the legal entity’s property – the employer. Labor contracts may be signed for multiple employments/ secondary/ part-time employment. Labor contracts may be signed for multiple employments/ secondary/ part-time employment either with the CEO’s current employer (at the place of primary employment) or with several employers. Employers may terminate labor contracts at their discretion subject to one of the following grounds: liquidation (winding-up), stuff reduction, the employee’s being until for the position, employee’s misconduct, etc. Employees, however, are permitted by law to terminate employment at their discretion subject to at least 1-month written notice to the employer.
Please note that a job description is not an obligatory HR document in Kazakhstan. However, we recommend you to develop job descriptions for each job title in the staff schedule due to describe in details all job duties of each employee. Please note that each title of the staff schedule requires a unique job description.
HR policies related to business trips, medial insurance and / or meal allowance incl. internal labor policy
We understand that a lot of companies nowadays provide their employees with a various benefits. For this reason we offer our clients to elaborate HR policies related to different types of benefits and describe the process of benefits provision. We would be happy to elaborate such policies for your company or customize the effective global policies in accordance to Kazakhstani labor and tax legislation.
HR Audit and restoring of HR Documentation
If your company is an established business, but you are uncertain whether your HR documentation has been developed in compliance with labour law requirements or you simply lack the time and/or resources to develop proper HR documents, then we are here to help you. Our HR expert will perform full or spot check audits of your documentation as requested. In the process of an internal audit you may discover that your HR documents are not in order. We can assist you in restoring your documentation and bringing in line with both the local legislation and your corporate requirements.
Outstaffing services in Kazakhstan
SCHNEIDER GROUP can act as a legal employer of personnel seconded to your company, providing HR administration, payroll processing, tax calculations and payments for outstaffed specialist.
Liquidation of Companies in Kazakhstan
Although it is fast to register a company in Kazakhstan, the liquidation of a company in Kazakhstan might take some time. Usually, the most difficult part of the process of liquidation is the tax audit, which has its own pitfalls. That is why the liquidation of a company involves not only legal experts, but also accounting and tax experts who will supervise the tax audit. Our legal and accounting professionals act as a team to liquidate a company in the most convenient for the client terms. SCHNEIDER GROUP has successfully liquidated more than 30 companies (LLP’s, branches and representative offices) in Kazakhstan.