Operating a Business

flag Kazakhstan Kazakhstan: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labour | Social Partners

 

Setting Up a Company

Tovarichtchestvo s ogranitchennoi otvetstvennostiou is a limited liability company.
Number of partners: no minimum.
Capital (max/min): Minimum equivalent to 1,000 times the amount of the Monthly Calculation Index.
For small companies: KZT 100

Shareholders and liability: The liability is limited to the amount of share, except in the case of a bankruptcy caused by founders where the liability can be beyond the value of share capital.
Zakrytoye aktsionernoye obchtchestvo is a close cooperation joint stock company.
Number of partners: no minimum.
Capital (max/min): Minimum equivalent to 50,000 times the amount of the Monthly Calculation Index.
Approximately 350,000 USD as of 2021

Shareholders and liability: The liability is limited to the amount of share, except in the case of a bankruptcy caused by founders where the liability can be beyond the value of share capital.
General partnership
Number of partners: No minimum
Capital (max/min): USD 1,000
Shareholders and liability: Limited by contributions.
Limited partnership
Number of partners: No minimum
Capital (max/min): USD 1,000
Shareholders and liability: Liability of general partners is unlimited, that of limited partners is limited to their shares.
The Competent Organisation
Ministry of Justice
 
Setting Up a Company Kazakhstan Eastern Europe & Central Asia
Procedures (number) 4.0 5.3
Time (days) 5.0 11.8

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Kazakhstan.
Invest in Kazakhstan, Business Registration.

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The Active Population in Figures

201820192020
Labour Force 9,034,7379,060,0018,778,458

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 76.38%76.56%76.59%
Men activity rate 81.58%81.72%81.67%
Women activity rate 71.45%71.67%71.76%

Source: International Labour Organization, ILOSTAT database

 

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Working Conditions

Legal Weekly Duration
40 hours
Retirement Age
61 years
Working Contracts
The labor contract is governed by legal provisions and to a lesser extent by collective agreements and individual negotiation.
The formalism of labor contract is very rigid. The procedures for layoff and hiring are rather flexible.
Labour Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labour

Minimum Wage
In 2021, the minimum wage is KZT 42,500 per month according to the Ministry of Finance of Kazakhstan.
Average Wage
According to data from the Statistics Agency of Kazakhstan, the gross average monthly wage is around KZT 223,213 in 2021.
Social Contributions
Social Security Contributions Paid By Employers: 20% of covered earnings (3,5% for social insurance, 2% for health insurance, 5% for pension and 9.5% for social tax).
Social Security Contributions Paid By Employees: Every employee should pay 10% of his salary to a pension fund whose present withdrawals benefit them and they should also contribute to their own withdrawal as well as 2% of his salary for health insurance.

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Social Partners

Social Dialogue and Involvement of Social Partners
The employees are protected against any anti union discrimination by the law. But violations to this law have taken place (union members have been dismissed and threatened). Big enterprises have also created conditions so that creation of a union and collective negotiations are rendered impossible.

The law guarantees the right to strike but its application is legally highly controlled. The government has drawn a list of strategic industries and companies in which strike is authorised according to certain conditions. Generally, the employees can only go on strike if a dispute has not been resolved through existing arbitration channels. The employees should necessarily give the employers an advance notice of 15 days for the strike.

Unions
Federation of Unions
Unionisation Rate
32.8 % in 2006 (as per Federation of Unions)
Labour Regulation Bodies
Labor Ministry

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Latest Update: April 2022