A variety of rules and regulations govern commercial real estate in Kazakhstan. This covers the Kazakhstan Civil Code, the Kazakhstan Land Code, the Kazakhstan Real Estate Law, and the Kazakhstan Investment Law. These laws establish the norms and procedures for acquiring, owning, and using this firm in the country.
Regulations
The procedure of getting title to land is an important part of commercial real estate law in Kazakhstan. Foreign individuals and businesses are not permitted to own land in this country, however, they may lease land for up to 99 years. Leasing land entails receiving approval from local government agencies and registering the lease with the appropriate authorities. Another critical consideration is the regulation of real estate transactions. The transactions must be carried out in conformity with applicable laws and regulations, including the necessity to register the transaction with the appropriate authorities. Kazakhstan also has rules that govern the development and building of the commercial real estate. Before beginning building, developers must secure the necessary permissions and approvals from the appropriate government agencies. Companies must also adhere to environmental and safety requirements.
The procedure for establishing a business
The formation procedure is outlined below:
Determine the type of business entity.
The first stage in establishing a commercial real estate firm in Kazakhstan is determining the type of business entity to be formed. Limited liability corporations (LLCs) and joint stock companies are the most frequent types of commercial entities in Kazakhstan (JSCs). A minimum of one shareholder and a registered office address in Kazakhstan are required for both LLCs and JSCs.
The corporate entity must be registered
The following step is to register the business with the Ministry of Justice. This entails providing the required paperwork, such as the charter of the company, the shareholders’ agreement, and the certificate of incorporation. The registration process usually takes two weeks.
Get the required licenses and permits
Based on the specific activities of this business, extra licenses and permits from the relevant government authorities may be required. For example, if the business involves construction or development, a construction permit from the local authorities will be required.
Register with the appropriate tax authorities
In Kazakhstan, all enterprises must register with the tax authorities and get a taxpayer identification number (TIN). This entails submitting an application to the tax authorities and supplying information on the company’s legal form, address, and activities.
Register with the appropriate labor authorities
If this company intends to hire workers, it must register with the labor authorities and get a work permit. This entails filing an application to the local authorities and supplying information about the company, such as its legal form, address, and personnel count.
Conform to the rules
Finally, the industry must follow all applicable standards, such as environmental, safety, and zoning restrictions. Noncompliance with these regulations may result in fines or other penalties.
Taxes
In Kazakhstan, this firm is subject to several taxes. The following is an overview of the business’s taxes:
Income tax on corporations
The taxable income of the company is subject to corporate income tax. Kazakhstan’s basic corporate income tax rate is 20%.
Value-added tax (VAT)
If its yearly revenue surpasses a specific threshold, the company must register for VAT. Kazakhstan’s regular VAT rate is 12%.
Property taxation
Property tax is levied on the value of its real estate holdings. The tax rate varies according to the location and type of property and is normally levied by local governments.
Land taxation
It is also liable to a land tax based on the value of the land it owns. The tax rate varies depending on the location and intended use of the land and is normally imposed by local governments.
Individual income tax
Commercial real estate firms may also be obligated to withhold and remit personal income tax on their employees’ behalf. Kazakhstan’s normal personal income tax rate is 10%.
