Doing Business in Kazakhstan: a guide for foreign business and investors

About Kazakhstan

Legal system and investment regulation

Kazakhstan is a civil-law jurisdiction. Business is regulated by a codified system (the Civil, Entrepreneurial, Tax, Labour and Land Codes) and by the laws that supplement it. Alongside laws and international treaty obligations, the law in force includes constitutional laws and the normative resolutions of the Constitutional Court and the Supreme Court. Higher-ranking legal acts prevail over lower-ranking ones.

The 2026 Constitution

A new Constitution was adopted at a national referendum on 15 March 2026 and has been in force since 1 July 2026. It has supreme legal force and direct effect, and the way international treaties operate in the country is determined by laws. For the accelerated development of particular territories, a constitutional law may establish a special legal regime, including in the financial sphere. The AIFC and Alatau City, in particular, have such regimes.

Investors' property rights are protected by law. No one may be deprived of property except by a court decision, and compulsory alienation for state needs is allowed only in exceptional cases provided by law and against equivalent compensation. Intellectual property is protected by law. Land and subsoil, water and other natural resources belong to the people, and the state exercises ownership on their behalf; land may also be privately owned on the grounds, conditions and within the limits set by law. In certain cases land may be granted for investment and/or business activities.

Guarantees under the Entrepreneurial Code

The rights of investors, including foreign investors, are protected by the Entrepreneurial Code. Article 276 of the Code guarantees an investor full and unconditional protection of its rights and interests, compensation for harm caused by acts of state bodies that do not comply with laws and by unlawful actions of officials, and stability of the terms of contracts concluded with state bodies. An investor may freely use the income remaining after taxes and other mandatory payments and may open accounts with banks in Kazakhstan in national and foreign currency. The rights of foreign investors are protected equally and to the same extent as domestic business and local investment. The presence of foreign missions in Kazakhstan makes it possible to resolve issues with the involvement of authorised representatives of other states (ambassadors, consuls) in support of investment under the international treaties concluded.

Nationalisation and requisition are allowed only in exceptional cases provided by laws. On nationalisation losses are compensated in full, on requisition the market value of the property is paid, and the valuation can be challenged in court. Investment disputes are settled in stages (through negotiation or an agreed procedure); if that fails, the dispute goes to the courts of Kazakhstan or to arbitration agreed by the parties. Losses caused by unlawful inspections are also compensated. How these guarantees work for subsidiaries and branches of foreign groups is explained in the Frequently asked questions section of our website.

Forms of presence and registration

A foreign company can operate in Kazakhstan through a subsidiary, a branch or a representative office. A financial business can register a company in the Astana International Financial Centre (AIFC). The choice of form of presence determines the parent's liability, taxes, currency control and staffing requirements, as well as the terms and degree of protection of investments and rights in general.

A legal entity goes through state registration, while a branch or representative office goes through record registration. The conditions and procedure of these registrations differ and require a correct legal approach. Registration services are available on the e-government portal. A foreign participant (an individual) and the director will need an individual identification number (IIN) and an electronic digital signature (EDS), and a corporate participant will need an account with a second-tier (commercial) bank. Documents of foreign founders are normally submitted with an apostille, since Kazakhstan is a party to the 1961 Hague Convention.

Certain activities are carried out under licences, permits or notifications. The list is exhaustively set by the Law on Permits and Notifications, and no one may demand a permit that this law does not provide for. Whether a licence is needed depends on the subsidiary's type of activity, not on the founder's citizenship or country of incorporation.

The questionnaire on our website helps choose a registration option. Registration, corporate governance and share deals are handled by our corporate law practice, and the starter packages for non-residents are published with prices.

Taxation

A new Tax Code has applied since 1 January 2026, and it keeps the basic principles of taxation. A resident company pays tax on income from all sources worldwide, a non-resident on income from sources in Kazakhstan. A non-resident with a permanent establishment pays tax on the profit attributable to that establishment.

A permanent establishment arises from a fixed place of business, from activity through a dependent agent, and from services rendered through personnel for more than 183 days in any twelve-month period on one or related projects. Preparatory and auxiliary activities do not create a permanent establishment. Income of a non-resident without a permanent establishment is taxed at source, and the tax is withheld by a tax agent in Kazakhstan. Reduced rates under double tax treaties apply once the recipient of the income has confirmed its residence; however, a number of Tax Code provisions must be taken into account to assess correctly whether the treaty conditions apply.

Works and services bought from a non-resident are subject to VAT in the hands of the buyer in Kazakhstan when Kazakhstan is the place of supply. Prices in international transactions and in transactions between related parties are tested under the transfer pricing rules. A number of typical situations of foreign groups are covered in the answers to questions on our website.

Currency regulation

Currency operations are governed by the Law on Currency Regulation and Currency Control. Settlements in foreign currency between residents within Kazakhstan are, as a rule, prohibited, and domestic settlements are made in tenge. Operations between residents and non-residents are made in national and/or foreign currency at the choice of the parties to the contract. Contributions to charter capital are recorded in national currency.

For export and import operations a resident must ensure repatriation, that is, the return of the proceeds or of an unused prepayment within the term set in the currency contract and consistent with currency legislation. Branches and representative offices of foreign organisations are exempt from this obligation. A subsidiary's settlements with its head office (payment for goods and services, royalties, dividends, loans) are also currency operations, so it is important to describe the currency terms correctly and build them into the contract before the first payment. Repatriation is explained in more detail on the page of our website for non-residents.

People, visas and migration

Employment relations in Kazakhstan are governed by the Labour Code, and entry and work of foreigners are also governed by the Law on Migration. The law distinguishes three categories of immigrants arriving in Kazakhstan: foreign workers, including intra-group transferees, business immigrants and seasonal workers (Art. 34). In some cases special provisions of Government resolutions and of international treaties to which Kazakhstan is a party apply.

An employer engages foreign labour under a permit from the local executive body within the quota. The permit cannot be transferred to another employer. Some categories are exempt from both the quota and the permit. For intra-corporate transfers and self-employment the term of work under the contract may not exceed the established period.

A business immigrant receives a visa of up to two years and within two months of entry must register a company or join an existing legal entity as a participant. An investor multiple-entry visa issued at the request of the authorised investment body entitles its holder to apply for permanent residence in the Republic of Kazakhstan.

Employment contracts, internal policies, hiring and termination, and foreign staff are handled by our employment law practice. Business registration options for foreigners are collected on our website page For foreign nationals.

Land and real estate

Land belongs to the people, and acquisition of land into private ownership is possible within the limits set by law. The restrictions for foreign business are set by the Land Code. Foreigners, stateless persons and foreign legal entities may own only plots with a certain designated use. The law provides for exceptions. Plots in the border zone may not be owned by foreigners, stateless persons, foreign legal entities or Kazakh legal entities with foreign participation.

Agricultural land is not granted to the same persons either in ownership or in land use, including lease; this ban has applied since 2021. It does not extend to industrial and commercial property, where what matters is the type of right to the plot, its designated use and the land use conditions.

Intellectual property

Intellectual property is protected by the Constitution and by law. A trademark is registered in Kazakhstan nationally or through the Madrid System designating Kazakhstan; the Madrid Protocol has been in force for Kazakhstan since 2010.

A common practical risk is the sale of branded goods outside official retail, through social networks and messengers. Protection of the trademark and of the goods bearing it should be put in place before entering the market, by taking the available protective measures with the involvement of state authorities, by drafting legally sound licence agreements with distributors and by monitoring the sales channels. Distribution, licensing and trademark protection are handled by our commercial law practice, and industry specifics are described on the website pages Trade and FMCG, Healthcare and pharma and Transport and logistics.

Personal data

The Law on Personal Data and Their Protection requires personal data to be stored in a database located in Kazakhstan. Cross-border transfer is allowed to states that ensure the protection of personal data, and to other states in the cases expressly listed in the law, including with the data subject's consent (Art. 16). A correctly drafted and properly obtained consent of the data subject is critical and should keep the related risks under control.

For a subsidiary of a foreign group this means that the primary database of employees and customers is kept in Kazakhstan, while transfers to the head office and to group cloud services are based on correctly drafted consents and follow the cross-border transfer rules.

Protecting rights and resolving disputes

A dispute involving foreign business may be heard by a court of Kazakhstan or by arbitration. Arbitration is governed by the Law on Arbitration, and foreign arbitral awards may be recognised and enforced under the international conventions to which Kazakhstan is a party.

The AIFC has a system of its own. The AIFC Court is independent and is not part of Kazakhstan's judicial system. It hears disputes connected with the AIFC in the established manner and other disputes where all parties have agreed in writing to its jurisdiction. Decisions of its appellate instance are final and are enforced in Kazakhstan in the same manner and on the same conditions as judgments of the courts of Kazakhstan. Where there is an arbitration agreement, a dispute may go to the AIFC International Arbitration Centre, whose awards are enforced under the procedure for arbitral awards.

In an investment dispute with the state an investor may also turn to international arbitration, including ICSID: the Washington Convention has applied to Kazakhstan since 2000. Court and arbitration work is part of our disputes practice, and compliance for subsidiaries of foreign groups helps reduce the risk of disputes.

For investors: digitalisation, SEZs, Alatau City, AIFC

Kazakhstan consistently creates regimes to attract investment. They share one principle: incentives for companies with participant status, priority activities and meeting conditions. Loss of status ends the application of the special regime.

Doing business in the digital economy

The digital environment in Kazakhstan concerns every business, not only IT companies. Company registration and many public services are available through the e-government portal, and electronic documents are signed with an EDS. In September 2025 a Ministry of Artificial Intelligence and Digital Development was created. This significantly speeds up, and in some cases protects, doing business in Kazakhstan.

Digital assets are governed by the Law on Digital Assets in the Republic of Kazakhstan, in force since 1 April 2023. The law defines digital mining as a licensed activity and sets requirements for the circulation of digital assets. Unsecured digital assets circulate through licensed providers such as exchange operators and trading platforms, and digital financial assets, including stablecoins and tokenised assets, are issued through platform operators. The law was systematically updated by 2026 amendments, and a National Bank regulatory sandbox has operated since June 2025.

Astana Hub is the international technology park of IT start-ups. A participant with priority ICT activities can reduce corporate income tax by 100% on income from those activities, hire foreign specialists without a headcount limit and obtain work visas for them of up to five years. Income must come from priority activities, the company must be under the general tax regime, and compliance with the conditions is confirmed annually. Subsoil users, SEZ participants and excise payers cannot become participants. Imports of IT equipment on an approved list are VAT-exempt until 1 January 2029.

Investment incentives

The Entrepreneurial Code grants investment preferences to Kazakh legal entities implementing an investment project, including companies with foreign participation. From 1 January 2026 the mechanism was updated, and three instruments replaced the former priority and special investment projects.

An investment agreement may provide for tax incentives, in-kind grants and the right to engage foreign labour in exchange for the investor's reciprocal obligations. An investment obligations agreement is concluded with the Government of Kazakhstan for large investments and gives stability of tax legislation for the established period. A simplified investment contract offers only measures unrelated to taxation. Investment thresholds, lists of priority activities and incentive periods are set by the Government, and investors are supported by the national company.

Special economic zones (SEZs)

SEZs operate under the Law on Special Economic and Industrial Zones. Each zone is created for up to 25 years, and the Government may extend this term by no more than the term for which the zone was created. An SEZ participant is a legal entity that carries out priority activities in the zone and is included in the unified register of participants.

Participants can benefit from exemption from corporate income tax and property and land taxes on priority activities, zero VAT on certain goods, duty-free customs treatment and simplified hiring. In December 2025 there were 16 zones in the country.

Alatau City: a special legal regime

Alatau City was established by a decree of 9 January 2024, about 45 km north of Almaty. The Constitutional Law on the Special Legal Regime of Alatau City aims to create improved legal, organisational and economic conditions for private investment.

The law of the city consists of the Constitutional Law and the acts adopted under it. Other laws apply subject to the specifics of the regime, and ratified international treaties take priority over the Constitutional Law. City acts may draw on the principles of the law of England and Wales and international best practice. The city is governed by the City Council chaired by the Prime Minister and by the City Administration, while the executive and representative bodies remain.

Doing business in the city requires resident status. The business licence sets the permitted activities and conditions. A resident may carry out currency operations and operations with digital assets only for its main business in the city.

Some tax incentives apply from 1 January 2027. They are granted individually, as part of the business licence, for the established period. They may cover CIT, including tax on dividends, interest and royalties paid by a resident, personal income tax of highly qualified foreign specialists, social tax, VAT on imports and on services from non-residents, and property and land taxes. Exemptions from other taxes may not exceed a threshold share of the project cost in aggregate unless the President decides otherwise. The project's tax terms stay unchanged for the established period from the date of the licence. Incentives are not granted where the main business is in fact carried on in other regions of Kazakhstan or where moving activities to the city reduces taxes in other regions. The law defines investment disputes separately, and the AIFC Court is part of the framework for resolving them.

Astana International Financial Centre (AIFC)

The AIFC was created by the Constitutional Law of 7 December 2015. Acts of the Centre may be based on the principles, norms and precedents of the law of England and Wales, and Kazakh law applies to matters they do not regulate. Registration, licensing and supervision are carried out by the Astana Financial Services Authority, AFSA. The AIFC Court and the International Arbitration Centre are in operation and are described in a section of our website.

AIFC bodies are exempt from corporate income tax until 1 January 2066, and so are AIFC participants on income from the financial and ancillary services listed in the law; digital asset exchanges are excluded from this exemption. The exemption requires substantial presence in the Centre: core income-generating activities are carried out in the AIFC, with adequate expenses and qualified full-time staff.

Regimes compared

Advantages and risks of doing business in Kazakhstan

Market entry plan

1. Model and regime. The general jurisdiction regime (JSC, LLP, branch, representative office), an SEZ, Alatau City, the AIFC or Astana Hub — depending on the activity, location and horizon of the project.
2. Form of presence. An LLP, JSC, branch, representative office or AIFC company; at the same time it should be assessed whether a licence or permit is required.
3. Registration. The e-government portal, the company's BIN, the director's IIN and EDS, a bank account; founders' documents with an apostille.
4. Contracts. Bilingual contracts in English and Russian with governing law and arbitration or AIFC Court clauses, currency terms and repatriation deadlines.
5. People. Employment contracts under the Labour Code, permits and visas for foreign staff.
6. Tax. Permanent establishment risk, withholding tax, VAT on non-resident services, transfer pricing.
7. Data. A local personal data database and cross-border transfer rules.
8. Monitoring changes in the law. Legislative changes are published in the LANES Legal Monitor, available on our website.

How LANES can help investors

LANES supports foreign companies and groups in English and Russian. We help choose the form and the regime, register companies, localise contracts, run compliance for subsidiaries, deal with employment matters and foreign staff, and represent clients in disputes with local counterparties.

Services for foreign groups and answers to common questions are collected on the Non-residents page, and the cost of services can be estimated on the website. General questions are answered in the FAQ, legislative changes are covered in the Legal Monitor, and the areas of work are described on the Practice areas and Industries pages.

This guide reflects the law as at November 2026 and is not legal advice.