Starting a business in Kazakhstan is a good idea, as the country has all the conditions for this. The government encourages the initiative of active people who want to have their own business, actively introducing appropriate programs. Moreover, the state economy is developing, as a result of which the standard of living and purchasing power increase.
The benefits of doing business in Kazakhstan
It’s worth starting with the fact that the registration procedure with the tax authority is simplified to understandable and quick processes. A license can be obtained without much difficulty.
Also in Kazakhstan, there are many banks with high ratings and no sanctions. All this is complemented by a well-designed tax system that does not overload the entrepreneur’s budget. In addition, there are also certain benefits. In a word, opening and developing a business in Kazakhstan is easier than in other CIS countries.
To attract young people into the sphere of entrepreneurship, the authorities initiate the launch of various programs aimed at supporting citizens and non-residents of the country who decided to start their own business.
Those who start a business in Kazakhstan choose mainly between an individual enterprise (IP) and a limited liability partnership (LLP). These are the most popular and convenient legal forms in the territory of this state.
What you need to know about IP
In order to register a business in Kazakhstan, using the form of an individual enterprise, it will not take much effort. At the same time, there are a number of features of doing business that you need to pay attention to:
- Corporate tax will be paid for individuals at a rate of 10%.
- Patent option available. With this scheme, there is no need for accounting.
- The entrepreneur may not include more than 25 employees.
- If necessary, a simplified tax return can be used.
- A cash register is necessary if goods are sold for the sale of which an excise duty must be paid. In all other cases, its presence is optional.
- IP can be sold as a separate property of the entrepreneur. It is important to understand that with this decision, the reputation of the company can be nullified.
- For all debts, an individual entrepreneur is liable with his property.
- The company can be removed from the simplified tax system. This happens under the condition that the quarterly income is above the mark of 10 million tenge (approximately 54 thousand cu).
Choosing this form of doing business as an individual enterprise is better for those who are going to build their own business alone, that is, without partners.
IP taxation system
When opening a small business in Kazakhstan, it is better to choose a simplified system. Its advantage is that it is the most convenient and simple for beginning entrepreneurs. You can pay contributions and submit reports every 6 months without the help of an accountant.
If the entrepreneur has chosen the CSS, then he will have to deduct 3% of his income to pay social and income tax (each 1.5%).
In addition, funds must be allocated for mandatory pension payments, which make up 10% of the salary and social - 3%. Until 2020, there is no need to transfer money to the compulsory health insurance fund.
If employees were hired after registering a small business in Kazakhstan, then they will also have to pay taxes:
- OPV. The maximum amount of mandatory pension contributions may be 10%.
- IIT. Individual income tax is also 10%.
- OSMS. Compulsory social health insurance is limited to a maximum of 1.5%.
- Social Security contributions. They will make up 3.5%.
Both individual entrepreneurs and limited liability partnerships do not pay social tax for their employees.
Limited liability partnership
This registration form should be chosen by those who intend to engage in medium-sized business in Kazakhstan or develop a large enterprise. The bottom line is that IP is perceived by many as entrepreneurship of modest proportions and may initially reduce the value of the proposal in the eyes of large customers.
When registering an LLP, you need to know about its following features:
- Income tax in this case will be 20%.
- You can use a simplified tax return.
- The registration procedure is longer and more complicated than in the case of IP. It also requires the provision of two versions of the charter of the partnership - in Kazakh and Russian.
- The maximum allowable number of employees is 50.
- In case of arrears, the LLP will pay it. That is, the property of the founders cannot be used to pay off debts.
- Accounting must be carried out without fail.
- Each of the founders has the right to sell its part of the partnership to other persons. And such an action will not adversely affect the reputation of the LLP.
- Compared to individual entrepreneurs, administrative fines are significantly higher.
- It is possible to use a simplified tax system. This rule is valid only on condition that the partnership’s quarterly income does not exceed 136 thousand dollars.
An LLP is a good option for those who intend to engage in business development in Kazakhstan together with partners. In addition, a limited liability partnership can be opened without a residence permit.
In general, if we analyze the business news of Kazakhstan, we can conclude that the country's economy is gradually growing, and after it the level of income of entrepreneurs increases.
Taxes and Clearance
Regardless of which particular idea for business in Kazakhstan will be implemented, there are main cost items that are important to think about in advance.
In the case of taxes, it is necessary to correctly calculate the amount of payments in the first few months for each of the systems. Then choose the most suitable and prepare for a regular and stable payment.
Legal registration also costs money. When choosing an IP, you initially need to postpone the amount of 2500 tenge.
If you plan to open a business, for example, in Almaty, then you need to focus on 110-150 thousand tenge for a modest office space. Such a beginning is suitable for small businesses: advertising agencies, travel agencies, etc. But at the same time, it is important to take into account the landlord’s possible desire to receive the amount for several months.
For a business where the flow of customers during the week is not very large and at the same time you constantly need to work in a team format (IT, etc.), coworking is suitable. Such rent is more accessible than office premises and, if necessary, allows holding meetings in separate meeting rooms.
More funds will be needed to rent a room in order to provide services. We are talking about beauty salons, shops and cafes, etc. On average, about 300 thousand tenge will have to be allocated for such activities in the rented premises. If the room is small, then perhaps the amount will decrease to 200 thousand per month.
Equipment and raw materials
An office without the necessary equipment, furniture and stationery simply cannot fulfill its function. Therefore, such expenses must be included in the business plan.
In Kazakhstan, some types of entrepreneurial activity can develop rapidly, but at the same time they will require more investment than a simple office space.
For example, the opening of a retail printing house is inevitably associated with the acquisition of several printing machines. In the case of tire fitting, approximately 210 thousand tenge will be needed to purchase one machine. Thus, the start must be thought out competently, comparing the initial investment and the planned profit at the development stage.
As for the activity associated with production or sales, here the raw materials and the first consignments of goods will also require tangible costs for small businesses. At the same time, it is not worth chasing low price tags to the detriment of quality - such an approach already at the start will lead the entrepreneur's reputation into a deep minus.
As a result, gaining customer confidence will be extremely difficult. And without customer loyalty there is no sales.
Salary and staff training
Money for wages of employees must be allocated without fail. Specialists who come should feel that they are willing to pay according to their qualifications.
This approach will keep experienced and productive employees.
In the event that at the initial stage there is no need to hire employees, you need to put in the financial plan an amount that will cover personal expenses for three months.
When developing a business from scratch in Kazakhstan with a small starting capital, it will be difficult to immediately attract professionals. You can get out of the situation by hiring inexperienced employees and their subsequent training.
Here it is important to understand the issue yourself and be prepared to periodically invest in advanced training of hired workers. Sometimes you have to invest right away, for example, when you open a cafe. Training one person in this business will cost about 40 thousand bliss.
If few people know about a new product or an opened store, a stable flow of customers will remain only a goal. For sales to go, you need to advertise your business and do it competently.
It is necessary to study the recommendations of marketers and choose the most effective promotion options for a particular type of activity. This can be contextual advertising, work on social networks or ads on local sites. It is necessary to understand the basic principles of marketing, otherwise you can choose the wrong promotion strategy and not get the result by investing a tangible amount.
One example of a profitable small business in Kazakhstan is the flower trade. Large batches of goods sent to Russia confirm this fact.
Due to the high demand for this product, such a business idea is suitable for both small and medium-sized businesses. The scale of the start is largely determined by the amount of capital.
If only one point will open, it is better to register IP. With several stores, it makes sense to choose an LLP.
It is important to ensure that all documents are in order:
- Lease agreement.
- Consignment notes.
- Conclusion of sanitary and epidemiological expertise, etc.
It is also necessary to take care of the presence of a cash register.
You can try to develop your own brand or use a franchise scheme. In the latter case, a novice entrepreneur receives such benefits as:
- exclusive rights in a city or a specific area of a settlement;
- a set of materials for branding outlets;
- proven and understandable business model;
- unique product with a guarantee of quality;
- site for conducting sales on the Internet.
If the franchise for some reason does not fit, then you can buy flowers from local farms or reliable wholesalers.
Those who intend to open a business in Kazakhstan should pay attention to this opportunity. The culture of coffee consumption in this country is growing and cozy coffee houses with a tasty drink are popular.
In such an institution should be a place for 17-20 seats. It is important to consider factors affecting the flow of customers:
- If next to the coffee shop there will be shopping centers, recreation places and traffic flows, then the necessary number of visitors will be much easier to get.
- To attract casual customers it is worth making large display cases or windows. This will quickly assess the atmosphere of the room for people passing by.
- It is important to take care of the place for the summer playground and parking. Otherwise, some potential customers will visit more convenient places.
- It is better to rent a room on the ground floor with a separate entrance.
Also, before opening a cafe, it is worth getting an expert opinion in the SES. Without it, the activities of the institution in the format of public catering would not be legal.
In addition to the coffee shop, there are other areas of activity that can interest those who intend to start a business from scratch in Kazakhstan:
- pharmacy items;
- clothing stores;
- car washes and workshops;
- private kindergartens;
- cleaning companies;
- skinning, etc.
Obviously, for those who want to open their own business, the possibilities are more than enough.
This is another area where you can make good money. If we study the news of show business in Kazakhstan, we can conclude that this industry is developing and becoming more profitable.
There are many options for earning and it all depends on which direction seems the most attractive. The existing technical level and the availability of good specialists opens up the possibility for the production of a high-quality product.
You can earn money by developing as a video maker or by providing services of a recording studio. Do not rule out the prospect of creating your own television or radio product.
If the business will involve writing texts and music, it is important to take care of copyright protection. There is a risk that problems may arise with this. Without the ability to maintain intellectual property rights, making money will be difficult.
Successful business development in Kazakhstan is a real challenge. It is only important to correctly prepare for the start of activities and to find out all types of state assistance that a businessman can receive. This approach can significantly facilitate the start of a specific project.