Setting up an IT company in Kazakhstan

The UN E-Government Survey 2024 ranked Kazakhstan 24th out of 193 United Nations member states. Alongside this progress in digital government, continued growth in information and communications technology (ICT) makes establishing an IT company in Kazakhstan commercially attractive.

Entrepreneurs can draw on highly qualified specialists and advanced digitalisation technologies, and Kazakhstan's location gives them access to Asian markets. Founders can develop successful technology start-ups with practical business support in an environment conducive to innovation.

The business case for establishing a local operation

The growing technology industry benefits Kazakhstan's economy; new ICT solutions also make the country more competitive internationally. For founders establishing an IT business in Kazakhstan, the opportunities extend from product development to recruitment and public funding:

• Testing products in a less crowded market. The domestic technology sector has relatively few competing providers. Entrepreneurs can use that space to trial digital products and bring them to customers, with scope to build a leading position in their chosen segment.
• Finding expertise and exchanging experience. A foreign founder can recruit from a substantial body of qualified professionals. The local community also brings together technology entrepreneurs who share experience and establish professional relationships.
• Introducing new ideas. Businesses still have scope for innovation. A distinctive software product, digital platform or application built around artificial intelligence can help a business rank among its sector's leaders.
• Using public assistance. In Kazakhstan, technology hubs can help founders establish businesses on better terms than elsewhere. Astana Hub is one example. Participants can obtain grants and finance under numerous programmes. Tax benefits include VAT and corporate income tax (CIT) rates of zero, alongside other relief. Resident employees' earnings likewise attract zero individual income tax (IIT).

Geographically, Kazakhstan connects markets in Europe with those in Asia. A local technology enterprise also participates in the wider digital economy through its people: specialists take part in international projects and exchange practical expertise and knowledge. Businesses use this exchange to strengthen their standing within the technology sector and develop new partnerships.

An approved policy for 2023–2029 sets out the direction for digital transformation. Its priorities include strengthening cybersecurity, expanding the ICT sector and attracting foreign investment. As Kazakhstan digitalises, entrepreneurs can help shape the changes and profit from them.

Choosing a technology specialism

Choosing the intended products or services comes first for a prospective IT company in Kazakhstan: founders can then select a suitable niche among established technology segments. During the first half of 2024, IT services totalled KZT 611.3 billion. This corresponds to approximately USD 1.181 billion.

Software development offers promising opportunities. Interfaces and usability deserve particular attention: applications should accommodate different age groups so that the intended users can work with them comfortably.

Rapid advances in artificial intelligence create scope for both developing products and advising others. Possible markets include healthcare and manufacturing, alongside finance. A developer might, for example, design an application that identifies health problems.

Education is another option. Learning games and educational applications can support independent study or help organisations improve their employees' knowledge and experience.

A business specialising in cybersecurity can develop new protective systems and data-security solutions. They are intended to safeguard information against unauthorised access by third parties.

Legal forms for an IT business in Kazakhstan

Company founders can be Kazakh citizens or foreign nationals; the available structures differ in how owners participate, who manages the business, how much capital is required and which assets creditors can pursue. These differences warrant consideration before a technology entrepreneur commits to setting up a company in Kazakhstan.

Two partnership forms: limited liability or additional liability

Most Kazakh businesses adopt the LLP, or limited liability partnership. National law determines which activities are prohibited; the LLP may undertake any others. A founder may establish the business alone or with others; participant numbers are unlimited, and at least one manager must be appointed.

Required charter capital at establishment is 100 monthly calculation indices, abbreviated to MCI. Using the 2025 value, founders need KZT 393,200, approximately USD 760. A statutory limit protects participants against liability for partnership debts: creditors generally pursue business assets, with personal exposure arising only under legal exceptions.

For founders prepared to assume a further obligation, an additional liability partnership offers another structure. Initially, participants' liability for debts is confined to what they contributed. If that proves insufficient, their personal property is also exposed. The charter caps this additional exposure at a specified multiple of each contribution.

Financing a company through share issues

A share-financed structure is available through the JSC, or joint-stock company. Founders can be natural persons or entities with legal personality, including state enterprises. Incorporation does not require multiple founders: one is sufficient.

Charter capital cannot be below 50,000 MCI. On a 2025 calculation, that represents KZT 196,600,000, approximately USD 380,000. When subscribing, founders pay the nominal value of shares; investors pay the placement price instead.

Management rests with a board of directors. Company creditors cannot claim against shareholders personally; they may recover debts solely from corporate assets. A shareholder's investment remains exposed, but the risk extends only as far as the acquired shares' value.

Operating personally

An entrepreneur may trade personally rather than through a company. Individual entrepreneur status permits lawful dealings with businesses and other organisations and allows the individual to earn income on their own account. This is another way to conduct an IT business in Kazakhstan.

Business obligations expose the entrepreneur's own assets, including their share in matrimonial property. Legislation protects certain possessions from enforcement, including household furnishings and food. State and international awards are protected too, as is a vehicle used by a person with a disability; other statutory exclusions remain applicable.

Only Kazakh citizens qualify for this status, so a foreign applicant must first acquire citizenship. The Entrepreneurial Code amendments dated 14 July 2022 changed the filing route: registration now takes place exclusively online, without an in-person submission option.

A tax regime must also be selected. General taxation is available alongside special arrangements. Special taxation may operate on a patent basis, through simplified-declaration reporting or via a mobile application.

Extending an existing business through branches

A branch expands geographical coverage without separating the operation legally from its parent. The branch itself lacks separate legal personality. Developing a network in this way can increase recognition of the brand and customers' confidence in it.

An LLP provides its branch with assets and approves the regulations governing its operation. The executive body normally authorises branch establishment; the director may exercise that function. Where the charter assigns this power exclusively to participants, their general meeting must adopt the resolution.

Accounting and other operational arrangements need to be settled before establishment. The head office can maintain central records for the branch. Alternatively, where the branch acts as a separate taxpayer, it may keep its own accounts.

Company formation in Kazakhstan: the application

Establishment involves several formalities, each with its own requirements. Planning them in advance helps founders avoid errors and finish the establishment process sooner.

Identity and correspondence

A name needs to distinguish the business without reproducing an existing trademark. Founders can check availability through egov.kz, and a version written in Kazakh must accompany any Latin-script name. An IT company in Kazakhstan cannot use wording that suggests a government connection or unlawful activity.

Whether rented or owned, premises must provide a Kazakhstan address for official correspondence. Documents and notices will be delivered there.

Charter and foundation agreement

The business needs documents specifying its objectives and organisational structure, the starting capital and the founders' powers and obligations. Alongside the charter, multiple founders execute a foundation agreement. A single founder records an individual establishment decision instead of that agreement.

Even where founders must prepare the agreement, they need not lodge it with the Government for Citizens State Corporation during registration. The corporation operates public service centres. Notarisation of the agreement is unnecessary for an LLP classified as a small or medium-sized enterprise (SME). Other documents still require a Kazakh translation and notarial certification.

Personal identification before electronic access

Foreign founders receive their individual identification number, abbreviated to IIN, after a one-day tax-registration procedure. Banking and other legally significant dealings require it. Applicants must attend a public service centre (PSC), where they present identification and complete the required form.

The identification document must record essential personal particulars, including the full name and birthplace, in Latin or Cyrillic script. Otherwise, the applicant provides a translation with notarial certification.

The IIN must be obtained before the applicant enrols with the Mobile Citizens Database. Applicants then request the electronic digital signature (EDS) certificate through egov.kz or a PSC. Completing these arrangements enables use of online government services.

Registration papers and the authority's decision

To register an IT company, founders need:

• the completed legal-entity registration form;
• the company charter;
• supporting records for the official address;
• identification documents for each founder and the manager, supplied as copies;
• the registration-fee receipt.

Submission routes accommodate electronic filing, using egov.kz, and delivery through a PSC. A direct submission to the Ministry of Justice is another option.

The authority reviews the application for accuracy and compliance. Review includes the proposed name's distinctiveness and the charter's consistency with legal requirements. After approval, the authority provides the LLP or other entity with its registration document. This confirms both lawful establishment and registered status. A properly prepared package allows completion within ten to twelve days.

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Tax administration and the good-faith principle

The Tax Code introduced a presumption of good faith, fundamentally changing how tax disputes are resolved. Where legislation admits an uncertain or disputed interpretation, the taxpayer receives the benefit of the doubt. Authorities alleging an infringement must substantiate it with convincing evidence and describe the alleged non-compliance in detail.

This approach aims to reduce administrative pressure on business and improve investment conditions. Entrepreneurs find these conditions attractive when preparing to establish their IT company in Kazakhstan.

Written advice from a tax authority provides a further safeguard. If the authority subsequently proves to have been wrong, a taxpayer who followed its written advice still owes the unpaid tax but incurs neither the associated fine nor the late-payment penalty. The safeguard reduces exposure caused by imperfect or ambiguous legislation and encourages businesses to request clarification.

Timing is essential: the taxpayer must have obtained the advice before the conduct subsequently identified as an infringement. Good-faith protection does not remove the duty to maintain complete and accurate accounting records and reports.

Earlier written clarification does not excuse careless accounting, deliberate concealment or unlawful tax-planning arrangements. These remain adverse factors, and the authorities retain their power to investigate abuse and examine how legislation has been applied. Founders need to account for this continuing scrutiny when establishing their technology business.

CIT deductions and loss relief

Taxable profit attracts CIT at the standard rate of 20%. The taxable amount is aggregate income less permitted expenditure. To qualify for deduction, a cost must relate to earning that income.

However, some categories have additional limits. The Tax Code restricts deductions for representation expenses and management remuneration, so accounting records must support the calculation and the prescribed allowances must be respected. An IT business in Kazakhstan must observe these restrictions when calculating its CIT liability.

For SMEs, simplified taxation may provide lower rates. Eligibility depends on factors such as revenue and the activity undertaken. Founders should assess all available regimes against their particular business circumstances before choosing the most advantageous option.

Loss relief offers a further reduction in tax. A company can carry forward its losses for ten years, applying them against the taxable base in subsequent periods. It therefore pays less in profitable years, which moderates the effect of fluctuating profitability.

VAT thresholds, rates and preferential treatment

Most businesses pay value added tax (VAT), calculated by reference to the difference between purchase and sale prices. Producers and sellers incorporate that cost in their prices. In 2025, VAT revenue goes into the state budget to cover current spending needs.

The turnover test and consequences of non-registration

The 2025 annual registration threshold is 20,000 MCI, corresponding to KZT 78,640,000 or approximately USD 151,500. Crossing it creates an obligation for individual entrepreneurs and partnerships, whatever the latter's liability structure. It also applies to private practitioners, such as lawyers and valuers, and overseas companies with local representative offices. Subsidiaries must comply too, including those constituted as LLPs.

After turnover crosses the threshold, a taxpayer has ten days to submit its VAT registration application to the responsible authority. A failure may incur a fine of 50 MCI, equivalent to KZT 196,600 or approximately USD 379. Turnover generated during non-compliance attracts an additional charge of 15%.

Standard taxation and zero-rated transactions

For 2025 the standard rate is 12%. Domestic supplies attract this rate, whether they involve goods, works or services. Imported goods attract it too. So do services bought from an entrepreneur who operates locally but is not resident in Kazakhstan.

An IT business in Kazakhstan established in a special economic zone can obtain tax preferences, including a zero VAT rate. The country has 14 such zones; Aktau Seaport and Astana – New City are examples, alongside the Park of Innovative Technologies.

International transport and exports receive zero-rated treatment. Precious-metal producers also qualify where they own refined gold obtained through processing. Airports qualify when supplying fuel to foreign aircraft undertaking international transport.

Goods supplied and sold inside a special economic zone receive zero-rated treatment if three conditions are satisfied simultaneously. They must serve the objectives behind the zone's establishment and appear on the competent state body's approved list. Consumption must occur wholly within that zone.

VAT registration, returns and payment

Some entrepreneurs conceal income to evade tax obligations, but revenue authorities monitor businesses whose turnover is approaching the point at which VAT registration becomes mandatory. Failure to register prompts a notice. The business has 30 days from receipt to comply; otherwise, its banking accounts may be blocked.

Applicants seeking VAT registration may lodge their application at their territorial state revenue office or submit it electronically using egov.kz.

Electronic settlement saves time and offers a secure, convenient way to pay. The available routes are internet banking, the online taxpayer account and the e-government portal. Payment is also possible through the tax wallet within e-Salyq Azamat.

Employment income and payroll obligations

Hiring staff creates obligations for IIT and social tax, as well as social contributions. Founders need to examine each component's rules before employing people in an IT business in Kazakhstan.

Employee income attracts a flat IIT charge of 10%, irrespective of residence status. Salary alone does not define the taxable amount: employment-linked remuneration, bonuses and compensation fall within it, together with employer-provided benefits.

Meals and accommodation are examples of those benefits. Compensation for using a personally owned vehicle is another taxable payment. Payroll calculations must therefore include all employment-related income, extending beyond cash salary to all other employer-provided payments and benefits.

Astana Hub participation

Astana Hub is Central Asia's largest international technology park; its purpose is economic development through support for high-technology start-ups. Through participation, an IT company in Kazakhstan can obtain zero rates for CIT and VAT.

Companies gain more than tax preferences. Visa formalities are simpler for their foreign employees, and participating companies may recruit specialists from abroad without a numerical cap. Close to 1,000 technology businesses form a community where participants can exchange professional experience.

A Kazakh-registered LLP can apply if its earnings derive from priority activities. The 19 eligible fields include, for example, the development and implementation of nanoelectronics and biometric systems. Further qualifying areas include artificial intelligence and robotics, as well as information security.

The founder obtains an IIN and EDS before registering the LLP on egov.kz. Registration with the park follows through astanahub.com: the founder provides the requested particulars, then submits the charter and foundation agreement. The establishment decision and the management appointment decisions accompany them.

Technology development within special economic zones

Selecting an appropriate zone can lower the initial cost of an IT business in Kazakhstan and bring forward recovery of its investment. Available benefits include exemptions from certain taxes, customs preferences and state assistance. Zones specialise in different activities: information technology and engineering are examples, as are agriculture and oil and gas extraction.

Alatau

G4 City was the original name of this Almaty-region zone. Its purpose is to encourage innovation and strengthen the technological base, thereby advancing the regional economy. Establishment is simpler there, and businesses receive customs and tax preferences.

VAT and CIT have zero rates; the same applies to IIT. The zone offers opportunities to develop technology start-ups and improve tourism services. With support available for innovation and scientific research, entrepreneurs have commercial grounds to acquire an existing technology company or establish a new one.

Research infrastructure in Almaty

The Park of Innovative Technologies accommodates technology start-ups and companies implementing new developments. Establishing a branch there provides advanced infrastructure for research and innovation.

Government subsidies accompany tax incentives to encourage market development. The incentives include exemptions covering CIT and VAT, along with IIT and social tax. These arrangements favour businesses introducing innovations and distinctive products.

Pavlodar

This zone lies in one of Kazakhstan's main industrial centres. Both technology start-ups and larger corporations can use it for expansion into Central Asia. It gives entrepreneurs a base for ambitious projects and participation in shaping the country's technological future.

For an IT company in Kazakhstan, locating here brings a five-year CIT holiday and lower IIT for its employees. Fewer formalities and quicker permits simplify establishment and help businesses enter the market sooner.

Businesses can recruit highly qualified personnel through the local education system, including specialist institutions and academic programmes. Business centres, technical complexes and production facilities provide modern premises for professional activity and the implementation of new technology. Modern telecommunications and dependable energy supplies complete the supporting infrastructure.

Banking for an IT business in Kazakhstan

Commercial activity requires banking facilities for everyday expenditure, purchased services and receipt of the entrepreneur's net profits. International cashless payments and foreign-currency transfers involving customers or partners also rely on an account. Entrepreneurs use a commercial account to manage these payments and receipts as they develop their IT business in Kazakhstan.

Local and foreign entrepreneurs can obtain standard services from banks. These include SWIFT payments and the issue and servicing of corporate Visa and Mastercard cards, while online banking and mobile applications are widely used too.

Preparing the account application

The documentation comprises:

• charter;
• establishment minutes recording the director's appointment;
• order recording that the director has assumed office;
• specimen signatures of those authorised to sign banking documents, recorded on a card;
• extract from the commercial register.

Foreign-company papers require notarial certification and translation into either Russian or Kazakh. An apostille and consular authentication are required in addition. The chosen bank then examines the submitted package for conformity with the law. Processing takes three to seven days, which helps a technology start-up begin trading promptly.

Providers and their services

The banking system operates on two levels. Its first level is occupied by the National Bank of Kazakhstan; the second contains more than 20 institutions offering their own service terms. Non-resident corporate clients can obtain a broad selection of financial services within this system.

Currency choice, finance and account access

Customer and partner transactions can be settled in tenge or foreign currencies, including euros and US dollars. An IT company in Kazakhstan handles these routine payments through a commercial account.

Insurance and lending facilities can help wholly foreign-owned businesses expand, with each bank offering its own programmes. Freedom Bank, for example, lends businesses up to KZT 3 billion, approximately USD 5.781 million. The available currencies are tenge, euros and roubles, and the borrower must use the funds for investment, working capital or refinancing a loan from another bank.

Account-opening data and transfer information remain completely confidential. Modern encryption and security technologies protect information about companies and other bank customers.

Competition for customers encourages favourable tariffs. The selected bank publishes its charges on its official website, where businesses can consult them.

In Kazakhstan, internet technology has made online banking widely accessible, and businesses can use mobile applications to execute transactions and monitor their corporate account balances.

Conclusion

Foreign entrepreneurs seeking Asian market access can establish a technology business in Kazakhstan. The government seeks to improve conditions for non-residents, both to attract overseas capital and to strengthen the domestic economy.

Entrepreneurs can launch technology businesses on favourable terms. Technology parks provide comprehensive assistance, while tax preferences and reduced-rate borrowing offer further support to entrepreneurs in this sector.

Establishing an IT company in Kazakhstan requires founders to understand the governing legislation and prepare their paperwork carefully. Our specialists can help prevent mistakes; their extensive professional experience is your assurance of success. They also handle liquidation when closure becomes necessary.