Kyrgyzstan is a jurisdiction that is open to foreign investment. The country provides opportunities in all sectors of the economy without restrictions. The local legal system offers favorable conditions for starting and developing entrepreneurship, which is manifest through low tax rates and the absence of excessive bureaucratic procedures. The decision to start a business in Kyrgyzstan or buy an existing business will make the region's advantages available.
Registering a company in Kyrgyzstan: advantages
The decision to buy a business in Kyrgyzstan or create a new one has the following advantages:
- large mineral deposits and significant gold reserves;
- the favorable regime for foreign investment, including the ability to repatriate profits and dividends;
- fast-growing economy with an average GDP growth of about 4.5% per year;
- membership in the Eurasian Economic Union (EAEU);
- low corporate tax rate of 10%.
In specific industries, there are additional benefits that are presented to local as well as foreign investors. Prifinance lawyers are ready to analyze your particular business case and provide information on potential jurisdictional benefits that are open to your case.
Forms of doing business in Kyrgyzstan
The selected option, "Kyrgyzstan open a company," can be implemented in one of several forms:
- Limited Liability Company (LLC) - the liability of the participants is limited to the number of contributions. The powers of management bodies of LLCs are not subject to detailed legislative regulation, so decision-making is more flexible. The minimum capital is 1 KGS. The number of participants can be at most 30. A minimum of 1 director and one shareholder is required.
- Joint-stock companies - JSC must issue shares in the national currency of Kyrgyzstan. The minimum charter capital of the joint-stock company is 100 000 KGS. JSCs are divided into two types: (1) Open Joint-Stock Company (JSC) - no consent of other participants is required to transfer shares. The JSC may conduct an open subscription for the shares it issues and freely sell them on the terms prescribed by law. (2) Closed Joint Stock Company (CJSC) - the alienation of shares without the consent of the other participants of the company to third-party individuals or legal entities is prohibited. The number of shareholders may be at most 50.
How to register a company in Kyrgyzstan?
Registration of a company in Kyrgyzstan goes through the Ministry of Justice. It is possible to create a company in Kyrgyzstan by going through several steps:
- Determination of the types of commercial activities to be carried out by the Kyrgyz company.
- Collection of details about the founders and beneficiaries.
- Search and registration of legal relations with the future management of the Kyrgyz company.
- Selection of the commercial name for the Kyrgyz legal entity.
- Selection and execution of the agreement concerning the future official address for the Kyrgyz company.
- Preparation and execution of constituent and registration documents.
- Formation of registration package of documents, which, among other things, should include:
If approved for registration, the Ministry of Justice issues a certificate.
- decision on the establishment of the company (signatures must be notarized if the founders do not submit the documents);
- copies of the founders' passports;
- power of attorney for filing registration documents (for a representative).
- Registration for tax purposes. The packet of documents is filed with the following:
- application for registration;
- application for tax registration;
- taxpayer registration form;
- copies of the passports of the founders;
- power of attorney for filing documents for company registration;
- articles of association.
Prifinance lawyers will make an individual plan for company incorporation in Kyrgyzstan and implement it in practice from the beginning until a positive result.
- Registration for social insurance purposes.
- Producing a seal.
- Obtaining permits for regulated types of business.
Kyrgyzstan's tax system
If you intend to register a company in Kyrgyzstan, you should analyze the options, taking into account specific nuances of the local tax system:
Prifinance lawyers will advise on all aspects of taxation in Kyrgyzstan, including preliminary calculations of the amount of taxes that will be payable, taking into account the expected turnover of the company.
- Corporate tax - 10%
- Personal income tax - 10%
- VAT - 12%
- (1) Dividends tax - 10% (2) Interest - 10% (3) Royalties - 10%
- Capital Gains Tax - (1) corporate - 10% (2) individual - 10%.
How Prifinance lawyers can assist
Prifinance specialists will gladly support you to open or buy a company in Kyrgyzstan. Our experts will save you from all the difficulties associated with bureaucratic delays, namely:
- analyze your business case and offer the most favorable options to implement your commercial priorities;
- assemble all the necessary details and documents for incorporation of a legal entity;
- draw up and execute the required documents;
- negotiate with the local authorities;
- open an account in a local or foreign bank and provide support in the process of working on the account;
- provide legal consulting as part of solving any issues in the process of functioning of your business project until its closure.
Send input to formulate detailed plans and advice on how to start a business in Kyrgyzstan or quickly buy a company in Kyrgyzstan from a list of existing ones.