Business opening

Business opening

FORMS OF LEGAL ENTITY

In accordance with Civil Code of Republic of Kazakhstan, Article 34, commercial activities in Kazakhstan are carried out through legal entities in various organizational and legal forms. It is necessary to determine the place among legal entities of enterprises with foreign participation: joint ventures (JVs) and foreign enterprises.JVoften denote enterprises created by several entities, independently of their nationality. For enterprises with foreign participation, the terms “joint venture” or “foreign enterprise” are characterized only the participation of foreign capital, but not their legal form.In practice, enterprises with foreign participation are formed in Republic of Kazakhstan or in a form of  limited partnership or of a joint-stock company.

LIMITED LIABILITY PARTNERSHIP
(LLP)

LLP is a partnership founded by one or several persons, the authorized capital of which is divided into shares, amounts of which are determined in constituent documents. Participants of LLP not liable for its obligations and have risk to lose the activities of the partnership, value of the deposits, with the exception of cases provided by the legislative acts of RK.

JOINT STOCK COMPANY (JSC)

JSC is a legal entity that issues shares to raise funds for implementing its activities.JSC has property separate from the property of its shareholders, and not liable for obligations. JSC is liable for its obligations within its property. Shareholder of JSC is not liable for his obligations and carries the risk to lose his activities, within the value of shares owned by him, except for cases stipulated by legislative acts of the Republic of Kazakhstan.

BRANCHES AND REPRESENTATIVE OFFICES

Branches and representative offices are not legal entities. They have property created by their legal entity and act on the basis of approved provisions.

Branch is a separate subdivision of legal entity located outside and performing all or part of functions, including functions of representation.

Representative office is separate subdivision of legal entity located outside and performing protection and representation of interests of legal entity that performs transactions and actions on its behalf, inexception of cases provided by legislative acts of Republic of Kazakhstan.