Professional Documents
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Investor S Guide 2013 Holy
Investor S Guide 2013 Holy
Investor S Guide 2013 Holy
WHAT ARE THE ADVANTAGES OF KAZAKHSTAN? ...................................................2 Geographic location ..........................................................................................................................................2 Some statistical indicators ...............................................................................................................................4 Kazakhstans position in international ratings ..................................................................................................5 Minerals ........................................................................................................................................................12 Stable political situation and reforms ........................................................................................................13 Access to markets .........................................................................................................................................14 Infrastructure under construction.....................................................................................................................18 HOW DOES THE GOVERNMENT PROTECT INVESTORS? ....................................20 Guarantees of the protection of investor's rights ............................................................................................21 Agreements on mutual protection and investment incentives ........................................................................22 Foreign Investors Council ...............................................................................................................................23 How Does the Government Support Investors? ..............................................................................................24 Investment preferences ................................................................................................................................24 Special Economic Zones ...............................................................................................................................25 Public Private Partnership ..............................................................................................................................26 GOVERNMENT SUPPORT FOR DEVELOPMENT INSTITUTES ................................29 WHAT ARE THE PRIORITY SECTORS OF THE ECONOMY AND WHAT ARE THEIR CONDITIONS? ..32 Oil rening and development of infrastructure in oil & gas sector .............................................................33 Mining and metallurgical industry .................................................................................................................36 Chemical industry ..........................................................................................................................................40 Nuclear industry ............................................................................................................................................44 Engineering industry ......................................................................................................................................46 Pharmaceutical industry ................................................................................................................................52 Light Industry ................................................................................................................................................54 Agro-industrial complex ...................................................................................................................................56 Construction industry and production of building materials .......................................................................59 Tourism industry in Kazakhstan .....................................................................................................................62 HOW TO GET TO KAZAKHSTAN? ..................................................................66 How to get a Visa? ........................................................................................................................................68 Procedure for Visa support ..............................................................................................................................73 Categories of Visa for investors .....................................................................................................................74 Registration of Foreign Citizens .....................................................................................................................76 HOW TO START A BUSINESS IN KAZAKHSTAN? ..............................................80 Forms of legal entity for foreign business ...................................................................................................82 Registration of enterprises ..............................................................................................................................83 Obtaining a license ..........................................................................................................................................87 Conditions of employment for foreigners ......................................................................................................88 Customs taris ...............................................................................................................................................90 Tax system ......................................................................................................................................................92 PRINCIPAL CONTACTS FOR INVESTORS .......................................................94 The Committee on Investments of the Ministry of Industry and New Technologies ......................................94 National Agency for Export and Investment KAZNEX INVEST ........................................................................95 CONTENTS OF CD-ROM ..........................................................................96
OF KAZAKHSTAN
Geographic location
North Kazakhstan region Kostanay region Akmola region Astana Pavlodar region East Kazakhstan region West Kazakhstan region
Atyrau region
Aktobe region
Mangistau region
Kyzylorda region
Region Eastern Europe and Central Asia Territory 2,724,900 sq km (1,052,085 sq miles) Population 16 316 050 2 Languages Kazakh and Russian
Income level Above average GNP Over 11,000 USD Currency Tenge (KZT) KZT/USD 150,15; KZT/EUR 193,17
Rates of exchange of the National Bank of the Republic of Kazakhstan as on September 27, 2012
STABLE
INDICATORS
GDP growth 7% (IMF 2011) One of the lowest external debt to GDP ratios in the world : 11.4% (WEF 2012) Budget balance: 1.5% (WEF 2012) Ination: 7.4% (2011 NBK) Rating in the most rating agencies went from stable to positive
4
Source: UNCTAD
2003
2004
2005
2006
2007
2008
2009
Source: UNCTAD
2010
2011 5
20000
18453
18144
15000 10624 8317 6619 5000 1271 0 660 1674 2107 1233 1852 2781 984 4557 4106 4624
10000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: UNCTAD
4% 8%
Netherlands USA UK Switzerland France Canada Japan other countries
3%
2% 2% 2% 26%
16%
39%
6
71 64
RATING
FOR DOING BUSINESS
80 70 60
63
58
56 49 47
50 40 30
47
20 10 0
0,05
0,10
0,15
0,20
0,25
0,30
0,35
0,40
0,45
10
in OECD countries
China Saudi Arabia Indonesia India Japan New Zealand Iceland Mexico Russia Canada Korea Kazakhstan Australia Israel Ukraine Poland Peru Austria USA Switzerland Brazil Turkey Norway Denmark Chile Morocco Latvia Egypt United Kingdom Ireland Sweden The Czech Republic South Africa
Italy Hungary The Slovak Republic France Lithuania Belgium Greece Argentina Colombia Germany Estonia Spain Finland Netherlands Romania Slovenia Portugal Luxembourg
11
MINERALS
Mineral and raw material base of Kazakhstan is made up of 5,004 deposits, the forecasted cost of which is about 46 trillion USD.
99
indenied
70
proved
60
in use
12
Potential Customers
3 out of 4 BRICK countries are located at a distance of within a range of a 4-hours ight Customs Union with Russia and Belarus with a market of 170 mln people and total GDP of 2 trln USD Major transcontinental routes linking Asia-Pacic region with the Near and Middle East and Europe pass through Kazakhstan Open economy (Trade 70% of GDP) Great number of trade agreements signed
Russia Europe
China India
13
INFRASTRUCTURE
14
INFRASTRUCTURE
RAILWAY NETWORK MAP
16
17
Extent in Kazakhstan 2,787 km Extent of reconstruction segments in Kazakhstan 2,309 km Total cost $2.3 bln Commencement of work 2007, Completion of work 2012
18
Along the "Western Europe - Western China" corridor, from port Lianyungang up to the borders with the European Union, travel time is about 10 days. while using the sea corridor (Suez canal), travel time is about 45 days, along the "Trans-Siberian" corridor - 14 days
19
HOW
DOES THE GOVERMENT
PROTECT INVESTORS
Guarantee the protection of rights of investors within the scope of legislation code of Republic of Kazakhstan on Investments Guarantee protection of rights Guarantee use of income Guarantee rights of investors during nationalization and requisition Agreement on incentives and mutual protection of investments
Council for improving the investment climate advisory body Consultative-advisory body
45 bilateral and 1 multilateral agreement were signed on incentives and mutual protection of investments
Direct dialogue with investors Solution to issues, associated with investment activites Formulates recommendations for implementating investment activity in Kazakhstan
Formulate suggestions on creation of favorable investment climate, protection of rights and interests of investors and improvement of legal framework of the Republic of Kazakhstan, related to investment policy; Formulate recommendations on implementing investment activity with the consideration of practices of countries the organizations of economic cooperation and development
20
Guarantees of the legal protection of investor's activities on the territory of the Republic of Kazakhstan
An Investor is entitled to compensation for harm, caused to him due to the publication of acts by state agencies, which do not in comply with legislation and illegal actions (omissions) committed by authorized ocials of these agencies. Kazakhstan guarantees the stability of terms and conditions of contracts, signed between the investors and state agencies.
Guarantees for the protection of the investor's rights during nationalization and requisition
Forced seizure of investor's property (nationalization, requisition) for state needs is permitted in exceptional cases, foreseen by legislative acts of the Republic of Kazakhstan. During nationalization, losses, incurred by investors due to changes in legislation relating to acts of the Republic of Kazakhstan on nationalization, shall be reimbursed in full. Requisition of investor's property is done by paying him the market cost of the property. For complete information on Law "On Investments", refer to CD or website www.invest.gov.kz
21
ON
AGREEMENTS
MUTUAL PROTECTION
AND INVESTMENT INCENTIVES
Below is a list of countries, with which Kazakhstan has signed Agreements for on the encouragement and mutual protection of investments:
Sessions of the Council are held once a year under the Chairmanship of the President.
The Council features the following participants: from Kazakhstan side - heads of government bodies from foreign side - heads of international nancial and economic organizations, major foreign companies and corporations, operating in Kazakhstan (Total, ConocoPhillips, Cameco, HSBC, Mitsubishi Corp., Shell, Chevron, ENRC, ArcelorMittal etc.)
Address and contact details of association "Foreign Investors' Council of Kazakhstan": Astana, Kabanbay Batyr Ave., 6/1, "Kaskad" Business Center, 3rd Floor, Oce 31/2. Tel: +7 7172 925550, Fax: + 7 7172 925553, 23 E-mail: director@c.kz, assistant@c.kz
THE GOVERMENT
For induction into the list of strategic investment projects, investment project should involve the manufacture of products with high added cost, should correspond to priority type of operations and also meet one of the following criteria: 1) investment project should involve the manufacture of products, which is a part of list constitute of activities for the manufacture of high-end products which are approved by the Government of the Republic of Kazakhstan; 2) volume of investment under the investment project must be at least 5 million times the size of monthly calculated indicator, established for corresponding nancial year by Law On national budget.
In accordance with Tax Code, an investor may use: tax allowances: the value of certain assets It is not mandatory to enter into a contract and (or) subsequent costs for modernization and for availing tax incentives and can be used reconstruction can qualify for deduction for a independently period of up to three years.
On all issues, related to the provision of investment preferences, please contact the Committee on Investments of Ministry of Industry and New Technologies of the Republic of Kazakhstan.
24
SEZ ONTUSTYK Textile SEZ ITP IT industry, innovation Single window principle Free customs zone Budgetary funds for infrastructure facilities
Tax allowances for SEZ members: CIT 0% Land tax 0% Property tax 0% VAT 0% for goods, consumed in SEZ territory land lease at basic rate of 0 for up to 10 yrs.
Additional benets for SEZ "ITP": Social tax 0%. Extraterritorial principle - members of an SEZ "ITP" may be located outside SEZ and enjoy tax preferences except forthe VAT and customs duties. Depreciation rate for soware is increased up to 40% (generally it is 15%)
SEZ Management: An SEZ is managed by Management Company in the form of JSC, and legal entities, including the foreign companies, can be members of the JSC. Professional companies with international management experience are attracted to manage the SEZ.
For additional information on SEZs, visit the site: www.invest.gov.kz. Section "Government support for investments"
25
PRIVATE PARTNERSHIP
PUBLIC
Currently only one form of contractual PPP is used in Kazakhstan, namely - Concession, which is based on the "build - transfer - operate" model.
Concession - the transfer of government property to private entities on the basis of a concession agreement for temporary possession and use for the purpose of improving the eciency of operations, including the transfer of rights for the creation (construction) of new facilities at the expense of concessionaire or under co-nancing terms of concession with the subsequent transfer of such facilities to the State by providing the rights of possession and, use for subsequent operations in return for the potential provision of state support to the concessionaire. Main objective of concession agreements is to improve the quality of services, reduce the expenditures and risks of government sector, expansion of possibilities for development of infrastructure.
You can nd detailed information on public private partnership in Kazakhstan on web site www.kzppp.kz Contact details: JSC "Kazakhstan Public - Private Partnership Center" Republic of Kazakhstan, 010000, Astana, st. Temirkazyk, 65, 3rd Floor. JSC "Kazakhstan Public - Private Partnership Center" Tel: +7 (7172) 701 724 Fax: +7 (7172) 701 724 press@kzppp.kz 26 press@kzppp.kz
27
28
Almaty, Zenkova str., 80 ( 2nd oor) Tel: +7 (727) 250 00 21 E-mail: info@keg.kz www.keg.kz
32
Oil rening and development of infrastructure in oil and gas sector Raw material base
Kazakhstan ranks 11th in the world for oil reserves and 17th for gas reserves. In 2011, production of oil and gas condensate in the country amounted to 80 mln tons and gas production was 39.3 bln cubic meters (bcm). The average daily production volume of oil and gas condensate is over 200 thousand tons. Natural and associated gases obtained from the Tengiz and Caspian Sea elds, which have an ethane content of 13 - 16% and above, are economically and technologically suited for the production of ethylene a basic petrochemical product.
Production of oil and gas products Crude oil, tons in thousands Gas condensate, tons in thousands Natural and associated gas, mln.cu.m Gasoline, tons in thousands
2005
2006
2007
2008
2009
2010
2011
55236,804 59140,659 61055,040 64608,354 71091,121 75022,477 75333,202 6221,004 5724,314 6170,237 6008,454 5421,944 4663,465 4726,854
26247,500 27014,885 29638,613 33507,531 36015,050 37413,002 39532,389 2356,092 2341,714 2626,839 2503,414 2611,369 270,215 258,854 399,247 373,548 2920,381 2785,729 489,629 387,140
Aviation kerosene, 234,170 tons in thousands Diesel fuel, tons in 3280,021 thousands Residual fuel oil, tons in thousands 3545,702 Condensed gas, tons in thousands 1250,267
3457,378 3919,360 3997,555 3868,512 3305,359 2574,950 3177,719 3305,446 1270,559 1428,154 1445,004 1824,560
33
Infrastructure of sector
Currently, 3 oil reneries are operating in the cities of Atyrau, Pavlodar and Shymkent. However, a complete technological line for the high renement of hydrocarbon raw material is not available in Kazakhstan. The Government is taking measures to modernize and technologically upgrade oil reneries. In addition to this new innovative petrochemical plants are currently under construction. Transportation of oil and gas condensate for export is carried out through oil pipelines (79%), railway (8%) and sea transport (13%).
Competitiveness cluster
Major oil and gas companies are located in western regions and the Kyzylorda region, which have mineral resources and oil and gas production facilities. Prospective placement of new production facilities shall be in connection with the development of deposits in the Kazakh sector of the Caspian Sea.
34
35
To create competitive industries, to expand the range and increase the amount of value-added products with high added value through the involvement of Small and Medium Businesses (SMB)
The largest volume of imports is: tubes, pipes and hollow proles, of iron or steel metal structures and parts thereof; rods of iron or non-alloy steel and other ferrous metals. Thus, the structure of imports shows that imports of products of MMC predominant products with high added value.
Import, bln $
3,8
Aggregate supply in mining and metallurgical industry in 2011 amounted to $ 12.7 billion.
8,9
Domestic production, bln $ 36
37
38
Registered enterprises
According to the Agency of the RK on Statistics on 1 November 2011, the number of registered enterprises whose main activity was the mining of metal ores amounted to 278 enterprises, and those whose main activity was in the metallurgical industry 247 enterprises, making a total of 525 enterprises.
39
CHEMICAL INDUSTRY
The chemical industry is one of the priority-driven industries of Kazakhstan and is one of the largest suppliers of raw materials, intermediates, and materials for other sectors of the real economy.
40
4 969
Products which are imported in the largest volume are soda ash, fertilizers, inorganic compounds (acids, alkalis, oxides, salts, etc.), and detergents. Thus, the import structure of chemical products shows that the predominant import products are with high added value.
41
The Chemical Industry of Kazakhstan is based on the richest reserves of phosphates, the development of the oil and gas industry, the utilization of sulfur gases from the metallurgical industry and huge reserves of various salts. The location of the chemical industry is determined, in the case of initial redistributions by links to raw material sources (Zhambyl, Aktobe, Atyrau, and South Kazakhstan regions - nitrogen, phosphorus, potassium, complex fertilizers), and, in the case of higher redistribution links to existing production facilities, the manpower necessary skills scientic and technical basis, and according to demand from the population and industrial enterprises (for special chemicals and consumer chemicals - Pavlodar, Karaganda, East Kazakhstan regions and Almaty, for caustic soda in particular - the city of Pavlodar, the production of sulphuric acid - Akmola, Kyzylorda and Zhambyl regions and the production of rubber products - Karaganda region.
42
Registered enterprises
On 1 June 2011 there were 46 large and medium-sized enterprises and industries of chemical products.
1. 2.
Special economic zone (SEZ) in Zhambyl region Special economic zone (SEZ) in Pavlodar region
Competitive cluster
The Location of the chemical industrial enterprise with the initial redistributions associated with binding to raw material sources: Zhambyl, Aktobe, Mangistau and South Kazakhstan regions - nitrogen, phosphorus, potassium, complex mineral fertilizers; Higher redistribution linked to existing production facilities, the manpower, necessary skills, science and technology base and the demand from the population, industrial enterprises: Special-chemicals and consumer chemicals - Pavlodar, Karaganda, East Kazakhstan region and Almaty; Caustic soda - the city of Pavlodar; Production of sulfuric acid - Akmola, Kyzylorda and Zhambyl regions; Production of rubber products - Karaganda region
43
NUCLEAR INDUSTRY
According to the International Atomic Energy Agency (IAEA), about 19% of proven world reserves of uranium are concentrated in the territory of the Republic of Kazakhstan. The Countrys total reserves are estimated at 802 thousand tons of uranium.
enriched uranium and In 2011, Kazakhstan occupied rst place for extraction of uranium in the world. plutonium and their Production of natural uranium in 2009 amounted to 14,214 tons. The volume of compounds uranium in 2010 amounted to 17,803 tons and in 2011 - 19,450 tons.
14,950 tons
natural uranium
8,761 tons
3,773 tons
The National Atomic Company JSC "NAC Kazatomprom" is the national operator of the Republic of Kazakhstan for importing and exporting uranium, rare metals, and nuclear fuel for nuclear power plants (NPP), special equipment, technologies and dual-use materials. 100% of its shares are owned by the State via the National Welfare Fund "Samruk-Kazyna".
44
JSC NAC Kazatomprom is a holding company for the management of seven main areas of activity: Uranium mining and exploration; Manufacture of nuclear fuel cycle products; Reactor construction, nuclear power plants(NPP); Non-ferrous metallurgy and construction materials; Energy; Science; Social security and training.
The development of the nuclear industry occurs in the traditional regions of production of raw uraniumin southern Kazakhstan, in the Akmola region, recycling - in Akmola (Stepnogorsk Mining and Chemical Complex) and East-Kazakhstan (Ulba Metallurgical Plant (UMP)) regions. According to international ratings, Kazakhstan is among the countries with a high degree of competence in the eld of basic nuclear physics and radiation material.
45
ENGINEERING INDUSTRY
The core objective of the engineering industry in Kazakhstan: meeting the needs of the domestic market and expansion of exports by increasing the production of goods with high added value.
15,6
46
The machine-building industry includes a number of sub-sectors: rail, oil and gas, mining and metallurgy, automobile industry, agricultural, electrical, etc. The top priority subsectors of the engineering industry of the Republic of Kazakhstan have been identied: Machinery for oil and gas industry; The development of domestic oil and gas equipment is a high priority due to the fact that the oil and gas sector is the largest consumer of machinebuilding products. Kazakh enterprises aim tol produce a variety of complex equipment for drilling, well work-over, production, preparation, transportation, rening of oil and gas, which allow for the commercial production of oshore platforms.
47
Indicator Name Oil and gas rening equipment, $ million Oileld Equipment, $ million
2011
10,6
31,0
Machinery for Mining Industry; The most promising areas of domestic production in the mining and metallurgical engineering are: selfpropelled drilling and cargo handling equipment, hydraulic and pneumatic drills, gears, belt conveyors, steel-making equipment, a wide range of rental equipment, manufacturing of spare parts etc.
48
Indicator name Manufacture of machinery for mining, quarrying and construction, $ million.
2008 73,4
2011 88,7
Railway Engineering; Domestic demand represented by for railway engineering products provided the main market for freight cars and locomotives - joint stock company " National company" Kazakhstan railways". According to the company's plans as far as 2014, around 1,4 - 5,2 thousand cars and 1000 locomotives will be procured annually. Overhaul of the existing rolling stock and locomotives will also be carried out.
49
Indicator name
Manufacture of railway locomotives and rolling stock, $ million
2008 43,2
2009 51,3
2010 152,3
2011 416,6
Agricultural Engineering Industry; The market for agricultural machinery and equipment in Kazakhstan is now almost entirely composed of imported products. The largest share of domestic producers in the sector of agricultural machines (milking systems, machines for processing agricultural products, etc.) is in the segment "components and spare parts" with more than more than 50% and the lowest for the sector of combine harvesters and attachments. The greatest potential for development of agricultural engineering in the Republic of Kazakhstan is in the sector of combine harvesters of 3 and 4 classes, wheeled tractors, attachments and machines for processing grain and forage crops. In Kazakhstan, there are conditions to produce attachments, fully adapted to the climatic conditions of dierent regions of Kazakhstan. There is also a strong demand, driven by the need of eet renewal and expansion of cultivated land.
50
Indicator name
Agricultural and forestry machinery, $ million.
2008
86,3
2009
56,6
According to the Agency of the RK on Statistics more than 250 large and medium-sized engineering enterprises are registered, including in the production of computers, electronic and optical products - 8, in the manufacture of electrical equipment - 19, in the repair and installation of machinery and equipment, production of miscellaneous vehicles 156, in the manufacture of motor vehicles, trailers and semitrailers - 6, in the manufacture of other transport equipment - 17.
Registered enterprises
Agricultural Engineering - In the regions with the highest level of agricultural activit - the Northern and Eastern regions; Oil and Gas Machine-Building - In the western region in order to provide rapidly developing oil and gas production with a focus on demand for oil and gas production and processing enterprises in the specialized equipment, supplies and parts for them and the existing production capacity - Almaty, North Kazakhstan and East Kazakhstan regions; Mining Engineering - In the Central and Eastern regions, with a focus on the demand for large enterprises in Mining and Smelting Complex; Electrical Engineering - in the Southern and Central regions, with a focus on the existing industrial base; Transportation equipment - in the Northern, Central and Eastern regions, with a focus on the availability of skilled labour, manufacturing of components and spare parts of related industries.
51
PHARMACEUTICAL INDUSTRY
Creating the conditions to end dependence on the import of pharmaceutical and medical products based on advanced technologies in accordance with the International Good Manufacturing Practices (GMP) Standards.
Kazakhstan is heavily dependent on the import of pharmaceutical raw materials (substances), equipment and packaging materials.
7 large and medium-sized enterprises and industries are registered in Kazakhstan for the manufacture of basic pharmaceutical products.
Registered enterprises
Pharmaceutical enterprises will be placed in relation to previously established scientic and industrial base (South Kazakhstan region and Almaty) and also with regard to the availability of educational infrastructure, skilled labour (Aktobe, Eastern Kazakhstan, Karaganda region and the cities of Almaty and Astana) The largest of them - building a pharmaceutical factory in Astana
52
53
LIGHT INDUSTRY
Meeting the needs of the domestic market of light industry products through the processing of raw materials, manufacturing products with high added value and the prospect of entering foreign markets.
Articles of apparel and clothing accessories, except knitted or crocheted Articles of apparel and clothing accessories, knitted or crocheted Carpets and other textile oor coverings
54
The raw material base of the Cotton and Textile Industry in Kazakhstan is cotton. In 2011, the output of raw cotton in the country amounted to 336 thousand tons. The resulting cotton in Kazakhstan is that of the medium-ber cotton variety.
Also Kazakhstan has the required resources for raw hide. In 2010-2011, it produced:
Product Description
Leather of bovine cattle and equine animals, without hair, in thousand square decimeters
2010 .
92 501,7 1 131,7
2011 .
77 715,8 3 028,8
Fur skins, tanned or dressed, in thousand square decimeters Leather of sheep, goat or pig, without hair in thousand square decimeters
Source: Agency of the RK on Statistics
422,6
19,6
In the manufacture of textile products the number of large and medium-sized enterprises and industries was 42, in the manufacture of clothing 32 and in the manufacture of leather and associated products - 7. Light industry will be located in the cities of Almaty, Shymkent, Families in relation to the established industrial and technological base, the availability of raw materials and labour, as well as according to present and prospective domestic and global demand. In addition, West Kazakhstan and North Kazakhstan regions are attractive destinations due to their well-developed raw material base for the processing of wool and leather.
Registered enterprises
55
AGRO-INDUSTRIAL COMPLEX
Increasing productivity, ensuring national food security and increasing the export potential of AgroIndustrial Complex (AIC)
Crop production
More than 29 million tons of grain, including 24 million tons of wheat was gathered in Kazakhstan in 2011. Kazakhstan is among the world's top ten exporters of grain. Kazakh grain is exported to over 70 countries worldwide. The main importers of Kazakh grain are the CIS countries, the Middle East, North Africa and the European Union. In addition, oil crops, vegetables and melons, fruits, berries, grapes, sugar beets and potatoes are grown Kazakhstan.
56
Animal husbandry
Livestock production in the country is one of the main branches of the agricultural sector. The richest pasture lands and favorable climatic conditions provide a good basis for the development of animal husbandry. As a result of implementation of the State Policy in the livestock industry, there has been a steady increase in the number of livestock and poultry, livestock production and increased productivity of livestock and poultry, as well as an improvement in the quality of herds.
57
Registered enterprises
There are more than 161 major and 600 medium-sized registered enterprises for the production of agriculture, forestry and sheries products.
Petropavlovsk, Kostanay, Kokshetau, Shymkent, Taraz, Taldykorgan, Almaty, Kyzylorda and Atyrau.
58
Aggregate supply of non-metallic products (construction materials) for 2011 amounted to $1.7 billon
Import, bln $ 0,5
Aggregate supply of non-metallic products (construction materials) for 2011 amounted to $ 1.7 billion
1,2 Domestic production, bln $
1. 2. 3.
Increase the gross added value of the construction industry; Increase in the proportion of domestically produced construction materials; Increase in labour productivity. The largest volume of imports comes from: glazed ceramic slabs, die blocks, bricks, blocks, tiles and similar refractory ceramic construction materials.
59
The main natural raw materials for the manufacture of concrete products are gravel and sand. In Kazakhstan, the federal balance reserves of building stone include 179 elds. The balance reserves of these building stone deposits in categories A + B + C1 constitute 3,238,530 thousand m3 and category C2 - 1,167,786 thousand m3. Balance reserves of sand deposits for construction and silicate products in the country in the categories A + B + C1 amount to 1,410,358 thousand m3 and in the category C2 297,615 thousand m3. There are a total of 177 elds.
60
According to the Agency of the RK on Statistics, there were 41,062 registered enterprises in 2011.
Registered enterprises
Tourist potential
Kazakhstan - a country in the heart of Eurasia! The ancient culture of Kazakhstan and the countrys unique nature make for an enchanting destination. For centuries, a network of ancient caravan routes leading from China to the Middle East and Europe passed through this land. The Great Silk Road, or Silk Way, as a trade route began in the III century BC. This part of the road is a unique complex of historical, archaeological and architectural monuments, including intricately planned and constructed cities. Cities such as: Otrar, Sairam, Syganak, Sauran, Suzak and Turkestan were not only centers of trade, but also scientic and cultural centers. Mausoleum Khoja Ahmed Yasawi is a unique masterpiece of architecture dating back to the end of XIV and the beginning of XV centuries. Mausoleums Aisha-Bibi and Babaji Khatun (X-XII centuries.), Mausoleums Karahan and Daudbeka in Taraz, mosques and many other sacred sites allow travelers to experience the atmosphere of bygone centuries.
Kazakhstan has the world's rst space launch site Baikonur, which became a symbol of the space age and a new era in the history of mankind. For the purpose of educational and outdoor activities, the southern region of the country oers Charyn Canyon and relic Ash Grove, petroglyphs of Tamgaly and on the bank of Ili River, Big Almaty and Kolsai Lakes. Northern Kazakhstan is famous for beach holiday places and can oer the Borovoe resort area and the coastal lakes of Shchuchye, Borovoye, Big and Small Chebachye and Kotyrkol. Some lakes are famous for therapeutic mineral salts and muds - lakes Moiyldy and Maybalyk. Kazakhstan has signicant potential for engaging in sports tourism and mountaineering, skiing (Northern and Western Tien Shan, Jungar Alatau Rudny Altai). The ski resort Chimbulak at a height of 2,200 meters, is located at 25 km from the city of Almaty in Trans-Ili Alatau gorge.
62
Central Kazakhstan has one of the largest lakes in the world - Lake Balkhash, the unique Karkaralinsk mountain forest oasis. The region has many memorable places, in which archaeological and ethnographic objects are preserved. In Eastern Kazakhstan there are the Altai foothills and wooded areas, the river Irtysh, the Lakes Zaisan, Markakol, Alakol and Sauskan. In terms of extreme and ecological tourism, there is plenty of opportunity for that. There are many ecological routes that pass through the national parks, Altyn-Emel, Ile-Alatau, Caton Karagai, Burabay, Karkaraly, Aksu Zhabagly and others. Also, to date, in Kazakhstan there are many health and leisure resorts (sanatorium "Pine Forest", "Moiyldy", "Okzhetpes", "Kazakhstan", "Rakhmanov Springs", "Mankent", "Saryagash" etc.) oering the necessary facilities for recreation, treatment and entertainment. Kazakhstan provides virtually all existing types of tourism - educational, entertainment, ethnic, ecological and others and oers a large number of travel routes.
63
As part of the development of a competitive tourism industry infrastructure, the following issues will be worked out: Allocation of land by local executive bodies for the construction of road infrastructure along the transport corridor; Creation of engineering and communication infrastructure for the newly constructed objects of the tourism industry; Subsidization of interest rates on loans of investment projects in the national tourism cluster along the transport corridor Western Europe - Western China.
64
65
How to Get
66
to Kazakhstan
67
68
List of countries, whose nationals are exempt from having to produce invitations and visa support when making a single diplomatic, ocial, business, private, single and double tourist visas of RK 1. Australia 2. Austria 3. Belgium 4. Bulgaria 5. Brazil 6. Hungary 7. Germany 8. Greece
9. Denmark 10. Israel 11. Ireland 12. Iceland 13. Spain 14. Italy 15. Canada 16. Qatar 17. Cyprus 18. Latvia 19. Lithuania 20. Liechtenstein 21. Luxembourg 22. Malaysia 23. Malta 24. Monaco 25. Netherlands 26. New Zealand
27. Norway 28. United Arab Emirates 29. Oman 30. Poland 31. Portugal 32. Romania 33. Saudi Arabia 34. Singapore 35. Slovakia 36. Slovenia 37. United States of America 38. U.K. 39. Finland 40. France 41. Croatia 42. Czech Republic
43. Switzerland 44. Sweden 45. Estonia 46. South Korea 47. Japan 48. Hashemite Kingdom of Jordan
69
List of countries that have agreements with the Republic of Kazakhstan for visa-free mutual visits by type of passport or providing single entry without visa
Country Diplomatic passport Ocial passport National passport Period of visa-free stay Entry into force
1. 2.
The Russian Federation The Republic of Belarus The Republic of Tajikistan The Republic of Armenia The Republic of Georgia The Republic of Moldova The Republic of Uzbekistan The Republic of Azerbaijan Ukraine
Without visa Without visa Without visa Without visa Without visa Without visa Without visa Without visa Without visa Without visa Without visa Without visa Without visa Without visa Without visa
without visa without visa without visa without visa without visa without visa without visa without visa without visa without visa without visa without visa without visa without visa visa
without visa without visa without visa without visa without visa without visa without visa without visa without visa without visa visa without visa * visa visa visa visa
indenite
07.06.2002
Up to 90 days Up to 90 days Up to 90 days indenite indenite Up to 90 days Up to 30 days Up to 5 days Up to 30 days Up to 90 days Up to 90 days Up to 30 days
28.04.2008 21.06.2007 05.01.2007 26.06.2003 23.04.2010 27.02.2002 20.02.2002 * to stay in the Balkan province without visa for residents of Atyrau and Mangistau regions 06.11.1996 17.04.1998 22.08.2001 31.07.2008
11.
Turkmenistan
12.
21.05.2009 16. The Republic of Croatia without visa without visa without visa* Up to 90 days * From 01.04.2012 to 31.10.2012 (for citizens of the Republic of Croatia visa is required) Up to 90 days Up to 90 days Up to 90 days Up to 30 days Up to 90 days Up to 90 days Up to 90 days Up to 90 days Up to 90 days 24.02.2010 01.03.2010 31.08.2010 28.05.2011 07.05.2010 05.06.2010 14.05.2010 26.04.2012 26.11. 2010 10.08.2011 26. The Republic of Macedonia without visa without visa without visa* Up to 90 days * From 15.03.2012 to 15.03.2013 (for citizens of the Republic of Macedonia visa is required) Up to 30 days Up to 90 days Up to 30 days Up to 1 month Up to 30 days 05.07.2012 02.01.1995 02.04.1992 * for citizens of Malaysia visa is required 04.12.1999
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The Republic of Estonia The French Republic The Kingdom of Spain The Republic of Serbia The Republic of Slovenia The Republic of Bulgaria The Federal Republic of Germany The Kingdom of Denmark
without visa without visa without visa without visa without visa without visa without visa without visa without visa
visa visa visa without visa visa visa without visa visa visa
visa visa visa without visa visa visa visa visa visa
Bosnia and Herzegovina Mongolia The Republic of Turkey Malaysia * The Republic of India
without visa without visa without visa without visa without visa
without visa without visa without visa without visa without visa
The Islamic Republic of Iran People's 33. Chinese Republic The Islamic 34. Republic of Pakistan Republic of the 35. The Philippines 32. 36. 37. 38. The Republic of Singapore * The Arab Republic of Egypt The Republic of Korea
without visa without visa without visa without visa without visa without visa without visa without visa without visa without visa without visa without visa without visa without visa without visa -
without visa without visa without visa without visa without visa visa without visa without visa without visa visa without visa without visa without visa visa without visa -
visa visa visa visa visa visa visa visa visa visa visa visa visa visa without visa -
Up to 30 days Up to 30 days Up to 30 days Up to 30 days Up to 30 days Up to 30 days Up to 90 days Up to 90 days Up to 30 days Up to 90 days Up to 90 days Up to 30 days Up to 90 days Up to 90 days in 6 months Up to 14 days Up to 30 days in 180 days
24.11.1994 01.02.1994 29.09.1995 28.03.2005 01.11.2003 * For Singapore citizens visa is required 21.05.2008 05.12.2008 11.05.2010 11.04.2010 12.04.2011 05.11.2011 10.01.2005 08.09.2008 17.05.2012 26.07.2012 01.05.2011
39. The State of Israel The Socialist 40. Republic of Vietnam United Arab 41. Emirates Hashemite 42. Kingdom of Jordan of 43. The Republic Cuba The Federative 44 Republic of Brazil Republic of 45 TheLithuania Special Hong Kong 46 Administrative Region of China 47 UN
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1. Letter of invitation in the prescribed model; 2. Original payment order or receipt for payment of consular fees and services; 3. For organization, applying to MFA for the rst time this year, certied copies of the current year of the following documents: Charter, Taxpayer identication number (TIN), Certicate of registration in the Ministry of Justice of the Republic of Kazakhstan, Original certicate of absence / presence of the debt of the taxpayer, License for tourist activity in the case of invitations to tourists. 4. The power of attorney from the organization; 5. Data about the invited person in standard electronic form; 6. In the case of the visa category of "investor", the application of the Committee on Investments of the Ministry of Industry and New Technologies of the Republic of Kazakhstan. A letter of invitation is made in 3 copies; two copies shall be deposited in MFA, the third - sent to the invited persons.
The incoming applications are processed within 3-5 days and aer passing the instruction for issuance of visas to the Overseas Foreign Ministry, MFA informs the number of visa support, which the host organization must pass to the foreigner to contact the Consulate for a visa of Kazakhstan.
Contact Ministry of Foreign Aairs in Astana: Phone: +7 7172 72 04 70, 72 04 71, Fax: 72 04 60; Address: 3rd Entrance, Building 28, Kabanbay Batyr St. Ministry of Foreign Aairs Representative oce in Almaty: Phone: +7 (727) 272 09 39, 272 03 11; Fax: 72 08 43 Address: Building 65, Aiteke Bi St.
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Investor visa is issued to managers and management representatives of large foreign rms and companies engaged in investing in Kazakhstan's economy, as well as members of their families. Investor visas are issued for single, double, triple and multiple entry and exit.
Business visa is issued to foreigners traveling to Kazakhstan for business purposes (business tour, participate in business negotiations, having strictly business nature, symposia, conferences, tenders, conclusion of contracts, participation in exhibitions and fairs, the implementation of trade, international transportation, advisory and audit services). Business visas are issued for single, double, triple and multiple entry and exit.
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Work-Permit Visa is issued to foreigners traveling to Kazakhstan for work. The work permit visa is issued for single, double, triple and multiple entry and exit.
Private visa is issued to foreigners traveling to Kazakhstan with objectives of a private nature. Private visas are issued for single, double, triple entry and exit.
Tourist visa is issued to foreigners traveling to Kazakhstan for the purpose of tourism. Tourist visas are issued for single, double and triple entry and exit. More information about obtaining visas on www.invest.gov.kz Details about the cost of visas on www.invest.gov.kz
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Registration of passports of citizens of 28 economically developed and politically stable countries is carried out automatically: Simultaneously with the issuance of the business, tourist, private, diplomatic and ocial visas at Consular Oces abroad in Kazakhstan; Either directly at the State Border in Border Control Oces.
15. Malaysia 16. Monaco 17. Netherlands 18. Norway 19. Portugal 20. Singapore 21. United Kingdom 22. USA 23. Finland 24. France 25. Switzerland 26. Sweden 27. South Korea 28. Japan
In the above cases, the foreign citizen does not need to register with the immigration police. Registration of passports of foreign nationals is free and is made up to a period of 3 months. For delay and (or) the avoidance of registration, administrative responsibility is stipulated in the form of a ne and (or) expulsion from the Republic of Kazakhstan with a ban on re-entry for the next period of 5 years from the date of such removal.
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A number of hotels in Almaty are authorized to do registration of foreigners. Name Hotel "Intercontinental Almaty - Ankara in Kazakhstan" ***** Rahat Palace Hotel ***** Hotel RIXOS ALMATY ***** JSC Hotel "Dostyk" ***** LLP "Astana Interhotel" **** Hotel "Kazakhstan" **** JSC SC "Otrar" ****
Hotel A-Club *** Hotel "Alma-Ata" *** Hotel "Zhetysu" *** Hotel "Kazzhol" *** Hotel "Uyut" ** Chain of Hotels Royal Palace *** Holiday Inn Almaty**** LLP "Chagall Management" *** Chagall's Guest House (Almaty)
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A JSC is a legal entity that issues shares in order to raise funds for its operations. A JSC has property, separate from the assets of its shareholders, and is not responsible for their obligations. A JSC is liable for its obligations to the extent of its property. A shareholder of a JSC is not liable for its obligations and bears the risk of losses, associated with its activities within the value of his shares, except in cases stipulated by legislative acts of RK. A JSC may have one or several shareholders. The minimum amount of capital for a JSC - 50,000 MCI (approximately 538 794 U.S. dollars)
the Republic of Kazakhstan. Branches and representative oces are not legal entities. They are endowed with the property created by their legal entity and operate on the basis of the regulations approved by the entity.
A Branch is a separate division of the legal entity, situated outside of the entitys location and performing all or part of its functions, including functions of representation. A representative oce is a separate division of the legal entity, situated outside the entitys location and which protects and represents the legal entity, carrying out transactions on its behalf, and other legal actions, except in cases stipulated by legislative acts of
1 2
MCI - Monthly Calculation Index. MCI in 2012 is 1618 tenge (10.77 U.S. dollars).
Rates of exchange of USD of the National Bank of the Republic of Kazakhstan as on September 27, 2012
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REGISTRATION OF ENTERPRISES
To register a legal entity in the registration authority (Ministry of Justice and its territorial units), it is necessary to submit certain documents.
If the founder of a legal entity is another legal entity, the following must be provided:
A certicate of the tax authority about absence (presence) of the tax arrears of the founder/legal entity to the budget of the Republic of Kazakhstan; Notarized copy of Certicate of State Registration (reregistration); Notarized copy of the statistical card (if applicable); Notarized copy of proof of status as taxpayer.
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Registration of legal entities with foreign participation shall be carried out in accordance with the procedures established for registration of legal entities of RK. In addition, the following documents should be submitted:
Legalized extract from the trade register or other legalized document certifying that the founder company - a foreign legal person is a legal entity under the laws of the foreign country, with a notarized translation into Kazakh and Russian languages; A copy of passport or other identity document of the founder - a foreign person, with a notarized translation into Kazakh and Russian languages. A document certifying the location of the legal entity, Receipt or a document conrming the payment of the fee for State Registration of legal entities and registration of branches and representative oces.
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Upon receipt of the State Registration, the organization: Receives: Certicate of State Registration, Statistical Card and a Certicate of Registration with the Tax Authority; Can print and open a bank account. Investors are entitled to open accounts in the banks of the Republic of Kazakhstan in national currency and (or) foreign currency in accordance with banking and currency legislation of the Republic of Kazakhstan. Branches and representative oces shall have the right to operate in overseas accounts. An enterprise, registered in the territory of another State, shall not be prohibited from doing business in Kazakhstan, for this, it is necessary to be on the tax records at the place of work, permanent establishment or property.
Contact the Ministry of Justice of the Republic of Kazakhstan: 13th Entrance, House of Ministries, 8, Orynbor St., Astana Oce Phone: +7 7172 740737, Phone: +7 7172 740954
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OBTAINING A LICENSE
Particular kinds of activities in Kazakhstan require a license. Licensing is required for certain kinds of activities in the following areas:
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26.
Industry; Use of nuclear energy; Turnover of toxic substances; Transport; Tracking in narcotic drugs, psychotropic substances and precursors; Information security; Special equipment for search operations; Tracking of arms, military equipment and certain types of weapons, explosives and their use; Use of outer space; Information and communication; Education; The Media; Agriculture and forestry, geodesy and cartography; Healthcare; Maintenance of natural and legal persons; Gambling business; Veterinary science; Forensics; Culture; Financial sector and activities related to the concentration of nancial resources; Architecture, urban planning and construction; Production of the State Symbols of the Republic of Kazakhstan; Customs; Production and turnover of ethyl alcohol and alcoholic beverages and tobacco products; Activities related to the use of currency values; Export and import of goods.
More information about the procedure and time limits of the issuance of licenses on www.invest.gov.kz
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Heads of Branches and Representative Oces of Foreign Organizations; Employers, attracting foreign workers as the rst directors of legal entities of the Republic of Kazakhstan, in the authorized capital of which, the share of foreign legal entities and individuals is at least 50%, the members of the board of directors of joint stock companies of the Republic of Kazakhstan, in which at least 50% shares are owned by the State or foreign legal entities or individuals; Persons, who stay on a short business tour, provided that the total duration of such tours during the year does not exceed 60 calendar days. Every year the Government sets a quota for issuing work permits to foreign nationals. In 2012, the quota is 1% of the economically active population. Employers should seek quotas for work permits for the following year until 1 September this year.
More information about hiring of foreign labor www.invest.gov.kz
Contact the Ministry of Labor and Social Protection of the Republic of Kazakhstan: 6th Entrance, House of Ministries, 2, Orynbor St., Astana Reception: + 7 7172 742851 Phone: + 7 7172 743603, 743604 -mail: mintrud@enbek.kz
2
In accordance with the decision of the Government of RK 836 dated 19 June 2001.
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Distribution of quotas among the regions, cities of Astana and Almaty in 2012
North Kazakhstan reg.
30
Kostanay reg
Akmola reg.
Pavlodar reg.
201
24
619
1584
Atyrau reg.
Aktobe reg.
ASTANA 6368
Karaganda reg.
13245
1200
1114
1035
Almaty reg.
994
4214
5000
Zhambul reg.
2132
ALMATY 6060
4315
500
1500
5000
14000
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CUSTOMS TARIFFS
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Limit according to the weight and cost of goods for personal use
Without mandatory customs declaration and payment of customs duties, it is allowed to import goods worth not more than 1500 and a total weight up to 50 kg per person. If this limit is exceeded, a fee shall be payable at a rate of 30% of the value of the goods, but not less than 4 per kilogram in excess of. Rates of export customs duties are approved by the Government of the Republic of Kazakhstan on 7 June 2010 520 and range from 10 to 30% with the exception of certain goods.
Within the customs territory of CU shall be implemented without restrictions and customs declaration. From the third countries / into the territory of third countries in an amount, exceeding the equivalent of 10,000 USD shall be subject to customs declaration, in writing, by a passenger customs declaration for the entire amount of imported or exported securities.
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TAX SYSTEM
Registration: Structural unit of a non-resident legal entity is made on the basis of information of national registers of identication numbers, that is, automatically upon registration with the Judicial authorities; Non-resident legal entity carrying out activities in the Republic of Kazakhstan through a permanent establishment without opening a branch or a representative oce - in the tax authorities at the place of the permanent establishment. Residents are taxed on income received both in the Republic of Kazakhstan as well as from abroad. Non-residents are taxed only in respect of income from Kazakhstan sources, regardless of place of payment. Foreign natural persons shall be considered residents, if they are in the country for at least 183 days in any consecutive twelve month period ending in the current tax period. An individual is considered as non-resident for the period following the last day of stay in Kazakhstan, if the person does not become a resident in the year following the year, in which that person ends up staying in Kazakhstan. In the conventions for avoidance of double taxation, dierent rules for determining residency can be specied. Foreign individuals must register with the Kazakhstan Tax Authorities in the following cases: 1. When opening accounts in banks that are tax residents of Kazakhstan 2. When receiving income from Kazakhstan sources that are not taxed at the source in Kazakhstan 3. When they acquire tax resident status The place of tax registration is usually a residence address specied in the migration card of foreign citizens.
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CONVENTION FOR AVOIDANCE OF DOUBLE TAXATION CONCLUDED BETWEEN THE REPUBLIC OF KAZAKHSTAN AND OTHER STATES
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Austria Azerbaijan Armenia Belarus Belgium Bulgaria United Kingdom Hungary Germany Georgia India Iran Spain Italy Canada 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. China Kyrgyzstan Latvia Lithuania Malaysia Moldova Mongolia Netherlands Norway Pakistan Poland Russia Romania Saudi Arabia * Singapore 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. Slovakia USA Tajikistan Turkmenistan Turkey Uzbekistan Ukraine France Finland Czech Republic Switzerland Sweden Estonia South Korea Japan
MAJOR TAXES
Entrepreneurial activity is subject to the following taxes and duties: 1. Corporate Income Tax (CIT); 2. Individual Income Tax (IIT); 3. Tax withheld from income of the non-residents of RK; 4. Mineral Extraction Tax (MET);
5. Value Added Tax (VAT); 6. Land tax; 7. Property tax; 8. Tax on Vehicles of Legal Entities; 9. Pension Contributions; 10. Social Security Contributions
Contact the Tax Committee of the Ministry of Finance of the Republic of Kazakhstan: 11, Pobeda Avenue, Astana Phone: +7 7172 718002, Call Centre: +7 7172 580909 -mail: info@mgd.kz, Website: www.salyk.kz
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Contacts: 47, Transport Tower Building, Kabanbay Batyr Ave., Astana Phone: +7 7172 241540, Fax: +7 7172 242124, E-mail: info@cominvest.kz
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KAZNEX INVEST
We help: Foreign investors Kazakhstan Initiators of Investment Projects Buyers of Kazakh Products Existing and Potential Exporters We organize and conduct: In conjunction with the Ministry of Industry and New Technologies, International Business Forum with the participation of Heads of the State and the Government Meeting of Foreign Investors with the representatives, Government Agencies We counsel: Foreign Investors on business-related issued in Kazakhstan at all stages of the Investment Project
Contacts:
Contents of CD-ROM
1. 2. 3. The legislation of the Republic of Kazakhstan regulating the investment activities Useful addresses: Ministries and Departments, local councils of districts and cities, national companies, special economic zones (SEZ), industrial parks, corporate social entrepreneurship (CSE), the Embassies of the Republic of Kazakhstan overseas, etc. "Niche" Projects in Kazakhstan
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The Committee on Investments of the Ministry of Industry and New Technologies of the Republic of Kazakhstan