Entrepreneur Code of the Republic of Kazakhstan

Entrepreneur Code of the Republic of Kazakhstan

Unofficial translation

The Code of the Republic of Kazakhstan dated October 29, 2015 No. 375-V ZRK.

Unofficial translation

This Code defines the legal, economic and social conditions and guarantees that ensure the free enterprise in the Republic of Kazakhstan, regulates social relations arising from the interaction of business entities and the state, including government regulation and support for entrepreneurship.

SECTION 1. GENERAL PROVISIONS
Chapter 1. LEGAL PRINCIPLES OF INTERACTION BETWEEN
BUSINESS ENTITIES AND STATE

Article 1. Legislation of the Republic of Kazakhstan on entrepreneurship

The legislation of the Republic of Kazakhstan on entrepreneurship is based on the Constitution of the Republic of Kazakhstan and consists of this Code and other regulatory legal acts of the Republic of Kazakhstan.
Commodity-money and other property relations based on equality of participants, as well as personal non-property relations connected with property, are regulated by the civil legislation of the Republic of Kazakhstan.
If an international treaty ratified by the Republic of Kazakhstan establishes rules other than those provided for by this Code, then the rules of the international treaty shall apply.
In the event of gaps or inconsistencies found between the laws of the Republic of Kazakhstan on entrepreneurship contained in the regulatory legal acts of the Republic of Kazakhstan, the provisions of this Code shall apply to the provisions of this Code.
Features of certain types of entrepreneurship are established by the laws of the Republic of Kazakhstan.

Article 2. The concept of entrepreneurship and the limits of its legal regulation

Entrepreneurship is an independent, initiative activities of citizens, oralmans and legal entities aimed at obtaining net income through the use of property, production, sale of goods, performance of work, provision of services, based on the right of private property (private entrepreneurship) or on the right of economic management or operational management of a state enterprise (state entrepreneurship). Entrepreneurial activities are carried out on behalf of, for risk of, and under the property responsibility of an entrepreneur.
Entrepreneurial activities may be limited exclusively by the laws of the Republic of Kazakhstan.
Sstate bodies are prohibited to adopt regulatory legal acts establishing the privileged position of individual entrepreneurs.

Article 3. Objectives and principles of interaction between business entities and the state

The interaction of business entities and the state is aimed at creation of favorable conditions for development of entrepreneurship and society, encouragement of entrepreneurial initiatives in the Republic of Kazakhstan.
The principles of interaction between business entities and the state are:

1) legality;

2) freedom of entrepreneurship;

3) equality of entrepreneurs;

4) inviolability of property;

5) fair competition;

6) balance of consumer, business entities and the state interests;

7) transparency of the activities of state bodies and the availability of information;

8) effectiveness of state regulation of entrepreneurship;

9) improvement of the ability of business entities to independently protect their rights and legitimate interests;

10) priority of the prevention of wrong;

11) mutual responsibility of business entities and the state;

12) freedom from corruption;

13) promotion of entrepreneurship, ensuring of its protection and support;

14) support of domestic manufacturers of goods, works, services;

15) inadmissibility of unlawful state interference in the affairs of entrepreneurs;

16) participation of private entrepreneurship in lawmaking;

17) promotion of social responsibility of entrepreneurship;

18) limited participation of the state in entrepreneurial activities;

Note by the Republican Center for Legal Information!
Subparagraph 19) is put into effect after the enactment of the legislative act on self-regulation in accordance with the Code of the Republic of Kazakhstan dated 29.10.2015 No. 375-V.

19) self-regulation.

Article 4. Legality

Entrepreneurs in the course of their entrepreneurial activities, state bodies and officials of state bodies in the process of state regulation of entrepreneurship are obliged to comply with the requirements of the Constitution of the Republic of Kazakhstan, this Code and other regulatory legal acts of the Republic of Kazakhstan.
Acts and decisions of state bodies that contradict the Constitution of the Republic of Kazakhstan and the relevant regulatory legal acts of the Republic of Kazakhstan on the content, design and (or) procedures for their adoption are deemed illegal and invalid from the moment of their adoption and are subject to cancellation.

Article 5. Free enterprise

Everyone has the right to freedom of entrepreneurial activities, free use of own property for any legitimate entrepreneurial activities.
Business entities may carry out any types of entrepreneurial activities not prohibited by the laws of the Republic of Kazakhstan.

Article 6. Equality of entrepreneurs

Business entities are equal before the law and the court, regardless of their form of ownership or any other circumstances.
Business entities have equal opportunities in the implementation of entrepreneurial activities.

Article 7. Inviolability of property

Inviolability of the property of business entities is guaranteed by law.
Business entities may own any legally acquired property.
Business entities may not be deprived of their property, except as decided by the court. The compulsory alienation of property for state needs in exceptional cases provided for by law may be made on condition of equivalent compensation.

Article 8. Fair competition

Activities aimed at restricting or eliminating competition, infringement of the rights and legitimate interests of consumers, and unfair competition are prohibited.

Monopolistic activities are regulated and restricted by law.

Antimonopoly regulation is aimed at protection of competition, creation of conditions for the effective functioning of commodity markets, ensuring of the economic space unity, free movement of goods and freedom of economic activities in the Republic of Kazakhstan.

Article 9. Balance of interests of consumers, business entities and the state

Forms and means of state regulation of entrepreneurship are introduced in order to ensure adequate level of security of activities or actions (operations), the most effective protection of consumer rights with the minimum reasonably required load on entrepreneurs.
In the course of state regulation, the state bodies are not may to require from business entities the submission of documents and (or) additional information not provided for by the regulatory legal acts of the Republic of Kazakhstan.
Qualification and licensing requirements shall ensure the minimum necessary set of resources, standards and indicators sufficient for business entities to ensure the required level of safety of the activities, operations or security of the facility.

Article 10. Transparency of government activities and availability of information

The activities of state bodies shall be public and open within the limits established by the laws of the Republic of Kazakhstan.
State bodies are obliged to ensure the transparency of their decision-making activities affecting the interests of entrepreneurs.
Information held by government agencies and necessary for business entities shall be available if its use is not restricted by the laws of the Republic of Kazakhstan. Such information is provided for free of charge, with the exception of cases established by the laws of the Republic of Kazakhstan.

3-1. Private business entities may have a stamp with their name.

Government agencies and financial institutions are prohibited from requesting stamp on documents from legal entities belonging to private entrepreneurs.

All procedures and requirements related to the state regulation of entrepreneurship shall contain a clear sense excluding the divergent interpretation.
The provisions of this article, establishing the obligations of state bodies, shall apply to the authorized organization in the field of civil aviation.

Footnote. Article 10 as amended by the Law of the Republic of Kazakhstan dated 24.05.2018 No. 156-VI (shall be enforced upon expiry of ten calendar days after the date of its first official publication); No. 249-VI dated 04.19.2019 (shall be enforced since 01.08.2019).

Article 11. Effectiveness of state regulation of entrepreneurship

The effectiveness of state regulation of entrepreneurship is achieved through the introduction of mandatory procedures for its substantiation, coordination and monitoring.

Article 12. Improvement of the business entities ability to independently protect their rights and legitimate interests

Business entities may deny the inspection by officials of state control and supervision bodies in cases of their failure to comply with the requirements to inspections established by this Code.
In order to protect their rights and legitimate interests in the course of state control and supervision, business entities may involve third parties in the inspection.

Article 13. Priority of prevention of wrong

Prevention of offenses and motivation of business entities to comply with the requirements established by the laws of the Republic of Kazakhstan, have priority over the use of measures of state coercion in the process of entrepreneurial activities.
Measures of state coercion for an offense committed by an entrepreneur shall fir to its nature and gravity.

Article 14. Mutual responsibility of business entities and the state

By issue of a permit, the state confirms that the licensee, the permit holder, provides the second category of minimum safety level in accordance with the objectives of state regulation.
In the process of state regulation of entrepreneurship, there shall be no obstacles to the implementation of the legitimate activities of business entities by state bodies and their officials.
In the process of state regulation of entrepreneurship in the performance of their obligations by business entities or the exercise of the rights granted to them by law, it is assumed that their actions are in good faith.

An entrepreneur is also considered to be bona fide if, when exercising rights, legitimate interests and (or) performance of obligations, he was guided by an official explanation of the state body, given within his competence, fixed in accordance with the legislation of the Republic of Kazakhstan.

Losses caused to an entrepreneur as a result of issuing an act of a state body that does not comply with the legislation of the Republic of Kazakhstan, as well as actions (inaction) of officials of these bodies, shall be reimbursed in the manner prescribed by the civil legislation of the Republic of Kazakhstan.

The actual data submitted by business entities on the circumstances considered by the state body are deemed reliable until the court or the state body determines the opposite in accordance with the legislation of the Republic of Kazakhstan.
It is prohibited to use the rights provided for by this Code and other regulatory legal acts in contradiction with their goal with the aim of infringing the rights and legitimate interests of other business entities or evading the performance of existing obligations or legal responsibility for actually committed offenses.
The provisions of this article, establishing the obligations of state bodies, shall apply to the authorized organization in the field of civil aviation.

Footnote. Article 14 as amended by Law of the Republic of Kazakhstan No. 249-VI dated 19.04.2019 (shall be enforced since 01.08.2019).

Article 15. Freedom from corruption

When introducing and implementing state regulation of entrepreneurship, the facts of conflict of interests and selective application of law shall be excluded.
In order to limit the contacts of business entities with state bodies in the process of state regulation of entrepreneurship, regulations shall include the application of the "single window” principle, in which all necessary approvals from government bodies shall be obtained by state bodies themselves in the form of interagency cooperation.
The abuse of official powers by persons authorized to perform state functions and persons equated to them, exercising business regulation, in order to accept property benefits and advantages shall not be allowed.

Article 16. Stimulation of entrepreneurial activities and ensuring its protection and support

In order to stimulate the development of entrepreneurs, the state takes a series of measures aimed at creating favorable legal, economic, social conditions and guarantees for the implementation of entrepreneurial initiatives.
Stimulation of entrepreneurial activities are carried out, including through ensuring the protection and support of entrepreneurship.

Article 17. Support for domestic manufacturers of goods, works, services

Government agencies and other organizations are taking measures to create an enabling environment to stimulate the development of domestic production of goods, works, and services.
In developing and examining draft regulatory legal acts, concluding international treaties of the Republic of Kazakhstan and participating in the decision-making of international organizations in order to increase the competitiveness of domestic goods, works, services, the national interests of the Republic of Kazakhstan are taken into account.

Article 18. Inadmissibility of unlawful state interference in the affairs of entrepreneurs

Unlawful interference by the state in the affairs of entrepreneurs, their associations, as well as the aforementioned associations in the affairs of the state and the assignment of functions of state bodies to them are not allowed.

Article 19. Participation of private business entities in lawmaking

Private business entities participate in the development and examination of draft regulatory legal acts, draft international treaties of the Republic of Kazakhstan, as well as international treaties, the Republic of Kazakhstan intends to become a party to, affecting the interests of entrepreneurs, through the National Chamber of business entities of the Republic of Kazakhstan and expert council on private entrepreneurship (further-expert council).

Footnote. Article 19 as amended by the Law of the Republic of Kazakhstan dated 24.05.2018 No. 156-VI (shall be enforced upon expiry of ten calendar days after the date of its first official publication).

Article 20. Stimulation of social responsibility of entrepreneurship

The state guarantees and encourages the introduction by business entities of social responsibility in their business activities.

Article 21. Limited state participation in entrepreneurial activities

The state participates in entrepreneurial activities within the limits limited by this Code and the laws of the Republic of Kazakhstan.
In order to develop private entrepreneurship and competition, the state is taking measures aimed at reducing the state's share in entrepreneurial activities by limiting the creation of state legal entities in the sphere of entrepreneurship, legal entities with state participation in the authorized capital.

Note by the Republican Center for Legal Information!
Article 22 is enacted after the enactment of the law on self-regulation in accordance with the Code of the Republic of Kazakhstan dated 29.10.2015 No. 375-V.

Article 22. Self-regulation

The state creates conditions for the development of self-regulation in entrepreneurial and professional activities by reducing the scope of state regulation based on the minimum need for it.

Chapter 2. BUSINESS ENTITIES AND CONDITIONS FOR THEIR
FUNCTIONING
Paragraph 1. General provisions on entrepreneurs

Article 23. Entrepreneurs

Business entities are citizens, oralmans and non-state commercial legal entities engaged in entrepreneurial activities (private entrepreneurs), state enterprises (state entrepreneurs).
An individual, who is an entrepreneur, shall be registered as an individual entrepreneur in the manner provided for by this Code.
A legal entity that is an entrepreneur may be created in the organizational and legal form provided for by the Civil Code of the Republic of Kazakhstan.

Article 24. Categories of entrepreneurs

Depending on the average annual number of employees and the average annual income, business entities are divided into the following categories:

small-sized business entities, including micro-business entities;

medium-sized business entities;

large-sized business entities.

The assignment of business entities to the categories specified in paragraph 1 of this article is used for the following goals:

state statistics;

provision of state support;

application of other norms of the legislation of the Republic of Kazakhstan.

For state statistics, only the average annual number of employees is used.

For the goal of providing state support and applying other norms of the legislation of the Republic of Kazakhstan, two criteria are used: the average annual number of employees and the average annual income.

The average annual number of employees of business entities is determined taking into account all employees, including employees of branches, representative offices and other separate divisions of this subject, as well as the individual entrepreneur.

The average annual income is the sum of the total annual income or incomes of business entities that apply a special tax regime based on a patent or a simplified declaration in accordance with the tax laws of the Republic of Kazakhstan, divided into three over the past three years.

State support programs for private business entities may provide for other criteria.

small-sized business entities are individual business entities without formation of a legal entity and legal entities engaged in entrepreneurship, with an average annual number of employees of no more than one hundred people and an average annual income of no more than three hundred thousand times a monthly calculated indicator established by the law on the republican budget and in effect on January 1 of the corresponding financial year.

Micro business entities are small-sized business entities engaged in private entrepreneurship, with an average annual number of employees of no more than fifteen people or an average annual income of no more than thirty thousand times a monthly calculated indicator established by the law on the republican budget and valid on January 1 of the corresponding financial year.

For the goals of state support and the application of other norms of the legislation of the Republic of Kazakhstan, small-sized business entities, including micro-business entities, may not be recognized as individual business entities and legal entities carrying out:

1) activities related to the traffic of narcotic drugs, psychotropic substances and precursors;

2) production and (or) wholesale of excisable products;

3) grain storage operations at grain gaining stations;

4) holding of lotteries

5) activities in gambling;

6) activities related to the traffic of radioactive materials;

7) banking (or certain types of banking operations) and activities in the insurance market (except for the activities of an insurance agent);

8) auditing activities;

9) professional activities in the securities market;

10) activities of credit bureaus;

11) security activities;

12) activities related to the circulation of civilian and service weapons and their ammunition.

Individual business entities and legal entities carrying out the activities specified in this paragraph refer to medium-sized business entities, and in case of meeting the criteria established by clause 6 of this article, to large-sized business entities.

For private entrepreneurs, in accordance with the tax legislation of the Republic of Kazakhstan, who are payers of gambling business tax, a fixed tax and a single land tax, the criterion on the number of employees is used.

The medium-sized business entities are individual business entities and legal entities engaged in business, not related to small- and large-sized business entities in accordance with paragraphs 3 and 6 of this article.
The large-sized business entitites are individual business entities and legal entities that carry out business and meet one or two of the following criteria: the average annual number of employees is more than two hundred fifty people and (or) the average annual income over a three-million times a monthly calculated indicator, established by the law on the republican budget and applicable as of January 1 of the relevant financial year.

Article 25. Register of entrepreneurs

In order to use data on the categories of entrepreneurs, the authorized business agency keeps a register of entrepreneurs.
The register of business entities is an electronic database containing information on the categories of entrepreneurs.
Information on the category of business entities is provided for in the form of an electronic certificate to interested parties, including government agencies, for use in their work.
The rules for maintaining and using the register of business entities shall be approved by the Government of the Republic of Kazakhstan.

Article 26. Rights of entrepreneurs

Private business entities are may to:

1) carry out any types of entrepreneurial activities, to have freedom of access to the markets for goods, works and services, unless otherwise provided for by the laws of the Republic of Kazakhstan;

2) carry out entrepreneurship using hired labor in accordance with the laws of the Republic of Kazakhstan;

3) create branches and representative offices in the manner prescribed by the laws of the Republic of Kazakhstan;

4) independently set prices for manufactured goods, works, services, with the exception of cases established by this Code and the laws of the Republic of Kazakhstan;

5) independently monitor the quality of goods, works and services;

6) carry out foreign economic activities within their legal capacity;

7) establish associations of business entities and participate in them;

8) participate in the work of expert councils through accredited associations of private entrepreneurship entities, the National Chamber of business entities of the Republic of Kazakhstan;

9) apply to law enforcement and other government agencies on matters of bringing to justice those who violated the rights and (or) prevented the realization of the legitimate interests of entrepreneurs;

10) apply to the court, arbitration, the Commissioner for the protection of the rights of business entities of Kazakhstan and other bodies to protect their rights and legitimate interests;

11) settle the dispute through conciliation procedures;

12) submit for consideration to the authorized body on entrepreneurship proposals on the elimination of the causes and conditions conducive to the non-execution or inadequate execution of regulatory legal acts on the support and protection of entrepreneurship;

13) participate in the implementation of projects in the social, economic and environmental fields as measures of the social responsibility of entrepreneurship;

14) exercise other rights not limited by the laws of the Republic of Kazakhstan.

State enterprises shall exercise the rights provided for by this Code, with due regard to their specifics established by the laws of the Republic of Kazakhstan.

Article 27. Obligations of entrepreneurs

Business entities are obliged to:

1) comply with the legislation of the Republic of Kazakhstan, the rights and legitimate interests of individuals and legal entities;

2) ensure the safety and quality of goods, works, services in accordance with the requirements of the legislation of the Republic of Kazakhstan;

3) provide consumers with goods, works, services complete and accurate information about goods, works, services;

4) obtain permits or send notifications to start an activities or action (operation) in accordance with the Law of the Republic of Kazakhstan “On Permits and Notifications”;

5) carry out compulsory insurance of civil liability in cases stipulated by the laws of the Republic of Kazakhstan;

6) preserve nature and to treat natural resources with care;

7) increase the efficiency of use of natural and energy resources and their management in the process of carrying out activities;

8) perform other obligations provided for by this Code and other laws of the Republic of Kazakhstan.

Article 28. Protection of information constituting a trade secret

Protection of a trade secret consists in prohibiting the unlawful receipt, dissemination or use of information constituting a trade secret in accordance with this Code and the legislation of the Republic of Kazakhstan.
A entrepreneur shall determine the circle of persons who have the right of free access to information constituting a trade secret, and shall take measures to protect its confidentiality.
The procedure for classifying information as access categories, conditions for storing and using information constituting a trade secret, are determined by the entrepreneur.
Measures taken by an entrepreneur to protect information constituting a trade secret may include:

1) determining the list of information constituting a trade secret;

2) restricting access to trade secrets by establishing a procedure for handling this information and monitoring compliance with such a procedure;

3) records of persons who have obtained access to a trade secret, and (or) persons to whom this information has been provided for or transmitted.

Persons who illegally obtained, disclosed and (or) used information constituting a trade secret are obliged to compensate for the damage caused in accordance with the civil legislation of the Republic of Kazakhstan.
An entrepreneur or a person authorized by it has the right to demand from its employees a non-disclosure subscription of information constituting a trade secret, and those who carry out its verification shall be warned of liability in accordance with the laws of the Republic of Kazakhstan.
The list of information subject to mandatory publication or mandatory notification to the shareholders of the joint stock company, participants of the economic partnership, members of the production cooperative or other specified circle of persons is established by the laws of the Republic of Kazakhstan and the constituent documents of the entrepreneur.
Information constituting a trade secret may not be disclosed without the consent of the entrepreneur, with the exception of information on which there is a valid court decision, or other cases established by this Code.
State bodies and their officials without the consent of the entrepreneur shall not have the right to distribute and (or) use information that is known to them due to the fulfillment of official (official) obligations, which is a trade secret, except as required by the laws of the Republic of Kazakhstan.
An entrepreneur has the right not to provide public authorities and officials in the performance of registration, control and supervisory functions and other actions access to information constituting a trade secret, other than that necessary for the implementation of their functions.

10-1. An entrepreneur that owns, on the right of ownership or other legal basis, a critically important object of information and communication infrastructure, transfers a backup copy of an electronic information resource to a single backup platform for storing electronic information resources in the manner specified by the legislation of the Republic of Kazakhstan, subject to the requirements of the legislation of the Republic of Kazakhstan on national security.

State bodies and their officials bear the responsibility established by the laws of the Republic of Kazakhstan for the illegal distribution and (or) use of information constituting a trade secret, and the damage caused to an entrepreneur as a result of such distribution and (or) use is subject to compensation in accordance with civil the legislation of the Republic of Kazakhstan.
Generalized information that does not disclose information about the activities of a particular entrepreneur is publicly available.
Publicly available information of the entrepreneur includes:

1) last name, first name and patronymic (if it is indicated in the identity document) or the name of the individual entrepreneur;

2) name and date of registration of the legal entity;

3) identification number;

4) legal address (location);

5) kind of activities;

6) surname, name, patronymic (if it is indicated in the identity document) of the manager.

Footnote. Article 28 as amended by the Law of the Republic of Kazakhstan dated 28.12.2017 No. 128-VI (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 29. Primary statistical and administrative data

Primary statistical data is submitted by business entities in accordance with the legislation of the Republic of Kazakhstan in state statistics.

The use of primary statistical data by state bodies and the National Bank of the Republic of Kazakhstan in relation to an entrepreneur, including in the exercise of their control and supervisory functions, is not allowed.

Forms designed for the collection of administrative data, as well as methods for calculating indicators, shall be coordinated with the authorized body in state statistics in the manner established by the legislation of the Republic of Kazakhstan.

Paragraph 2. Individual entrepreneurs

Article 30. The concept and types of individual entrepreneurship

Individual entrepreneurship is an independent, initiative activities of citizens of the Republic of Kazakhstan, oralmans, aimed at obtaining net income, based on the property of individuals themselves and carried out on behalf of individuals, for their risk and under their property liability.

Other individuals are prohibited from individual entrepreneurship.

Individual entrepreneurship is carried out in the form of personal or joint entrepreneurship.

Article 31. Personal entrepreneurship

Personal entrepreneurship is carried out by one individual independently on the basis of property belonging to him by right of ownership, as well as by virtue of another right allowing use and (or) disposal of property.
For the implementation of personal entrepreneurship by an individual married, the consent of the spouse is not required.
In cases when an individual uses the common property of spouses to carry out personal entrepreneurship, a notarized consent of the other spouse is required for such use, unless otherwise provided for by law or the marriage contract or other agreement between the spouses.
Personal entrepreneurship can be carried out using the form of a farm.

Article 32. Joint entrepreneurship

Joint entrepreneurship is carried out by a group of individuals (individual entrepreneurs) on the basis of property belonging to them on the basis of common property, as well as by virtue of another right allowing for joint use and (or) disposal of property.
In a joint entrepreneurship, all transactions related to private entrepreneurship are made, and rights and obligations are acquired and carried out on behalf of all participants in the joint entrepreneurship.
Forms of joint entrepreneurship are as follows:

1) spouse entrepreneurship, carried out on the basis of the common joint property of the spouses;

2) family entrepreneurship, carried out on the basis of common joint ownership of a peasant farm or common joint ownership of privatized housing;

3) simple partnership in which private entrepreneurship is carried out on the basis of common shared ownership;

4) other forms in accordance with the laws of the Republic of Kazakhstan.

When spouses do business in the business turnover on behalf of the spouses, one of the spouses acts with the consent of the other spouse, which can be confirmed during the registration of an individual entrepreneur or expressed in writing and notarized in cases where the activities of the individual entrepreneur is carried out without state registration.

If one of the spouses does not give his/her cinsent for the performance of the other spouse in the business turnover on their behalf, it is assumed that the spouse acting in the business circulation performs individual entrepreneurship in the form of personal entrepreneurship.

Individual entrepreneurship using the simple partnership form is carried out in accordance with the civil legislation of the Republic of Kazakhstan.

Article 33. Implementation of the activities of individual entrepreneurs under their own names

The individual entrepreneur is engaged in entrepreneurial activities, acquires and exercises rights and obligations under his/her own name.
If the citizen is an oralman, he/she, when making transactions related to his entrepreneurship activities, shall indicate that he/she acts as an individual entrepreneur.
The absence of such indication does not relieve the individual entrepreneur from the risk and responsibility that the individual entrepreneur bears in his obligations.
In carrying out his/her activities, an individual entrepreneur has the right to use personal forms of business documentation, stamps, seal, the texts of which must clearly indicate that this person is an individual entrepreneur.

Article 34. Social protection of an individual entrepreneur

The individual entrepreneur has the right to use the social and pension system, social insurance in accordance with the legislation of the Republic of Kazakhstan.

Article 35. State registration of individual entrepreneurs

The state registration of individuals engaged in private entrepreneurship without forming a legal entity consists in registration as an individual entrepreneur in the state revenue body at the location declared during state registration as an individual entrepreneur.
Individuals are subject to obligatory state registration as an individual entrepreneur if they meet one of the following conditions:

1) use the work of employees on a permanent basis;

2) they gain annual income from private entrepreneurship calculated in accordance with the tax legislation of the Republic of Kazakhstan in the amount exceeding the 12-times minimum wage established by the law on the republican budget and valid as of January 1 of the corresponding financial year.

Note of RCLI!
Part two of Paragraph 2 shall remain in force until 01.01.2024 in accordance with the Law of the Republic of Kazakhstan No. 203-VI dated 26.12.2018.

The activities of listed individual entrepreneurs without state registration shall be prohibited, with the exception of the persons specified in paragraph 3 and 4 of this Article, as well as the cases provided by the tax legislation of the Republic of Kazakhstan.

An individual who does not use employees on a permanent basis may work without registration as an individual entrepreneur in the cases of gaining the following incomes established by the Code of the Republic of Kazakhstan "On taxes and other obligatory payments to the budget" (Tax Code):

1) income subject to taxation at the source of payment;

2) property income;

3) income from sources outside the Republic of Kazakhstan;

4) incomes of domestic workers in accordance with the labor legislation of the Republic of Kazakhstan, gaining income from persons other than tax agents;

5) incomes of citizens of the Republic of Kazakhstan under labor contracts (contracts) and (or) contracts of a civil law nature, concluded with representative offices of a foreign state and consular institutions of a foreign state accredited in the Republic of Kazakhstan other than tax agents;

6) incomes of citizens of the Republic of Kazakhstan under labor agreements (contracts) and (or) civil law contracts concluded with international and state organizations, foreign and Kazakhstan non-governmental public organizations and foundations exempted from the obligation to calculate, withhold and transfer individual income tax at the source of payment in accordance with international treaties ratified by the Republic of Kazakhstan;

7) incomes of resident labor immigrants received (to be received) under employment contracts concluded in accordance with the labor legislation of the Republic of Kazakhstan on the basis of a permit issued to a labor immigrant;

8) income of mediators, with the exception of professional mediators in accordance with the Law of the Republic of Kazakhstan "On Mediation", received from persons other than tax agents;

9) income from a private subsidiary farm, recorded in the household account book in accordance with the legislation of the Republic of Kazakhstan, subject to taxation, for which personal income tax was not withheld at the source of payment due to false information submitted by the individual subsidiary farm to the tax agent.

For the goals of applying this clause, the tax agent is a person defined by the tax legislation of the Republic of Kazakhstan.

Note of RCLI!
Paragraph 4 shall remain in force until 01.01.2024 in accordance with the Law of the Republic of Kazakhstan № 203-VI dated 26.12.2018.

An individual recognized in accordance with Article 774 of the Code of the Republic of Kazakhstan "On Taxes and Other Compulsory Payments to the Budget" (Tax Code) as a payer of the single overall payment shall has the right not to be registered as an individual entrepreneur.

Footnote. Article 35 as amended by the Law of the Republic of Kazakhstan dated 25.12.2017 No. 122-VI (shall be enforced from 01.01.2018); as amended by the Law of the Republic of Kazakhstan No. 203-VI dated 26.12.2018 (shall be enforced from 01.01.2019).

Article 36. The procedure for state registration of individual entrepreneurs

For state registration as an individual entrepreneur (joint individual entrepreneurship), an individual (authorized representative of joint individual entrepreneurship) submits directly to the state revenue authority or through the state information system of permits and notifications a form approved by the authorized body in permits and notifications.

In case of registration of joint individual entrepreneurship, an authorized representative of joint individual entrepreneurship provides a power of attorney signed on behalf of all participants of the joint entrepreneurship.

If the applicant has not reached the age of majority, the consent of the legal representatives is attached to the notice, and in the absence of such consent, a copy of the marriage certificate (marriage) or the decision of the guardianship or custody or court decision declaring the minor fully capable.

Reclamation of other documents is prohibited.

Persons included in the list of organizations and individuals associated with the financing of terrorism and extremism, in accordance with the legislation of the Republic of Kazakhstan shall not have the right to give notice.
The state revenue body shall, within one working day from the date on which the individual submits the documents specified in paragraph 1 of this article, except for the cases when notifications are submitted by the persons specified in paragraph 2 of this article, shall register the individual entrepreneur (joint individual entrepreneurship).
When the information specified in the notification is amended, the individual entrepreneur (an authorized representative of the joint individual entrepreneurship) is obliged to report such amendments to the state revenue authority in the form established by this authority.
Notification shall be submitted in electronic form via the “electronic government” web portal or on an ad hoc basis on paper.

Footnote. Article 36 as amended by the Law of the Republic of Kazakhstan dated 29.03.2016 No. 479-V (shall be enforced from 01.01.2017); as amended by the Law of the Republic of Kazakhstan dated 25.12.2017 No. 122-VI (shall be enforced from 01.01.2018).

Article 37. Certificate of state registration of an individual entrepreneur

Footnote. Article 37 is excluded by the Law of the Republic of Kazakhstan dated 29.03.2016 No. 479-V (shall be enforced from 01.01.2017).

Article 38. Termination of the activities of an individual entrepreneur

The activities of an individual entrepreneur may be terminated voluntarily or by force, as well as in the event of the occurrence of the circumstances provided for by this Code.

On a voluntary basis, the activities of an individual entrepreneur is terminated at any time on the basis of a decision taken independently by an individual entrepreneur in personal entrepreneurship, by all participants jointly in joint entrepreneurship. In this case, the individual entrepreneur submits to the state revenue authority a statement on the termination of entrepreneurial activities.

For voluntary termination of activities, an individual entrepreneur shall submit to the state revenue authority a statement on the termination of entrepreneurial activities.

The decision to terminate the joint entrepreneurship is considered adopted if at least half of its participants voted for it, unless otherwise provided for by agreement between them.

By compulsory procedure, the activities of an individual entrepreneur is terminated by a court decision in the following cases:

1) is excluded by Law of the Republic of Kazakhstan No. 290-VI dated December 27, 2019 (shall be enforced upon expiry of ten calendar days after the day of its first official publication);

2) recognition of the registration of an individual entrepreneur as invalid in connection with the violations of the legislation of the Republic of Kazakhstan admitted during registration, which are intractable in nature;

3) carrying out activities with repeated violations of the legislation of the Republic of Kazakhstan during a calendar year or gross violations;

4) declaring him/her dead;

Note by the Republican Center for Legal Information!
Subparagraph 5) shall be enforced from 06.02.2016 by the Code of the Republic of Kazakhstan dated 29.10.2015 No. 375-V.

5) including him/her in the list of organizations and individuals associated with the financing of terrorism and extremism, in accordance with the legislation of the Republic of Kazakhstan;

6) recognition of his/her missing;

7) established by the Code of the Republic of Kazakhstan "On taxes and other obligatory payments to the budget" (Tax Code), providing for the termination of activities under compulsion.

The activities of the individual entrepreneur, in addition to the grounds provided for in this article, is also terminated in the following cases:

1) personal entrepreneurship in the recognition of an individual entrepreneur as incapable, partially capable, or his/her death;

2) family entrepreneurship and simple partnership, if as a result of the occurrence of the circumstances listed in subparagraph 1) of this paragraph, there is only one or no participant in the joint entrepreneurship, as well as in the division of property in connection with the dissolution of the marriage;

3) established by the tax legislation of the Republic of Kazakhstan, providing for the termination of activities in a simplified manner;

4) the entry into legal force of a court ruling on the completion of the bankruptcy procedure in relation to an individual entrepreneur declared bankrupt by a court decision.

The activities of an individual entrepreneur is deemed to be terminated from the moment of his removal from the register as an individual entrepreneur in the state revenue body on the basis of his application or decision of the court that entered into legal force, as well as in the cases established by paragraph 3 of this article.

An individual entrepreneur is deemed to be de-registered as an individual entrepreneur in the registering authority from the date of posting this information on the Internet resource of the authorized body that manages the provision of tax revenues and other mandatory payments to the budget.

When carrying out individual entrepreneurship without registration in established cases, it shall be considered terminated from the date of its actual termination on a voluntary basis or, respectively, from the date the court decision comes into force - under compulsory procedure.
For small-sized business entities that do not have unfulfilled obligations and are assigned by state bodies to the category of subjects with low and medium risk, the laws of the Republic of Kazakhstan establish a simplified procedure for reorganization and voluntary liquidation.

Footnote. Article 38 as amended by the Law of the Republic of Kazakhstan dated 25.12.2017 No. 122-VI (shall be enforced from 01.01.2018); No. 290-VI dated December 27, 2019 (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

Article 39. Bankruptcy of an individual entrepreneur

The bankruptcy procedure of an individual entrepreneur is carried out in the manner prescribed by the legislation of the Republic of Kazakhstan on rehabilitation and bankruptcy.

Article 40. Recovery of debts of individual business entities on their property

Individual business entities shall be liable for their obligations with all their property, with the exception of property for which a penalty cannot be levied in accordance with the laws of the Republic of Kazakhstan.
When carrying out personal entrepreneurship, an individual shall be liable with all his/her property, including shares in the common property of spouses, with the exception of property for which recovery cannot be turned in accordance with the laws of the Republic of Kazakhstan.

Article 41. Definition and forms of farm

A farm is a labor association of persons in which the implementation of individual entrepreneurship is inextricably linked with the use of agricultural land for the production of agricultural products, as well as the processing and marketing of these products.
A farm may have the form of:

1) peasant economy, in which business activities are carried out in the form of family entrepreneurship, based on the basis of common joint ownership;

2) a farm based on the implementation of personal entrepreneurship;

3) a farm organized in the form of a simple partnership on the basis of common share ownership on the basis of a joint activities agreement.

Article 42. Head and members of a farm

The head of a farm can be a capable citizen of the Republic of Kazakhstan, an oralman who has reached eighteen years of age.
The members of a farm are spouses, close relatives (parents (parent), children, adoptive parents (adopters), adopted children, full and half siblings, grandparents, grandmothers, grandchildren) and others who jointly keep the household.

Article 43. Rights and obligations of the head and members of the farm

The head of a farm has the right to:

1) represent the interests of the farm in relations with individuals and legal entities;

2) carry out civil law transactions not prohibited by the laws of the Republic of Kazakhstan;

3) authorize any of the members of the farm to perform their functions in the event of a long absence;

4) determine the main activities of the farm;

5) approve internal rules, procedures for their adoption and other documents regulating the internal activities of a farm;

6) submit for consideration by the general meeting of members of a farm enterprise the question of the participation of a farm enterprise in the creation and activities of legal entities;

7) exercise other rights provided for by this Code and the laws of the Republic of Kazakhstan.

The head of a farm is obliged:

1) to organize the maintenance of records and statements of farm enterprises;

2) to implement, within its competence, decisions of the general meeting of members of a farm economy that do not contradict the legislation of the Republic of Kazakhstan;

3) to create working conditions for members of the farm;

4) when accepting employees, conclude labor contracts, issue acts of the employer in accordance with the labor legislation of the Republic of Kazakhstan;

5) to perform other obligations provided for by this Code and the laws of the Republic of Kazakhstan.

Members of a peasant or farm have the right to:

1) voluntarily withdraw from a farm in the manner determined by the general meeting of members of the farm;

2) receive information on the activities of a farm enterprise, including familiarizing themselves with the accounting data, financial statements and other documentation of this farm;

3) appeal to the general meeting of members of a farm and (or) to state bodies with complaints of unlawful actions (inaction) of the head and other members;

4) appeal in court the decisions of the head and the general meeting of members of a farm in case of violation of their rights and legitimate interests;

5) exercise other rights stipulated by this Code and the laws of the Republic of Kazakhstan.

Members of a farm are obliged:

1) to implement the decisions of the general meeting of members of a farm;

2) to comply with the requirements of the internal documents of the farm;

3) in the event of a change of the head of a farm, by a general statement, notify the authorities that registered the farm;

4) to perform other obligations provided for by this Code and the laws of the Republic of Kazakhstan.

Article 44. Peculiarities of the creation of a farm

A farm is created on a voluntary basis and is considered to be created from the moment of state registration of the right to a land plot, and in cases established by the laws of the Republic of Kazakhstan, after being registered as an individual entrepreneur.
Excluded by the Law of the Republic of Kazakhstan dated 25.12.2017 No. 122-VI (shall be enforced from 01.01.2018).
Footnote. Article 44 as amended by the Law of the Republic of Kazakhstan dated 25.12.2017 No. 122-VI (shall be enforced from 01.01.2018).

Article 45. Farm as a form of economic activities

A farm enterprise is an equal production unit of agriculture in the Republic of Kazakhstan.
A farm independently determines the area of its activities, the structure and volume of production, grows, processes and sells its products, as well as solves other issues related to the management of the farm.
In carrying out its activities, a farm has the right to:

1) open bank accounts and manage its money;

2) receive loans secured by property, land and land use rights in the manner and on the terms established by the legislation of the Republic of Kazakhstan;

3) insure rented and own production facilities, as well as crops (plantings) of agricultural crops, perennial plantings, manufactured products, raw materials, materials in case of death or damage in accordance with the legislation of the Republic of Kazakhstan on insurance and insurance activities;

4) on a voluntary basis, to unite in cooperatives, societies and other associations, participate in the activities of cooperative, economic partnerships and other organizations, as well as at their own discretion, withdraw from any organization.

Article 46. Property of a farm

The property of a farm is owned by its members by the right of joint ownership, unless otherwise established by an agreement between them.

The property of the farm, organized in the form of a simple partnership on the basis of a joint venture agreement, belongs to its members by right of joint ownership.

The property of the farm, based on personal entrepreneurship, belongs to him on the right of private property.

Members of a farm may own land, plantings on a land plot, including plantations of the private forest fund, wild animals, bred and kept in captivity and (or) semi-free conditions, economic and other buildings, land-improvement and other facilities, productive and working livestock, poultry, agricultural and other machinery and equipment, vehicles, implements and other property handed over to members of a farm and (or) purchased for the farm on the general means of its members.
Fruits, products and income derived from activities of a farm are common joint or common share property of members of a farm and are used by agreement between them.
Property relations of members of a farm are governed by the relevant rules of civil and land legislation of the Republic of Kazakhstan.
Property and the right to a land plot of a farm are inherited in the manner prescribed by the laws of the Republic of Kazakhstan.

Article 47. The provision of land for the farm management

The conditions, procedure for the provision and use of land for the farm management are established by the Land Code of the Republic of Kazakhstan.

Article 48. Conditions of activities of a farm

The farm covers its expenses with the income received.
Production, commercial and other relations of a farm are carried out on a contractual basis.
Citizens working under an employment contract may be involved in the performance of work in a farm enterprise.
The procedure for concluding an agreement on employment in a farm is determined by the labor legislation of the Republic of Kazakhstan.
Members of a farm enterprise and citizens who work on the farm under an employment contract enjoy all the rights provided for by the laws of the Republic of Kazakhstan.
Farm enterprises may `use the social and pension insurance system, social insurance in accordance with the legislation of the Republic of Kazakhstan.

Article 49. Termination of the activities of a farm

The activities of a farm is terminated if there is not a single member of the farm, a heir or another person willing to continue the farm’s activities, as well as in cases of bankruptcy and termination of the right to private ownership of a land plot or land use rights.
When ceasing the activities of a farm, the division of joint estate between the participants of joint ownership, as well as the separation of the share of one of them may be carried out, provided for that the share of each participant in the right to the common property is determined in advance.
Property in joint ownership may be divided between its participants by agreement between them.
The conditions and procedure for the division of property, land and land use rights in case of termination of the activities of a farm are governed by the civil legislation of the Republic of Kazakhstan.

Paragraph 3. Entrepreneurship of legal entities

Article 50. Entrepreneurship of non-state legal entities

Entrepreneurship of non-state legal entities may be carried out by creating commercial legal entities pursuing the extraction of income as the main goal of their activities.
The organizational and legal forms of non-state commercial legal entities can only be a business partnership, a joint-stock company and a production cooperative.
A non-profit organization may engage in entrepreneurial activities only insofar as it corresponds to its statutory goals.

Article 51. Entrepreneurship of state enterprises

In order to solve social and economic problems determined by the needs of society and the state, the state creates state enterprises based on the following rights of:

1) economic management;

2) operational management (state-owned enterprises).

A state enterprise on the right of economic management is a commercial organization endowed with state property on the right of economic management and liable for its obligations with all property belonging to it.
The state-owned enterprise is a commercial organization endowed with state property on the right of operational management.

Article 52. State registration of legal entities related to entrepreneurs, and accounting registration of their branches and representative offices

Legal entities established on the territory of the Republic of Kazakhstan and related to business entities are subject to state registration, regardless of the goal of their creation, the nature and nature of their activities, and the composition of participants (members).
Branches and representative offices of legal entities that are business entities located in the territory of the Republic of Kazakhstan shall be subject to registration without acquiring the rights of a legal entity.
State registration of legal entities related to business entities, and record registration of their branches and representative offices shall be provided by the State Corporation "Government for Citizens" (registering authority), with the exception of cases provided by the legislative acts of the Republic of Kazakhstan.
State registration (re-registration) of business entities - legal entities is carried out in accordance with the legislation of the Republic of Kazakhstan on state registration of legal entities and accounting registration of branches and representative offices.

Footnote. Article 52 as amended by the Law of the Republic of Kazakhstan No. 241-VI dated 02.04.2019 (shall be enforced from 01.07.2019).

Article 53. Reorganization and liquidation of a legal entity that is an entrepreneur

Reorganization and liquidation of a legal entity that is an entrepreneur is carried out in accordance with the Civil Code of the Republic of Kazakhstan, taking into account the features established by this Code and the laws of the Republic of Kazakhstan.
An entrepreneur shall be declared bankrupt by a court decision on the basis of the application of the debtor or creditor to the court, and in cases provided for by the laws of the Republic of Kazakhstan, and other persons.
The procedure for the rehabilitation and bankruptcy of a legal entity is carried out in the manner prescribed by the legislation of the Republic of Kazakhstan on rehabilitation and bankruptcy.

Chapter 3. ASSOCIATION OF BUSINESS ENTITIES AND CONDITIONS OF THEIR FUNCTIONING

Article 54. Associations of entrepreneurs

An association of business entities is an association (union) created by business entities in order to coordinate their entrepreneurial activities, as well as to represent and protect the common interests of entrepreneurs.
Financing of associations of business entities is provided for by voluntary membership fees of business entities and other sources not prohibited by the laws of the Republic of Kazakhstan.

Article 55. Basics of the activities of associations of entrepreneurs

The activities of entrepreneurial associations are based on:

1) equality of all entrepreneurs;

2) prevention decisions that do not correspond to the main directions of domestic and foreign policy of the state;

3) independence, which does not allow the restriction of lawfully carried out activities of associations of entrepreneurs;

4) transparency of activities, accountability, responsibility to its members;

5) efficiency, consistency and rapidness in decision making and its implementation.

Article 56. National chamber of entrepreneurs of the Republic of Kazakhstan, its goals and objectives

The National Chamber of entrepreneurs of the Republic of Kazakhstan (hereinafter - the National Chamber) is a non-profit organization, which is a union of business entities established to ensure favorable legal, economic and social conditions for the implementation of entrepreneurial initiatives and the development of mutually beneficial partnership between the business community and government bodies of the Republic of Kazakhstan, as well as encouragment and support for the activities of associations of individual business entities and (or) legal entities in the form of an association (union) (hereinafter - the association (union).
The goal of the creation of the National Chamber is to form an institutional framework for the growth and further development of entrepreneurship in the Republic of Kazakhstan.
The National Chamber goals are the following:

1) consolidation of the business community;

2) representation, maintenance and protection of the rights and legitimate interests of entrepreneurs;

3) the organization of effective interaction between business entities and their associations (unions) with government bodies;

4) assistance to the creation of favorable legal, economic and social conditions for the implementation of entrepreneurial initiatives in the Republic of Kazakhstan;

5) participation in the process of improving the legislation of the Republic of Kazakhstan, affecting the interests of entrepreneurship;

6) other objectives stipulated by the laws of the Republic of Kazakhstan.

Article 57. The National Chamber frame

To be recognized by the National Chamber as conforming with the established criteria for representing the interests of business entities in the governing bodies and working bodies of the National Chamber the associations (unions) shall be accredited.
The system of the National Chamber includes:

1) at the republican level:

National Chamber;

republican inter-sectoral, industry associations (unions) accredited to the National Chamber, as well as republican associations (unions) of small, medium and (or) large-sized business entities;

2) at the territorial level:

chambers of business entities of oblasts, cities of republican status and the capital (hereinafter - regional chambers);

regional inter-sectoral, regional sectoral associations (unions) accredited in regional chambers, as well as regional associations (unions) of small, medium and (or) large-sized business entities;

accredited in regional chambers regional, cities of regional, republican status and the capital of the association (unions);

regional associations accredited in regional chambers, cities of regional status associations (unions);

3) at the city and district levels:

branches of regional chambers in the regions of the respective oblasts, cities of oblast, cities of republican status and the capital, as well as in the towns of oblast and regional status;

4) legal entities with the participation of the National Chamber as a founder, established to implement the objectives of the Law of the Republic of Kazakhstan "On the National Chamber of business entities of the Republic of Kazakhstan";

5) branches and representative offices of the National Chamber located in a foreign country;

6) Commissioner for protection of the rights of business entities of Kazakhstan.

Article 58. Principles of activities of the National Chamber

The activities of the National Chamber are based on the principles of:

1) independence;

2) equality of all entrepreneurs;

3) making decisions that do not contradict the main directions of domestic and foreign policy of the state;

4) transparency of activities, accountability, responsibility to its members;

5) efficiency, consistency and rapidness in decision making and its implementation;

6) the development of intersectoral, sectoral and regional associations (unions);

7) social responsibility of entrepreneurship;

8) contributing to ensuring the safety of goods, works and services for human life and health and the environment produced by manufacturers of goods, works and services;

9) ensuring a balance of interests of society and entrepreneurship.

Note by the Republican Center for Legal Information!
Paragraph 2 is put into effect after the enactment of the law on self-regulation in accordance with the Code of the Republic of Kazakhstan dated 29.10.2015 No. 375-V.

The National Chamber is formed according to the principle of compulsory membership of business entities registered in it (record registration) in accordance with the legislation of the Republic of Kazakhstan, with the exception of business entities for which the legislation of the Republic of Kazakhstan establishes mandatory membership in other non-profit organizations, as well as state enterprises, unless otherwise specified by this clause.

The business entities that are members (participants) of self-regulating organizations in the business sphere based on mandatory membership are subject to the principle of mandatory membership of business entities in the National Chamber.

Article 59. Members of the National Chamber

The members of the National Chamber are the entrepreneurs, unless otherwise established by this Code and the Law of the Republic of Kazakhstan "On the National Chamber of business entities of the Republic of Kazakhstan".
Members of the National Chamber may:

1) enjoy professional support and protection from the National Chamber, as well as the services provided for by its charter;

2) elect and be elected to its governing bodies;

3) apply to the National Chamber with written inquiries and receive motivated answers within the limits of the powers granted to the National Chamber, make suggestions for improving the organization of its activities;

4) participate in the management of the National Chamber in the manner prescribed by the Law of the Republic of Kazakhstan "On the National Chamber of business entities of the Republic of Kazakhstan" and the charter of the National Chamber;

5) undergo training, retraining and advanced training organized by the National Chamber;

6) receive qualified information and analytical support, including the services of independent experts of various profiles;

7) hear reports on the activities of the National Chamber in the manner prescribed by its charter;

8) enjoy other rights provided for by the laws of the Republic of Kazakhstan.

Members of the National Chamber are required to pay mandatory membership fees.
Members of the National Chamber are equal in their rights.
The National Chamber shall not have the right to interfere in the activities of entrepreneurs, to violate their rights and legitimate interests.
Settlement of disputes is carried out in the manner prescribed by the legislation of the Republic of Kazakhstan.

Article 60. Competence of the National Chamber

The National Chamber performs the functions stipulated by this Code, the Law of the Republic of Kazakhstan "On the National Chamber of busineof the Republic of Kazakhstan" and other laws of the Republic of Kazakhstan.

Article 61. Interaction with the Government of the Republic of Kazakhstan, government bodies

Government of the Republic of Kazakhstan:

1) approves the limiting amounts of mandatory membership fees;

2) performs other functions assigned to it by the Constitution, this Code, other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

The interaction of the Government of the Republic of Kazakhstan and the National Chamber is aimed at achieving the goal of its creation and objectives.
The interaction of the National Chamber with the Government of the Republic of Kazakhstan and government bodies is carried out in the manner prescribed by this Code and other regulatory legal acts, in the form of:

1) participation of the National Chamber in the development and examination of draft regulatory acts affecting the interests of private entrepreneurs;

2) participation of the National Chamber in the development and examination of international treaties to which the Republic of Kazakhstan intends to become a party, as well as draft international treaties of the Republic of Kazakhstan affecting the interests of private entrepreneurs;

3) creation by the National Chamber of consultative and advisory bodies with the participation of central and local government bodies;

4) participation of the National Chamber in the work of the consultative and advisory bodies under the central and local government bodies established on matters affecting the rights and obligations of entrepreneurs;

5) forms aimed at the realization of the goal of creation, objectives and functions of the National Chamber.

State bodies are obliged, in the manner prescribed by the legislation of the Republic of Kazakhstan, to provide, at the request of the National Chamber, information concerning the rights and obligations of business entities of the Republic of Kazakhstan, with the exception of information constituting trade, banking and other secrets protected by law.

Note by the Republican Center for Legal Information!
Article 62 is put in force after the enactment of the self-regulation legislative act in accordance with the Code of the Republic of Kazakhstan dated 29.10.2015 No. 375-V.

Article 62. Introduction of self-regulation and its types

In order to create favorable legal and economic conditions in the areas of entrepreneurial and professional activities, self-regulation shall be introduced based on voluntary and compulsory membership (participation) in self-regulating organizations in accordance with the laws of the Republic of Kazakhstan.

In order to introduce self-regulation based on compulsory membership (participation) in a self-regulating organization, the regulatory body in a specific area and interested persons must first conduct a regulatory impact analysis procedure in accordance with Article 83 of this Code.

Footnote. Article 62 as amended by the Law of the Republic of Kazakhstan dated 24.05.2018 No. 156-VI (shall be enforced upon expiry of ten calendar days after the date of its first official publication).

SECTION 2. INTERACTION BETWEEN BUSINESS ENTITIES AND THE STATE
Chapter 4. Participation of business entities in rule-making

Article 63. Accreditation of associations of private entrepreneurs

Footnote. Article 63 is excluded by the Law of the Republic of Kazakhstan dated 24.05.2018 No. 156-VI (shall be enforced upon expiry of ten calendar days after the date of its first official publication).

Article 64. Expert council

The Expert Council is a consultative and advisory body established under the central state and local executive bodies to organize work on:

developing proposals for improving the activities of state bodies in order to support and protect entrepreneurship, including the elimination of administrative barriers;

developing proposals for improving the legislation of the Republic of Kazakhstan, affecting the interests of entrepreneurship;

obtaining expert opinions from members of expert councils on draft normative legal acts, draft international treaties of the Republic of Kazakhstan, as well as international treaties, to which the Republic of Kazakhstan intends to become a member, affecting the interests of business.

The expert councils include representatives of the National Chamber, self-regulatory organizations based on compulsory membership (participation), associations of private business entities and other non-profit organizations, and government bodies.

Expert council meetings are held as needed.

Associations of private business entities and other non-commercial organizations attain the status of members of the expert council only from the moment of their accreditation with the central state or local executive body.
Form of certificate of accreditation, procedure for accreditation, grounds and procedure for canceling accreditation of associations of private business entities and other non-profit organizations are determined by the Government of the Republic of Kazakhstan.

Сertificate of accreditation is issued for a period of three years.

Associations of private business entities accredited more than two times in a row at central state and (or) local executive bodies receive a certificate of accreditation on an unlimited basis.

Representatives of members of the expert council, whose powers are confirmed by a power of attorney, take part in the meetings of the expert council.

The composition of expert councils at the central state and local executive bodies is approved by decisions of the heads of these bodies.

Draft regulatory legal acts containing state secrets are not subject to review by the expert council.
Consideration of the draft regulatory legal act, draft international treaty of the Republic of Kazakhstan, as well as the international treaty to which the Republic of Kazakhstan intends to become a member, is carried out by the members of the expert council without holding a meeting by promptly sending a notice to the members of the expert council of the advisory council of the corresponding project open regulatory legal acts.

The meeting of the expert council is held on the initiative of the members of the expert council. The agenda is considered in the presence of at least two thirds of its members.

At the same time, meetings of the expert council is held by directly convening members of the expert council or by holding videoconferencing or an online conference in real time.

For consideration by the expert council, any issue affecting the interests of private entrepreneurship can be submitted if this issue falls within the competence of the relevant central state or local executive body.
The model regulation on expert councils is approved by the Government of the Republic of Kazakhstan.

Footnote. Article 64 as amended by the Law of the Republic of Kazakhstan dated 24.05.2018 No. 156-VI (shall be enforced upon expiry of ten calendar days after the date of its first official publication).

Article 65. Features of the development and adoption of regulatory legal acts affecting the interests of entrepreneurs

Central state and local executive bodies notify the expert councils and the National Chamber of the placement of the relevant draft regulatory legal act affecting the interests of business entities on the Internet portal of open regulatory legal acts for obtaining an expert opinion, including each subsequent approval of this project with interested government agencies.

The term established by the central state and local executive bodies for submission of expert opinion on the draft regulatory legal act affecting the interests of business entities may not be less than ten working days from the date of receipt of the notification to the members of the expert council and to the National Chamber.

The requirement for receiving an expert opinion specified in part one of this Paragraph shall not apply to the projects of regulatory legal acts of central and local executive agencies, as well as akims providing for decisions on establishment (cancellation) of the quarantine zone with the introduction of quarantine regime in the relevant territory, on establishment (release) of quarantine and (or) restrictive measures in cases provided by the legislation of the Republic of Kazakhstan for veterinary medicine, as well as natural and man-made emergencies declaration.

The provisions of this paragraph apply to the concept of draft laws affecting the interests of entrepreneurs.

The explanatory note to the draft regulatory legal act affecting the interests of business entities shall contain the results of calculations confirming the reduction and (or) increase in the costs of business entities in connection with the introduction of the regulatory legal act.
The requirements provided for by this article and articles 66-68 of this Code are mandatory conditions for the adoption of regulatory legal acts affecting the interests of entrepreneurs.

Footnote. Article 65 as amended by the Law of the Republic of Kazakhstan dated 24.05.2018 No. 156-VI (shall be enforced upon expiry of ten calendar days after its first official publication); as amended by the Law of the Republic of Kazakhstan dated 21.01.2019 No. 217-VІ (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 66. Expert opinions on the concepts of draft laws, draft regulatory legal acts affecting the interests of entrepreneurs

View of the member of the expert council and the National Chamber expressed in writing, is advisory in nature and is a mandatory appendix to the concept of the draft law, the draft regulatory legal act prior to its adoption, including with each subsequent coordination of this draft with interested government bodies.

Expert opinions are submitted in the Kazakh and Russian languages.

Expert opinions shall be submitted to state developers by members of the expert council and the National Chamber within the terms specified by such state bodies, but not less than ten working days from the date of receipt of the notification by a member of the expert council and the National Chamber.

Failure to submit an expert opinion in a timely manner means that the concept of the draft law, the draft regulatory legal act is considered to be agreed by a member of the expert council and the National Chamber without comment.

At the same time, it is prohibited to state bodies to require from state developers to obtain expert opinions from members of the expert council and the National Chamber, who did not submit an expert opinion within the deadlines set in this paragraph.

The state developer, in agreement with the expert opinion, makes the appropriate amendments and (or) additions to the concept of the draft law, draft regulatory legal act.

In case of disagreement with the expert opinion, the state developer within ten working days from the date of receipt of the expert opinion shall be sent to the member of the expert council who gave this conclusion and the National Chamber with a justification of the reasons for the disagreement. Such a response is a mandatory appendix to the concept of the draft law, the draft regulatory legal act before its adoption.

Footnote. Article 66 as amended by the Law of the Republic of Kazakhstan dated 24.05.2018 No. 156-VI (shall be enforced upon expiry of ten calendar days after the date of its first official publication).

Article 67. Publication (distribution) of a draft regulatory legal act affecting the interests of business entities in the media

A draft regulatory legal act affecting the interests of business entities is subject to mandatory publication (distribution) in the media, including Internet resources, before being reviewed by the relevant body, the expert council and the National Chamber.

Footnote. Article 67 as amended by the Law of the Republic of Kazakhstan dated 24.05.2018 No. 156-VI (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 68. Procedure for the enactment of a regulatory legal act affecting the interests of entrepreneurs

The deadlines for enactment of a regulatory legal act affecting the interests of business entities shall be established on the basis of the time needed by the entrepreneur to prepare for the implementation of activities in connection with the requirements established by the laws of the Republic of Kazakhstan.

The procedure and deadlines for the enactment of regulatory legal acts shall not be detrimental to entrepreneurs.

Article 69. Features of the conclusion of international treaties affecting the interests of private entrepreneurs

When developing and concluding draft international treaties of the Republic of Kazakhstan, as well as international treaties, to which the Republic of Kazakhstan intends to become a party, affecting the interests of private entrepreneurs, the procedure provided for in Articles 65-68 of this Code is applied.

Chapter 5. PUBLIC PRIVATE PARTNERSHIP

Article 70. Definition of public private partnership

Public private partnership is a form of cooperation between a public partner and a private partner, corresponding to the following features:

1) building a relationship between a public partner and a private partner by entering into a public private partnership agreement;

2) medium-term or long-term period for the implementation of a public private partnership project (from three to thirty years, depending on the specifics of a public private partnership project);

3) joint participation of a public partner and a private partner in the implementation of a public private partnership project;

4) pooling the resources of a public partner and a private partner for the implementation of a public private partnership project.

Article 71. Participants of public private partnership

The participants of a public private partnership are the public partner and the private partner, as well as other persons participating in the implementation of the public private partnership project, as provided for by the Law of the Republic of Kazakhstan "On Public Private Partnership".

Article 72. Objects of public private partnership

The objects of public private partnership are property, property complexes, design, construction, creation, reconstruction, modernization and operation of which are carried out as part of a public private partnership project. The objects of public private partnership also include works (services) and innovations to be introduced during the implementation of a public private partnership project.

Article 73. Main objectives and principles of public private partnership

The main objectives of public private partnerships are:

1) creation of conditions for effective interaction between the public partner and the private partner in order to ensure sustainable socio-economic development of the Republic of Kazakhstan;

2) attracting investments to the state economy by pooling the resources of a public partner and a private partner for the development of infrastructure and life support systems of the population;

3) increasing the level of availability and quality of goods, works and services, taking into account the interests and needs of the population, as well as other interested parties;

4) increasing the overall innovation activities in the Republic of Kazakhstan, including the promotion of the development of high-tech and knowledge-intensive industries.

The principles of public private partnership are:

1) the principle of consistency - the phased construction of relations between the participants of public private partnership;

2) the principle of competitiveness - the definition of a private partner on a competitive basis, with the exception of cases established by the Law of the Republic of Kazakhstan "On public private partnership";

3) the principle of balance - a mutually beneficial distribution of obligations, guarantees, risks and revenues between a public partner and a private partner in the process of implementing a public private partnership project;

4) the principle of effectiveness - the establishment of criteria and indicators to assess the achievement of the results of public private partnerships.

Article 74. The scope of public private partnership and methods for its implementation

Public private partnership is carried out in all sectors (fields) of the economy. At the same time, the objects, the list of which is determined by the Government of the Republic of Kazakhstan, cannot be transferred for the implementation of a public private partnership.
Public private partnership in the method of implementation is divided into institutional and contractual.
An institutional public private partnership is implemented by a public private partnership company in accordance with a public private partnership agreement.
In other cases, public private partnership is carried out according to the method of contractual public private partnership.

A contractual public private partnership is implemented through the conclusion of a public private partnership agreement, including in the following forms:

1) concessions;

2) trust management of state property;

3) property rental (lease) of state property;

4) leasing;

5) contracts concluded for the development of technology, prototyping, pilot testing and small-scale production;

6) life cycle contract;

7) service contract;

8) other contracts corresponding to the features of public private partnership.

Footnote. Article 74 as amended by the Law of the Republic of Kazakhstan dated 03.07.2017 No. 86-VI (shall be enforced upon expiry of ten calendar days after its first official publication).

Chapter 6. SOCIAL RESPONSIBILITY OF ENTREPRENEURSHIP

Article 75. General provisions of the entrepreneurship social responsibility

The social responsibility of entrepreneurship is the voluntary contribution of business entities to the development of social, environmental and other areas.
The state creates conditions for the social responsibility of entrepreneurship in the Republic of Kazakhstan.
No one has the right to force business entities to carry out social responsibility activities.

Unlawful state interference in the affairs of business entities in the implementation of charity is not allowed.

Business entities in their activities can introduce social responsibility of entrepreneurship in the areas of employment and labor relations, environmental protection and other areas.

Social responsibility of entrepreneurship can be carried out by business entities through charity and in other forms not prohibited by the legislation of the Republic of Kazakhstan.

Article 76. Social responsibility of entrepreneurship in employment and labor relations

Social responsibility of entrepreneurship is based on the protection of the rights of workers of business entities provided for by the legislation of the Republic of Kazakhstan and shall be aimed at developing partnerships between the entrepreneur and his/her employees in solving social issues and regulating working conditions.
The main directions in employment and labor relations of entrepreneurship are preservation of working places, the improvement of working conditions, provision of safe working conditions and observance of the norms of social protection of workers, as well as approval of internal policies.
Business entities are involved in the implementation of the policy of social partnership and collective relations in the labor area in accordance with the labor legislation of the Republic of Kazakhstan.

Article 77. Social responsibility of entrepreneurship in the environmental area

Business entities shall ensure careful and rational attitude to the environment.
The social responsibility of entrepreneurship in the environmental area is implemented through the voluntary performance of the following objectives:

1) financing of programs and activities in environmental protection and improvement of streets, parks and other public places;

2) approval of the internal policy in environmental protection;

3) solution of other issues aimed at improving the state of the environment.

Article 78. State guarantees of business entities in the implementation of charity

Protection of the rights and legitimate interests of entrepreneurs-charity participants is guaranteed and supported by the state.
The state stimulates charity of business entities through the establishment and award of business entities that carry out such activities, who have made significant contributions to the development of charity, state awards in the manner approved by the President of the Republic of Kazakhstan, and honorary titles approved by the Government of the Republic of Kazakhstan.
Business entities engaged in charity are may to tax benefits in accordance with the Code of the Republic of Kazakhstan "On taxes and other obligatory payments to the budget" (Tax Code).
Officials of state bodies that impede the realization of the rights of business entities to implement charity and receive charitable assistance by individuals and legal entities shall be liable in accordance with the laws of the Republic of Kazakhstan.

Footnote. Article 78 as amended by the Law of the Republic of Kazakhstan dated 03.07.2017 No. 86-VI (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 79. The interaction between the state and business entities engaged in charity

The state shall ensure the observance of the rights and legitimate interests of entrepreneurs, as well as their associations engaged in charity.
Entrepreneurs, as well as their associations engaged in charity, can cooperate and interact with state bodies, local executive bodies, enter into agreements with them, and also perform certain works on the basis of contracts stipulated by the laws of the Republic of Kazakhstan.
The norms of this Code do not apply to the mechanism for attracting, evaluating, monitoring and using related and unrelated grants that cannot be used for philanthropic goals.

Chapter 7. STATE REGULATION OF ENTREPRENEURSHIP

Article 80. Objectives and limits of state regulation of entrepreneurship

The objectives of state regulation of entrepreneurship are to ensure the safety of goods, works, services for the life and health of people produced and sold by a entrepreneur, protection of their legitimate interests, safety for the environment, national security of the Republic of Kazakhstan, protection of state property interests.
State regulation of entrepreneurship is carried out through the establishment of state requirements that are mandatory for entrepreneurs, including the use of regulatory tools at the level of:

1) the laws of the Republic of Kazakhstan;

2) decrees of the President of the Republic of Kazakhstan;

3) regulatory resolutions of the Government of the Republic of Kazakhstan;

4) regulatory legal orders of ministers of the Republic of Kazakhstan and other heads of central state bodies and their departments;

5) regulatory legal acts of the National Bank of the Republic of Kazakhstan and the authorized body for regulation, control and supervision of the financial market and financial organizations;

6) normative legal decisions of maslikhats, normative legal decisions of akims, normative legal resolutions of akimats.

Regulatory instruments are the means of influence in relation to entrepreneurs, including the forms and means of state regulation of entrepreneurship, provided for by Article 81 of this Code.

Is excluded by the Law of the Republic of Kazakhstan No. 156-VI dated 24.05.2018 (shall be enforced upon expiry of six months after its first official publication).
Footnote. Article 80 as amended by the Law of the Republic of Kazakhstan dated 24.05.2018 No. 156-VI (order of enforcement see Article 2); No. 262-VI dated 03.07.2019 (shall be enforced since 01.01.2020).

Article 81. Forms and means of state regulation of entrepreneurship

State regulation of entrepreneurship is carried out by:

1) the establishment by regulatory legal acts of the Republic of Kazakhstan of requirements for subjects, as well as products, entrepreneurship processes;

2) state registration of entrepreneurs;

3) the introduction of a permit or notification procedure for the implementation by entrepreneurship of certain types of activities or actions (operations);

4) technical regulation;

5) state regulation of prices and tariffs;

6) compulsory insurance of civil liability of business entities in accordance with the laws of the Republic of Kazakhstan;

7) state control and supervision;

8) protection of competition and restriction of monopolistic activities;

9) state order;

10) the establishment by the laws of the Republic of Kazakhstan of the responsibility of entrepreneurs, officials of state bodies;

10-1) the introduction of information tools;

10-2) the introduction of self-regulation based on compulsory membership (participation) in a self-regulatory organization;

11) other forms and means of state regulation of entrepreneurship established by the laws of the Republic of Kazakhstan.

Footnote. Article 81 as amended by the Law of the Republic of Kazakhstan dated 24.05.2018 No. 156-VI (shall be enforced upon the expiry of ten calendar days after the date of its first official publication).

Article 82. Features of the development and adoption of regulatory legal acts providing for the introduction of regulatory tools or regulatory tightening in relation to entrepreneurs

In case if state bodies plan to introduce a new regulatory instrument or regulatory tightening with regard to entrepreneurs, government agencies must first conduct a regulatory impact analysis procedure in the manner determined by the authorized entrepreneurship agency.

The regulatory tightening is the establishment of additional requirements, obligations, or other increase in the burden on business entities in connection with the introduction or use of regulatory tools.

Draft documents of the State Planning System, concepts of draft laws of the Republic of Kazakhstan, draft regulatory legal acts of the Republic of Kazakhstan, draft technical regulations of the Eurasian Economic Union, providing for the introduction of a regulatory instrument and related requirements or regulatory tightening are subject to analysis of the regulatory impact.

At the same time, the requirement to conduct a regulatory impact analysis before and after the introduction of a regulatory instrument or regulatory tightening with regard to business entities does not apply to:

1) regulation of issues to overcome the consequences of accidents, natural disasters and other emergency situations;

2) regulation of weapons and military equipment in circulation, civil and service weapons in circulation and its ammunition, operation with narcotic drugs, psychotropic substances, their analogues and precursors;

3) regulation of the activities of financial organizations and persons that are members of insurance groups and banking conglomerates, as well as draft regulatory legal acts of the National Bank of the Republic of Kazakhstan and the authorized body for regulation, control and supervision of the financial market and financial organizations;

4) introduction of a special currency regime in the event of a threat to the economic security of the Republic of Kazakhstan and the stability of its financial system;

5) draft regulatory legal acts containing information constituting state secrets;

6) making decisions on the establishment of a quarantine zone with the introduction of a quarantine regime in the relevant territory, as well as on the establishment of quarantine or restrictive measures in the event of contagious animal diseases;

7) introduction of legal liability;

8) regulation of issues on countering extremism and terrorism.

The introduction of a new regulatory instrument or the regulatory tightening is carried out only after approval at a meeting of the interdepartmental commission on entrepreneurship regulation.

The Interdepartmental Commission on the regulation of entrepreneurial activities is a consultative and advisory body under the Government of the Republic of Kazakhstan, created to develop proposals and recommendations on improving the legislation of the Republic of Kazakhstan in entrepreneurship, the main functions of which are following:

1) review the results of the analysis of regulatory impact;

2) consideration and approval of the annual report on the state of regulation of entrepreneurship in the Republic of Kazakhstan;

3) consideration of recommendations of expert groups and decision-making on them;

4) implementation of other functions in accordance with the legislation of the Republic of Kazakhstan.

The Interdepartmental Commission on the regulation of entrepreneurial activities has the right to:

1) interact with central executive and other state bodies and organizations;

2) submit to the Government of the Republic of Kazakhstan proposals and recommendations on the issues of improving the legislation of the Republic of Kazakhstan in entrepreneurship;

3) invite to meetings of the interdepartmental commission on the regulation of entrepreneurial activities and to hear representatives of state bodies and organizations of the Republic of Kazakhstan on issues that are within the competence of the interdepartmental commission on the regulation of entrepreneurial activities;

4) request and receive necessary materials from state bodies and other organizations;

5) form temporary and permanently working expert groups and approve their position.

The requirements of this paragraph do not apply to draft acts of regional importance, as well as to cases provided for in subparagraphs 3) and 4) of paragraph 2 of this article, except for the introduction of a regulatory instrument or regulatory tightening in the concepts of draft laws of the Republic of Kazakhstan and draft laws of the Republic of Kazakhstan.

Acts of regional significance are understood as documents of the State Planning System and regulatory legal acts adopted by local representative and executive bodies, including the akim of the relevant territory.

Footnote. Article 82 as amended by the Law of the Republic of Kazakhstan dated 24.05.2018 No. 156-VI (shall be enforced upon the expiry of ten calendar days after the date of its first official publication); as amended by the Law of the Republic of Kazakhstan No. 237-VI dated 18.03.2019 (shall be enforced upon expiry of twenty one calendar days after its first official publication); No. 262-VI dated 03.07.2019 (shall be enforced since 01.01.2020).

Article 83. Regulatory Impact Analysis

Analysis of the regulatory impact is an analytical procedure for comparing the benefits and costs of the regulatory instrument introduced and its associated requirements, allowing to evaluate the achievement of the objectives of government regulation in the future.

The goal of the regulatory impact analysis is to increase the effectiveness and efficiency of public policy in the use of specific regulatory tools through the assessment of alternative regulatory approaches to achieve certain goals or solve well-defined problems.

Analysis of the regulatory impact is carried out before and after the introduction of the regulatory instrument, including the current regulatory instruments for which the regulatory impact analysis has not been previously conducted.

The analysis of the regulatory impact of the introduced regulatory tools, as well as the existing regulatory tools, is carried out in accordance with the revision plans approved by the regulatory state bodies annually, including taking into account the reasonable proposals of the authorized enterprise body, the National Chamber.

Regarding the documents referred to in subparagraph 6) of paragraph 2 of Article 80 of this Code, the revision plan is approved annually by the local executive body of the region, the city of republican status, the capital, including the reasonable proposals of the regional chamber of entrepreneurs.

Information on non-compliance by state bodies with plans to revise existing regulatory instruments is submitted for consideration by an inter-ministerial commission on entrepreneurship regulation.

According to the results of the analysis of the regulatory impact, depending on the effectiveness of the use of the regulatory instrument, the regulatory instrument may be canceled or otherwise revised.

The regulatory instrument is subject to cancellation in case of failure to achieve the objectives of state regulation of entrepreneurial activities, declared with its introduction.

Analysis of the regulatory impact is carried out by state bodies in respect of draft documents provided for by paragraph 2 of Article 80 of this Code, as well as by the authorized body on entrepreneurship, the National Chamber and other interested persons in a manner determined by the authorized body on entrepreneurship.

At the same time, the analysis of the regulatory impact is carried out by the regulatory state bodies, with the exception of acts of regional significance, in relation to which the regulatory impact analysis is carried out by their developers.

Analyzing the regulatory impact is a prerequisite for the introduction of a new regulatory tool or regulatory tightening.
Authorized body on entrepreneurship:

1) considers the results of the regulatory impact analysis and provides an opinion on the compliance of the regulatory authorities, the National Chamber and other stakeholders with the established procedures, with the exception of draft acts of regional importance;

2) in case of disagreement with the findings of the analysis of the regulatory impact, conducts an alternative analysis of the regulatory impact.

The local executive body of the region, the city of republican status, the capital, providing leadership in entrepreneurship:

1) considers the results of the analysis of the regulatory impact and draws a conclusion on the compliance of the developers of draft acts of regional importance, the regional chamber and other interested parties with the established procedures;

2) in case of disagreement with the findings of the analysis of the regulatory impact, conducts an alternative analysis of the regulatory impact.

The results of the analysis of the regulatory impact are submitted for consideration to the consultative and advisory body under the akimat of the region, the city of republican status, the capital on the issues of an interdepartmental nature, formed in accordance with the Law of the Republic of Kazakhstan "On local government and self-government in the Republic of Kazakhstan", the approval of which is a mandatory condition for introducing a new regulatory instrument or regulatory tightening.

The results of the analysis of the regulatory impact and the alternative analysis of the regulatory impact are posted on publicly accessible Internet resources.

Footnote. Article 83 as amended by the Law of the Republic of Kazakhstan dated 24.05.2018 No. 156-VI (shall be enforced upon the expiry of ten calendar days after its first official publication).

Article 84. Competence of the Government of the Republic of Kazakhstan in state regulation of entrepreneurship

The competence of the Government of the Republic of Kazakhstan shall include:

1) approval of rules for the maintenance and use of the register of entrepreneurs;

1-1) development of the main directions of state policy in state regulation of entrepreneurship;

2) approval of the rules for calculating the average annual number of employees and average annual income;

3) approval of the rules for the development and approval of the annual report on the state of business regulation in the Republic of Kazakhstan.

4) approval of the list of compulsory services provided by natural monopoly entities and quasipublic sector under protection of competition and restriction of monopolistic activities.

In technical regulation:

1) development of the main directions of state policy in technical regulation;

2) the formation of the state system of technical regulation;

3) ensuring legal reform in technical regulation;

4) is excluded by the Law of the Republic of Kazakhstan dated 24.05.2018 No. 156-VI (shall be enforced upon the expiry of ten calendar days after the date of its first official publication).

In the area of accreditation in conformity assessment:

1) development of the main directions of state policy in accreditation;

2) approval of the rules for the competition for the choice of the accreditation body and qualification requirements for the accreditation body;

3) determination of the accreditation body in accordance with the rules specified in subparagraph 2) of this part.

The Government of the Republic of Kazakhstan performs other functions entrusted to it by the Constitution, this Code, the laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

Footnote. Article 84 as amended by the Law of the Republic of Kazakhstan No.156-VI dated 24.05.2018 (order of enforcement see Article 2).

Article 85. Authorized body on entrepreneurship and its competence in state regulation of entrepreneurship

The authorized agency for entrepreneurship is a government agency that provides leadership and inter-sectoral coordination in the development and support of private entrepreneurship.
Authorized body on entrepreneurship:

1) informs the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan on violations of the legislation of the Republic of Kazakhstan regulating the activities of business entities permitted by state bodies and their officials;

2) coordinates the risk assessment system of state bodies by joint approval of risk assessment criteria, checklists developed by authorized state bodies;

3) develops and approves the forms of checklists;

3-1) interacts with the authorized body in legal statistics and special accounting for the exchange of information on the registration of inspections and preventive control and supervision of the bodies of control and supervision;

4) maintains a register of entrepreneurs;

5) develops rules for maintaining and using the register of entrepreneurs;

6) develops rules for calculating the average annual number of employees and average annual income;

7) develops and approves the rules for conducting and using the analysis of the regulatory impact of regulatory instruments;

8) develops rules for the development and approval of the annual report on the state of business regulation in the Republic of Kazakhstan;

9) provides methodological assistance and coordinates the activities of regulatory state bodies on the implementation of regulatory impact analysis;

10) considers reports of local executive bodies of the region, the city of republican status, the capital, providing leadership in entrepreneurship, on the state of work on the analysis of regulatory impact;

10-1) ensures the activities of the interdepartmental commission on the regulation of entrepreneurial activities;

11) organizes training of civil servants and other persons in the implementation of regulatory impact analysis;

12) conducts an alternative analysis of the regulatory impact;

13) develops a draft annual report on the state of regulation of entrepreneurship in the Republic of Kazakhstan;

13-1) develops and approves the list of information tools;

13-2) conducts a rating of regions and cities for ease of doing business;

13-3) develops and approves a methodology for conducting a rating of regions and cities on the ease of doing business;

14) exercises control in support and protection of private entrepreneurs.

The authorized body on entrepreneurship shall exercise other powers provided for by this Code, other laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.

Footnote. Article 85 as amended by the Law of the Republic of Kazakhstan dated 24.05.2018 No. 156-VI (shall be enforced upon the expiry of ten calendar days after the date of its first official publication).

Article 86. Regulatory state bodies and their competence in state regulation of entrepreneurship

Regulatory government agencies are:

1) public authorities exercising leadership in a particular industry or sphere of public administration in which state control and supervision is exercised;

2) public authorities exercising leadership in a particular industry or sphere of public administration, in which a regulatory instrument has been introduced or is planned to be introduced.

The competence of regulatory state bodies exercising leadership in a particular industry or sphere of public administration in which state control and supervision is carried out includes:

1) implementation of state policy in state control and supervision in the relevant industry (sphere) in which state control and supervision is carried out;

2) approval within its competence of the regulatory legal acts provided for by paragraphs 2 and 3 of Article 141, paragraph 1 of Article 143 of this Code, as well as semi-annual schedules for conducting inspections;

3) organization of state control and supervision in accordance with the laws of the Republic of Kazakhstan;

4) monitoring the effectiveness of state control and supervision;

4-1) consideration of proposals of the authorized body in legal statistics and special accounting to improve the conduct of state control and supervision and decision-making, including by amending and supplementing the regulatory legal acts of the Republic of Kazakhstan;

5) performing other functions stipulated by this Code, the laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.

The competence of regulatory state bodies exercising leadership in a particular industry or sphere of government, in which a regulatory tool is introduced or planned to be introduced, includes:

1) submission to the authorized body on entrepreneurship of reports on the status of regulation of entrepreneurial activities;

2) the exercise of other powers provided for by this Code, other laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.

Footnote. Article 86 as amended by the Law of the Republic of Kazakhstan dated 24.05.2018 No. 156-VI (shall be enforced upon the expiry of ten calendar days after the date of its first official publication).

Article 87. Bodies of control and supervision and their competence in state regulation of entrepreneurship

Bodies of control and supervision are state bodies, their departments and territorial divisions, as well as local executive bodies that monitor and check for compliance of the activities of the audited entities with the requirements established by the legislation of the Republic of Kazakhstan in accordance with paragraph 2 of Article 132 of this Code.
The competence of the bodies of control and supervision shall include:

1) implementation of state policy in state control and supervision in the relevant field;

2) development within its competence of the regulatory legal acts provided for by paragraphs 2 and 3 of Article 141, paragraph 1 of Article 143 of this Code, as well as semi-annual schedules for conducting inspections;

3) carrying out state control and supervision in accordance with the laws of the Republic of Kazakhstan;

4) monitoring the effectiveness of state control and supervision;

5) making proposals for improving the conduct of state control and supervision;

6) implementation of other functions stipulated by this Code and other Laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.

Article 88. Competence of the antimonopoly authority in state regulation of entrepreneurship

Footnote. Chapter 19 is excluded by the Law of the Republic of Kazakhstan dated 28.12.2016 No. 34-VI (shall be enforced from 01.01.2017).

Article 89. Competence of other state bodies in state regulation of entrepreneurship

State bodies within their competence in state regulation of entrepreneurship:

1) participate in the formation and implementation of state policy in state regulation of entrepreneurship;

2) exercise other powers provided for by this Code, other laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.

Article 90. Competence of local executive bodies in state regulation of entrepreneurship

Local executive bodies of the Republic of Kazakhstan carry out:

1) within its competence, the approval of the maximum permissible retail prices for socially important food products and state control over the observance of the size of the maximum permissible retail prices for socially important food products;

2) permitting procedures, gaining notifications in accordance with the legislation of the Republic of Kazakhstan on permits and notifications;

2-1) conducting an alternative analysis of regulatory impact;

2-2) submission to the authorized body for business reports on the status of work on the analysis of regulatory impact;

3) in the interests of local government, other powers imposed on local executive bodies by the legislation of the Republic of Kazakhstan.

Footnote. Article 90 as amended by the Law of the Republic of Kazakhstan dated 24.05.2018 No. 156-VI (shall be enforced upon the expiry of ten calendar days after the date of its first official publication).

Chapter 7-1. Antimonopoly authority and its powers

Footnote. The Code is supplemented by Chapter 7-1 in accordance with the Law of the Republic of Kazakhstan dated 28.12.2016 No. 34-VІ (the order of enforcement, see Art. 2).

Article 90-1. Antimonopoly authority system

The unified system of the antimonopoly body consists of the central executive body, its department and its subordinate territorial units.
Territorial subdivisions carry out their activities within the limits of authority established by the legislation of the Republic of Kazakhstan and regulations approved by the central executive body.

Article 90-2. Objectives of the antimonopoly authority

The objectives of the antimonopoly authority are:

1) promoting the development of fair competition;

2) prevention, detection and investigation, suppression of violations of the legislation of the Republic of Kazakhstan in protection of competition;

3) regulation of economic concentration;

4) demonopolization of market entities that restrict competition.

Footnote. Article 90-2 as amended by the Law of the Republic of Kazakhstan dated 24.05.2018 No. 156-VI (shall be enforced upon the expiry of ten calendar days after the date of its first official publication).

Article 90-3. Management of the antimonopoly authority

The management of the antimonopoly authority is carried out by the head of the department.

Article 90-4. Interaction of the antimonopoly authority with the antimonopoly authorities of other states

Within the framework of the Eurasian Economic Union, the antimonopoly authority interacts with the antimonopoly authorities of the member states of the Eurasian Economic Union in accordance with international treaties, including by sending notifications, requests for information, consulting, informing about investigations in accordance with the procedure established by the legislation of the Republic of Kazakhstan.
Within the framework of participation in international organizations, the antimonopoly authority has the right to send requests to the antimonopoly authorities of other states and provide information upon their requests.

Article 90-5. The interaction of antimonopoly and law enforcement agencies

The antimonopoly authority shall interact with the law enforcement authorities of the Republic of Kazakhstan within its authority in the following forms:

1) informs the law enforcement authorities on the revealed facts of offenses in protection of competition;

2) upon request of law enforcement agencies, provides analytical information on the state of competition in commodity markets;

3) within its competence, conducts, upon request of law enforcement bodies, expert examinations and gives opinions on the legislation of the Republic of Kazakhstan in competition protection;

4) according to resolutions and requests of law enforcement agencies, their territorial subdivisions, as experts, send their employees to participate in legal proceedings and measures to investigate violations of the legislation of the Republic of Kazakhstan in competition protection.

Law enforcement authorities of the Republic of Kazakhstan shall interact with the antimonopoly authority within their powers in the following forms:

1) inform the antimonopoly authority of the identified violations of the legislation of the Republic of Kazakhstan in protection of competition;

2) upon requests and appeals of the antimonopoly authority:

send employees to conduct joint activities to investigate violations of the legislation of the Republic of Kazakhstan in protection of competition, as well as to prevent unlawful actions that impede the performance of official obligations by employees of the antimonopoly body;

take measures to establish the locations of violators of the legislation of the Republic of Kazakhstan in protection of competition and their delivery to the antimonopoly body for bringing to administrative responsibility in accordance with the written requests of the antimonopoly body in the manner established by the Code of Administrative Offenses of the Republic of Kazakhstan;

in accordance with the procedure established by the Criminal Procedure Code of the Republic of Kazakhstan, make decisions on conducting a pre-trial investigation on materials submitted by the antimonopoly authority with signs of criminal anticompetitive actions, which the antimonopoly authority is informed of;

provide practical assistance to the antimonopoly authority in detecting and securing evidence of violations of the legislation of the Republic of Kazakhstan in competition protection.

Article 90-6. Competence of the antimonopoly authority

Antimonopoly authority:

1) executes the implementation of state policy in protection of competition and restriction of monopolistic activities;

2) carries out inter-sectoral coordination of state bodies and other organizations in competition protection and restriction of monopolistic activities;

3) carries out international cooperation on the protection of competition and the restriction of monopolistic activities;

4) exercises state control over compliance with the legislation of the Republic of Kazakhstan in protection of competition;

5) suppresses acts, actions (inaction) of state and local executive bodies, organizations endowed with state functions of regulating the activities of market entities, aimed at restricting and (or) eliminating competition;

6) is excluded by the Law of the Republic of Kazakhstan dated 24.05.2018 No. 156-VI (shall be enforced upon the expiry of ten calendar days after the date of its first official publication);

6-1) considers applications for consent for economic concentration;

7) warns and eliminates abuses of the dominant or monopolistic position in the relevant product market, with the exception of violations stipulated by the legislation of the Republic of Kazakhstan on natural monopolies;

7-1) develops and approves the rules for provision of compulsory services by natural monopoly entities and the quasipublic sector under protection of competition and restriction of monopolistic activities;

8) prevents and suppresses anticompetitive agreements and concerted actions of market entities, unfair competition;

9) coordinates regulatory legal acts in competition protection, restrictions on monopolistic activities and the functioning of commodity markets;

10) disseminates information on the application of the norms of the legislation of the Republic of Kazakhstan in protection of competition and promotion of fair competition;

11) analyzes the state of competition in commodity markets;

12) carries out the analysis and monitoring of the activities of market entities that hold a dominant or monopolistic position in the relevant product market;

13) approves methods for analyzing the state of competition in the commodity market with the definition of criteria for the interchangeability of goods, the availability of their purchase, as well as the boundaries of the commodity market, in relation to financial organizations - in agreement with the authorized body for regulation, control and supervision of the financial market and financial organizations;

14) develops and approves a methodology for analyzing socially significant markets;

15) develops and approves methods for conducting a survey of commodity markets in which state-owned enterprises and legal entities will be created, where more than fifty percent of shares (shares in the authorized capital) owned by the state, and legal entities affiliated with them and (or) carried out by them activities in relation to state enterprises and legal entities, where more than fifty percent of the shares (shares in the authorized capital) owned by the National Bank of the Republic of Kazakhstan, and legal entities affiliated with them - in coordination with the National Bank of the Republic of Kazakhstan;

16) develops and approves a methodology for assessing the economic concentration in commodity markets;

17) develops and approves a methodology for assessing economic concentration in financial markets in agreement with the authorized body for regulation, control and supervision of the financial market and financial organizations;

18) reveals a monopoly high (low), monopsony low price set by a dominant or monopolistic market entity;

19) approves methods for identifying monopoly high (low) and monopsony low prices;

20) conducts investigations into the facts of violation of the legislation of the Republic of Kazakhstan in protection of competition by market entities, state, local executive bodies, organizations, which are vested with the state functions of regulating the activities of market entities, in the manner established by this Code;

21) requests and receives, in accordance with the procedure established by the laws of the Republic of Kazakhstan, from state bodies, including the authorized body in state statistics, state revenue bodies, market subjects, as well as officials and other individuals and legal entities, information necessary for the exercise of authority, provided for by this Code, including information constituting commercial and other secrets protected by law, with the exception of bank secrets, insurance secrets and trade secrets in the market securities;

22) issues to the market entities binding instructions on:

stopping violations of the norms of this Code and (or) eliminating their consequences;

restoration of the original position;

termination or amendment of contracts contrary to this Code;

the need to cancel transactions by canceling or invalidating them when regulating economic concentration;

entering into an agreement with another market entity in the event that the violation is an unreasonable refusal or evasion of concluding an agreement with certain sellers (suppliers) or buyers;

23) makes to the state, local executive bodies, organizations vested with the state functions of regulating the activities of market entities, binding instructions to repeal or amend the acts adopted by them, eliminate violations, as well as cancellation, cancellation or amendment of agreements and transactions concluded by them, and the performance of actions aimed at ensuring competition;

24) considers cases on administrative offenses and imposes administrative penalties in the manner established by the Code of the Republic of Kazakhstan on Administrative Offenses, participates in a court to hear cases on violations of the legislation of the Republic of Kazakhstan in competition protection;

25) sends to law enforcement agencies materials for conducting a pre-trial investigation on the grounds of criminal offenses related to violation of the legislation of the Republic of Kazakhstan in protection of competition;

26) annually, not later than June 1, sends to the President of the Republic of Kazakhstan and the Prime Minister of the Republic of Kazakhstan an annual report on the state of competition in certain commodity markets and measures taken to limit monopolistic activities, and also places it on its Internet resource;

27) annually, not later than January 5 of the year following the reporting year, sends to the Government of the Republic of Kazakhstan proposals for the transfer into the competitive environment of state-owned enterprises, legal entities, where more than fifty percent of shares (shares in the authorized capital) owned by the state, and legal entities affiliated with them persons, and proposals for updating the list of activities carried out by legal entities, more than fifty percent of shares (shares in the authorized capital) owned by the state, and legal entities affiliated with them;

28) provides informational openness of the state policy in protection of competition and restriction of monopolistic activities, including quarterly not later than the fifteenth day of the month following the reporting period, places information about its activities in the media, including on its Internet resource;

29) examines the prices of goods produced and (or) sold by a state monopoly entity;

30) in the manner prescribed by the legislation of the Republic of Kazakhstan, shall apply to law enforcement agencies to conduct operational search activities;

31) sends to the official of the market entity, the state, local executive body, the organization vested with the state functions of regulating the activities of market entities, a written warning about the inadmissibility of an action (inaction) that may lead to violation of the legislation of the Republic of Kazakhstan in competition protection;

32) places on its Internet resource an analysis of the state of competition in commodity markets, with the exception of information containing state secrets and other secrets protected by law;

33) sends to market entities, state, local executive bodies, organizations vested with state regulatory functions of market entities, notification of the presence in the actions (inaction) of the market entity, state, local executive body, organization endowed with state regulatory functions of market entities, signs violations of the legislation of the Republic of Kazakhstan in protection of competition;

34) gives an official explanation of the regulatory legal acts in protection of competition, adopted by the antimonopoly authority;

35) develops and approves the rules for reviewing draft agreements of market entities for compliance or non-compliance with the requirements of the legislation of the Republic of Kazakhstan in competition protection;

36) develops and approves standard external acts of antimonopoly compliance for market entities;

37) establishes the compliance of the external act of antimonopoly compliance sent by the market entity (market entities) with the norms of the legislation of the Republic of Kazakhstan in the field of competition protection;

38) places on its Internet resource information on the results of investigations of violations of the legislation of the Republic of Kazakhstan in competition protection, decisions of the antimonopoly authority;

39) submits claims to the court for termination, amendment of contracts and (or) invalidation of transactions contrary to this Code;

39-1) forms and maintains the state register of subjects of state monopoly;

40) exercises other powers provided for by this Code, other laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.

Дата публикации

08 июля 2021