Opening an LLP as a foreigner in Kazakhstan or a company in the AIFC: what to choose in 2026
Two regimes for foreign investors: governing law, courts, taxes and currency rules
Opening an LLP as a foreigner is not the only way to enter the Kazakhstani market. Alongside a classic LLP, a foreign investor can set up a company in the Astana International Financial Centre (AIFC) – a jurisdiction with its own law, an independent court and tax exemptions valid until 1 January 2066. The short answer: for an operating business serving the domestic market (trade, manufacturing, services to local clients), an LLP is usually the best choice; for financial, investment, holding and professional services – a company in the AIFC. Below is a detailed comparison of the two regimes, taking into account the new Tax Code of the Republic of Kazakhstan in force since 1 January 2026.
LLP registration
Registering an LLP with foreign participation in Kazakhstan: the standard route
Foreign individuals and legal entities may establish LLPs in Kazakhstan, including with 100% foreign ownership; certain industry restrictions (mass media, security services and a number of other areas) are set by special laws and should be checked before registration begins. The legal framework consists of the Civil Code of the Republic of Kazakhstan, the Law of the Republic of Kazakhstan No. 220-I of 22 April 1998 “On Limited and Additional Liability Partnerships” and the Law of the Republic of Kazakhstan No. 2198 of 17 April 1995 “On State Registration of Legal Entities and Record Registration of Branches and Representative Offices”.
Documents and registration procedure
Articles 6 and 6-1 of Law No. 2198 set additional requirements for registering an LLP with foreign participation: a founder that is a foreign legal entity submits a legalized (apostilled) extract from the trade register or another document confirming its status as a legal entity under the law of its country of incorporation, with a notarized translation into Kazakh and Russian; a foreign founder who is an individual submits a copy of their passport with a notarized translation. Before the documents are submitted, a foreign founder must secure business immigrant status: citizens of countries with a visa regime obtain a category C5 business immigrant visa, while citizens of visa-free countries (including the EAEU) obtain a business immigrant temporary residence permit (TRP). Without such a visa or TRP, it is prohibited to establish a legal entity or become a participant; the requirement applies to individuals and does not concern holders of a Kazakhstani residence permit (Articles 6-1, 39 and 40 of the Law of the Republic of Kazakhstan No. 477-IV of 22 July 2011 “On Migration of the Population”). The founder is also assigned an IIN and issued an EDS. The documents are submitted through the State Corporation “Government for Citizens” (Public Service Center): in practice, online registration of an LLP with a foreign founder via the egov.kz portal is technically unavailable. Small and medium-sized businesses pay no registration fee.
The minimum authorized capital of an LLP is 100 MCI (monthly calculation index); for LLPs that qualify as small businesses it is set at zero (Article 23 of Law No. 220-I).
An LLP’s tax burden in 2026
Since 1 January 2026, the new Tax Code of the Republic of Kazakhstan No. 214-VIII of 18 July 2025 has been in force. The key parameters for an LLP under the standard tax regime: corporate income tax (CIT) – 20% (25% for banks and gambling businesses; reduced rates apply to the social sector and agricultural producers); VAT – 16% (paragraph 1 of Article 503 of the Tax Code), with reduced rates for certain categories of goods and services; the mandatory VAT registration threshold has been lowered to 10,000 MCI. A progressive individual income tax (IIT) scale has been introduced. Dividends and other income paid to foreign participants are subject to withholding tax, subject to the applicable double tax treaties – an area that needs separate planning when structuring ownership.
Documents and registration procedure
Articles 6 and 6-1 of Law No. 2198 set additional requirements for registering an LLP with foreign participation: a founder that is a foreign legal entity submits a legalized (apostilled) extract from the trade register or another document confirming its status as a legal entity under the law of its country of incorporation, with a notarized translation into Kazakh and Russian; a foreign founder who is an individual submits a copy of their passport with a notarized translation. Before the documents are submitted, a foreign founder must secure business immigrant status: citizens of countries with a visa regime obtain a category C5 business immigrant visa, while citizens of visa-free countries (including the EAEU) obtain a business immigrant temporary residence permit (TRP). Without such a visa or TRP, it is prohibited to establish a legal entity or become a participant; the requirement applies to individuals and does not concern holders of a Kazakhstani residence permit (Articles 6-1, 39 and 40 of the Law of the Republic of Kazakhstan No. 477-IV of 22 July 2011 “On Migration of the Population”). The founder is also assigned an IIN and issued an EDS. The documents are submitted through the State Corporation “Government for Citizens” (Public Service Center): in practice, online registration of an LLP with a foreign founder via the egov.kz portal is technically unavailable. Small and medium-sized businesses pay no registration fee.
The minimum authorized capital of an LLP is 100 MCI (monthly calculation index); for LLPs that qualify as small businesses it is set at zero (Article 23 of Law No. 220-I).
An LLP’s tax burden in 2026
Since 1 January 2026, the new Tax Code of the Republic of Kazakhstan No. 214-VIII of 18 July 2025 has been in force. The key parameters for an LLP under the standard tax regime: corporate income tax (CIT) – 20% (25% for banks and gambling businesses; reduced rates apply to the social sector and agricultural producers); VAT – 16% (paragraph 1 of Article 503 of the Tax Code), with reduced rates for certain categories of goods and services; the mandatory VAT registration threshold has been lowered to 10,000 MCI. A progressive individual income tax (IIT) scale has been introduced. Dividends and other income paid to foreign participants are subject to withholding tax, subject to the applicable double tax treaties – an area that needs separate planning when structuring ownership.
AIFC
A company in the AIFC: a special legal regime
The AIFC is an area within the city of Astana with a special legal regime established by the Constitutional Law of the Republic of Kazakhstan No. 438-V of 7 December 2015 “On the Astana International Financial Centre” (the “CL”). Participants are registered by the Centre’s regulator (AFSA) under the AIFC acts through its own digital portal; the available legal forms (including a private company limited by shares) are set out in the Centre’s acts and follow the English model.
Governing law and dispute resolution
The acting law of the AIFC is based on the Constitution of the Republic of Kazakhstan and consists of the Constitutional Law and the Centre’s acts, which may draw on the principles, rules and precedents of the law of England and Wales and the standards of the world’s leading financial centres (Article 4 of the CL). Participants’ disputes are heard by the independent AIFC Court, which operates in English and sits outside the Kazakhstani court system (Article 13), and by the International Arbitration Centre (Article 14). For cross-border deals this means predictable contractual structures familiar to foreign investors: shareholder agreements, options, representations and warranties work within the common law system without being adapted to Kazakhstani civil law.
AIFC tax benefits until 2066
The tax regime in the AIFC is governed by the Tax Code, with the exemptions set out in Article 6 of the CL. Until 1 January 2066, AIFC participants are exempt from CIT on income from providing the listed financial services within the AIFC (paragraph 3 of Article 6) and from CIT on income from legal, audit, accounting and consulting services provided to the Centre’s bodies and to participants providing such financial services (paragraph 4). The services listed in paragraph 3 are also exempt from VAT (paragraph 8-2). Foreign employees of such participants are exempt from IIT on employment income (paragraph 6); individuals and legal entities are exempt from tax on dividends and capital gains on shares of AIFC participants and on securities listed on the AIX exchange (paragraph 7).
Crucially, the benefits are tied to the list of services, not to registration as such. An AIFC participant’s ordinary trading or manufacturing activities are taxed in the usual way, and separate accounting of income is required to apply the exemptions (paragraph 5 of Article 6). In addition, the new Tax Code has adjusted certain elements of the preferential regime and brought it into line with BEPS standards: the exemptions apply only if the requirements of the Centre’s acts are met, including the requirement for the participant’s real economic presence. Before choosing a structure, check this against the current AIFC acts.
Currency regime
AIFC participants may denominate and settle their monetary obligations in any currency by agreement of the parties (Article 5 of the CL). An “ordinary” LLP is subject to the general regime of the Law of the Republic of Kazakhstan No. 167-VI of 2 July 2018 “On Currency Regulation and Currency Control”, including the record registration requirements for certain currency contracts.
Governing law and dispute resolution
The acting law of the AIFC is based on the Constitution of the Republic of Kazakhstan and consists of the Constitutional Law and the Centre’s acts, which may draw on the principles, rules and precedents of the law of England and Wales and the standards of the world’s leading financial centres (Article 4 of the CL). Participants’ disputes are heard by the independent AIFC Court, which operates in English and sits outside the Kazakhstani court system (Article 13), and by the International Arbitration Centre (Article 14). For cross-border deals this means predictable contractual structures familiar to foreign investors: shareholder agreements, options, representations and warranties work within the common law system without being adapted to Kazakhstani civil law.
AIFC tax benefits until 2066
The tax regime in the AIFC is governed by the Tax Code, with the exemptions set out in Article 6 of the CL. Until 1 January 2066, AIFC participants are exempt from CIT on income from providing the listed financial services within the AIFC (paragraph 3 of Article 6) and from CIT on income from legal, audit, accounting and consulting services provided to the Centre’s bodies and to participants providing such financial services (paragraph 4). The services listed in paragraph 3 are also exempt from VAT (paragraph 8-2). Foreign employees of such participants are exempt from IIT on employment income (paragraph 6); individuals and legal entities are exempt from tax on dividends and capital gains on shares of AIFC participants and on securities listed on the AIX exchange (paragraph 7).
Crucially, the benefits are tied to the list of services, not to registration as such. An AIFC participant’s ordinary trading or manufacturing activities are taxed in the usual way, and separate accounting of income is required to apply the exemptions (paragraph 5 of Article 6). In addition, the new Tax Code has adjusted certain elements of the preferential regime and brought it into line with BEPS standards: the exemptions apply only if the requirements of the Centre’s acts are met, including the requirement for the participant’s real economic presence. Before choosing a structure, check this against the current AIFC acts.
Currency regime
AIFC participants may denominate and settle their monetary obligations in any currency by agreement of the parties (Article 5 of the CL). An “ordinary” LLP is subject to the general regime of the Law of the Republic of Kazakhstan No. 167-VI of 2 July 2018 “On Currency Regulation and Currency Control”, including the record registration requirements for certain currency contracts.
Comparison
Opening an LLP with foreign participation or a company in the AIFC: a comparison
Recommendations
Practical recommendations
The recommendations below are based on APK Solution’s project experience and are not legal requirements.
First: choose the jurisdiction based on your revenue model, not on the size of the benefits. If revenue comes from selling goods and services to Kazakhstani clients, the AIFC exemptions generally do not cover it, and an LLP with foreign participation will be simpler and cheaper to administer. Second: for groups of companies, a combined structure works well – a holding or finance company in the AIFC plus an operating LLP in the general jurisdiction; it combines the preferential regime for dividends and capital gains with full-scale operations. Third: build in real economic presence (office, staff, expenses in Kazakhstan) from the planning stage – a formal AIFC registration without substance risks losing the benefits and facing additional tax assessments. Fourth: before submitting documents, check the industry restrictions on foreign ownership and the immigration requirements for a foreign director. Fifth: treat obtaining a C5 visa or business immigrant TRP, an IIN and an EDS and opening a bank account as a separate preparatory stage – in practice it is this stage, not the registration itself, that determines the overall launch timeline.
First: choose the jurisdiction based on your revenue model, not on the size of the benefits. If revenue comes from selling goods and services to Kazakhstani clients, the AIFC exemptions generally do not cover it, and an LLP with foreign participation will be simpler and cheaper to administer. Second: for groups of companies, a combined structure works well – a holding or finance company in the AIFC plus an operating LLP in the general jurisdiction; it combines the preferential regime for dividends and capital gains with full-scale operations. Third: build in real economic presence (office, staff, expenses in Kazakhstan) from the planning stage – a formal AIFC registration without substance risks losing the benefits and facing additional tax assessments. Fourth: before submitting documents, check the industry restrictions on foreign ownership and the immigration requirements for a foreign director. Fifth: treat obtaining a C5 visa or business immigrant TRP, an IIN and an EDS and opening a bank account as a separate preparatory stage – in practice it is this stage, not the registration itself, that determines the overall launch timeline.
Summary
Conclusion
Registering an LLP with foreign participation in Kazakhstan and setting up a company in the AIFC are complementary tools, not competing ones. An LLP gives fast, inexpensive access to the domestic market within a familiar civil-law system; the AIFC offers an English-law environment, an independent court and tax exemptions until 2066 for financial and investment businesses. The decision should rest on your revenue structure, capital-raising plans and governing-law requirements. The APK Solution team supports both routes – from choosing the structure and registration to tax planning and compliance.
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We provide end-to-end support for foreign businesses entering the Kazakhstani market: turnkey registration of an LLP with foreign participation and company set-up in the AIFC, including choosing the optimal structure and tax planning under the new Tax Code.