The Kyrgyz Republic (informally, Kyrgyzstan ) is located in the north - east of the Central Asia , and borders Kazakhstan , Uzbekistan , Tajikistan and China . The area is 199.9 thousand km2 (94 % - mountains). Population is more than 5 million people. National currency is som. Languages are Kyrgyz, Russian.
The country has liberal visa regime for foreigners. VISA, MasterCard/EuroCard cards are accepted in the most banks of capital Bishkek, in large restaurants, supermarkets and resorts. "Kyrgyzstan Airlines", "Uzbek airlines", "Aeroflot", "Turkish airlines", "British Mediterranean" etc. are operating in Kyrgyzstan .
All of the new history of the Kyrgyz Republic is under the sign of market-oriented reforms. Despite some obstacles that are on the way of becoming a democratic country, as well as difficulties in reforming market institutes, Kyrgyzstan is still a predictable and attractive country for foreign investment. In its turn, the Government of the Kyrgyz Republic is constantly working on improving investment environment of the country and understands that it is necessary to improve state service.
The Government of Kyrgyzstan pays special attention to development of industry, trade, and tourism sectors of the country as well as to formation of a favorable investment climate. At present, the process of registering enterprises, getting licenses, its number as well as administrative barriers and tax control were decreased and/or simplified. Economic deregulation is the main goal of the governmental management bodies.
New approaches and methods of resolving political, economical and social issues are embodied in a pilot program named as “The Comprehensive Development Framework of Kyrgyz Republic till 2010”, that was adopted in 2001. Attraction of direct foreign investments was announced to be one of the main priorities of the national economic policy.
Main directions towards effective foreign investments attraction to the economy of the Republic, towards elimination of administrative barriers and towards enforcement of marketing policy of the Kyrgyz Republic are concrete measures in the form of investment matrices secured by normative and legislative acts of the Kyrgyz Republic.
The following governmental measures are taken to remove the barriers on the way of investors and entrepreneurs, to create favorable business environment: Enforcement of corporate governance in a banking sector; Development of non-bank financial sector; Reform of fiscal policy and development of a new tax code; Improvement of legislation of customs; Removal of administrative obstacles and barriers for investments by limitation of interference of state in investment and other entrepreneurship activity (limitation of licenses, permissions, checks); Reform of technical regulation, based on usage of international standards, norms, rules, and recommendations; Introduction of free-trade principles; Creation of attractive conditions for direct investments to prioritized spheres of the republic’s economy (mineral resources industry, energy, tourism, agriculture and processing industry, services, information technologies); Strengthening the protection of investors and their investments; Other measures, which contribute to attraction of investments to the Republic.
New policy of attraction of private investments to the economy of the Republic is already working and there is confidence that the Kyrgyz Republic will have all necessary and sufficient conditions for foreign investors to invest private money and extract market profits. State plays the role of guarantor for keeping favorable and predictable normative and legislative regime of economic activity for domestic and foreign investors.
Attractive Incentives for Foreign Businessmen and Investor:
Liberal Government Policy
Free currency exchange
Low import duty - less than 10%
Free repatriation in foreign currency for profit, dividend, other forms of income
Private ownership of land
Protection of property rights
Equal treatment policy for foreign investors
Protection from expropriation
The number of trade relations of the Kyrgyz Republic with other countries has increased in recent years. So, today Kyrgyzstan has trade relations with 109 countries of world trade community. There is the progress in cooperation with these countries in many areas particularly, in export-import operations. Trade relationships with most of these countries were created within the framework of WTO, full member of which Kyrgyz Republic became on December 20, 1998 .
External trade regime of the Kyrgyz Republic is one of the most liberal among CIS countries. There are no private or state enterprises with exclusive rights or powers to influence the level or direction of imports and exports. Export and import licensing applies to only eight articles adopted in worldwide practice, including weaponry, explosives, drugs and virulent poisons, precious metals and works of art, etc. The volume of commodity circulation in the Republic keeps its level on about 1,6 billion US$.
The Kyrgyz Republic along with Kazakhstan , Tajikistan , Belarus and Russia , has a common system of payments, equal access to international economic organizations within the framework of the Eurasian Economic Union. Common borders and good trade relations with China have formed a huge potential for export.
On the world market, the Kyrgyz Republic acts as a supplier of electric power, gold, cotton fiber, articles made of wool and cotton, wood, leather materials, tobacco, antimony and mercury. It is a net importer of energy resources, oil products, natural gas, coal, fertilizers and other chemical products, machinery, vehicles and spare parts, and household appliances. Bowels of the Republic are consisted of large stocks of gold, tungsten, tin, antimony, mercury and others metals. Kyrgyzstan takes the third place in the world on manufacture of mercury and the tenth on sale of gold. Foreign business can invest the capital in development of a tourist infrastructure on unique lake "Issyk Kul", and also in creation of joint venture in agricultural sphere and techno parks.
Establishing a business
Resolved forms of creation of enterprises
Enterprise activity can be organized in following forms:
· Individual entrepreneurship;
· Limited Partnership;
· Limited Liability Company;
· Company with Additional Responsibility;
· Joint-stock company (open and closed type);
· Representative Office;
· Branch Office
In order to start an activity in territory of the country, the legal entity should be registered in three state bodies: Ministry of Justice of the Kyrgyz Republic (there are a regional representative offices in each oblast of the country), National Statistics Committee which enters registration data into United Single State Register of Statistics, and State Tax Inspectorate (STI). Individual businessmen should register only in statistical committee and in Tax Inspectorate.
Foreign investors have the same legal status as Kyrgyz investors and can implement activities as a complete foreign enterprise or in partnership with Kyrgyz or foreign entrepreneurs. Foreigners can buy stocks and other securities of Kyrgyz companies and participate in privatization programmes.
Registration of a legal entity includes registration in the Ministry of Justice of the Kyrgyz Republic, in both Statistical and Tax bodies, getting licenses for implementing certain kind of activity (the list of activities which are subject to obligatory licensing is in article 9 of the Law «On licensing» the Kyrgyz Republic) and permission depending on enterprise type of activity.
State registration of legal entities include conformity assessment of founding documents which should be developed for legal entities by the law of the Kyrgyz Republic, issuance of a state registration certificate with assigned registration number, entering of data on legal entities to the unified state registrar system.
In order to register in the Ministry of Justice of the Kyrgyz Republic, a representative of the company or the founder should present following documents:
- An application for registration;
- Other documents depending on the form of the company;
If one of the founders is a foreign legal entity, in order to register it is necessary to give the legalized extract from the registrar, certifying, that the founder is a legal entity in accordance with the legislation of his/her country. Legalization is not required for legal entities of the Commonwealth of Independent States. Registration of legal entities is carried out free of charge within 10 days from the moment of application submission.
In order to register a joint-stock company, the founder should give a letter from the bank confirming submission of 50 % of the authorized capital.
A foreign citizen who is acting as the founder should additionally present copy of his/her passport or any other identification document (with duration of visa).
Statistical registration card should be received from the National Statistical Committee, which takes two days.
All documents should be accompanied by notarially certified translation to Kyrgyz or Russian.
All of the enterprises and private entrepreneurs should be registered in State Tax Inspectorate or in one of its regional branches, depending on the location. In order to register in the State Tax Inspectorate, it is necessary to present following documents:
For legal entities: copies of foundation documents, a copy of the state registration certificate and other relevant documents;
For physical entities: Statistical registration card, passport and other necessary documents.
The taxpayer fills out three copies of tax registration card. After the registration the taxpayer receives a unique identification code which should be put down on all financial, accounting and customs documents (for instance: payment receivable). If the tax bearer is registered for the first time, STI gives information guidebook with instruction of all taxes, payments and duties of the tax bearer.
Registration of enterprises in Free Economic Zones
There is a special procedure for registration of the enterprise in the Free Economic Zone (FEZ). Enterprises should be registered in management of FEZ.
Registration of the individual entrepreneurs
The National Statistical Committee and its departments in regions register individual entrepreneurs depending on their location. Registration is carried out on the basis of the registration application and the passport. After registration Statistical body gives a registration certificate with individual identification number.
Registration of branches and representations
Registration of branches and representations is carried out the same as registration of legal entities. There is a requirement about presenting additional documents: regulations about branch or representation and copies of the registered documents of the person, organizing the branch or representation. A foreign enterprise or a physical entity should also present an extract from the trading registrar system or other document confirming, that the company, organizing branch/representation in the Kyrgyz Republic, is a legal entity in accordance with the legislation of the country and a letter from the bank confirming his/her solvency. All documents should be accompanied by notarially certified translation into Kyrgyz or Russian languages.
We invite you to do business in Kyrgyzstan !