Kyrgyzstan company registration

DOING BUSINESS IN KYRGYZSTAN

For over a decade, Healy Consultants Group PLC efficiently and effectively assists our Clients set up Kyrgyzstan businesses. To have more understanding about business registration in Kyrgyzstan, please see the details below:

SummaryLLCFast business setup solutionFree zone LLCPublic limited companyRepresentative officeBranch office
Also known asЖЧКтекче компанияСЭЗКЧКөкүлчүлүкбөлүмү
Best use of company?All products and servicesClose a customer deal nowManufacturing and export tradingTo secure public fundingMarketing & researchSpecific projects
How soon can you invoice Clients\sign sales contracts?2 months2 weeks2 months3 months2 months2 months
How soon can you hire staff?2 months2 weeks2 months3 months2 months2 months
How soon can you sign a lease agreement?1 month2 weeks1 month1 month1 month1 month
How long to supply corporate bank account numbers?3 months1 month3 months4 months3 months3 months
How long to supply company registration \ tax numbers?2 months2 weeks2 months3 months2 months2 months
Corporate tax rate on annual net profits?10%10%0%10%0%10%
Limited liability entity?YesYesYesYesNoNo
Government grants available?YesYesYesYesNoYes
Government approval required for foreign owners?NoNoNoNoNoNo
Resident director/partner/manager/ legal representative required?NoNoNoNoYesYes
Minimum paid up share capital?US$1US$1US$1US$1,500NoneNone
Can bid for Government contracts?YesYesYesYesNoYes
Corporate bank account location?Bank of AsiaKKBBTA BankAMAN BankCBKBank of Asia
Can secure trade finance?YesYesYesYesNoYes
VAT payable on sales to local customers?12%12%12%12%None12%
Average total business set up engagement costs?US$12,310US$27,125US$20,150US$12,310US$14,000US$14,000
Average total engagement period?3 months4 months4 months4 months3 months3 months


See full table

Accounting and tax considerationsLLCFast business setup solutionFree zone LLCPublic limited companyRepresentative officeBranch office
Statutory corporate tax payable?10%10%10%10%0%10%
Legally tax exempt if properly structured?NoNoYesNoYesNo
Group HQ tax incentives?NoNoNoNoNoNo
Must file an annual tax return?YesYesYesYesYesYes
Must file annual financial statements?YesYesYesYesYesYes
Must appoint an auditor?NoNoNoYesNoNo
Access to double taxation treaties?YesYesYesYesNoYes
Withholding tax on payments to foreign shareholders?10%10%10%10%NoneNone
Company RegistrationLLCFast business setup solutionFree zone LLCPublic limited companyRepresentative officeBranch office
Resident director/partner/manager/ legal representative required?NoNoNoNoYesYes
Minimum number of shareholders/partners?1111Parent companyParent company
Maximum shareholding for foreigners?100%100%100%100%100%100%
Minimum statutory paid up share capital?US$1US$1US$1US$1,500NoneNone
Security deposit to be kept with Government?NoNoNoNoNoNo
Shelf companies available?YesYesYesYesNoNo
Time to incorporate a new entity?2 months2 weeks2 months3 months2 months2 months
Can easily convert to a PLC?YesYesYesYesNoNo
Public register of shareholders and directors?YesYesYesYesYesYes
Can have preference shareholders?YesYesYesYesNoNo
Business ConsiderationsLLCFast business setup solutionFree zone LLCPublic limited companyRepresentative officeBranch office
Good entity for trademark registration?YesYesYesYesNoNo
Can secure an import and export license?YesYesYesYesNoYes

Sponsorship by a local citizen required?No
Our Client needs to travel to Kyrgyzstan for business set up?No
Temporary physical office solutions available?Yes
You need a local resident as bank signatory?No
Can be wholly foreign owned?Yes
The entity will likely be regulated by?MOJ
Minimum number of directors/managers?1
Monthly VAT reporting to the Government?Yes
Must sign an office lease agreement during incorporation?No
Shareholders & directors documents to be attested/translated?Yes
Each foreign director needs a personal income tax number?No
Foreign director needs a residence visa?No
Maximum number of staff allowed?No maximum number for any entity
Expatriate to local staff ratio?None
Can secure residence visa for business owner?Yes
Other useful information
This country has signed free trade agreements?Yes
This country is a member of WIPO/TRIPS?Yes
This country is a member of the ICSID?Yes
Average custom duties suffered?2.3%
Government foreign investment approval required?No
Average monthly office rental? (US$ per sq m)20
Minimum statutory monthly salary?US$16
Average monthly US$ salary for local skilled employees?US$300
US$ deposit interest rate? (1 year average)1%
Overseas remittance currency controls?None
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?Yes
Quality of e-banking platform?Fair
Crowd funding available in this country?Yes

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  • Advantages and disadvantages

    Advantages of Kyrgyzstan company registration

      Register company in Kyrgyzstan

    1. Kyrgyzstan has seen high growth rates in the majority of the past 10 years. Though the economy has been relatively sporadic, the mining, manufacturing, and energy industries have seen strong growth over the decade;
    2. Kyrgyzstan has a corporate tax rate of just 10%. Leasing companies pay a reduced rate of 5% while all companies engaged in gold mining or refinement pay no corporate tax;
    3. Compared to countries of the western world, it is worth doing business in Kyrgyzstan as it is very cheap, including food, transport, utilities, rent, wages etc. Specifically, utility costs and rent are significantly cheaper than in western cities;
    4. While Kyrgyzstan is landlocked, it is very close to two major markets – China and Russia. Kyrgyzstan has established strong trade relationships with both of these countries, in addition to several former soviet states, thus, it is easier in setting up a business in Kyrgyzstan;
    5. The government of Kyrgyzstan has declared attracting foreign direct investment a priority, with the Foreign Investment Law of 2003 providing quick and simplified procedures for FDI. For Kyrgyzstan investment, the government has put particular focus on allowing for financial freedom, protecting intellectual property rights and guaranteeing national treatment.

    Disadvantages of Kyrgyzstan company registration

    1. Kyrgyzstan suffers from high corruption which can act as a barrier to completing many standard business practices and Kyrgyzstan company formation. Kyrgyzstan is ranked 123rd in the 2012 Corruption Perceptions Index by Transparency International. Entrepreneurs should expect under-the-table bribes in order to expedite business operations or during Kyrgyzstan company incorporation;
    2. Despite laws designed to protect foreign investment, any investment in Kyrgyzstan is risk-laden due to poor infrastructure and weak rule of law. Many foreign businesses have suffered destruction and other business expenses at the hands of local villagers when starting a company in Kyrgyzstan;
    3. English is spoken by only a small minority of Kyrgyzstani, with Kyrgyz and Russian being the official and most commonly spoken languages. Most official documents must be translated in to either Kyrgyz or Russian;
    4. Though property rights protections are emerging, the current judicial system is underdeveloped with little capacity to enforce. Licensing and registration are often a source of dispute during Kyrgyzstan business setup;
    5. Kyrgyzstan lacks investment and financial freedom, being ranked 89th in the 2013 Index of Economic Freedom by Heritage Foundation. Kyrgyzstan’s failing are due to a failure to consistently apply laws introduced to allow for increased financial freedom;
    6. Kyrgyzstan’s economic success has been strongly tied to the price of gold. Economic growth has been inconsistent, with negative GDP growth over consecutive quarters twice in the past 5 years.
    7. Kyrgyzstan free zone company is not available.
  • Best uses for a Kyrgyzstan company

    1. Kyrgyzstan has a wealth of natural resources. One of the world’s largest gold deposits and healthy reserves of coal allow the mining industry to make up 20% of the economy. Though all of the gold mines in Kyrgyzstan are state-owned, most operate through joint ventures with foreign companies.

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Company registration

  • Time to incorporate: Four weeks
  • Cost to set up: US$12,310
  • Minimum capital: US$0
  • Physical office required: No

Required appointments

  • Shareholders: 1
  • Directors: 1
  • Company secretary: No
  • Resident director: No

Key facts

  • Corporate tax rate: 10%
  • Corporate tax base: Worldwide
  • Shelf companies: No
  • Main company type: LLC

Contact us

For additional information on our company registration services in Kyrgyzstan, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar