Registration of Business in Kyrgyzstan

The Ministry of Economy and Commerce of the Kyrgyz Republic has developed a guide for business registration in the country that will allow entrepreneurs to get detailed and step-by-step instructions on business registration in the country. The mentioned document will be very useful for businessmen, including foreign citizens intending to run their businesses in the Kyrgyz Republic.

The guide provides all the procedures for business registration in Kyrgyzstan. The required procedures and documents to be attached with:

1) Obtaining a PIN (Personal Identification Number)

It is a document issued by the authorized body and used as a TIN (Taxpayer Identification Number) in the tax office that can be obtained at any public service center (excluding PSCs).

PIN for physical bodies

“Digital nomads” already issued a PIN is not required to obtain it one more time, but those who do not have it need to apply to a PSC with the notarized translation of their passports into the state (Kyrgyz) or official (Russian) to obtain it. Digital Nomads info here https://mineconom.gov.kg/ru/direct/385/395

 PIN for legal bodies

A PIN is issued to employees on the basis of an application by the head of the legal body:

• A written request on behalf of a legal body,
• Certified copies of the state registration certificate of a legal entity and constituent documents,
• Original and a copy of the Power of Attorney (certified by the seal of the organization),
• A passport of the representative and its copy or a passport of a foreign subject, if required, with a notarized translation,

The complete list of PSCs where PINs are issued is available on the website of the State Registration Service at the link: https://grs.gov.kg/ru/subord/drnags/462-tsientry-obsluzhivaniia-nasielieniia/

Using the mobile application Early one, a coupon can be got remotely for services at PSCs.

Additional information can be obtained at the short number 119 of the Ministry of Digital Development.

The registration process is continued upon receiving a PIN.

The registration process will take from three days to two weeks. In addition, should the entrepreneur decide to obtain permission to manufacture a seal, it will take another two weeks. Should it be done through a company, it will take 3-7 days.

2)  Registration with the statistical authorities of the Kyrgyz Republic to obtain a certificate of state registration as a physical body engaged in entrepreneurial activity,

3) Registration with the tax authority at the place of residence.

Some procedures are obligatory for carrying out the entrepreneurial activity:

• The production of an LLC seal is binding, but it is not required for IE and patents, and it can be made at will,
• Obtaining an entrepreneurship license is required for some types of activities, including the practice of law,
• Registration with the Social Fund of the Kyrgyz Republic is important for entrepreneurs hiring people under an employment contract,
• Opening a bank account, which is at the discretion of the entrepreneur, is required if a noncash settlement is to be made by an entrepreneur.

Registration of LLCs

The procedure for registration of joint-stock companies (JSC), branches, representative offices, and limited liability companies (LLC) for both EAEU (Eurasian Economic Union) and those that arrived from third countries is the same. They should apply to the Ministry of Justice with the required list of documents for registration.

The failure to appear before the tax authority within 15 days of the organization’s state registration and the non-choice of the tax regime will lead to the determination of the general tax regime for the organization by the territorial tax authority. A taxpayer registration card, i.e. form No.25 indicating income tax, sales tax, and VAT is filled out and the registration of these taxes will correspond to the date of state registration with the justice authorities by the entrepreneur.

The list of documents

1. A registration statement having a separately designed form can be obtained while filing the documents for registration,
2. Decision to establish a limited liability company. A sample decision can be found on the website of the Ministry of Justice in the section “Registration of Legal Entities”, Appendix No.2 : http://minjust.gov.kg,
3. A notarized copy of the founder’s (individual’s) passport translated into the state or official language,
4. Should it be a local legal entity, a copy of the state registration (re-registration) certificate of the founder (legal body) should be attached,
5. Being a foreign legal entity, a legalized extract from the state register, certifies the founder (legal body) to act under the law of his/her country. The term for submission of the mentioned extract should not exceed 6 months,
6. A notarized copy of the passport of the head of the LLC, translated into the state or official language.

While establishing LLC, the following matters should be taken into account:

• The name of the LLC should not be the same as the name of another legal entity. It can be checked on the official website of the Ministry of Justice through the search engine of the Unified National Register of Legal Entities and branches: http://minjust.gov.kg,
• The minimum and maximum amounts of the charter capital are not defined,
• The number of participants can be from 1 to 30,
• A LLC can not have another single-member company as a sole participant,
• Documents drawn up in a foreign language are submitted to the registration authority with a notarized translation into the state or official language,
• LLCs with foreign participation are registered with the Ministry of Justice without foreign participation with the territorial justice authorities.

The terms and conditions of submitting and issuing documents at the Ministry of Justice and Entrepreneurs Service Centre of the Kyrgyz Republic:

Document acceptance: 9:00 a.m. till 14:00 p.m.

Registration fee: 407 soms+ payment for a registration blank

Registration period is 3 days from the date of submission of documents to the registration body

Document distribution: from 14:00 to 17:00 p.m.

Entrepreneurs Service Centre:

Address:  152 , Ibraimova, Bishkek (the building of the former business Centre “Rldorado”, floor 2)

Working hours: 9:00 a.m. – 18:00 p.m.

Lunchtime: 12:30 p.m. – 13:30 p.m.

An Individual entrepreneur can be registered upon getting a certificate. An IE is not limited in choosing a tax regime and can apply a general regime or a special tax regime based on a single tax. The regime based on a single tax is more profitable. The individual entrepreneur pays 4% of the proceeds by direct credit or deposit and 6% with a cash method payment from the amount received.

Registration of Foreigners

Foreigners must apply to the statistics authorities at the place of their registration with the bodies of the Ministry of Internal Affairs to be registered as entrepreneurs. “Digital nomads” are not required to be registered with the statistics authorities.

As the daily routine differs in each district or city, it is recommended to find out their working hours. For example, at the Bishkek Statistical Committee, registration days are from Monday to Thursday, from 8:30 a.m. to 16:00 p.m.

A passport is required for registration. The registration fee differs depending on the district and ranges from 2000 soms to 4000 soms due to the different technical facilities and registration fees.

Upon filling out the application form presented by the employees of the statistics authority, a statistical officer will go on with the process of registration of an individual entrepreneur and it will take only several minutes. A certificate of state registration of an individual running a business is issued on the same day.

Registration with Tax Authorities

A person must come to the tax authority at the place of residence with a copy of the passport and fill in application form No163. The sample is shown on the following website:  https://sti.gov.kg/docs/default-source/otchet/doc-sti-163-%D1%80%D1%83%D1%81%D1%81%D0%BA%D0%B8%D0%B9.pdf?sfvrsn=2

One must be registered with the tax authorities within 10 days from the date of obtaining a certificate of state registration as an individual engaged in entrepreneurship.

Should a 10-day deadline be missed, a person will have to pay a fine in the amount of 10 to 20 minimum wages under Article 348 of the Code of Administration Responsibility of the Kyrgyz Republic.

The applicant should submit the following documents:

• A receipt of payment for registration as an individual entrepreneur (a receipt given upon paying the state fee, i.e., 25 soms, for registration as an individual entrepreneur at the cash desk of the State Tax Inspection),
• two copies of the certificate of the state registration of an individual engaged in entrepreneurship from the statistical authorities,
• two copies of the passport (only pages of with personal data and registration are enough and a copy of the entire passport is not needed).
• two photos sized 3*4,
• two folders.

Registration of an individual entrepreneur based on a certificate

The following documents should be submitted for registration of an individual entrepreneur based on a certificate:

• a PIN (personal identification number) may be obtained in any public service center (excluding PSCs) to be applied as a TIN (taxpayer identification number) in the tax body.
• a registration document at the place of residence,
• a passport with a notarized translation into the state or official language,
• completed for No. 163

Registration of a patent-based individual entrepreneur as an individual entrepreneur with the tax office is not required, and a patent obtained for implementation of a certain type of activity is enough, as it is very convenient for periodic activity.  Reporting is not required under the simplified patent-based system either.

A separate patent is issued for each type of activity.

Entrepreneurs having two or more separate patent-based business locations/bureaus, and so on, are required a patent for each of these places.

The patent is only valid in the territory of the region where it was issued.

Registration of IE based on a patent

It is required to apply to the state tax office of the area where business activities are to be carried out to obtain the patent itself first, to obtain the patent itself.

A person must find a department for monitoring the use of KR (cash registers), cash, and other payments in the tax office, apply to the employee of the mentioned department, and find out the cost of a patent for a certain type of activity, then go the cashier, pay a definite amount for a patent, and take a receipt for it.

The documents required for registration of an individual entrepreneur based on a patent are:

• a PIN (personal identification number) used as a TIN (taxpayer identification number) that can be obtained at any public service center (excluding mini-PSCs),
• document of registration at the place of residence,
• a passport with a notarized translation into the state and official language,
• filled out form No.163.

Registration fee of IE based on a patent

The coefficient equal to 5 for the citizens of the EAEU (Eurasian Economic Union) operating in the Kyrgyz Republic is not applied to the amount of tax based on a voluntary patent. The coefficient equal to 5, but not higher than the base tax amount, is applied to other foreign citizens and stateless persons operating in the territory of Kyrgyzstan.

Termination of entrepreneurship of individual entrepreneurs and LLCs according to the general taxation regime

The following measures are taken for the termination of individual entrepreneurs and LLCs according to the general taxation regime:

• submission a notice of termination of activities to the Ministry of Justice of Kyrgyzstan,
• presenting liquidation reports to the tax bodies,
• applying to the tax authorities for liquidation, which is realized within 10 working days. A liquidation audit containing all required reports and documents must be submitted to the tax authorities.
• submission of the seal for destruction to the District Department of the Ministry of Internal Affairs in the area of registration,
• forward a list of all required documents to the state archive,
• present an application for liquidation to the Ministry of Justice and the charter documents and certificates issued by the tax authority. The processing period is 10 working days.
• Upon getting the Liquidation Order from the Ministry of Justice, it should be submitted to the tax bodies for complete liquidation.

Termination of entrepreneurship of IE and LLCs in the single tax regime is carried out by:

• applying to the tax bodies for termination of activity along with the liquidation documents (a 10-day consideration period and liquidation check). It takes less time, as only income and payment of taxes are checked, and reporting on a single tax is done,
• submitting the stamp for destruction to the District Department of the Ministry of Internal Affairs in the area of registration,
• presenting the list of required documents to the state archive.

These instructions will be very useful for all businessmen, including foreign citizens intending to run a business in Kyrgyzstan.