Victory in an administrative case: KORGAN defends the client’s interests in a dispute over alimony arrears

The KORGAN law firm proudly announces its successful work in protecting the interests of a client in a complex administrative case on calculating arrears in alimony.

Background of the case

Our client, who is an individual entrepreneur, faced an unjustified calculation of arrears in alimony made by a private bailiff (PBI). The calculation was made without taking into account the entrepreneur’s obligations and expenses, such as:

• Employee salaries;
• Social and pension contributions;
• Taxes provided by law.

The CSI calculates the debt based solely on the turnover indicated in the tax return. However, this approach contradicts the norms of tax legislation, which require the responsibility of the entrepreneur when assessing his income.

Legislative basic calculation of alimony

The procedure for calculating alimony with income from debt is regulated taking into account the regulatory acts:
1. Law of the Republic of Kazakhstan No. 261-IV dated 02.04.2010 “Enforcement proceedings and the status of bailiffs” (Article 58), which establishes that deductions are calculated with the amount of income due to the debt received.
2. Order of the Minister of Justice No. 372 dated December 24, 2014, confirming the total income from which alimony is withheld. According to paragraph 11, alimony is withheld with income from entrepreneurial activity.
3. Administrative Procedure Code of the Republic of Kazakhstan (APC).

Features of calculating alimony for individual entrepreneurs

The procedure for calculating alimony from the salary and other income of the debtor is regulated by Law No. 261-IV of 02.04.2010 “On judicial proceedings and bailiffs”.

According to Art. 58 of this law, the amount of deductions is calculated from the amount of the debtor’s salary (income) due to him for receipt.

In accordance with the order of the Minister of Justice No. 372 of December 24, 2014, deductions for the maintenance of minor children are made from all types of wages (monetary remuneration, maintenance) and other income received by parents in monetary (national and (or) foreign currency), with the exception of the income of persons specified in indicator 2 of the specified list. In particular, this rule applies to income received from work in the entrepreneurial sphere without forming a legal entity.

For entrepreneurs using a special tax regime based on a simplified declaration (STR based on UD), the last line 910.00.001, reflected in form 910.00, represents the turnover from the sale of goods, works and services, which should not be considered as income of the individual entrepreneur for the calculation of alimony.

Income due to the individual entrepreneur to receive is formed only after filing tax returns and fulfilling obligations to pay salaries to employees, as well as paying all taxes and deductions for employees. The remaining net income is the actual income of the individual entrepreneur, which can be used at his own discretion.

Thus, the calculation of alimony in relation to an individual entrepreneur should be made exclusively from the amount of net income remaining after making and fulfilling all obligations for the reporting half-year. Accounting for the amount reflected in line 910.00.001 as total turnover, without appropriate adjustments to expenses, does not ensure the validity of the calculation of income for calculating alimony. Therefore, the calculation of alimony should be made from the amount of net income remaining after taxation for the reporting half-year.

Thus, when calculating alimony for entrepreneurs under the simplified system (SNR based on a simplified declaration), it is important to take into account that:

• Declaration form 910.00 indicates the total turnover for the sale of goods, works and services.
• Turnover is not the net income of the individual entrepreneur, since it also includes:
  • Payment of wages to employees;
  • Social and pension contributions;
  • Tax deductions.
• Net income will only be obtained after all obligations have been fulfilled.

Errors in calculations and their consequences

In the case of an individual entrepreneur, the Private Judicial Enforcement Officer (PIO) determined the arrears in alimony and the final calculation was made on the basis of the total turnover indicated in the declaration form 910.00. However, this calculation did not take into account the individual entrepreneur’s expenses, which led to an overstatement of the alimony amount.

Court decision

The court found the ChSI ruling illegal, stating that the calculation was made without taking into account objectivity and reliability. The court ruled to cancel the ruling and obliged the ChSI to recalculate the debt taking into account the entrepreneur’s real net income.

Recommendations for entrepreneurs

• Provide complete and reliable data on your income and expenses: accounting documents, employment contracts, tax returns.
• Make sure that alimony is calculated based on net income, and not in total.
• In case of disputes with the provisions of the ChSI, contact professional lawyers to protect your interests.

The KORGAN law firm is ready to provide qualified assistance in such matters. We ensure fairness in calculations and protect your rights!

Contact our specialists by phone +7 700 50 00 553 or click on the “order a call” button below.

Author of the article: Berdysheva A.K.

Successful registration of the merger of LLC with LLC

Our company’s lawyers successfully registered the merger of an LLC with an LLC. We provided full support for the process, guaranteeing compliance with all legal norms and requirements of current legislation.

The merger of two companies is a significant step to strengthen positions in the market and expand business opportunities. We took care of the careful preparation and execution of all necessary documents, and also provided qualified consulting support at each stage of the transaction. As a result, the process was quick and without complications, fully complying with legal standards.

The KORGAN law firm continues to provide professional assistance in resolving any issues of corporate law, including the reorganization of legal entities, mergers and other key processes that contribute to the development of your business.

Legal consultants can now participate in administrative violation cases

According to the legislative amendments introduced to Article 748 of the Code of Administrative Offenses of the Republic of Kazakhstan, not only lawyers, but also legal consultants can now act as defenders in administrative cases. Previously, only lawyers with the appropriate license had this opportunity.

In addition, legal consultants were included in Article 750 of the Code of Administrative Offenses, which regulates the issues of replacing a defender and paying for his work. The updates also affected the articles concerning the liability of defenders for administrative offenses; now consultants are also mentioned among them.

These amendments expand the opportunities for citizens to find qualified legal assistance and protection.

Quota for attracting foreign labor

A quota for attracting foreign labor to carry out labor activities in the Republic of Kazakhstan for 2025 has been established.

Annotation to the document: Order of the Minister of Labor and Social Protection of the Republic of Kazakhstan dated December 30, 2024 No. 505 “On establishing a quota for attracting foreign labor to carry out labor activities in the Republic of Kazakhstan for 2025” (not put into effect).

In accordance with subparagraph 4) of Article 11 of the Law of the Republic of Kazakhstan “On Population Migration”, a quota for attracting foreign labor to carry out labor activities in the Republic of Kazakhstan for 2025 has been established as a percentage of the workforce:

1) for permits issued by the local executive body to the employer in the amount of 0.2%;

2) for attracting labor immigrants in the amount of 3%.

The order shall come into effect upon expiration of ten calendar days after the day of its first official publication.

Changes to the C5 visa process for business immigrants

On November 17, 2024, amendments came into force in the “Rules for issuing invitations, coordinating invitations for entry of foreigners and stateless persons into the Republic of Kazakhstan, issuing, canceling, restoring visas of the Republic of Kazakhstan, as well as extending and reducing their validity periods” concerning the procedure for obtaining a C5 visa for business immigrants.

According to the amendments, the list of documents for obtaining a C5 visa has been shortened. In particular, the list of documents required to obtain a visa no longer includes:

• medical certificate confirming the absence of diseases, the presence of which prohibits entry of foreigners and stateless persons into the Republic of Kazakhstan;
• certificate of the presence or absence of a ban on carrying out entrepreneurial activity based on a court decision, issued by an authorized body of the country of citizenship or permanent residence.

However, the Law of the Republic of Kazakhstan “On Migration of the Population” contradicts these rules and requires business immigrants to:

• medical certificate confirming the absence of diseases that prevent work;
• medical insurance;
• confirmation of the presence or absence of a criminal record and a ban on carrying out entrepreneurial activity based on a court decision.

According to the hierarchy of regulatory legal acts, the law has priority over the rules, and in case of contradiction, priority should be given to the provisions of the Law.

Due to discrepancies between the Rules and the Law, we contacted the Ministry of Foreign Affairs and Migration for clarification:

In the response from the Migration Service, they write a shortened list. There is no certificate of absence of a ban on entrepreneurial activity and a medical certificate.

Based on the response from the Migration Service, they are now issuing a C5 visa according to a shortened list:

• medical insurance;
• a document confirming the presence or absence of a criminal record, issued by an authorized body of the country of citizenship or permanent residence;
• An invitation from a Kazakhstan company.

In its response, the Ministry of Foreign Affairs is inclined to believe that at present the list of documents will be in accordance with the Law of the Republic of Kazakhstan “On Migration of the Population”, which does not yet provide for a shortened list for the C5 visa. Currently, work is underway to amend this Law in favor of shortening the list of required documents.

The rules for issuing visas that have entered into force, which include a shortened list, do not have priority over the Law “On Migration of the Population”.

We continue to monitor the process of changes in the migration legislation of Kazakhstan and promptly inform you of all innovations. At the moment, updated requirements for the C5 visa are in effect, but it is worth considering that the new rules do not have priority over the Law “On Migration of the Population”.

Key aspects in conducting personnel production

HR management in a company covers the entire process of working with personnel – from hiring to firing. This is an important part of HR management, and the correct organization of the HR process contributes to effective management of people and compliance with labor legislation. Here are the main aspects that are important to consider when conducting HR production:

Registration and storage of personnel documents

• Employment contracts: It is important to correctly formalize employment contracts with employees. They must contain all the required details, such as information about the position, salary, working conditions, terms, etc.
• Personal files of employees: Each employee must have a personal file in which documents are stored, such as a diploma, medical record, certificates of accrued salaries, etc.
• Orders: All personnel changes (hiring, firing, transfer, leave, etc.) are formalized by orders signed by the head of the company.

Registration and reporting

Employee registration: All employees must be registered with the pension fund and social security funds. This is an important step to ensure social guarantees for employees.

Human resources: transfer, dismissal

• Employee transfer: Transfer to another position or to another branch of the company must also be formalized by an order with the appropriate changes to the employment contract.
• Dismissal: When dismissing, you must follow the established procedure, filling out all the necessary documents (for example, a dismissal act, a pay slip, a dismissal application, etc.).

Holidays and work leaves

• Vacations: Employees are granted both paid and unpaid leaves. It is important to correctly calculate the duration of vacations, as well as control their use.
• Vacation calendar: Maintaining a vacation schedule helps to avoid conflict situations and problems with ensuring the continuity of the company’s operations.

Social guarantees and labor safety

• Employee training and certification: The employer is obliged to organize employee training on labor safety issues, as well as conduct certification of workplaces.
• Medical examinations: Many categories of employees must undergo regular medical examinations, which must also be recorded in the documents.
• Insurance: Includes mandatory and voluntary health insurance for employees, as well as programs to improve the quality of life of employees.

Disciplinary measures and motivation

• Disciplinary sanctions: It is important to keep records of all disciplinary violations, such as remarks, reprimands and dismissals.
• Motivation system: The employer must develop a system of incentives for employees, be it bonuses, bonuses, additional vacation days or other incentives.

Electronic document management

Modern companies are increasingly switching to electronic HR documentation, which greatly simplifies the process. For example, the use of specialized HR systems allows you to automate time tracking, payroll calculation, working hours and business trips.

Using electronic signatures and remote work

• An electronic signature allows you to speed up the process of signing employment contracts and other documents.
• Remote work requires special conditions for proper accounting of working hours, wages and providing employees with all the necessary equipment.

Proper management of personnel records helps not only to comply with labor legislation, but also to increase the efficiency of the company, improve employee motivation and minimize the risks associated with the violation of labor rights.

On changes in the registration of C5 visas for foreigners intending to conduct business activities in the Republic of Kazakhstan

The innovations affect several aspects of migration legislation, including the process of obtaining a C5 visa for business immigrants, and also introduce new visa categories, such as A6, B9, B9-1 Digital Nomad Visa and B12-1 Neo Nomad Visa.

From November 17, 2024, amendments to the “Rules for issuing invitations, coordinating invitations for entry of foreigners and stateless persons into the Republic of Kazakhstan, issuing, canceling, restoring visas of the Republic of Kazakhstan, as well as extending and reducing their validity” came into force.

Simplifying the procedure for obtaining a C5 visa for business immigrants

One of the most significant changes was the simplification of the procedure for obtaining a C5 visa for business immigrants. The new procedure significantly reduced the list of documents that must be submitted to obtain a visa. In particular, the following certificates were excluded from the list of required documents:

• medical certificate confirming the absence of diseases that may prevent entry into the country;
• certificate of the presence or absence of a ban on entrepreneurial activity, issued by an authorized body of the country of citizenship or permanent residence.

These changes have significantly simplified the process of obtaining a C5 visa, which can help attract foreign investors and entrepreneurs to the Republic of Kazakhstan.

It is important to note that the requirements specified in the Law of the Republic of Kazakhstan “On Migration of the Population” have a higher legal priority than the provisions provided for in by-laws. Thus, in the event of a contradiction between the rules and the law, the law will have priority.

Taking into account the current changes in the migration legislation, further adjustments are possible in the Law of the Republic of Kazakhstan “On Migration of the Population”. Amendments to this law will be aimed at eliminating inconsistencies with by-laws, which will bring the rules into line with current requirements.

In particular, it is expected that in the future the procedure for obtaining a C5 visa for business immigrants and other categories of visas will be clarified in order to ensure the unity and consistency of legislation.

The amendments to the migration legislation of the Republic of Kazakhstan that have entered into force have significantly simplified the process of obtaining a visa for business immigrants and other categories of foreign citizens. Reducing bureaucratic barriers and introducing new visa categories open up additional opportunities for international cooperation and economic growth of the country. However, it is important to remember that, despite the simplification of the procedure, the requirements for business immigrants remain high, and it is necessary to strictly comply with all regulations and legal requirements.

For detailed advice and assistance in obtaining a visa or other migration procedures, as well as for obtaining an invitation from a Kazakhstani company, specialists from the KORGAN law firm are always ready to provide professional support.

Author of the article: Kenzhemergenova M.N.

The lists of documents required for foreigners to obtain temporary and permanent residence permits in the Republic of Kazakhstan have been updated

To obtain permits, you need a certificate of fingerprinting of a foreigner or stateless person, issued in accordance with the Rules for fingerprinting and genomic registration, approved by the Order of the Ministry of Internal Affairs of the Republic of Kazakhstan dated September 30, 2024 No. 730. Previously, the Rules approved by the government were in effect.

Also, when applying for a temporary residence permit in the Republic of Kazakhstan for work, an employment contract registered in the MLSZN – in the unified system for recording employment contracts “ESUTD” or a civil law contract for the performance of work (provision of services) is required FOR EVERYONE. Previously, this requirement was only for citizens of the EAEU.

KORGAN Law Firm is always ready to inform you about changes in legislation and provide qualified assistance and advice! We follow the latest news so that you can be confident in the correctness of your decisions and actions.

Contact us right now to get advice and trust the experience of professionals in their work!

Force majeure in a contract: how to protect your interests?

Force majeure is an unexpected event that is beyond the control of the parties and makes it impossible to fulfill contractual obligations. Correctly including this condition in the contract helps to avoid unnecessary disputes and financial losses.

What is force majeure?

Force majeure includes events that cannot be foreseen or prevented. Examples:

• Natural disasters (earthquakes, floods, hurricanes)
• Social upheavals (wars, strikes, revolutions)
• Government bans (sanctions, quarantines, changes in legislation)

Important: Normal difficulties (such as a lack of resources or rising prices) are most often not considered force majeure, unless otherwise specified in the contract.

Why is it important to include force majeure in the contract?

• Release from liability. If a party is unable to fulfill its obligations due to force majeure, this is not considered a breach
• Maintaining trust. The clause shows that the parties are aware of the risks and are ready to cooperate honestly
• Procedure. The contract specifies how the parties must notify each other and what to do if force majeure occurs

How to correctly specify force majeure in a contract?

1. List of circumstances

Specify which events are considered force majeure. Use wording like “including, but not limited to” to account for unforeseen situations. For example:

“Force majeure circumstances include: natural disasters, military actions, acts of terrorism, pandemics, actions of government agencies.”

2. Notification procedure

Specify how and within what time frame the parties must notify each other of force majeure. For example:

“A party is obliged to notify the other party of the occurrence of force majeure circumstances within 5 working days from the moment of their occurrence.”

3. Consequences of force majeure

Specify how force majeure affects the obligations of the parties:

• Are the obligations suspended?
• Is it possible to terminate the contract if the force majeure continues for a long time?

4. Confirmation of force majeure

Determine who must confirm the occurrence of force majeure. Most often, this is done with the help of a certificate from the Chamber of Commerce and Industry.

Practical recommendations

• Assess the risks. If your business depends on supplies, transport or international contracts, pay special attention to the wording of force majeure
• Don’t forget about the deadlines. Determine how long the force majeure can last before the contract is terminated
• Review current contracts. Make sure that they include current risks, such as pandemics or sanctions

What to do if force majeure occurs?

• Notify the other party within the specified time
• Prepare documents confirming the fact of force majeure (certificates, government decrees)
• Agree on actions: suspension of obligations, extension of terms or termination of the contract

Force majeure is a tool for protecting the interests of the parties in unforeseen circumstances. By spelling it out correctly, you can minimize risks and maintain good business relations even in times of crisis.

Contact KORGAN Law Firm for detailed information on the importance of including force majeure in a contract, as well as competent drafting of contracts specifically for your type of activity!

Call our specialists at +7 700 50 00 553 or click on the “order a call” button below.

Author of the article: Akhmetova N.

Compulsory Medical Insurance in Kazakhstan. What can a citizen count on?

Almost every second citizen of the Republic of Kazakhstan is insured in the compulsory medical insurance system, but many citizens do not know what they can count on under the compulsory medical insurance system, except for opening and closing sick leaves.

So, what are you entitled to as a compulsory medical insurance payer?

All services under the compulsory medical insurance system are provided at the clinic where you are registered or at another institution by referral from a local doctor.

All scheduled examinations are carried out by appointment. The maximum waiting period cannot exceed 10 working days. If you have an emergency and need an appointment on the same day, you can contact the filter room or the patient support service at your clinic.

One of the common examinations that you can count on under the compulsory medical insurance system, but do not know about it, is MRI and CT.

The appointment for MRI and CT at the expense of the compulsory medical insurance system is made by the attending physician if there are medical indications.

If your clinic cannot provide this service, then the doctor must refer you to another clinic with which they have an agreement for execution.

IMPORTANT: The absence of the necessary doctors, equipment and other factors are not an objective reason for refusing or delaying the provision of medical services.

Also, within the framework of the compulsory medical insurance, you have the right to undergo screening tests

These include:

• Medical examinations for hepatitis B and C;
• Cervical and breast cancer;
• Colorectal cancer;
• Detection of arterial hypertension;
• Detection of coronary heart disease, diabetes;
• Detection of glaucoma.

In the Republic of Kazakhstan, medicines are issued for medical indications and categories of patients, including beneficiaries and patients with chronic and socially significant diseases. If you do not have the necessary medications, you should contact the SK-Pharmacia Contact Center for free drug provision at 1439, from mobile and landline numbers.

Contact us right now to get advice and trust the experience of professionals in working with KORGAN!

Contact our specialists by phone +7 700 50 00 553 or click on the “order a call” button below.

Amendments to the Social Code — civil law contracts

Amendments to the Social Code of the Republic of Kazakhstan will come into force at the beginning of 2025. These amendments will affect employees working under a Civil Law Agreement.

The first thing that the authorized bodies changed was that they obliged employers to transfer pension contributions to the Unified Accumulative Pension Fund for employees working under Civil Law Agreements. New amendments will also come into force on January 1, 2025.

Previously, employees working under a Civil Law Agreement could not count on payment of sick leave, temporary disability certificates, maternity leave, etc. But, starting from January 1, 2025, all employers will be required to transfer social contributions to the State Social Insurance Fund.

Also, if the authorized bodies do not suspend the introduced regulations, then from January 1, 2025, the amount of social contributions will be increased from 3.5% to 5% of the employee’s accrued income.

The employer pays social contributions, as well as the social tax, independently from its own funds. The payment of these contributions should not affect the employee’s salary in any way.

Turkic Trade Fair 2024: with the participation of KORGAN Law Firm

Our Company (in the role of our Director – Yeshmuratov Saken Asainovich) was invited to participate in the Turkic Trade Fair and Forum (TTF 2024) – the largest event organized with the support of government agencies of 8 countries, including Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey, Uzbekistan, Hungary, Turkmenistan and the Turkish Republic of Northern Cyprus. The forum was held at the Istanbul Convention and Exhibition Center from 7 to 9 November 2024. The purpose of the exhibition is to develop trade, industry, technology, investment and services between these countries, as well as to promote the expansion of marketing of these services in other regions of the world.

TTF 2024 Exhibition and Forum is organized by ROK International Consultancy Inc. in cooperation with the Organization of Turkic States and the Union of Turkic Chambers of Commerce and Industry under the Ministry of Commerce of the Republic of Turkey. The event was attended by more than 100 leading companies, entrepreneurs and experts from various industries, which creates a unique platform for strengthening economic ties between countries, as well as expanding business contacts with international partners.

Turkic Trade Fair 2024 (TTF 2024) Objectives

The main objectives of the event are:

• Creating synergies between Turkic countries: The forum and exhibition will facilitate interactions between businessmen, which will allow for the establishment of partnerships and commercial bridges with international markets.
• Developing trade and investment relations: TTF 2024 will become a platform for the development of industrial cooperation, exchange of technologies and services between Turkic states, which will open up new opportunities for all participants.
• Sharing experiences in sustainable development: Participants will be able to discuss achievements in the field of sustainable development in various sectors and share best practices with other countries.
• Showcasing cultural and economic potential: The exhibition aims to showcase the rich cultural heritage, entrepreneurial spirit and economic strength of the Turkic states, strengthening their position in the global arena.
• Coordination of efforts to promote trade and investment: Creating conditions for the free promotion of trade and investment in the Turkic world, which will have a positive impact on the economic growth of the countries of the region.
• Support for small and medium-sized businesses: The exhibition is focused on presenting new market opportunities for SMEs, micro-producers and entrepreneurs, helping them to enter new markets and integrate into global production chains.
• Organization of bilateral meetings and conferences: The forum will create a platform for discussing current issues and solving business problems, organizing meetings with experts and specialists in various fields.
• Promotion of common brands of Turkic states: The exhibition will focus on promoting common brands of Turkic-speaking countries in the international arena, as well as organizing meetings dedicated to franchising.

Forum Topics

TTF Turkic Trade Exhibition and Forum 2024 covers a wide range of topics that will be discussed through business meetings, conferences and panel discussions. Among them:

• Investment and entrepreneurship opportunities in the Turkic countries.
• Development of technologies and innovations, including digitalization, artificial intelligence, green technologies and sustainable development.
• Logistics and trade, including the creation of new trade routes and improvement of infrastructure to support trade between the countries of the region.
• Culture and business: how cultural ties can contribute to the development of trade and business relations between countries.
• Markets and franchising: opportunities for small and medium-sized businesses, as well as expanding the presence of Turkic brands in international markets.

Strategic importance of TTF 2024

TTF 2024 is of strategic importance for all participants, as it represents a unique opportunity for the countries of the Turkic world and their companies to demonstrate their economic potential, establish new partnerships and expand access to the markets of other countries. The event also serves as an important step in the integration of Turkic countries into the global economy, stimulating growth and improving business relations between the regions.

Turkic Trade Fair and Forum TTF 2024 is a key event for entrepreneurs, businessmen, investors and specialists from Turkic countries and beyond. The event promises to be an important tool for the development of trade, technology and investment, as well as for strengthening cultural and economic ties between the states of the region.

Successful Completion of a Debt Collection Case for a Construction Company Client: KORGAN’s Experience in Protecting the Rights of Equity Holders

KORGAN Law Firm has successfully completed another case on debt collection under a reservation agreement for a client of a construction company. We represented the interests of the client who, like many other equity holders in Kazakhstan, faced risks associated with investing in real estate under construction.

Case Background

Previously, a preliminary reservation agreement was concluded between the construction company and our client, according to which the client wanted to purchase residential space in a residential complex under construction located in Astana. Due to the violation of the terms of the agreement by the construction company, an agreement was concluded to terminate the Reservation Agreement. According to the terms of this agreement, the construction company was obliged to return the funds contributed by the client in the amount of 13,000,000 tenge within 60 working days from the date of signing the agreement. However, after the termination of the agreement, the obligations to return the money were not fulfilled, which prompted the client to seek help from our company.

Difficulties of investing in primary real estate

KORGAN’s experience shows that the risks of investing in real estate under construction in Kazakhstan remain high. Despite the adoption of the law on shared participation in housing construction, loopholes for unscrupulous developers still exist, and some construction companies practice schemes with reservation agreements to bypass the mechanism of shared participation.

These schemes often lead to situations where buyers find themselves in a vulnerable position, facing the risk of not receiving their funds when terminating the contract. Moreover, as our experience shows, many developers reserve the right to make changes to the project without providing shareholders with proper guarantees for the quality and appearance of the properties.

Results of KORGAN’s work

The KORGAN team carefully prepared materials for the trial and initiated debt collection. Faced with our legal support for the client, the developer proposed to enter into a mediation agreement to avoid further litigation. Under the mediation agreement, the construction company voluntarily paid the client the entire debt in the amount of 13,000,000 tenge.

Not the first successful case of refund under a reservation agreement

This is far from the first successful case of debt collection under a reservation agreement that our company has handled. We have accumulated significant experience in protecting the rights of equity holders and investors in the primary real estate market. Thanks to our efforts, clients receive legal protection that helps them return funds even in the face of shortcomings in legislation and insufficient protection for equity holders.

KORGAN continues to defend the interests of equity holders and encourages buyers of primary real estate to carefully approach the choice of developers and the legal execution of contracts. If you are faced with a violation of obligations by a developer, our specialists are ready to provide you with reliable legal protection.

By contacting KORGAN, you receive professional support at every stage of the legal process, from document preparation to effective dispute resolution. We guarantee quality services, an individual approach and transparent cooperation so that you feel confident and calm about the result.
With our help, you will be confident in the reliability of the protection of your rights and interests.

Contact us right now for a free consultation and trust your case to experienced professionals from KORGAN!

Author of the article: Berdysheva A.K.

Liquidation of a company without bankruptcy proceedings: successful resolution of a dispute by the law firm KORGAN

The client contacted the KORGAN law firm to liquidate the company without initiating bankruptcy proceedings in accordance with the provisions of the Law of the Republic of Kazakhstan dated March 7, 2014 No. 176-V “On Rehabilitation and Bankruptcy”. According to Chapter 7 of this law, liquidation of a debtor without initiating bankruptcy proceedings is possible if the debtor is absent or if a set of circumstances stipulated by law are provided for in relation to him.

Our specialists filed an application for liquidation with the court, however, during the execution of the task, the application for liquidation was left without consideration, due to the fact that the parties entered into a settlement agreement at the execution stage, which we submitted for approval by the court.

Difficulties and features of providing company liquidation services

The main difficulty was in changing the direction of the case. At the initial stage, KORGAN initiated the liquidation process in accordance with the requirements of Article 113 of the Law. However, there was a need for flexible adaptation and prompt response to changes in the situation. Reconciliation of the parties at the execution stage became possible due to the active actions of our specialists aimed at achieving mutual understanding between the debtor and the creditor.

The essence of the problem arose in the conflict between the debtor and the creditor regarding dividends and penalties for payment, which led to the filing of a claim for the liquidation of the company. However, the parties were able to reach an agreement and resolve the dispute peacefully by approving a settlement agreement. Thanks to this, it was possible to save time. If the agreement had not been reached, the company would most likely have faced lengthy litigation.

This approach made it possible to avoid litigation, a protracted process and associated costs for the client.

Remember: timely appeal to professionals often helps to prevent serious problems in the future. Trust your legal issues to the experts of the KORGAN law firm – focus on what is really important to you.

Contact us right now to get advice and trust the experience of professionals in working with KORGAN! Contact our specialists by phone +7 700 50 00 553 or click on the “order a call” button below.

Author of the article: Berdysheva A.K.

Business immigrants in Kazakhstan: changes in legislation

Business immigrants play an important role in the economic development of Kazakhstan, and the new legislation opens up new opportunities for them. However, for successful integration into the business environment, it is necessary to carefully monitor compliance with migration requirements.

On May 28, 2024, changes to the conduct of business activities for foreigners came into force in the Republic of Kazakhstan.

According to the Law of the Republic of Kazakhstan “On Migration of the Population”: “The creation of a legal entity, as well as participation in the authorized capital of commercial organizations by joining the composition of participants in legal entities, is prohibited for foreigners who have not received an entry visa or a temporary residence permit as business immigrants, with the exception of immigrants who have a residence permit for a foreigner or a stateless person certificate.”

New requirements for business immigrants

Previously, citizens of the EAEU countries did not need a business immigrant visa (C5 visa) to conduct business in Kazakhstan. Now, according to the changes, the creation of a legal entity or participation in the authorized capital of commercial organizations is prohibited without obtaining a visa or a temporary residence permit. The only exceptions are those foreigners who have a residence permit or stateless status.

According to Article 6-1 of the Law “On Migration of the Population” of Kazakhstan, a temporary residence permit is issued on the basis of applications from local executive bodies for immigrants who have arrived for the purpose of doing business.

To successfully conduct business in Kazakhstan, it is also important to take into account migration regulations. Before registering a Kazakhstan LLP, a foreigner must obtain a business immigrant TRP or obtain a C5 visa.

A business immigrant is an immigrant who has arrived for the purpose of carrying out entrepreneurial activity in accordance with the legislation of the Republic of Kazakhstan.

Who needs a Business Immigrant TRP?

These changes affect citizens of countries with which Kazakhstan has signed international agreements on visa-free entry, including the EAEU states (Russia, Kyrgyzstan, Armenia and Belarus), as well as Azerbaijan and Tajikistan.

How to obtain a temporary residence permit for a Business Immigrant?

According to the new rules, in order to obtain a temporary residence permit (TRP), business immigrants must prepare certain documents:

• A passport with a stamp on crossing the border (it is recommended to provide both passports: domestic and foreign).
• An identification number (IIN), which must be issued for the foreign passport with which you crossed the border.
• Residential address in the country of citizenship.
• A notarized consent from the owner of the property (required for each foreigner).
• Notification of stay, which is submitted through the websites vmp.gov.kz or eqonaq.kz from the owner of the property or hotel.
• A certificate of no criminal record issued by the competent authority of the country of citizenship or permanent place of residence residence.
• A document confirming the absence of a ban on conducting business activities (if such a certificate is required by the legislation of the country of citizenship).
• Fingerprinting (passport, IIN and notification are required).
• Medical insurance covering primary and specialized medical care, in compliance with the minimum requirements established by the legislation of Kazakhstan.
• Medical certificate 028/u, confirming the absence of diseases that interfere with work activity.

The cost of services for obtaining a temporary residence permit is 250,000 tenge, and the processing time is from 1 to 2 days from the moment of collecting all the necessary documents.

Timeframe for obtaining a Permit

The timeframe for obtaining a Business Immigrant Temporary Residence Permit is from 1 to 3 business days from the moment of collecting all the necessary documents.

Cost of obtaining a Business Immigrant Permit

Obtaining a Business Immigrant Temporary Residence Permit with the support of our lawyers will be 250,000 tenge.

Notary fees and translation costs are paid separately.

Stages for obtaining a permit

First stage – submission of the necessary documents by a foreign individual, specified above (provide a certificate of no criminal record, medical certificates, consent from the owner of the property for residence, fingerprinting data, and other documents). Documents are submitted to the Registration Authority at the place of registration of the owner of the property.

Before arriving in Kazakhstan, it is necessary to obtain a certificate of the presence or absence of a criminal record in the country of citizenship (the certificate is valid for 180 days from the date of receipt), as well as a document confirming the absence of a ban on entrepreneurial activity (if such a certificate is required by the legislation of the country of citizenship).

Before submitting documents for a Business Immigrant RVP, a notification of entry is submitted, an IIN is issued, a notarized consent of the owner is notarized, and it is also necessary to undergo fingerprinting, a medical examination, etc.

The second stage is the registration of an LLP in the Registration Authority with the personal presence of a foreigner who has received a Business Immigrant RVP. When submitting an application, it is necessary to provide a document confirming the right to register a commercial organization in the Republic of Kazakhstan (in this case, a Business Immigrant Temporary Residence Permit), a copy of the passport or other document certifying the identity of the foreign founder, with a notarized translation into Kazakh and Russian, as well as the decision/minutes of the general meeting on the opening of an LLP.

You can read more about opening a LLP with us in our article, as well as about the benefits of registering a legal entity with KORGAN.

Third stage – after opening a legal entity, based on a petition from local executive bodies on entrepreneurship issues with the required list of documents, a temporary residence permit is issued for one year with the possibility of annual extension up to 3 years.

At the first stage, a temporary residence permit is issued for 3 months. It is assumed that a foreign citizen must have time to register a legal entity during the specified period. After registering a legal entity, the company submits an application for a temporary residence permit for up to 12 months.

Is the personal presence of a foreign citizen required to obtain a temporary residence permit for a business immigrant?

We can submit documents by Power of Attorney, but we attach the original passport and a copy of the notification of entry into Kazakhstan.

Where can I get a certificate of no criminal record?

This certificate is obtained in the country of citizenship.

How to get medical certificates?

Medical certificates can be obtained in Kazakhstan.

Why us?

KORGAN Law Firm is ready to assist at every stage of this process, providing competent support and assistance in preparing all the necessary documents. Contact us right now to get a free consultation and trust the experience of professionals in working with KORGAN!

Contact our specialists by phone +7 700 50 00 553 or click on the “order a call” button below.

Important! Introduction of an automated register of licenses in the architectural and construction sphere

Based on the Order of the Minister of Industry and Construction of the Republic of Kazakhstan dated July 31, 2024 No. 283 in connection with the introduction of an automated register of licenses in the architectural and construction sphere, we strongly recommend updating data on certified engineering and technical specialists on the enbek.kz and eQurylys portals.

Otherwise, companies that have a license for construction and installation works, but do not have certified engineering and technical specialists on staff, will have their licenses revoked for a period of no more than 6 months! If the company does not eliminate the violation, the license will be revoked without the possibility of restoration.

If you need more detailed advice in the field of licensing, the KORGAN Law Firm is ready to provide advice on all issues of interest to you.

Link to the order On approval of the Rules for maintaining, suspending, terminating (revoking) permits in the automated register of permits in the field of construction – IPS “Adilet” (zan.kz)

Obtaining IIN and BIN in Kazakhstan

An individual identification number (IIN) is a 12-digit number that is issued to each individual upon his first registration in the information and production system to create documents.

The IIN is generated automatically, taking into account the concepts of uniqueness and immutability. It is not subject to any changes or regeneration from the moment of its first formation, in order to protect the integrity of the contents of information banks of various levels that use the IIN in the data structure.
IIN is indicated on the front side of the identity card of a citizen of the Republic of Kazakhstan.

Individuals are identified by government agencies using IIN.

As a result, in order to access public services, individuals must have an IIN, for example for:

• receiving identification documents;
• marriage registration;
• state registration of real estate and cars;
• making payments and transfers;
• paying taxes;
• business registration.

A non-resident must obtain an IIN in order to create a legal entity in Kazakhstan.

The assignment of IIN to foreigners is carried out by the migration police of Kazakhstan from January 1, 2021 through the Non-Commercial Joint Stock Company State Corporation “Government for Citizens”.

The service is now provided electronically, with the corresponding certificate issued as an electronic document in PDF format based on the results of the service.

Documents required for registration of a foreigner’s IIN

1. A copy of the foreigner’s passport, which must be scanned.

If the foreigner’s passport does not contain identification data (last name, first name, patronymic and place of birth) written in Cyrillic, a copy of the certified translation of the passport into Cyrillic must be attached.

We also wanted to dwell a little more on how the IIN is still deciphered:

• The first six digits indicate the date, month, day of your birth;
• The seventh digit is your gender and age of birth:
  • Male, born in the 19th century;
  • Female, 19th century;
  • Male, born in the 20th century;
  • Female, 20th century birth;
  • Male, 21st century birth;
  • Female, born in the 21st century.
• 8-11 digits is the registration number in the organ system;
• 12 check digit/digit.

We would also like to consider in detail the business identification number of a legal entity in Kazakhstan.

In accordance with paragraph 1-1 of Article 1 of the Law of the Republic of Kazakhstan dated January 12, 2007 N 223 “On National Registers of Identification Numbers”.

A business identification number (BIN) is a unique number assigned to a legal organization (branch and representative office), as well as an individual entrepreneur in a joint venture.

There is a special information system “National Register of Business Identification Numbers” designed to record and store information about established and terminated legal entities (branches and representative offices), individual entrepreneurs operating in the form of a joint venture, the formation and storage of information about assigned business identification numbers. rooms.

Business identification number (hereinafter – BIN) – contains 12 digits and consists of five parts:

Without a business identification number of a company, it is impossible to carry out business activities. It is required when applying to any government agency.

There is a special information system “National Register of Business Identification Numbers” designed to record and store information about established and terminated legal entities (branches and representative offices), individual entrepreneurs operating in the form of a joint venture, as well as generating and storing information about assigned business identification numbers.

The 12-digit Business Identification Number (BIN) consists of five parts:

1) the first part – consists of 4 digits and includes the year (last two digits) and month of state (record) registration or re-registration of a legal entity, branches and representative offices or an individual entrepreneur operating in the form of a joint venture (hereinafter – IP (S )), or year (last two digits) and month of registration or re-registration of AIFC bodies, their organizations and AIFC participants as legal entities, branches and representative offices;
2) the second part – consists of 1 digit and means the type of legal entity or IP (S).

Specific values ​​for the type of legal entity or IP(S):

• 4 – for resident legal entities;
• 5 – for non-resident legal entities;
• 6 – for IP(S).

3) the third part – consists of 1 digit and is an additional feature and is defined as follows:

• 0 – head unit of a legal entity or individual entrepreneur(s);
• 1 – branch of a legal entity or individual entrepreneur(s);
• 2 – representative offices of a legal entity or individual entrepreneur(s);
• 3 – a peasant (farm) enterprise operating on the basis of joint entrepreneurship.

4) the fourth part – consists of 5 digits and includes the serial number of registration in the system of a legal entity (branches and representative offices) or IP (S).

The AIFC bodies, their organizations and AIFC participants are assigned a serial number starting from the first digit, starting from the number 90001 to 99999 inclusive.

5) the fifth part – consists of 1 digit, which is determined automatically and is a check digit.

We hope you found this information interesting. If you need legal advice on migration issues, issues of entry into and exit from the territory of the Republic of Kazakhstan, then you can contact the KORGAN Law Company at any time in person or by calling the phone number: +7 700 244 61 66.

Restriction on the export of foreign currency and gold in Kazakhstan

On March 14, 2022, President Kassym-Jomart Tokayev signed a decree “On measures to ensure the financial stability of the Republic of Kazakhstan”.
Which explains that in order to protect the national interests of the Republic of Kazakhstan and ensure financial stability in the territory of the Republic of Kazakhstan, a ban on the export of:

• foreign currency in cash and (or) monetary instruments in foreign currency in an amount exceeding the equivalent of 10,000 (ten thousand) US dollars and calculated at the rate of the National Bank of the Republic of Kazakhstan, established on the date of export;
• gold bars of refined gold 5, 10, 20, 50 and 100 grams and investment coins made of gold “ALTYN BARYS” and silver “KÚMIS BARYS” issued by the National Bank of the Republic of Kazakhstan, as well as refined gold over 100 grams.

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The President resolved the Government of the Republic of Kazakhstan, together with the National Bank of the Republic of Kazakhstan and other interested state bodies, to take the necessary measures to implement this Decree.

It should be noted that this Decree comes into force from the day of its official publication, i.e. March 14, 2022.

Requisites for payment of state duty in foreign currency

Representation of interests in court

Pre-trial dispute resolution

• Claim dispute resolution procedure;
• Dispute resolution with the involvement of a mediator;
• Dispute resolution by permanent arbitration

Tax disputes

• Challenge notifications based on the results of a tax audit;
• Challenging notifications about the elimination of violations identified by the tax authorities based on the results of an in-house audit;
• Challenge of notices on elimination of violations of the tax legislation of the Republic of Kazakhstan;
• Disputes related to pseudo-entrepreneurship and invalidation of the registration of a legal entity;
• Disputes related to the claims of the tax authorities on the recognition of transactions as invalid;
• Challenging the issue of accruing a fine and the possibility of exemption from its payment or reduction of its size;
• Challenging the conclusions of the tax authorities;
• Challenging the actions of the tax authorities in terms of imposing restrictions on the disposal of property.

Disputes arising from a construction contract and public procurement

• Collection of debt for work performed from the customer;
• Collecting the prepayment amount from the contractor in case of improper fulfillment of obligations under the work contract;
• Termination of a construction contract in court;
• Claims for compelling an unscrupulous contractor to eliminate deficiencies in the work performed;
• Protection of the interests of contractors in claims for recognition as an unfair participant in public procurement;
• Challenging the results of public procurement;
• Challenge illegal orders of regulatory authorities.

Corporate disputes

• Related to the creation, reorganization and liquidation of a legal entity;
• At the request of founders, shareholders, participants, members of a legal entity (hereinafter referred to as participants in a legal entity) for compensation for losses caused to a legal entity, invalidation of transactions made by a legal entity, and (or) application of the consequences of the invalidity of such transactions;
• Associated with the appointment or election, termination, suspension of powers and liability of persons who are or were members of the management bodies of a legal entity, as well as disputes arising from civil legal relations between such persons and a legal entity in connection with the implementation, termination, suspension of their authority;
• On convening a general meeting of participants of a legal entity;
• On challenging decisions, actions (inaction) of the governing bodies of a legal entity.

Business disputes

• Collection of debt arising from various types of contracts: the principal amount of the debt, the penalty, legal costs, the costs of paying for the services of a representative;
• Recovery of damages;
• Protecting the interests of employers when an employee files a claim for the recovery of wages.