Protecting the client’s interests: successful defense against an unfounded claim

One of our regular clients contacted KORGAN Law Firm after he faced an unfounded claim from his supplier. The plaintiff claimed that our client had a debt for goods purchased as part of a business relationship. However, during the trial it was established that all obligations had been fulfilled in full, the goods had been paid for in full, and there was no debt.

From the very beginning of our involvement in the case, we carefully studied all the circumstances and documents confirming the payment for the goods and the fulfillment of the terms of the contract. Based on the evidence presented and legal analysis, we developed a defense strategy aimed at completely refuting the plaintiff’s claims. During the trial, it was proven that the supplier’s claims had no legal basis.

As a result of the court’s decision, in addition to satisfying our client’s claims, the court recovered from the defendant the costs incurred in connection with the trial in the amount of 1,463,511 tenge. This decision was confirmed by the Court of Appeal, which also ordered the reimbursement of legal costs in full, which became the final victory in this case.

This case is a vivid example of the importance of professional legal support in resolving disputes. Qualified protection of the client’s interests allowed not only to refute unfounded accusations, but also to achieve the return of all incurred costs. We believe that the right approach and detailed analysis of all aspects of the case play a decisive role in the successful outcome of litigation.

The decision made in this case confirmed the high level of professionalism and competence of our team. We continue to ensure effective protection of the interests of our clients, striving for the best result in each specific case.

KORGAN continues to provide highly qualified legal services that allow clients to confidently resolve any legal issues.

When contacting us, you receive a guarantee of the quality of the services provided, an individual approach and transparent cooperation.

With us, you will be confident in the safety and legality of your activities.

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

How to extend the powers of a director of an LLP in Kazakhstan after a five-year term?

In accordance with paragraph 3 of Article 51 of the Law of the Republic of Kazakhstan “On Limited and Additional Liability Partnerships”, members of the executive body of the company are elected by the general meeting for a term not exceeding five years. Upon expiration of this term, the director’s powers must be extended.

The issue of extending the director’s powers is an important point for the legal correctness of the LLP’s work, since ignoring this procedure can lead to legal consequences. Let’s consider how to properly extend the director’s powers and what steps need to be taken for this.

How to extend the powers of an LLP director?

1. Making a decision

The first step to extend the powers of the director is the adoption of a decision by the founders of the company. This may be a decision of the sole participant or the minutes of the general meeting. Without this step, the extension of the director’s powers will be impossible.

2. Issuing an order to extend the powers and concluding an additional agreement to the employment contract

Based on the decision of the founders, the director issues an order to extend his powers. It is also important to conclude an additional agreement to the employment contract, which will specify the extension of the term of office. The wording of the order may be as follows: “Extend the powers of the director of LLP ________ (company name), full name, based on the decision of the founder dated ..____ year.”

3. Familiarization with the decision and order

After the order is issued and the additional agreement is concluded, the director must familiarize himself with the decision of the founders and the order on the extension of powers. This is a mandatory process confirming that all parties are aware of the decision made.

4. Registration of the agreement in the enbek.kz system

After signing the additional agreement, information about it must be entered into the unified system of accounting of employment contracts of the Republic of Kazakhstan – enbek.kz. This procedure is mandatory and helps to track all changes related to labor relations.

Important points:

Extension of the director’s powers does not require amendments to the constituent documents of the company, and does not require registration with the authorities exercising state control. Thus, there is no need to notify the registration authorities.

Why is it important to renew the director’s powers in a timely manner?

The need to renew the director’s powers in a timely manner arises not only due to legal requirements, but also to ensure stability in the management of the company. Neglecting this process can lead to a number of inconveniences:

• Bank refusal to carry out banking operations (depending on the bank): Banks may refuse to carry out operations if the current authority of the director is not confirmed
• Inability to confirm the powers of the executive body to counterparties: Without official confirmation of the director’s powers, counterparties may refuse to conclude transactions, which will lead to difficulties in business relations
• Failure of transactions: The absence of confirmed powers may lead to blocking of transactions, which in turn may cause the failure of transactions and other serious consequences

Remember: timely contact with professionals helps to avoid serious problems in the future. KORGAN Law Firm is ready to provide qualified assistance in solving all issues related to corporate law and labor relations.

Trust your legal issues to KORGAN experts – focus on what is really important to you.

Contact us right now for a consultation! We are ready to help you with any legal issues. Call +7 700 50 00 553 or click the “order a call” button to get advice from our specialists.

Author of the article: Kenzhemergenova M.N.

Collection and processing of personal data

Is it necessary to tick the box on websites about consent to the collection and processing of personal data?

Let’s figure out what is considered personal data:

• Publicly available personal data are personal data or information that, in accordance with the laws of the Republic of Kazakhstan, are not subject to confidentiality requirements, access to which is free with the consent of the subject (full name, residential address, telephone number, i.e. data provided voluntarily)
• Personal data of limited access are personal data, access to which is limited by the legislation of the Republic of Kazakhstan.
  Article 7 of the Law of the Republic of Kazakhstan “On Personal Data and Their Protection” establishes that “The collection and processing of personal data is carried out by the owner and (or) operator, as well as a third party with the consent of the subject or his legal representative in the manner determined by the authorized body”

In accordance with this law, operators (websites, companies and other organizations) are obliged to:

• Inform users about the purposes of collecting personal data
• Obtain explicit consent for their processing
• Ensure the security of this data

Thus, the website must provide the user with the opportunity to consent to the processing of personal data, usually through a checkbox (or similar mechanism), before they are collected or processed.

Violation of legislation in the field of personal data entails administrative liability, namely fines in the amount of 10 to 70 MCI depending on the category of the business entity (Article 79 of the Code of Administrative Offenses of the Republic of Kazakhstan).

New rules for issuing permits to labor immigrants

From 2025, new Rules for issuing permits to labor immigrants will be introduced.

The rules have been supplemented with a number of concepts:

• labor immigrants – immigrants who arrived in the Republic of Kazakhstan as domestic workers for the purpose of performing work (providing services) for employers – individuals in the household on the basis of a permit for a labor immigrant;
• permit for a labor immigrant – a permit for a labor immigrant – a document of the established form issued to a labor immigrant for performing work (providing services) for employers – individuals in the household;
• employer-individual – a person attracting a labor immigrant to perform work (provide services) in the household;
• quota for attracting foreign labor – the maximum permissible number of foreign labor permitted to be attracted by an employer-individual for carrying out labor activities in the territory of the Republic of Kazakhstan.

In addition, the procedure has been determined provision of public services through the e-government portal, as well as through the migration.enbek.kz platform.

The mechanism for issuing permits to labor immigrants for up to 12 months has been simplified, and the grounds for refusing to issue and extend permits have been defined.

When hiring a labor immigrant who has received a permit, the employer will be required to enter information about the conclusion and termination of an employment contract with the employee into the Unified System of Labor Registration and Documentation (USRTD) or conclude an employment contract with him on the hr.enbek.kz web portal.

Registration of employment contracts between the employer and the labor immigrant will be carried out by the service provider in the AIS “Foreign Labor”.

To receive a public service, an individual – a labor immigrant (hereinafter referred to as the service recipient) submits an application for the issuance/extension of a permit for a labor immigrant in the form according to Appendix 1 to these Rules in person to the non-profit joint-stock company “State Corporation “Government for Citizens” (hereinafter referred to as the State Corporation) or through the “electronic government” web portal or migration.enbek.kz documents in accordance with the List of Basic Requirements for the Provision of the Public Service “Issuance, Extension and Revocation of a Permit for a Labor Immigrant” in accordance with Appendix 2 to these Rules (hereinafter referred to as the Requirements for the Provision of the Public Service).

An employee of the State Corporation shall submit an electronic application in the Integrated Information System “Public Service Centers” (hereinafter referred to as IIS PSC), with attached electronic copies of documents, and send it to the Automated Information System “Foreign Labor Force” (hereinafter referred to as AIS IRS) for the appropriate decision.

When making a decision on issuing or extending a permit for a labor immigrant, local executive bodies shall coordinate this with the territorial internal affairs bodies.

The decision on issuing or extending or refusing to issue or extend a permit shall be made by local executive bodies within two working days, not counting the day of filing the application.

Declaration procedure for state registration of legal entities instead of notification

For small business entities, a declarative procedure for state registration of legal entities is introduced instead of a notification procedure.

For state registration of legal entities related to medium and large business entities with foreign participation, in addition to a copy of the passport or other document certifying the identity of the foreign founder, with a notarized translation into Kazakh and Russian, a document confirming the right to register a commercial organization in the Republic of Kazakhstan in accordance with the Law of the Republic of Kazakhstan “On Population Migration” will be required.

Failure to provide these documents serves as grounds for refusal of state registration.

In addition, it has been added that changes and additions to the registration data of a legal entity, branch (representative office) are made when contact information (phone, email address) changes. These changes are made automatically based on an electronic notification.

From January 7, 2025, the Rules for the provision of public services in the field of state registration of legal entities and the registration of branches and representative offices will change.

In particular, it is envisaged that state registration of a legal entity related to a small and medium-sized business entity is carried out by submitting an electronic application.

In the case of electronic registration, state registration of legal entities is carried out on the basis of an application received by the state database “Legal Entities” (SDB LE) through the portal.

To provide a public service in electronic form, biometric authentication of the individual may also be carried out.

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.