LICENSES AND NOTICES (LICENSING)

Kazakhstan law determines the types of activities subject to licenses and permits.

Licensing matters are regulated mainly by the Kazakhstan Law On Permits and Notices of 16 May 2014 developed by Sayat Zholshy & Partners on the commission of the World Bank.

Permits are subdivided into two categories:

1) the 1st category permits – permits for highly hazardous types/subtypes of activities or actions/operations; and

2) the 2nd category permits – all permits, other than licenses, applied to moderately hazardous types/subtypes of activities or actions/operations.

Notices apply to those types of activities and operations which represent a low level risk but require notification of government authorities of the commencement or completion of such types of activities and operations.

Hazard degree is determined through the regulatory impact assessment which is new to Kazakhstan.

Any licensed activity is permissible only after the issuance of the respective license.

Licenses are issued by licensors, i.e. local executive authorities or territorial departments of the central state authority.

License applications are filed with licensors at the place of the applicant’s registration or, in certain cases, at the place of the applicant’s activity. Licenses may be issued in favour of natural persons, legal entities, branches or representative offices thereof, as well as foreign entities without branches or representative offices in Kazakhstan.

Licenses are issued at the place of the licensee’s registration or at the place of the licensee’s activity.

Spheres of licensing

Certain activities in the following sectors of economy are subject to licensing;

1) TV and radio broadcasting;

2) protection, conservation and use of historical and cultural heritage sites;

3) education;

4) architecture, urban planning and construction;

5) hydrocarbons;

6) production sector;

7) informatisation and telecommunications;

8) operations with narcotic drugs, psychotropic substances and their precursors;

9) healthcare;

10) use of nuclear power;

11) information security;

12) special technical facilities intended for special investigation activities;

13) operations with weapons, military equipment and certain types of arms, explosives and explosive materials;

14) operations with toxic substances;

15) manufacturing of national symbols of the Republic of Kazakhstan;

16) production and sale of ethyl alcohol and alcoholic products; tobacco production;

17) commodity exchanges;

18) exports and imports;

19) financial activities and activities associated with the concentration of financial resources;

20) space application;

21) gambling business;

22) veterinary;

23) agribusiness;

24) transportation;

25) forensic activities, including forensic, narcological and psychiatric examinations and assessments; and

26) services provided to individuals and corporations.

Should you need any information on certain subtypes of activities subject to licensing, please contact our office.

Licenses are differentiated as follows:

1. By subject:

1) citizens and legal entities of the Republic of Kazakhstan; and

2) foreign entities without branches or representative offices in the Republic of Kazakhstan, foreign citizens, stateless persons and international organisations.

2. By scope of activities:

1) general license issued for a certain type of activity for an indefinite period of time;

2) single-use license issued for a certain economic operation for a limited period of time, scope, weight or quantity (in physical or monetary terms); for gambling business activities for a term determined by the Kazakhstan Law On Gambling Business of 12 January 2007; and for activities related to housing construction at the expense of stakeholders within the scope determined by the Kazakhstan Law On Share Participating in Housing Construction of 17 April 2016; and

3) operational license issued for certain banking operations and certain class insurance operations.

Licenses are not issued when:

1) a certain type of activity is prohibited by Kazakhstan law in relation to the given category of subjects;

2) the license fee has not been paid;

3) the applicant does not meet qualification requirements;

4) the licensor has been informed by the competent government authorities that the applicant does not meet qualification requirements;

5) there is an effective court judgment/indictment, with respect to the applicant, on the suspension or prohibition of the activities or certain types of activities subject to licensing;

6) court, based on marshal’s recommendations, has temporarily prohibited the issuance of a license for an insolvent applicant; or

7) the documents filed by the applicant and/or the information/data contained in such documents are unreliable or misleading.

A license terminates when:

1) its validity term expires;

2) the licensed activities/operations have been performed to a full extent;

3) the license and/or appendices thereto are revoked;

4) the applicant terminates its activities (if an individual) or is liquidated (if a legal entity);

5) the licensee applies to the licensor for termination of the license and/or appendix thereto;

6) the license or a certain type/subtype of activities or actions/operations is excluded;

7) the licensee is excluded from the list of persons subject to licensing; or

8) Kazakhstan law provides for other restrictions or exclusions.

A license must be reissued in the following cases:

1) change of the first name, middle name, if any, and surname (if the licensee is a natural person);

2) re-registration of a sole trader, change of their name or legal address (if the licensee is a sole trader);

3) reorganisation of a corporate licensee in the manner determined by the Kazakhstan Law On Permits and Notices;

4) change of the name and/or address of a corporate licensee;

5) alienation of the license issued under the “permits issued to facilities” class together with the facilities in favour of a third party, provided that the alienation of this particular type of license is permitted by the Kazakhstan Law On Permits and Notices;

6) change of address of the licensee without their actual movement – for a license issued under the “permits issued to facilities” class or for appendices thereto specifying respective facilities; and

7) when reissuance is required by Kazakhstan law.

The applicant must file the application for reissuance of a license and/or appendix thereto within 30 calendar days after the changes requiring the reissuance of such license and/or appendix thereto occur.

A license is issued in a digital format. If the applicant needs a hardcopy of a license, they shall apply therefor.

A license is suspended or revoked when the license holder violates Kazakhstan law. A license for a certain type of activity may be revoked only through judicial proceedings.