ABOUT KAZAKHSTAN

Kazakhstan, officially the Republic of Kazakhstan, is the world’s largest landlocked country, located in Central Asia, stretching from the Caspian Sea in the west to the Altai Mountains in the east, sharing vast borders with Russia and China. It is globally recognized for its immense natural resources, particularly oil, natural gas, and various minerals, playing a strategic role as a bridge between Europe and Asia. The capital of Kazakhstan is Astana (formerly Nur-Sultan), which is its second-largest city and a rapidly developing modern metropolis. Almaty is the largest city and remains the primary economic and cultural hub. According to the report of the World Bank, Kazakhstan has been classified as an Upper Middle-Income Nation, driven primarily by its energy and mining sectors. The currency of Kazakhstan is the Kazakhstani Tenge (KZT). As of today’s exchange rates (June 2025), 1 Kazakhstani Tenge is approximately 0.18 Indian Rupees. The population of Kazakhstan is estimated to be around 20.3 million in 2024. Its neighbouring countries are Russia to the north, China to the east, Kyrgyzstan, Uzbekistan, and Turkmenistan to the south. It also shares a significant coastline on the Caspian Sea. The official languages of the country are Kazakh (the state language) and Russian (an official language, widely used in business, education, and inter-ethnic communication). English proficiency is growing, especially among younger generations and in the business and international communities. The majority of the population practices Islam (predominantly Sunni), with a significant Orthodox Christian minority. Currently, Kazakhstan has several international airports, with Astana International Airport (NQZ) and Almaty International Airport (ALA) being the primary international gateways, offering extensive air connectivity. As a landlocked country, Kazakhstan’s primary maritime access is via the Caspian Sea, with Aktau being its main commercial seaport, facilitating trade with other Caspian littoral states.

The standard corporate income tax rate in Kazakhstan is 20%. Kazakhstan offers a highly attractive system of investment incentives to attract foreign direct investment, particularly in priority sectors and Special Economic Zones (SEZs). These incentives can include corporate income tax exemptions (up to 10 years), customs duty exemptions, in-kind grants (e.g., land plots), and investment subsidies. The Astana International Financial Centre (AIFC) is a notable initiative, offering a special legal regime based on English common law, preferential tax treatment (up to 50 years exemption from CIT and WHT for certain activities), simplified visa and labor regimes, and an independent financial court. Kazakhstan also has a network of double taxation treaties to avoid dual taxation for investors. Opesh Group of companies will be helping you in the completing Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a Rental property for your office.

Establishing a business in Kazakhstan is becoming increasingly streamlined, with a focus on improving its investment climate and simplifying administrative procedures. The national company “KazakhInvest” is the primary governmental agency dedicated to promoting and assisting foreign direct investment. A foreign investor who is planning to start his business in Kazakhstan can form various company types, with the most common and flexible structures being a Limited Liability Partnership (TOO – товарищество с ограниченной ответственностью) or a Joint Stock Company (AO – акционерное общество). The TOO is generally the most popular choice for foreign investors due to its simplicity and flexibility, allowing 100% foreign ownership with no significant minimum share capital requirement (though a nominal amount is required). Kazakhstan’s legal system is based on civil law, with ongoing reforms to align with international best practices, providing a developing yet increasingly secure environment for businesses.

In Case an investor is planning to establish a TOO in Kazakhstan or a corporate business setup, Opesh Group will be helping you in taking the right decision for setting up your business in Kazakhstan and we will also guide you about how to follow the procedure while formulating your company in Kazakhstan.

Types of Business which can be started in Kazakhstan-

• Oil & Gas: As a major global producer, opportunities exist in upstream exploration and production, midstream infrastructure (pipelines, storage), oilfield services, and petrochemicals.
• Mining & Metallurgy: Kazakhstan is rich in mineral resources. Opportunities are vast in exploration, extraction, and processing of various metals (copper, gold, iron ore, uranium, chrome) and the related metallurgy industry.
• Agriculture & Food Processing: With vast arable land, opportunities are strong in grain production, livestock farming, food processing (meat, dairy, confectionery), and agricultural technology.
• Logistics & Transport (Transit Hub): Leveraging its strategic location on the Belt and Road Initiative, opportunities are significant in developing transport corridors, logistics hubs, warehousing, and multimodal transport services.
• Renewable Energy: Huge potential for solar and wind energy, especially in its vast steppes. Opportunities exist in renewable energy project development, manufacturing of components, and smart grid solutions.
• ICT & Digitalization: The government is pushing for digitalization. Opportunities are growing in software development, IT services, e-government solutions, and smart city technologies.
• Tourism: Untapped potential in eco-tourism (mountains, lakes), adventure tourism, and cultural tourism, creating opportunities for hospitality development and related services.
• Infrastructure Development: Ongoing needs for modernizing infrastructure (roads, railways, utilities) create opportunities for construction and engineering firms.

Advantages of Starting Business in Kazakhstan-

• Vast Natural Resources: One of the world’s leading producers of oil, gas, and a wide array of minerals, providing a strong foundation for resource-based industries.
• Strategic Geopolitical Location: Serves as a crucial bridge between Europe and Asia, central to global trade routes like the Belt and Road Initiative, offering significant transit potential.
• Growing Domestic Market: A steadily growing population and improving purchasing power contribute to an expanding consumer market.
• Stable Political Environment: Relative stability in a geopolitically important region, offering a predictable operating environment.
• Attractive Investment Incentives: Comprehensive support programs, including tax exemptions and various grants, particularly in Special Economic Zones and the AIFC.
• Improving Business Climate: Consistent efforts to simplify regulations, reduce bureaucracy, and enhance the ease of doing business.
• Astana International Financial Centre (AIFC): A special jurisdiction with English common law, independent courts, and favorable tax and visa regimes for financial and related services.
• Diversification Efforts: Government commitment to diversifying the economy away from reliance on raw materials, creating opportunities in new sectors.

Business Opportunities for Indians in Kazakhstan-

There are excellent business opportunities in Kazakhstan for new investors who are planning to start their business abroad. Kazakhstan’s immense natural resources, strategic location, and ongoing diversification efforts present compelling avenues for Indian companies. Indian investors with strengths in IT services (especially digital transformation, e-governance, cybersecurity, smart city solutions), Pharmaceuticals (manufacturing, distribution), Energy (oil & gas services and equipment, renewable energy project development), Mining technology and equipment, Agriculture & Food Processing (modern farming techniques, food processing units), and Infrastructure development (logistics, roads), can find significant potential for investment, collaborations, and market entry into Central Asia.

Imports & Exports-

Many goods are imported and exported from Kazakhstan. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Kazakhstan:

• Crude petroleum and natural gas
• Refined petroleum products
• Copper and copper concentrates
• Ferroalloys
• Uranium
• Iron ores
• Wheat and other grains

Major items which are imported in Kazakhstan:

• Machinery and equipment
• Vehicles and transport equipment
• Electrical and electronic products
• Chemical products
• Metal products
• Foodstuffs

Major items traded between Kazakhstan and India (as of 2023-2025 data):

• Exports from Kazakhstan to India: Crude oil, uranium, ferroalloys, asbestos, natural gas (potential).
• Imports in Kazakhstan from India: Pharmaceuticals, tea, machinery, electrical equipment, chemicals, textile products.

Manufacturing-

Manufacturing in Kazakhstan is closely linked to its natural resources, with a significant focus on metallurgy (processing of copper, aluminum, ferroalloys), oil and gas equipment and services, and basic chemical production. There are ongoing efforts to diversify the manufacturing base into areas like light industry, food processing, automotive assembly, and pharmaceuticals, often with the support of foreign investment and technology transfer.

Mining-

The mining business in Kazakhstan is extremely significant and forms a cornerstone of its economy, with vast and diverse mineral resources. Kazakhstan is one of the world’s leading producers of uranium. It also possesses massive reserves and is a major producer of chrome, copper, iron ore, gold, zinc, lead, coal, and manganese. Opportunities are abundant in exploration, extraction, processing, and related services across a wide range of metallic and industrial minerals.

Major Indian companies which are currently working in Kazakhstan-

Several Indian companies have established a presence or are actively pursuing business opportunities in Kazakhstan, particularly in the energy, pharmaceutical, and IT sectors.

• ONGC Videsh Limited (OVL): The international arm of India’s state-owned ONGC, has significant investments in Kazakhstan’s oil and gas sector, including participation in the Satpayev oil block in the Caspian Sea.

• Lupin Pharmaceuticals: Has a presence in the Kazakhstani market for pharmaceutical distribution and sales.

• Dr. Reddy’s Laboratories: Another major Indian pharmaceutical company with operations and market presence in Kazakhstan.

• Sun Pharmaceutical Industries: Also operates in the Kazakhstani pharmaceutical market.

• Tata Consultancy Services (TCS): While not a large physical presence, TCS and other Indian IT firms often provide IT services and digital transformation solutions to Kazakhstani companies, sometimes remotely or through regional hubs.

• Indian Public Sector Banks: Some Indian banks may have representative offices or correspondent banking relationships to facilitate bilateral trade and investment.

• GDP = $280 billion (nominal, 2024 est.)

• GDP Growth = 4.8% (2024 est.), 5.3% (2025 forecast by IMF)

• Ease of doing business rank = The World Bank’s ‘Doing Business’ report has been discontinued. However, Kazakhstan has made substantial progress in improving its business environment, particularly in areas like starting a business, protecting minority investors, and enforcing contracts.

• GDP per Capita = $13,760 (nominal, 2024 est.)

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