Open a Sole Proprietorship in Kazakhstan

It is possible to open a sole proprietorship in Kazakhstan, provided that you want to start a business in your own name, as a natural person (this entity can’t be incorporated by other business forms, as it is designed solely for individuals). Our consultants in company formation in Kazakhstan offer assistance on the required documentation and full legal representation in the registration formalities.

What is a sole proprietorship in Kazakhstan?

A sole proprietorship (or a sole trader/individual entrepreneur) represents the simplest way of carrying a business activity in this country. Given that it is a simple structure, it has simple reporting obligations which is why it is recommended to individuals who want to enter the business market, especially in the case of those who do not have an extensive business background.

It is also important to know that the structure can be set up without a minimum share capital, but those planning to open a company in Kazakhstan as a sole trader should also take into consideration that they will have unlimited liability for the company’s debts. This happens because, from a legal point of view, there isn’t any distinction between the company and its founder.

When is it required to register as a sole trader in Kazakhstan?

Company incorporation in Kazakhstan under this structure is required when a businessman carries out a commercial activity in his/her own name that results in one of the following:

1. hiring employees on a permanent basis;
2. receiving annual income from a private enterprise accounting for the country’s minimum wage multiplied by 12.

Who can become a sole trader in Kazakhstan?

While other company types can be incorporated by foreigners of any nationality, in the case of sole traders, the law imposes specific limitations. Thus, it must be noted that the procedure is available only for the following:

1. Kazakh citizens;
2. Kandas individuals (persons who have a Kazakh ethnic background);
3. Russian nationals;
4. citizens of Tajikistan;
5. citizens of Kyrgyzstan;
6. Belarus nationals;
7. Armenians.

Please mind that, with the exception of the 1st and 2nd categories, all other citizens must also be the holders of a residence permit issued in Kazakhstan.

What is the tax regime applicable to a sole trader?

Kazakhstan has a tax regime different than the one applicable in most countries. Typically, a sole trader is taxed based on the principles of personal income taxation (given that there isn’t any distinction between the individual and the business), but in this country there are 2 basic systems (other apply as well, which can be thoroughly presented by our team of consultants in company registration in Kazakhstan).

The 1st most important tax system is known as the standard taxation regime, which is centered around the personal income tax rules. The 2nd basic way to tax a sole trader refers to the special tax regime based on a simplified declaration (the patent regime was abolished by the new Tax Code on 1 January 2026).

These 2 systems have different tax and reporting obligations and in the list below, our specialists will present some of the highlights of the main taxation rule – the standard tax regime, given that it is applied in the majority of cases:

• the owners of sole traders must submit an annual declaration on individual income tax, by preparing the Form 220.00;
• according to the Government of Kazakhstan, these declarations must be submitted no later than 31st of March of the following financial year;
• those whose services or products are charged with the VAT must submit VAT reports, as per the Tax Code – in this case, they have to complete the Declaration on the VAT, Form 300.00;
• where applicable, sole traders are also required to submit Form 701.01 and/or Form 700.00 (on vehicles, land and property taxes).

If you want to find out in-depth information on the registration steps applicable to this entity, please contact our team, who will help you set up a company in Kazakhstan as an individual entrepreneur.