The provision of legal services is a category of “ancillary services” which is provided for under the AIFC legal and regulatory framework. A partnership or other body corporate must be authorised by the AFSA in order to carry on this activity in the AIFC. A full description of this activity is set out in Schedule 2 to the AIFC General Rules. From a legal entity perspective, the AIFC framework provides for the recognition of non-AIFC general partnerships, limited partnerships and limited liability partnerships. However, an applicant is required to provide a copy of the entity’s “current certificate of registration in its place of origin, or a document of similar effect, certified by the relevant authority in that jurisdiction”. As such, a threshold requirement is that the partnership must be legally recognised in its home state as such. It is also worth noting here that, in relation to the AIFC Court, there are extremely wide rights of audience. All lawyers with a professional lawyer or advocate practising certificate from anywhere around the world are generally eligible to apply to the AIFC Court Registry to represent parties in cases at the AIFC Court. Furthermore, appearing before the AIFC Court does not, by itself, also require a lawyer or firm to be authorised by the AFSA.

Generally, to deal in securities in the AIFC, whether as principal or agent, a firm must be a registered AIFC Participant (whether as a legal entity incorporated in the AIFC or as a recognised legal entity) and duly authorised by the AFSA. An AIX membership is required to trade on the AIX as a dealer or broker. However, there is a pathway for non-AIFC brokers authorized to carry on trading in their respective home jurisdictions to obtain AIX membership through recognition by the AFSA and becoming a “Recognised Non-AIFC Member” or “RNAM”. An RNAM is not required to be incorporated in the AIFC to become an AIX member and trade on the exchange. (For further information on these issues see Question "How to become an AIX trading member?")

Generally, to deal in securities in the AIFC, whether as principal or agent, a firm must be a registered AIFC Participant (whether as a legal entity incorporated in the AIFC or as a recognised legal entity) and duly authorised by the AFSA. An AIX membership is required to trade on the AIX as a dealer or broker. However, there is a pathway for non-AIFC brokers authorized to carry on trading in their respective home jurisdictions to obtain AIX membership through recognition by the AFSA and becoming a “Recognised Non-AIFC Member” or “RNAM”. An RNAM is not required to be incorporated in the AIFC to become an AIX member and trade on the exchange. (For further information on these issues see Question How to become an AIX trading member?)

We recommend that contracts which you enter into, and your terms of business, with your clients make it clear that contracts with, and transactions for, your clients are governed by Acting Law of the AIFC and that this is confirmed in writing by your clients. If the counterparty to the contract is not an AIFC Participant or AIFC Body, the AIFC Contract Regulations will not govern the contract unless this is expressly provided for in the contract. However, provided that applicable law does not otherwise dictate what the governing law of the contract must be the parties can elect to have the contract governed by the Acting Law of the AIFC, including the AIFC Contract Regulations, by specifying this in the contract.

(a): Appropriately licensed AIFC Participants can generally offer financial and other services to clients throughout Kazakhstan, however, to the extent that such activities are subject to regulation by an authority such as the National Bank of the Republic of Kazakhstan, we urge AIFC Participants to take independent legal advice as to whether they would additionally require a license or authorisation from that authority. (b): Currently, we consider that an AIFC Participant would be subject to applicable (non-AIFC) Republic of Kazakhstan laws and regulations in establishing a branch or office in Kazakhstan outside of the territory of the AIFC. (c): Currently no, however, in the future the AFSA hopes to establish so called “passporting” arrangements with other jurisdictions in relation to the provision of financial services.

Appropriately licensed AIFC Participants can generally offer financial and other services to clients throughout Kazakhstan, including but not limited to by means of branch, however, to the extent that such activities are subject to regulation by an authority such as the National Bank of the Republic of Kazakhstan, we urge AIFC Participants to take independent legal advice as to whether they would additionally require a license or authorisation from that authority. Please note that AIFC Participant would be subject to applicable (non-AIFC) Republic of Kazakhstan laws and regulations in establishing a branch or office in Kazakhstan outside of the territory of the AIFC

Appropriately licensed AIFC Participants can generally offer financial and other services to clients throughout Kazakhstan, however, to the extent that such activities are subject to regulation by an authority such as the National Bank of the Republic of Kazakhstan, we urge AIFC Participants to take independent legal advice as to whether they would additionally require a license or authorisation from that authority. To the extent that business activities are permitted but not regulated under AIFC law, such activities carried on by an AIFC Participant in broader Kazakhstan may be subject to the general laws of Kazakhstan. For example, a company headquartered in the AIFC and conducting mining operations in Kazakhstan would be subject to regulation by the AIFC Registrar of Companies from a corporate law perspective, but its mining operations would be subject to the general laws of Kazakhstan. AIFC Participants may offer services from their AIFC premises into jurisdictions outside Kazakhstan, provided they do so in accordance with the applicable law of such jurisdictions.

Subject to limited exceptions, an AIFC Participant must maintain a registered office in the AIFC, which is a location to conduct its principal business activity.

A firm can become an AIFC Participant and carry on business activities in the AIFC either via a legal entity established under Acting Law of the AIFC or via a “recognised” branch of a non-AIFC entity.

AIFC Business Development Office is the first point of contact for all establishments interested in having a presence in the AIFC. We have a dedicated team of Business Development Officers who are at hand to support and guide organisations through the registration process. Office of the Registrar organised under the AFSA framework but acting independently of the AFSA’s regulatory and supervisory functions, the Office of the Registrar is responsible for the registration of a legal entity in the AIFC, either one established under Acting Law of the AIFC or a branch of a Foreign Company. If the applicant intends to carry on regulated financial services or ancillary activities in the AIFC, it must first obtain appropriate authorisation from the AFSA. However, the entire process is designed as a “single window” concept, to increase efficiency and reduce the burden on applicants to the extent possible. There is an opportunity to proceed the registration process via self-service portal: https://digitalresident.kz/.

A distinctive feature of English common law is the use of a flexible and transparent approach to resolving disputes, as well as the primacy of protecting the rights and interests of investors. The AIFC has an independent regulatory regime that ensures fairness and efficiency of the financial market. One of the motivating factors for AIFC Participants is tax breaks for AIFC Participants from corporate income tax on income received from providing the following financial services in the AIFC: Islamic banking services; reinsurance and insurance brokerage services; investment management services for assets of investment funds, accounting and safekeeping services for investment funds, as well as services related to issuing, offering, trading, purchase and redemption of securities of investment funds; brokerage, dealer or underwriting services; any other financial services prescribed by AIFC Acts. In addition, simplified visa and labour regimes operates in the AIFC. Particularly, AIFC provides visa waiver up to 30 days for citizens of OECD countries, UAE, Malaysia, Singapore, and Monaco. Employees of the AIFC Participants and their family members may obtain visas for periods of up to 5 years with the possibility of a further extension. AIFC Participants may employ foreign nationals and stateless persons for the conduct of activities in the AIFC without obtaining work permits for them. AIFC Participants enjoy simplified visa procedures to obtain, extend, change a category or cancel visa without need to leave a country, and to obtain visa upon arrival. To facilitate the foreign employees’ and their family members’ access to an ample variety of government and non-government services, within the AIFC Authority a specialised centre - the AIFC Expat Centre (AEC) - operating on the principle of a “single window” has been created. Available at the AEC in English are Kazakhstan visa and migration related services, tax-revenue services (e.g. issue of Individual Identification Numbers), Registration of vehicles and issuance of driver's licenses to foreign nationals, a wide range of Government for Citizens Corporation’s government services (such as the issue of digital signatures), notarial and translation services, document copying services, payment terminal services, a call centre, together with guidance on real estate agencies, schools search, information on must-see attractions in Astana and other services required or useful for entry and stay by foreign nationals coming and working in the AIFC.

An AIFC Participant is a legal entity (a company, partnership, etc.) that is registered under the Acting Law of the AIFC. This includes both legal entities formed under AIFC law and foreign legal entities that are “recognized” by the AIFC Registrar of Companies.