About and Business

Geographically, it is a large defined zone within the City of Astana wherein AIFC Participants may be located and carry on their business activities. Conceptually, the AIFC is a financial hub for Central Asia, the Caucasus, the Eurasian Economic Union (EAEU), the Middle East, West China, Mongolia and Europe.

The AIFC aims to contribute to the development of Kazakhstan’s financial sector by facilitating economic diversification, promoting Financial Services, fostering the development of the capital market, and promoting innovation in financial services through the creation of an ecosystem conducive to the development and adoption of new financial technologies.

Carrying on activities in or from the AIFC refers to activities carried out in the AIFC between two AIFC Participants or between an AIFC Participant and another party located outside the AIFC, either in the Republic of Kazakhstan or outside of the Republic of Kazakhstan.

The Acting Law of the AIFC is based on the Constitution of the Republic of Kazakhstan and consists of the Constitutional Statute on the AIFC (Constitutional Statute), the AIFC Acts, and the Acting Law of the Republic of Kazakhstan, which applies in part to matters not governed by the Constitutional Statute and AIFC Acts.
Constitutional Statute on the AIFC applies at all times. Kazakhstan legislation applies as part of the Acting Law of the AIFC whenever the AIFC Acts do not displace that Kazakhstan legislation.

E.g., as part of the Acting law of Kazakhstan, criminal law and criminal procedure always apply in the AIFC. Another example would be the Republic’s tax law, though the Constitutional Statute makes provision for a beneficial tax exemption for some activities in the AIFC. A third would be the law relating to activities in the AIFC territory which are not regulated by the AFSA: construction, medicine, sports etc. where the AIFC Acts are not applied, and thus the general law of Kazakhstan applies in full.

FinTech means technology-enabled innovation in financial services that could result in new business models, applications, processes or products with an associated material effect on the provision of financial services.
The FinTech Lab is a regulatory environment within the AIFC that allows a Person to Test or Develop the FinTech Activities without being immediately subject to the full set of regulatory requirements under the AIFC Rules and Regulations.

For eligibility criteria for Testing and Developing the FinTech Activities, Licence requirements and possible waivers see AIFC Financial Technology Rules.

The AIFC legal framework has a currency perimeter, which sets parameters (including currency type) for AIFC Participants offering services to the residents of the Republic of Kazakhstan. The currency perimeter is regulated by the Rules on Currency Regulation and Provision of Information on Currency Transactions in the AIFC.

Operations between the AIFC Participants and/or Non-residents of the Kazakhstan can be conducted in any currency in accordance with the AIFC Rules on Currency Regulation.

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.

AIFC participants can engage in various business activities permitted by AIFC jurisdiction and RoK law. If your activity is related to Regulated activities, Market activities, or provision of Ancillary services, you need permission from AFSA (obtain a license).

However, for activities such as holding companies, IT, trading, etc. no license is required.
Please note, if your activity falls under regulation by the legislation in Kazakhstan (medicine, construction, subsoil use, etc.), you must apply to Kazakhstani authorities to get such permission.

– English common law based jurisdiction
  • Internationally familiar legal framework
  • Flexibility of corporate regulation
  • Variety of legal forms
– World class regulation standards
  • The Astana Financial Services Authority (AFSA) is an integrated regulator that registers, authorizes and recognises all entities who carry financial or non-financial services activities
  • Opportunity to redomiciliate a company from a foreign jurisdiction to the AIFC
– Independent judicial system
  • Legally separate and independent from Kazakhstan’s judicial system
  • Independent judges
  • Enforcement Mechanisms
– Emerging capital market
  • Astana International Exchange offers businesses and investors innovative services and products
– Special tax and currency regime
  • 0% Dividend withholding tax and Capital gains tax for all Participants
  • 0% CIT and VAT for Authorised financial companies
– Special visa and foreign labour regime
  • Work visas for foreign experts and their family members for up to 5 years
  • Attraction of foreign labour without due special work permits
  • Expat Center – one-stop-shop providing comprehensive support throughout the relocation process and settlement in Kazakhstan

In order to carry out activity in the AIFC an applicant should go through Authorization + Registration or Registration only depending on the nature of business.

Certain activities are regulated by authority AFSA. Authorisation is process of obtaining a permission (licence) from the AFSA to conduct these kinds of activities in / from the AIFC.
Business activities that need to be licensed in the AIFC include:
  • Regulated Activities: These are financial services activities such as managing investments, broker/dealer activities, banking, and other activities including operating a representative office.
  • Market Activities: Activities related to the operation of exchange, clearing house or crowdfunding platforms.
  • Ancillary Services: Services supporting financial and market activities, including legal, audit, consulting, accounting services.
The complete list of licenses is available in the AIFC General Rules.
Entities intending to engage in non-financial services activities (such as holdings, IT, trading, construction, etc.) only need to undergo registration.

Not mandatory, registration can be done post-authorisation after getting In-principle approval letter from the AFSA. It is possible to proceed with the registration process first, but it’s important to note that registration will be refused if the chosen name includes terms such as “bank” or “investments” without the accompanying In-Principle Approval letter.

Obtaining an Operating Representative license is a great way for the firm to discover the opportunities that AIFC has to offer.
The scope of the license limited to marketing activities only, therefore it has less commitment and obligations for the Head company. Useful for the promotion within the AIFC of services to be provided or offered from outside the AIFC, most typically by foreign banks, securities houses and wealth managers.
The activity of the office will be mainly about:
  • Providing information on the financial services of the head company
  • Engaging in promotions related to such informational provision
  • Making introductions or referrals in connection with the offer of financial services by the head company, etc.
Only firms that are regulated by a Financial Services Regulator in a jurisdiction other than the AIFC, may apply for the Operating a Representative office licence.

A broker located outside the AIFC may apply to the AFSA for an order declaring it to be a Recognised Non-AIFC Member/Institution (RNAM/RNAMI). This recognition will enable financial market infrastructures (such as trading platforms and clearing and settlement institutions) and qualified potential market participants (brokers) to carry out their activities in the AIFC without having to establish a physical presence there.

A Recognised Company is a branch of a foreign company or partnership located outside the AIFC jurisdiction that has been registered (and authorized, if applicable) by the AFSA and is considered an AIFC Participant.
In contrast, a Recognised Non-AIFC Member is a broker or dealer with a relevant license granted by a recognized financial services regulator, who obtains permission from the AFSA to access the AIX directly without establishing legal presence and obtaining relevant authorization, but is not considered an AIFC Participant.

The AIFC registered entity must, at all times, have a registered office within the boundaries of the AIFC (https://afsa.aifc.kz/en/consider-before-opening-business) to which all communications and notices may be addressed.
You may apply to AIFC Property Department ([email protected]) to get proposal on available office spaces in the AIFC premises. Besides you can rent any other office space within AIFC boundaries.

The AIFC Participant must appoint a CEO, Director/Partner, Authorized Signatory, etc. depending on organisation legal type. In non-regulated companies, these roles may be executed by one person. The CEO must have an Individual Identification Number.

Authorized companies have more complex requirements, including the necessity to have adequate resources, including personnel, located in the AIFC.

An AIFC Participant can generally offer services to clients in other jurisdictions, including through branches or representative offices. Note that to comply with the applicable laws of these jurisdictions, relevant registration or notification must be submitted to the local authority.

Authorisation is a process of obtaining AFSA’s consent to provide financial, market and ancillary services in/from the AIFC. The process enables the AFSA to identify, prevent significant misconduct or harm from occurring and to ensure that firms and individuals meet threshold conditions before a firm carries out activity. The result of a successful authorization process is the issuance of a license to conduct a specific type of activity.

Business activities that need to be licensed in the AIFC include:
  • Regulated Activities: These are financial services activities such as managing investments, broker/dealer activities, banking, and other activities including operating a representative office.
  • Market Activities: Activities related to the operation of exchange, clearing house or crowdfunding platforms.
  • Ancillary Services: Services supporting financial and market activities, including legal, audit, consulting, accounting services.
The complete list of licenses is available in the AIFC General Rules.
It is important to note that in accordance with Section 24 of the AIFC Financial Services Framework Regulations, a Centre Participant must not carry on a Regulated Activity, Market Activity or Ancillary Service unless it is licensed to do so by the AFSA.

If an AIFC Participant wishes to establish an additional office outside the AIFC, it must comply with the relevant legislation in the jurisdiction where it proposes to establish and comply with any restrictions or requirements that other jurisdictions may impose. We urge AIFC Participants to take independent legal advice as to whether they would require an additional license or authorisation from local regulatory authorities.

An Approved Individual is an individual who has been approved by the AFSA to perform certain controlled functions within an AIFC Authorised Firms. These controlled functions include key roles such as SEO, CFO, Compliance Officer, MLRO, Member of the Board of Directors, any other position specified by the AFSA. Approved Individuals are subject to regulatory scrutiny and must meet certain qualifications and standards set by the AIFC regulations.

Generally, the Money Laundering Reporting Officer (MLRO) function must be performed by an individual ordinarily resident in the Republic of Kazakhstan. While there is no strict requirement for other individuals to be resident in Kazakhstan, the Authorised Firm must have adequate resources, including personnel, located in the AIFC to fulfil Substantial presence requirements.

Prepare application package:
  • Decide what type of business you want to carry out and check which licence you will need to apply for.
  • Determine who will perform Approved function and complete the Applications.
  • Complete relevant Application form for Regulated / Market activity and provide a comprehensive regulatory business plan that sets out your proposed activities, 3-year financial projections and budget, resources such as human, systems and financial.
  • Develop internal control systems that will govern the affairs of the applicant. This include but not limited to a compliance manual, a compliance monitoring programme, risk management and AML policies.
Pay authorisation and approved individual fee.
Submit documents to the AFSA. A successful application will result in the AFSA issuing you an in-principle letter which will allow you to complete the registration process.
The Licence will be issued once you can demonstrate that you have successfully met outstanding requirements listed in the In-principle letter.

Submission of application is available online on www.digitalresident.kz portal.
Follow these steps for authorisation:
  1. Login to the portal and click the “New application” button
  2. Choose ‘Authorisation’ in the menu and within it choose ‘Ancillary Services’ application
  3. Complete the application, providing information on services, human resources, systems and business plan
  4. Develop and attach supporting documents (Code of Conduct, AML policy and other if applicable).
  5. Once an application is ready (all sections will be coloured in Green), you can proceed to a payment and submission

The actual process times depend on the complexity of the applicant’s proposed operations and the quality of the application itself. In general, average application processing time, from the time the AFSA receives a materially complete application, is around two to three months. This does not include any time the AFSA is awaiting information or a response from the applicant. On average materially complete applications for ancillary services take a month.

The authorisation application fees vary depending on the nature and extent of the Regulated Activity, Market Activity or Ancillary Service. Please refer the AIFC Fees Rules to find details.
Additionally the applicant must pay for each individual seeking the Approved status.

Application for Registration of a legal entity or Recognition of foreign legal entity could be submitted online on the e-Residence portal (www.digitalresident.kz) or on paper y email.

Before applying, the following arrangements should be prepared and considered:
– Chose Organisational legal form: applicants may choose from a variety of available forms that best suit their corporate purposes.
– Determine the nature of business: any lawful activity. If applicant engaged in regulated activities (financial, market and ancillary services), then should first apply for Authorisation.
– Registered address: must, at all times, have a registered office in the AIFC to which all communications and notices may be addressed
– CEO must have an Individual identification number issued by Kazakhstani authorities
– Disclosure of Ultimate Beneficial Owners

To choose a suitable organizational form, you should consider the nature of your business activities, the liability structure you prefer, the number of partners or shareholders involved, and other specific requirements based on your business goals and operations.
Each organizational form in the AIFC has its own characteristics and requirements. See available foms and details on the AFSA website: https://afsa.aifc.kz/en/private-company-1

Submission of application is available online on www.digitalresident.kz portal.

Follow these steps for authorisation:
1. Login to the portal and click the “New application” button
2. Choose ‘Registration’ and organisational legal form
3. Complete the application, providing information on shareholder (-s), nature of business, human resources, and other important information
4. Develop and upload incorporation documents (Standard forms available for certain types of organisational legal forms)
5. Once an application is ready (all sections will be coloured in Green), you can proceed to a payment and submission

1. Download and fill out forms applicable for chosen organisational legal form on <a href=”https://afsa.aifc.kz/en/private-company-1″>https://afsa.aifc.kz/en/private-company-1</a>
2. Generate invoice on <a href=”https://calc.digitalresident.kz/”>https://calc.digitalresident.kz/</a> and pay the registration fee
3. Submit documents and payment confirmation by email to <a href=”mailto:[email protected]”>[email protected]</a>

The AFSA maintains and publishes a Public Register of all AIFC registered / recognised entities, including current and past grants of withdrawals and suspensions of authorisations of Registered Entities, Authorised Firms, Authorised Market Institutions (AMI), Ancillary Service Providers, Recognised Non-AIFC Members, Special Purpose Companies and FinTech Lab Participants. The public register is published on the AFSA website.

Once the legal entity is registered, it must submit certain information the Registrar of Companies during the course of its life, either periodically (annual filings) or when changes in its registered details occur (event driven).

Additionally, registered legal entity may apply to the Registrar of Companies to receive an extract of information form the Registers or a Certificate of Good Standing.

For detailed information on event-driven and annual filing obligations of AIFC Participants, please refer to the Guidance on Filing Obligations to the Registrar of Companies. This guidance, along with the applicable forms, is available for download on the AFSA web site – https://afsa.aifc.kz/en/post-registration.

Note that post-registration fees are applicable in accordance with the AIFC Fees Rules.

Some of the Post-registration applications may be submitted online on the www.digitalresident.kz portal (New application – Post-registration) or by email to [email protected] (‘paper-based’).

AIFC Participants must notify only the Registrar by filing the applications. All relevant changes in State databases are handled by the Office of the Registrar.

Each AIFC-registered entity, regardless of the type and status of activity, is obliged to complete a specified number of filings with the Registrar of Companies on an annual basis. Non-compliance is punishable by a fine of up to $10,000.

The type of filing depends on the Participant’s legal form and annual turnover. Generally, reports must be submitted within 6 months after the end of Financial year of the Participant.

Following AIFC Participants must submit audited reports:
– Authorised Firms
– Public companies
– Private Companies with an annual turnover more than $ 5,000,000 and an average of more than 20 Shareholders
– Foundations, with an annual turnover more than $ 5,000,000
– Limited Liability Partnerships (LLP), with an annual turnover more than $ 5,000,000
– Non-profit Incorporated Organisations (NPIOs), with an annual turnover more than $ 500,000
Other Participants can file unaudited financial statements along with an Annual Return form.

Yes, the AIFC Participant must submit tax, statistical, and other applicable reports and information to the relevant state or local authority in accordance with the applicable laws of the Republic of Kazakhstan.

No, labour relations are governed by the AIFC Employment Regulations, which require all employment contracts to comply with these regulations. The AIFC Employment Regulations provide minimum standards and do not prevent the employer from offering more favourable terms and conditions of employment in their internal rules.

An AIFC Participant may comply with the Labor Code of the Republic of Kazakhstan as long as it does not conflict with these regulations.

No. If AIFC Participant is licenced by AFSA, it must contact its Relationship Manager for making necessary arrangements in relation to the Post-registration application and obtaining the required approval (if necessary).

No, the Contracts with third parties (clients, suppliers, partners) can be concluded in any language, but they must be provided in English or certified and translated into English in case of litigation in AIFC Court.

FAQ