The New Law «On the National Chamber of Entrepreneurs» in the Republic of Kazakhstan.

The President signed the Law «On the National Chamber of Entrepreneurs» (hereinafter – the Law) on 4 July 2013.

The Law is focused on consolidation of the entrepreneurs, on the regulation of the relations arising in connection with the establishment and activity of the National Chamber of Entrepreneurs of the Republic of Kazakhstan (hereinafter – NCE).

What is the NCE?

NCE is a non – profit, non-governmental, self-regulating organization which is a Union of business entities, providing favorable legal, economic and social conditions for entrepreneurship and public-private partnership development in the RoK.

Management bodies of the National Chamber will be divided into Executive and Representative bodies. The Executive bodies consist of: Presidium, Board, Audit Commission, Directorate of regional chambers, branches of the regional chambers. Representative bodies include Congress and Regional Council.

Thus, the NCE in the RoK forms unified system, where:

at national level is the national chamber of entrepreneurs of Kazakhstan;

at the territorial level is the Commerce of entrepreneurs of the oblast, city (regional chamber of entrepreneurs);

at the district level are branches of the regional chambers of entrepreneurs;

legal entities with the participation of the National chamber as a founder;

branches and representative offices of National chamber located on the territory of a foreign state.

Who can be related to this Law?

According to the Law all entrepreneurs registered in territory of the country, should enter to the NCE on national, regional or district level. This is with the exception of public industries and business entities, for which the legislation provides for a compulsory membership in other non-profit organizations.

Under the business entities are understood commercial legal entities, including banks and banking institutions, national companies and organizations in the holdings in the sphere of industry, agriculture and the financial sector, as well as individual entrepreneurs and farms.

When the NCE work begins?

Under the new Law, the National Chamber of entrepreneurs will start its work from 1 January 2014.

Should it be paid for membership in the NCE?

Membership in the NCE will be fee-based.. Representatives of small business are exemted from payment of membership fees during the transition period – over 5 years -. Fees are paid annually up to 31 December. The amount and procedure of payment of compulsory contributions will be established by the government of the RoK.

What are the functions of the NCE?

One of the functions of the NCE will be improvement of legislation, which regulates the entrepreneurial activity. In addition, the Chamber will deal with the assessment of the work of state bodies; support domestic production and increase the share of local content in the procurement organizations; support and development of business; representation of interests and protection of rights of entrepreneurs; training and advanced training, certification and attestation of personnel, the development of technical and vocational education.

The Law has come into force on 22 July 2013.

Also the President of the RoK signed the accompanying law “On amendments and additions to some legislative acts of the RoK on issues of the National Chamber of Entrepreneurs of the RoK» focused on bringing the legislative acts of the ROK in accordance with the Law “On the National Chamber of Entrepreneurs of the Republic of Kazakhstan”.

Information contained in this Client Update is of general nature and cannot be used as legal advice or recommendation. Please seek for a specific advice in relation to any questions. Please note that Kazakhstan and Turkmenistan are emerging economies and their legislation and legal systems are in constant development. Should you have any questions or would like to discuss subjects addressed in this Client Update please contact us.