Business Code: What’s New?
The main intents of BC are improvement and development of the legislation of the RK as part of the cooperation of business entities and the government, including government control and business support, emendation of gaps and contradictions in the legal regulation of business activity as well as systematization of legal, economic and social conditions and warranties for freedom of enterprise in the RK.
BC consolidated the main legal acts which regulate the different aspects of business activity in the RK. In addition to the consolidation of current legal acts, BC also includes a variety of changes and amendments.
Also, BC extends certain aspects of regulation of business activity.
Our analysis of BC revealed the following basic changes and amendments:
Promotion of the status of business ombudsman
Modifications related to investment enterprise
3.Improvement of cooperation of business and state entitles
Specification of the antimonopoly legislation
Others
Although BC considerably duplicates regulations of the current civil legislation, it explicitly specifies that, despite the fact that commodity-money relations and other property relations are based on the owelty of participants, and private non-property relations connected with property relations are regulated by the Civil Legislation of Republic of Kazakhstan, provisions of BC apply in case of exposure of defects or discrepancies in legislative regulations of Business Law that contravene the provisions of BC.
In other words, priority in business regulations belongs to the provisions of BC.
Therefore, legislators tried to consolidate to the extent possible all regulations with regard to the different aspects of business operations in the RK in one regulatory legal enactment, assigning them priority among other regulatory legal enactments which also more or less regulate business operations in the Republic of Kazakhstan.
BC includes other significant changes and amendments, which you may find in more detailed updates in the nearest future.
In conclusion, it should be noted that BC will come into force on 1 January 2016.
It is our belief that the pros and cons of BC are yet to be revealed. Practice will show the advisability of compiling the abovenamed laws in one regulatory legal act regulating business activity in the RK, the improvement of regulation and the positive effects on the investment climate of the RK.
Information contained in this Client Update is of general nature and cannot be used as legal advice or recommendation. Please note that Kazakhstan is an emerging economy and its legislation and legal system are in constant development. Should you have any questions or would like to discuss matters addressed in this Client Update, please contact us.
