Special edition – investments law

The Law of the Republic of Kazakhstan “On Permissions and Notifications” came into legal effect starting from 21 November 2014. This Law replaced the Law of the Republic of Kazakhstan “On Licensing” dated 11 January 2007.

The Law of the Republic of Kazakhstan “On Permissions and Notifications” (“Law”) unifies and simplifies the permit system of the Republic of Kazakhstan as well as introduces a number of positive changes. This review covers analysis of the main changes related to permit system.

Structure Of The Law

The Law of the Republic of Kazakhstan “On Licensing” dated 11 January 2007 was entirely included in the Law with certain adjustments. Provisions of the Law of the Republic of Kazakhstan “On Administrative Procedures” in relation to notification procedures were also included in the Law. Third part of the Law is absolutely new and it regulates some permission procedures which are not licenses.

Novelties

All-in-one definition of “permission”

The Law defines permission as confirmation by the state authority of the title of a physical person or legal entity to carry out the activity or actions (operations) through licensing or permission procedures.

Exhaustive list of permissions

The Law provides an exhaustive list of permissions and notifications as set forth in Appendices 1 and 2. Thus, government authorities may not be able to require obtaining any other permissions or notifications other than those provided by the Law.

Classification of permissions

The Law classifies permissions as follows:

1) permissions of the first category – licenses, which are required for extra high hazard activities or operations (e.g. license for abandonment of the raw hydrocarbon deposits, drug manufacturing license);

2) permissions of the second category – all permissions, other than licenses, which are required for medium hazard activities or operations (e.g. permit for environmental emission, firearms license);

3) notifications are required for low hazard activities or operations, where the government authorities must be informed of commencement or termination of such activities or operations (e.g. notice on tax treatment, notice on instruction and emergency response drill).

The former two categories require obtaining licenses/permissions, while the latter requires only notification of competent authorities.

One-Stop Assistance

If a prior approval (or an accompanying permit) is required from another government agency to confirm the applicant’s compliance with certain requirements, the government authority shall inquire the approval from such other agency.

Permission Necessity Pre-assessment

The Law provides that individuals or legal entities may seek from the government authority an official clarification as to whether or not permission is required for carrying out certain types of activity.

Construction Permissions

With enactment of the Law, special licensing provisions are still under regulation of the Law on architecture, urban-planning and construction activity.

Information contained in this Client Update is of general nature and cannot be used as legal advice or recommendation. Please seek a lawyer for a specific advice. 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.