Special edition – investments law

CHANGES IN INVESTMENTS LAW

The Law of the RK “On Investments” has been amended as part of the larger government initiative for fundamental improvement of business environment in Kazakhstan.

Some of the most significant amendments are outlined below.

One-Stop Government Assistance For Investors

The Law introduces one-stop shopping for investors implementing investment priority projects whereby the authorized body renders government assistance to investors. This will allow minimizing involvement of investors in collecting and preparing documents, as well as any direct contact with government agencies.

The mechanism for one-stop government assistance for investors will be further approved by the Government of the RK.

Government Participation In Legal Entities With Investment Priority Projects

To qualify for investment preferences investors implementing investment priority projects must meet certain statutory criteria. Among legislative novelties is an additional criterion, which requires that participation of the government and quasi-government entities in legal entities implementing investment priority projects should not exceed 25 percent and duration of such participation should be no longer than five years as from registration of an investment contract.

Investment Subsidies For Investors

To qualify for investment preferences investors implementing investment priority projects must meet certain statutory criteria. Among legislative novelties is an additional criterion, which requires that participation of the government and quasi-government entities in legal entities implementing investment priority projects should not exceed 25 percent and duration of such participation should be no longer than five years as from registration of an investment contract.

Cure Period Extended For Investors

The timeline for curing contractual breach resulted from non-fulfilment of the work program by investors is extended up to three months.

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.