Opening a Company in Kyrgyzstan Remotely

Kyrgyzstan has become a popular jurisdiction for foreigners to register companies and branches. It is possible to open a company in Kyrgyzstan remotely. Key reasons for choosing Kyrgyzstan include:

1. Strategic Location: Kyrgyzstan’s strategically important geographical location benefits businesses, particularly in trade and transportation logistics. Its position serves as a bridge between East and West.
2. Attractive Investment Opportunities: The country offers various investment prospects, especially in agriculture, tourism, and the mining industry. Several government programs and incentives help attract foreign investors.
3. Low Tax Rates*: Kyrgyzstan’s business-friendly tax system, with relatively low rates, can help maximize profits and stimulate business growth.

*The most interesting aspect of taxation in Kyrgyzstan is the simplified tax system, which allows businesses to pay 2-4% of turnover while having no limits on account turnover.

Options for Company Registration in Kyrgyzstan

Kyrgyz legislation provides four types of company registration, each with unique characteristics:

1. LLC (OsOO): This is the equivalent of a Limited Liability Company in Russia. An OsOO can be formed with up to 30 founders.
2. Closed Joint Stock Company (CJSC or ZAO): This type of company is limited to a maximum of 50 shareholders.
3. Open Joint Stock Company (OJSC or OAO): This form of organization allows for an unlimited number of participants.
4. Branches of Foreign Companies: Foreign companies can establish branches in Kyrgyzstan. However, it’s important to note that a branch is not considered an independent legal entity but operates as a dependent organization.

Steps for Remote Company Registration in Kyrgyzstan

The most common option for registering a company in Kyrgyzstan is an LLC (OsOO). The registration process typically involves several steps and begins with issuing a power of attorney to specialists in Bishkek. The steps include:

• Unique company name: Choose a unique company name, which can be verified through the Ministry of Justice website: http://minjust.gov.kg.
• Preparation of founding documents: This includes the decision to establish the LLC, the charter, details of the founders and their shares, and information about the company director.
• Open a bank account to deposit the charter capital.
• Submit an application and documents to the Ministry of Justice.
• Company registration process and issuance of the certificate.
• Open the LLC’s bank account in one of Kyrgyzstan’s financial institutions.
• Create the company seal.

Important Points When Registering a Company in Kyrgyzstan

• No minimum capital requirements exist for Limited Liability Companies (LLC or OsOO).
• The number of participants can range from one to thirty. However, an LLC cannot have another business entity as its sole participant if that entity itself consists of a single individual.
• Registration of an LLC with foreign participation is carried out through the Ministry of Justice.

Choosing the Taxation Scheme for an LLC

Kyrgyzstan offers both general and simplified tax regimes. A significant advantage of the simplified regime is the removal of the revenue limit, which was abolished in 2023.

Below are the main tax rates:

High Technology Park (HTP)

The High Technology Park (HTP) is a state-backed project that reduces the tax burden for IT companies.
HTP members benefit from the following:

• Exemption from corporate income tax and export VAT, as well as agency VAT on imported services.
• Reduced personal income tax of 5%.
• Social contributions are set at 12% of the average monthly salary in Kyrgyzstan.
• The only additional tax for HTP residents is an administrative fee of 1% of revenue.

Conclusion

Registering a company in Kyrgyzstan offers businesses the opportunity to quickly adapt to new global economic realities and ensure stable growth in an independent jurisdiction. Contact us, and we will help you open a company in Kyrgyzstan remotely.