The creative industries sector is actively developing worldwide, and Kyrgyzstan has not stayed aside from this trend. The country has established the Creative Industries Park — a unique platform to support and stimulate the growth of creative businesses. Alongside the High Technology Park (HTP), this park has become a key tool for promoting startups and enterprises engaged in design, art, media, IT, and other creative fields. In this article, we will examine what the Creative Industries Park represents, the conditions it offers to its residents, as well as the tax benefits and expenses participants may expect.
What is the Creative Industries Park?
The Creative Industries Park in Kyrgyzstan was established to support and stimulate business growth in the creative sector. It offers favorable conditions for startups, small and medium-sized enterprises engaged in multimedia, architecture, fashion, software development, music, cinema, art, and other creative industries.
The park’s main goal is to create a supportive ecosystem that helps creative entrepreneurs implement their projects, reduce tax burdens, and gain access to modern technologies and infrastructure.
Benefits for Residents
Resident companies of the park receive a number of significant advantages that make it attractive to creative entrepreneurs. The main benefits include:
Tax incentives
One of the key motivators for participants is the provision of tax preferences. Resident companies are exempt from paying many taxes, such as corporate income tax and VAT. This allows creative startups to save on operating costs and reinvest the savings into business development.
Infrastructure support
The park offers access to modern office and creative spaces equipped with everything necessary for work. This includes high-speed internet, conference rooms, studios for recording and developing media content, as well as specialized coworking zones.
Educational programs and events
The park regularly organizes training seminars, workshops, and meetings with experts in the creative field, giving residents the opportunity to improve their skills, exchange experiences, and expand professional networks.
Access to international markets
The park actively collaborates with foreign partners, providing participants with opportunities to expand their business horizons and enter international markets.
Tax Rates for Creative Industries Park Residents
First of all, non-residents from Russia, Belarus, Kazakhstan, and other countries must register as an individual entrepreneur (IE) or a limited liability company (LLC) in Kyrgyzstan before joining the Creative Industries Park and receiving significant tax preferences. The main tax benefits include:
- Exemption from corporate income tax
Park residents are not required to pay profit tax, allowing them to retain funds for reinvestment in business development. - Exemption from VAT
Companies operating within the park are exempt from paying value-added tax (VAT). This reduces business costs and makes their products and services more competitive. - Reduced payroll taxes
Residents of the park can benefit from preferential income tax rates for their employees. Personal income tax rates are significantly lower than standard ones, increasing the attractiveness of employment in such companies.
What Expenses Do Park Participants Incur?
Despite the tax incentives, residents of the Creative Industries Park still face some mandatory expenses. The main costs include:
- Membership fee to the park
Resident companies must pay a membership fee equal to 1% of their total revenue. This fee helps maintain the park’s infrastructure and cover administrative expenses. - Office expenses
Although the park provides access to modern workspaces, office and creative space rental may still be paid. The rental cost depends on the size of the space and the services provided. - Participation in events
Some training programs, seminars, and events organized by the park may require additional payment. However, most events are offered free of charge or at discounted rates for residents. - Additional administrative expenses
Depending on the business specifics, companies may incur extra costs for legal services, accounting, and other operational needs.
Procedure for Joining the Creative Industries Park
To become a resident of the Creative Industries Park in Kyrgyzstan, a company must meet certain criteria. The main requirement is conducting business in the creative industries — such as design, film, music, IT development, and other fields related to the creative economy.
The application process is quite simple: a company must register on the official website of the park, provide information about its activities, and submit a business plan. Once the application is approved, the company receives resident status and can take advantage of all benefits and privileges.
Conclusion
The Creative Industries Park in Kyrgyzstan is a unique opportunity for entrepreneurs and startups in the creative economy. Tax incentives, infrastructure support, and access to educational resources make it highly attractive for doing business. Despite certain mandatory expenses, participation in the Creative Industries Park significantly reduces the tax burden and opens new prospects for international growth.
