In 2025 Kyrgyzstan has become particularly attractive for entrepreneurs. Registering an IT company in Kyrgyzstan offers favorable tax conditions and special privileges from the state.
A major advantage is the possibility of fully remote business registration by foreign citizens, including Russians, without the need to reside in the country. The simplified tax regime in Kyrgyzstan imposes virtually no restrictions on maximum annual revenue for most business sectors, making the local tax system one of the most favorable among post-Soviet states.
This article covers in detail all aspects of registration, taxation, and the advantages of launching an IT business in Kyrgyzstan in 2025.
Why Is It Profitable to Register an IT Company in Kyrgyzstan?
- Low taxes. Simplified regimes with minimal rates (from 0% to 6% of turnover) are available, with special benefits for IT companies that become residents of the High Technology Park (HTP).
- Special IT incentives (HTP). Export-oriented IT companies may obtain HTP resident status, which exempts them from most taxes and reduces PIT and social contributions. In 2024 the HTP regime was made indefinite to increase Kyrgyzstan’s attractiveness for foreign IT firms.
- Remote company setup. Entrepreneurs from abroad, especially from Russia, can register an LLC (OsOO) or sole proprietorship remotely via power of attorney without traveling to Kyrgyzstan.
- Friendly environment for foreigners. No requirement for a local partner — foreigners may own 100% of the business. Russian is officially recognized, so documents can be prepared in Russian. Russian internal passports are accepted (no need for foreign passport). Kyrgyzstan is a member of the EAEU, which simplifies stay and work for Russian citizens (no visas or work permits needed).
- Business climate and infrastructure. Free currency regime allows accounts in USD, EUR, RUB, CNY without restrictions; the country is not under sanctions. IT is supported by the state: in addition to HTP, the Creative Industries Park (CIP) offers tax benefits for related fields (design, digital education, etc.). Costs for offices, internet, and workforce are lower than in many neighboring countries.
Legal Forms for IT Companies: OsOO and SP
- OsOO (LLC equivalent). A separate legal entity; participants’ liability is limited to their capital contribution.
- SP (sole proprietor). A natural person registered as entrepreneur without forming a legal entity. The SP is personally liable with all assets.
Key differences:
- Liability: OsOO protects personal assets, SP does not.
- Founders: OsOO can have 1–30 participants, SP only one.
- Requirements: OsOO needs a charter, legal address, and capital (min. 1 KGS). SP requires only an application and passport.
- Branding: OsOO has a company name, SP operates under the owner’s full name (though can use a trademark).
- Activities: Some activities restricted for SP (e.g., finance, insurance). Most IT services allowed for SP.
- Taxation: Both may use general or simplified regimes. SP with <8m KGS revenue is tax-free. OsOO pays 10% corporate tax, plus 10% withholding tax on dividends.
- Accounting: SP has lighter reporting; OsOO usually requires an accountant.
- Reputation: Larger clients often prefer dealing with legal entities (OsOO).
Branches and representative offices are also common, and may be registered remotely.
Tax Regimes for IT Companies: General vs Simplified
- General regime:
- Corporate income tax 10%
- VAT 12% if above threshold
- Sales tax 1–5% depending on activity
- Payroll taxes: employer 27.25%, employee 10%
- Simplified regime (Unified Tax):
- Replaces profit, VAT, and sales tax
- Rates for IT: 4% cash payments, 2% non-cash
- No turnover limits
- Unified tax payers exempt from VAT — simplifying work with foreign clients
High Technology Park (HTP)
The HTP is a special legal regime for export-oriented IT company in Kyrgyzstan. It is not a physical park but a legal status.
Benefits:
- Full exemption from corporate tax, VAT, and sales tax
- Reduced PIT: 5% (instead of 10%) on salaries and entrepreneurs’ income
- Lower social contributions: 12% of AMS paid by employees; employers exempt from standard 27.25% contributions. In practice, only a fixed ~$30/month per employee is paid to the social fund
- Instead of taxes, residents pay 1% of turnover to the HTP Directorate (membership fee)
- In November 2024, HTP’s temporary 15-year limit was abolished — the regime is now indefinite
Requirements:
- IT activities, export-oriented (typically ≥80% foreign revenue)
- No tax debts
- New or compliant companies only
- Application with documents, business plan, staff data
- Registration process ~1 month
As of 2022, over 350 IT companies were HTP residents, exporting services worth $90m.
Remote Registration of IT Company in Kyrgyzstan for Foreign Citizens
Foreigners can register businesses in Kyrgyzstan fully remotely via power of attorney.
Process:
- Power of attorney for representative
- Preparation of documents (notarized passports, OsOO charter, application, legal address)
- Submission to Ministry of Justice or online portal
- Registration in tax and social fund, obtaining PIN and e-signature
- Bank account opening (loyal banks include Mbank, Aiyl Bank, RSK, Optima)
- Delivery of registration documents to founder
Timeline: ~10–15 working days including bank account opening.
Conclusion
Kyrgyzstan offers a rare combination: low taxes, friendly regulations, and double tax treaty protections, enabling businesses to operate legally and profitably. No wonder hundreds of IT firms and professionals have already taken advantage of these conditions.
Kyrgyzstan is equally suitable for:
- Foreign IT companies serving Russian/Belarusian clients
- Russian and Belarusian IT startups targeting global markets
