Registering a Limited Liability Company (LLC or OsOO) in Kyrgyzstan offers entrepreneurs unique opportunities to expand their business into international markets. While the process has its specific requirements, it is manageable for foreign citizens who are ready to invest their efforts in establishing a successful enterprise in Kyrgyzstan. This article covers the essential steps, from document preparation to choosing a bank for opening a corporate account. Opening an LLC in Kyrgyzstan remotely is also relatively straightforward.
What Needs to Be Done to Open an LLC in Kyrgyzstan?
Step 1: Document Preparation
Here is a list of the key documents required:
- Application for LLC registration:
- The application must be submitted to the State Registration Service.
- LLC Charter:
- The charter should specify the main characteristics of the company, including its name, legal address, types of activities, and management structure.
- Protocol on the appointment of the company director:
- A protocol indicating the appointed director must be prepared.
- Identity documents of the founders:
- Passport details and other identification documents of the founders are required.
- Proof of state duty payment:
- Confirmation of payment should be submitted along with the other documents.
What Documents Are Needed to Open an LLC in Kyrgyzstan Remotely?
To register an LLC remotely in Kyrgyzstan, you will need:
- Copies of the international passport and national passport of the company director.
- Power of attorney.
- A phone number.
Step 2: Defining Tax Obligations
After successfully registering the LLC, you need to focus on its tax obligations. Kyrgyzstan offers favorable conditions for registering and conducting business.
The tax system in Kyrgyzstan is diverse: under the general tax regime, companies are subject to a corporate income tax of 10%, VAT of 12%, and a sales tax of 1-3%. Under the simplified tax regime, companies pay a tax of 3-6% on revenue, depending on the type of business activity.
The personal income tax (PIT) rate is only 10%, and mandatory contributions amount to 17.25%.
Moreover, Kyrgyzstan has signed a Double Taxation Avoidance Agreement (DTA) with Russia. According to this agreement, a Russian tax resident working in Kyrgyzstan is required to pay PIT only in Kyrgyzstan, and the amount paid is taken into account in Russia.
Step 3: Choosing a Bank for a Corporate Account in Kyrgyzstan
Opening a bank account in Kyrgyzstan is a crucial step for the successful operation of an LLC (OsOO). The most popular banks include:
- Ayil Bank
Ayil Bank is a state-owned financial institution offering a wide range of services, including corporate account openings. Since 1997, it has been actively involved in various government programs, including credit financing. - Kyrgyz Investment and Credit Bank (KICB)
KICB holds a significant position among the country’s largest banks. It provides corporate account opening services and offers clients the option to choose the currency of their accounts. - Bakai Bank
Many businesses select Bakai Bank to open their corporate accounts and implement payroll projects. - Demir Bank
A Turkish bank that has been actively operating in Kyrgyzstan since 1997. In 2022, it was ranked among the top five leaders in the financial market. The bank also offers account services for companies and individual entrepreneurs.
Conclusion
Opening an LLC in Kyrgyzstan provides Russian entrepreneurs with a promising platform for business expansion. By following the steps outlined above, you can ensure a smooth registration process. Be mindful of the details and consult local business and tax experts when necessary. Registering a company remotely in Kyrgyzstan can be completed within 15 working days. Feel free to contact us—we’re always happy to help!