September 23, 2020
Permissions and notifications (licensing) in the Republic of Kazakhstan
1.Legislation of the Republic of Kazakhstan on permissions and notifications (licensing)
2. Competent licensing authorities
3. List of activities subject to licensing
4. Procedure for issuing licenses
5. Suspension, withdrawal (revocation) of permission and (or) attachment to permission
6. Consequences of activities without obtaining the appropriate permission
The legislation of the Republic of Kazakhstan regarding the activities of business entities establishes a permitting or notification procedure.
The permitting or notification procedure is introduced depending on the level of hazard of the activity or actions (operations) and is divided into the following levels:
1) permits of the first category – licenses that are introduced in relation to types (subtypes) of activities or actions (operations) associated with high level of hazard;
2) permits of the second category – all permits, which are not licenses and introduced in relation to types (subtypes) of activities or actions (operations) associated with medium level of hazard;
3) notifications are introduced in relation to activities or actions associated with low level of hazard, but require obtaining information on commencement or termination of such activities or actions by state bodies.
Permits are subdivided into the following classes depending on the subject of regulation:
1) class 1 – permits issued for activities;
2) class 2 – permits issued for facilities;
3) class 3 – one-time permits;
4) class 4 – permits issued for activities with limited resources or using quotas;
5) class 5 – permits issued for professional activities to individuals;
6) class 6 – permits issued for products.
1. Legislation of the Republic of Kazakhstan on permissions and notifications (licensing)
The main regulatory document governing relations in the field of licensing is the Law of the Republic of Kazakhstan dated May 16, 2014 No. 202-V “On permissions and notifications” (hereinafter – the law on permissions and notifications).
Law of the Republic of Kazakhstan dated April 15, 2013 No. 88-V ” On State Services “.
Rules for the operation of state information system of permits and notifications approved by order of the Minister of Information and Communications of the Republic of Kazakhstan dated October 29, 2016 No. 232.
Rules for maintaining the state electronic register of permits and notifications approved by order of the Minister of Investment and Development of the Republic of Kazakhstan dated April 30, 2015 No. 543.
Special conditions for licensing certain types of activities are established by the Law of the Republic of Kazakhstan dated March 30, 1995 No. 2155 “On the National Bank of the Republic of Kazakhstan” and the Law of the Republic of Kazakhstan dated July 4, 2003 No. 474-II “On state regulation, control and supervision of the financial market and financial organizations” in the field of finance and activities associated with the concentration of financial resources.
The Law of the Republic of Kazakhstan dated January 12, 2007 No. 219-III ” On gambling industry ” in the field of gambling.
Law of the Republic of Kazakhstan dated July 16, 2001 No. 242-II “On architectural town-planning and construction activity in the Republic of Kazakhstan” in the field of architecture, urban planning and construction.
The Law of the Republic of Kazakhstan dated January 12, 2016 No. 442-V “On the use of atomic energy” in the field of using atomic energy.
The Law of the Republic of Kazakhstan dated July 4, 2003 No. 476-II “On Automobile Transport” in the field of non-regular transportation of passengers by buses, minibuses as well as regular transportation of passengers by buses, minibuses in international traffic.
The following regulatory documents contain their own procedures for issuing licenses, permits, notifications, which are not covered by the law on permissions and notifications:
Code of the Republic of Kazakhstan dated December 27, 2017 No. 125-VI “On Subsoil and Subsoil Use”.
Law of the Republic of Kazakhstan dated July 2, 2018 No. 167-VI “On currency regulation and currency control”.
Law of the Republic of Kazakhstan dated July 2, 2003 No. 461-II “On the securities market”.
Law of the Republic of Kazakhstan dated August 31, 1995 No. 2444 “On banks and banking activities in the Republic of Kazakhstan”.
Law of the Republic of Kazakhstan dated December 27, 2018 No. 204-VI “On natural monopolies”.
Law of the Republic of Kazakhstan dated January 16, 2013 No. 70-V “On the State Border of the Republic of Kazakhstan”.
2. Competent licensing authorities
Implementation of licensing, permitting procedures, permitting control, establishing the applicant’s compliance with the requirements for qualification or permitting, maintaining the state electronic register of permits and notifications are within the competence of permitting authorities.
Licensing bodies include local executive bodies or territorial bodies of the central state agency that carry out licensing activity.
A license is issued at the place of registration of an individual or legal entity or a branch or representative office of a foreign legal entity and to a foreign legal entity that does not have a branch or representative office in the Republic of Kazakhstan. Licenses issued under the class “permits issued to facilities” are issued at the place of their activity.
3. List of activities subject to licensing
Certain types of activities or actions (operations) in the following areas are subject to licensing:
1) television and radio broadcasting;
2) protection and use of historical and cultural heritage facilities;
3) education;
4) architecture, urban planning and construction;
5) hydrocarbons;
6) industry;
7) information technology and communication;
8) handling narcotic drugs, psychotropic substances, precursors;
9) health care;
10) use of atomic energy;
11) ensuring information security;
12) special technical means intended for carrying out law enforcement intelligence and surveillance operations;
13) handling weapons, military equipment and certain types of weapons, explosives and products with their use;
14) handling toxic substances;
15) manufacturing the state symbols of the Republic of Kazakhstan;
16) producing and handling of ethyl alcohol and alcoholic beverages, producing tobacco items;
17) commodity exchanges;
18) export and import;
19) financial sector and activities related to the concentration of financial resources;
20) use of outer space;
21) gambling business;
22) veterinary medicine;
23) agriculture;
24) transport;
25) forensic expertise, including forensic medical, forensic narcological and forensic psychiatric examinations;
26) services for individuals and legal entities.
4. Procedure for issuing licenses
The licensing authority is obliged to check the completeness of the submitted documents within two working days from the date of receiving the applicant’s documents for issuing a permit and (or) its attachment when performing licensing or permitting procedures.
An application for issuing license with other documents is submitted to the licensing authority by:
- submitting directly to the relevant licensing authority;
- submitting to “State Corporation “Government for Citizens” NJSC through public service centers;
- submitting an electronic form via the state information system of permits and notifications on the portal www.elicense.kz
Permits issued in electronic form are tantamount to paper permits.
As the information specified in the applicant’s documents is contained in state information systems, the following documents are required only when submitting an application:
1) application;
2) a copy of the document confirming the payment of the license fee for the right to perform certain types of activities, except for cases of payment through the payment gateway of “electronic government”;
3) documents confirming the applicant’s compliance with the qualification requirements in the cases and in the manner established by the legislation of the Republic of Kazakhstan.
A license and (or) attachments to the license or a reasoned refusal to issue them shall be issued by the licensor no later than fifteen working days. Exceptional terms are established for the issuance of licenses and (or) attachments to licenses in the field of using atomic energy, finance and activities related to the concentration of financial resources, education, hydrocarbons, which amounts to thirty working days.
The license fee is charged when issuing (reissuing) a license in accordance with the Code of the Republic of Kazakhstan dated December 25, 2017 No. 120-VI “On taxes and other obligatory payments to the budget (Tax Code)”
Foreign legal entities pay fees or fees charged for licensing or permitting procedures on their own, provided that they receive their own business identification number or through the branches and (or) representative offices of these legal entities registered in the Republic of Kazakhstan.
Refusal to issue a license and (or) attachment to the license occurs in the following cases if:
1) this type of activity is prohibited by the laws of the Republic of Kazakhstan for this category of individuals or legal entities;
2) the license fee has not been paid;
3) the applicant does not meet the qualification requirements;
4) the licensor has received a response from the relevant approving state body about the applicant’s non-compliance with the requirements for licensing;
5) there is a court decision (verdict) in relation to the applicant, which has entered into legal force, on the suspension or prohibition of activities or certain types of activities subject to licensing;
6) it is temporarily prohibited to issue a license to the applicant-debtor by the court based on he submission of the bailiff,
7) there is an inaccuracy in the documents submitted by the applicant for obtaining a license and (or) the data (information) contained therein.
The license and (or) attachment to the license are subject to renewal in the following cases:
1) changes in the surname, name, patronymic of an individual licensee;
2) re-registration of an individual entrepreneur-licensee, change of his name or legal address;
3) reorganization of the legal entity-licensee;
4) changes in the name and (or) location of the legal entity-licensee;
5) alienation by the licensee of the license issued under the class “permits issued for facilities” with the facility in favor of third parties;
6) change in the address of the location of the facility without its physical move for a license issued under the class “permits issued for facilities” or for attachments to the license indicating the facilities;
7) there is a requirement for re-registration in the laws of the Republic of Kazakhstan.
The license and (or) attachment to the license shall be terminated in the following cases:
1) expiry of the period for which they were issued;
2) execution of actions (operations) in full scope, for implementation of which they were issued;
3) withdrawal (revocation) of the license and (or) attachment to the license;
4) termination of the activity of an individual, elimination of a legal entity;
5) voluntary application of the licensee to the licensor on the termination of the license and (or) attachment to the license;
6) exclusion of a license or a separate type of activity and (or) a subtype of activity or action (operation);
7) exclusion of the licensee from the list of persons subject to licensing;
8) in other cases provided for by the laws of the Republic of Kazakhstan.
5. Suspension, withdrawal (revocation) of permission and (or) attachment to permission
The suspension of the permit and (or) attachment to the permit is carried out in the manner and on the grounds provided for by the laws of the Republic of Kazakhstan (for example, Article 43 of the Law of the Republic of Kazakhstan dated July 5, 2018 No. 176-VI “On advocacy and legal assistance”, the water code of the Republic Kazakhstan dated July 9, 2003 No. 481-II, the Law of the Republic of Kazakhstan dated July 14, 1997 No. 155-I “On Notaries”, etc.).
The common ground for the suspension of a permit is a violation in using the license or permit by the licensee or owner of the second category permit.
In this case, the licensee or owner of the permit of the second category has the right to submit an application for elimination of violations with copies of supporting documents attached to the licensing authority before the expiration of the period for suspension of the permit and (or) attachment to it.
The licensing authority checks the elimination of violations within ten working days from the date when the applicant applies for elimination of violations.
In case of confirmation of the fact that the applicant has eliminated violations, the licensing authority decides to renew the permit and (or) attachment to the permit.
If the licensee or owner of the second category permit fails to submit an application for elimination of violations that were the basis for the suspension of the permit and (or) the attachment to the permit before the expiry of the suspension period, the permitting authorities initiate the procedure for revoking (revoking) the permit and / or attachments to the permit within ten working days from the expiry of the suspension period.
Withdrawal of a permit is carried out at the suit of the licensor in the manner of civil proceedings on the grounds provided for by the laws of the Republic of Kazakhstan.
Withdrawal of a permit or its suspension is also used for an administrative offense committed when carrying out an activity or performing certain actions (operations) provided for by a permit. In this case, the withdrawal of a permit or itd suspension is imposed by a judge, an authorized body (official) in the cases provided for by the Administrative Code.
6. Consequences of activities without obtaining a permit
According to sub-paragraph 4, paragraph 2 of Article 49 of the Civil Code of the Republic of Kazakhstan dated December 27, 1994, a legal entity can be forcibly eliminated by a court decision if it carries out activities without a proper license or activities prohibited by legislative acts.
Carrying out activities without an appropriate license is a formal basis for recognizing any transactions as invalid.
Bringing to administrative responsibility, in accordance with Article 463 of the Code of the Republic of Kazakhstan on Administrative Offenses of July 5, 2014 No. 235-V, the sanction, which is provided in the form of a fine and confiscation of income (dividends), money, securities received as a result of an administrative offense.
Criminal proceedings, in accordance with Article 214 of the Criminal Code of the Republic of Kazakhstan dated July 3, 2014 No. 226-V, a sanction that provides for a fine, correctional, community service, restriction, imprisonment, confiscation of property.
