How to Register a Sole Proprietorship (Индивидуальный предприниматель) in Kazakhstan

Becoming an Индивидуальный предприниматель (Individual Entrepreneur, or IP) in Kazakhstan is an appealing path for freelancers, contractors, and small-scale business operators. It offers legal recognition, makes invoicing clients easier, and gives you access to simplified tax regimes.

The process is relatively straightforward thanks to online registration through the government portal. Still, you must decide which tax regime to use, gather documents, and register properly with the authorities.

The main challenge is unlimited liability: you and your business are legally the same, so debts and obligations fall on you personally. On the other hand, the benefits are low costs, flexible operation, and fast setup.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in Kazakhstan?

In Kazakhstan, a sole proprietorship is officially called Индивидуальный предприниматель. It's translated in English as Individual Entrepreneur (IP). Depending on context, it may also be referred to as:

• Sole trader
• Self-employed worker
• Independent contractor

These all describe the same model: one person legally running a business without forming a separate company.

How does an Индивидуальный предприниматель work in Kazakhstan?

Индивидуальный предприниматель vs. other business structures in Kazakhstan

In Kazakhstan, one common alternative to registering as an Индивидуальный предприниматель is setting up a Limited Liability Partnership (LLP) / Limited Liability Company (LLC) or Товарищество с ограниченной ответственностью (ТОО)/ Общество с ограниченной ответственностью (ООО). Here’s how the two structures compare:

Step-by-step guide: how to register an Индивидуальный предприниматель in Kazakhstan

Step 1: Check your eligibility

To register as an Индивидуальный предприниматель in Kazakhstan, you must generally be a Kazakh citizen or hold residency rights, be at least 18 years old (with exceptions for emancipated minors), and not already be registered as an IP elsewhere. In addition, if you want to qualify for simplified tax regimes such as the patent or mobile app options, you cannot have employees, and your income and type of activity must fall within the eligibility thresholds.

Step 2: Choose your business name

You can operate under your full legal name or register a trade name. Trade names must be unique and not conflict with existing businesses. This is declared when filing your registration notification through the government portal.

Step 3: Gather required documents

You will need:

• National ID card or passport
• Proof of residence
• Electronic Digital Signature (EDS) for online filing
• OKED (economic activity classification) code for your business
• Completed Notification of Commencement of Activities as an Individual Entrepreneur form (filed via the online licensing portal)

Step 4: Register with the State Revenue Committee

You can register online using the government's online portal or in person at your local Public Service Center. Approval is usually immediate after notification submission.

Step 5: Pay registration fees and contributions

Registration as an Индивидуальный предприниматель is free when completed online. Once registered, the tax you pay depends on the regime you choose: under the patent regime, you pay 1% of declared income upfront along with social contributions; under the simplified declaration, the tax is 3% of income, split evenly between personal income tax and social tax; and under the general regime, the rate is 10% personal income tax plus additional contributions

Step 6: Complete post-registration obligations

Once you’re registered as an IP, you must follow through with all obligations under your chosen tax regime. This means filing and paying your personal income tax and social contributions regularly; ensuring you're registered for VAT if your turnover exceeds the threshold; keeping records (simpler if you're under a special regime, more detailed under the general regime); and switching regimes if your income, activities, or number of employees cross the allowed limits.

Financial and tax obligations for Индивидуальный предприниматель in Kazakhstan

You are responsible for:

• Income tax: Индивидуальный предприниматель is taxed at a flat 10% under the general regime. Alternatively, simplified regimes are available: the patent or mobile app regimes tax at 1% of income (paid in advance, with no employees allowed), while the simplified declaration regime taxes at 3% of income, split between PIT and social tax. Returns are filed electronically via eGov.kz website.
• VAT: The standard VAT rate is 12%. Registration is mandatory once your turnover exceeds 20,000 MCI (≈ KZT 78.6m in 2025), or 124,184 MCI (≈ KZT 488m) if you qualify under the simplified regime using non-cash payments and fiscal tracking tools. VAT returns are usually filed quarterly with the State Revenue Committee.
• Social security contributions: As an IP, you must pay into Kazakhstan’s social systems: pension contributions (10% of income, capped), mandatory social health insurance at 5% of 1.4 times the minimum wage per month, and general social contributions calculated as 3.5% of income with minimum and maximum bases linked to the minimum wage. These rates are set annually by the government, and contributions must be declared and paid monthly.
• Record-keeping: Even under simplified regimes, you are required to keep records of your income and expenses. For general regime IPs, formal bookkeeping and retention of invoices, receipts, and tax documentation are mandatory. Authorities may request these records during audits.
• Invoicing: Every invoice must include your IP registration details, business and client information, date, description of services or goods, and any applicable VAT. Invoices must be issued sequentially and retained for compliance purposes.

Launch your contracting career and stay compliant with Deel

Registering as a sole proprietor gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential Bookkeeping tools
• Create, send, and sign localised work agreements
• Keep accurate records for tax season
• Access expert tax advice and compliance support
• Get paid through multiple payment and withdrawal methods
• Spend your earnings in USD with the Deel Card
• Access funds early with Deel Advance
• Enjoy contractor perks from 150+ partners

Stay independent, without the admin overload. Sign up to Deel for free today.

FAQs

What is the minimum capital required to start an Индивидуальный предприниматель?
None. No starting capital is required.

Do Индивидуальный предприниматель need to register for VAT?
Only if turnover exceeds 20,000 MCI (KZT 78.6m in 2025), or 124,184 MCI (KZT 488m) under simplified regimes using cashless payment systems.

How much are the standard monthly or annual contributions?
Individual Entrepreneurs must pay mandatory pension contributions of 10% of income (up to a capped base), monthly social health insurance contributions equal to 5% of 1.4 times the minimum wage, and social insurance contributions at 3.5% of income, calculated within the legal minimum and maximum bases.

Can an Индивидуальный предприниматель hire employees?
Yes, but hiring employees makes you ineligible for some simplified tax regimes.

How long does it take to register as an Индивидуальный предприниматель in Kazakhstan?
Usually, same day online.

Can foreign nationals register as Индивидуальный предприниматель in Kazakhstan?
Generally limited to Kazakh citizens and residents. Non-residents usually must form an LLP.

Do Индивидуальный предприниматель need a separate business bank account?
Not legally required, but highly recommended.

What happens if I stop working as an Индивидуальный предприниматель?
You must deregister through the eGov portal or the tax authority and settle final taxes.

Are there any government incentives or reduced rates for new Индивидуальный предприниматель?
Yes—patent and mobile app regimes offer reduced rates.

Can I use Deel as an Индивидуальный предприниматель to get paid by international clients?
Yes, Deel allows IPs to invoice and receive payments globally.

Does Deel generate compliant invoices for Индивидуальный предприниматель?
Yes, Deel invoices meet local requirements.

Can Deel help me with taxes as an Индивидуальный предприниматель in Kazakhstan?
Yes, Deel provides reports you can use when filing.

Does Deel offer contracts for freelancers and Индивидуальный предприниматель?
Yes, Deel provides compliant templates.

Can I access benefits through Deel as an Индивидуальный предприниматель?
Yes, Deel offers optional perks like health insurance and retirement savings.