Breaking news http://kabar.kg/eng/rss/ Investment in KG Sun, 22 Apr 2018 04:23:51 +0600 Kabar.kg 60 Volume of investments in Kyrgyzstan from UK in 2017 increased by 44 times Bishkek, Jan. 13, 2018. /Kabar/. In 2017, the volume of investments in the economy of Kyrgyzstan from the UK increased by 44 times compared with 2016, Kyrgyz Economy Minister Artem Novikov told during a meeting with British Ambassador to the Kyrgyz Republic Robin Ord-Smith.

"The UK is one of the major investor-countries, and the volume of foreign direct investments from the UK for the first 9 months of 2017 amounted to more than $ 27.6 million and increased compared to the same period in 2016 by 44 times," Novikov said.

Robin Ord-Smith replied that "there were positive steps in our relations last year, and our task is to increase our relations not only in the economic sphere, but also in other areas."

The diplomat added that there is potential for development of trade and investment cooperation between the countries.

"My job is to help in this, and as an ambassador I need to provide more information to our business about Kyrgyzstan, as many companies are not aware of the opportunities of Kyrgyzstan," Ord-Smith said.

Novikov said that for 10 months of 2017 the trade turnover between the Kyrgyz Republic and Great Britain made $ 15.1 million.

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Sat, 13 Jan 2018 21:38:45 +0600 http://kabar.kg/eng/news/volume-of-investments-in-kyrgyzstan-from-uk-increased-in-2017-by-44-times/ http://kabar.kg/eng/news/volume-of-investments-in-kyrgyzstan-from-uk-increased-in-2017-by-44-times/
Kyrgyzstan seeks investment from Bangladesh Bishkek, Jan. 9, 2018. / Kabar /. Kyrgyzstan invited Bangladesh business leaders to invest in their country and also for Kyrgyz-Bangladesh joint venture in the Kyrgyz Republic, the The Asian Age reported.

Mentioning about loan facilities available for joint venture in Kyrgyzstan, Honorary Consul of Bangladesh at Kyrgyz Republic Temirbek Erkinov said that workers from Bangladesh can be employed in the joint ventures.

He made the remarks at a meeting with Federaton of Bangladesh Chambers and Commerce Industry (FBCCI) leaders at FBCCI office in the city on Monday.

Among others, FBCCI President Md Shafiul Islam (Mohiuddin), Senior Vice-president Sheikh Fazle Fahim and Vice-president Md Muntakim Ashraf took part in the discussion. FBCCI Secretary General (in-charge) Hussain Jamil also attended the discussion.

In the meeting, FBCCI President Md Shafiul Islam (Mohiuddin) briefed the consul about the role of private sector in the fast growing development of Bangladesh.

Responding to a proposal of Erkinov, the FBCCI President agreed to establish effective communication with the Kyrgyz Chamber of Commerce and Industry. They also agreed to take initiative for signing a 'Memorandum of Understanding (MoU)' between the national chambers of two countries.

It may be mentioned that Bangladesh exported total amount of US $0.04 million to Kyrgyzstan in 2016-17 and imported the amount of US $0.09 million in 2015-2016.

The principal export products of Bangladesh to Kyrgyz are woven garments, knitwear and home textile etc. The import items from Kyrgyz include textiles, textile articles, glass and glassware etc.

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Tue, 09 Jan 2018 11:42:02 +0600 http://kabar.kg/eng/news/kyrgyzstan-seeks-investment-from-bangladesh-businessmen/ http://kabar.kg/eng/news/kyrgyzstan-seeks-investment-from-bangladesh-businessmen/
ADB continues support to improve investment climate in Kyrgyzstan Bishkek, Dec. 19, 2017 / Kabar /. The Asian Development Bank’s (ADB) Board of Directors has approved a $25 million policy-based grant to continue ongoing efforts to improve the investment climate in the Kyrgyz Republic and encourage the private sector to contribute more effectively to the country’s growth. The grant is being provided under subprogram 3 of the Second Investment Climate Improvement Program (Second ICIP).

“The private sector has a significant role to play in boosting the Kyrgyz economy through diversified economic growth and higher value-added job creation,” said Priyanka Sood, Senior Financial Sector Specialist at ADB. “ADB’s grant will increase access to financial services for small businesses, improve prospects for private sector participation in developing infrastructure including through public-private partnerships (PPPs), diversify trade and investment, and increase transparency and ease of doing business. Together, these actions will make the country a more attractive place for investment and job creation.”

Small and medium-sized enterprises (SMEs) are one of the biggest contributors to the Kyrgyz economy, comprising about 40% of the country’s gross domestic product and almost 20% of total employment. Subprogram 3 will help increase access to finance by reducing the risks of lending to SMEs including through operationalization of the State Guarantee Fund, while also expanding financial services among the underbanked segment of the population by expanding the use of mobile and internet payments for key public services. It will also support government efforts to further develop the country’s PPP program. The first PPP agreement was signed in August 2017 for the provision of hemodialysis services in Bishkek, Osh, and Jalalabad.

Additionally, subprogram 3 has provided support for the government’s efforts to diversify trade and investment destinations and sources. It will also help increase transparency and improve the ease of doing business in the country to incentivize private businesses to join the formal economy and encourage more private sector players—domestic and international—to do business in the Kyrgyz Republic.

These outputs build on ADB-supported reforms in 2015 and 2016 implemented under subprograms 1 and 2, which totaled over $65 million.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2016, ADB assistance totaled $31.7 billion, including $14 billion in cofinancing.

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Tue, 19 Dec 2017 09:27:37 +0600 http://kabar.kg/eng/news/adb-continues-support-to-improve-investment-climate-in-kyrgyzstan/ http://kabar.kg/eng/news/adb-continues-support-to-improve-investment-climate-in-kyrgyzstan/
IFC, Governments of UK and Switzerland help improve investment climate in Kyrgyzstan Bishkek, Dec. 13, 2017 / Kabar/. On December 12, 2017, IFC, a member of the World Bank Group, released the results of a five-year program which aimed to help the Kyrgyz Republic to improve the business environment and to promote private investments in order to create jobs and support sustainable economic development. The initiative is part of the IFC Central Asia Investment Climate Program, which is funded by the government of Switzerland and the United Kingdom’s Department for International Development.

The project implemented by IFC in close collaboration with State agencies and the Ministry of Economy has helped the Kyrgyz government to introduce risk-based inspection system that has reduced the inspections burden: compliance costs for the private sector have been reduced by an estimated $5 million over the past few years. IFC support to investment policy reforms has generated an estimated $14 million additional investment to the economy. The tax system reforms, which was another component of the project has enabled businesses to save $ 2.2 million in 2016 only.

The Program has also ensures the development of relevant legislation as regards food safety, and initiated a number of important reforms to help local food producers to access new markets.

“The government of the Kyrgyz Republic has been working on improving the business climate and we have positive results. With inspection numbers significantly reduced, the risk level assessments and planning of inspections are now fully automated,” said Daniyar Imanaliev, Deputy Minister of Economy of the Kyrgyz Republic. “However, making the country a better place for businesses is a long-term, continuous process. We thank IFC for its long-standing support and hope to work together on the next reforms.” .

“Switzerland, through the State Secretariat for Economic Affairs (SECO), has been supporting since 2008 initiatives that aim to create a favourable business environment. This was done by supporting reforms in the field of tax administration and business regulation. A necessary condition for successful reform process is the involvement of the private sector in the project design and monitoring,” said Véronique Hulmann, Ambassador of Switzerland to the Kyrgyz Republic.

“An attractive investment climate is a prerequisite for an economy that wants to grow and create jobs”, said Martin Naegele, IFC Country Officer. “IFC, together with the World Bank, has been helping the Kyrgyz government resolve legal and policy weaknesses, to improve the operating environment for business and unlock the country’s potential to attract new investment.”

The Swiss Government and WBG/IFC will continue supporting the Kyrgyz Republic to create more favorable business environment, attract and retain foreign direct investment, and unlock new markets for the local businesses.

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Wed, 13 Dec 2017 19:28:56 +0600 http://kabar.kg/eng/news/ifc-governments-of-uk-and-switzerland-help-improve-investment-climate-in-kyrgyzstan/ http://kabar.kg/eng/news/ifc-governments-of-uk-and-switzerland-help-improve-investment-climate-in-kyrgyzstan/
EBRD supports reliable power supply in Kyrgyz Republic Bishkek, Dec.9, 2017 / Kabar/. The EBRD is contributing to the reliability of power distribution in the Kyrgyz Republic with a financing package of up to €6 million to JSC Vostokelectro, one of power distribution companies covering 47% of Kyrgyz Republic territory.

It will consist of a sovereign loan of up to €4 million and an investment grant of up to €2 million from the EBRD Shareholder Special Fund to support Vostokelectro’s investment to improve energy efficiency and reduce energy losses. The EBRD is also financing a corporate development programme for the electricity distribution company, aimed at strengthening its financial performance.

The EBRD financing will allow Vostokelectro to install advanced metering systems, modernise and strengthen its low- and medium-voltage power infrastructure and establish a better integration with renewable sources of energy. The implementation of these investments is expected to reduce technical losses by 18,400 MWh per year and carbon emissions by 2,097 tonnes of CO2 per year.

The loan is provided under the EBRD Green Economy Transition (GET) approach, a strategy which sets the EBRD on course to dedicate 40 per cent of its annual investment to green finance by 2020. The Bank is well on the way to achieving this objective.

Aida Sitdikova, Director, Head of Energy and Natural Resources, Russia, Caucasus and Central Asia, said: “We are pleased to continue our cooperation with the Government of the Kyrgyz Republic in our mutual goal to modernise the country’s energy sector. This new project will help provide better quality services to citizens as well as bring international good practices to a regional power distribution company.”

According to information provided by Bakyt Sydykov, the General Director of Vostokelectro, the proposed investment project will focus on the replacement of 32,000 old induction meters with new smart meters in areas with high electricity losses. It will also help replace 0.4 kV of overhead power supply lines with an insulated self-supporting wire and reconstruct two sub-stations. Once implemented, the project will secure stable and reliable supply of electricity in the region.

To date, the EBRD has invested about US$ 770 million in various sectors of the Kyrgyz economy, with projects in infrastructure accounting for a third of the total investment.

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Sat, 09 Dec 2017 18:13:37 +0600 http://kabar.kg/eng/news/ebrd-supports-reliable-power-supply-in-kyrgyz-republic/ http://kabar.kg/eng/news/ebrd-supports-reliable-power-supply-in-kyrgyz-republic/
Review of investment incentives inventory in the Kyrgyz Republic and Inventory of investment incentives in the Kyrgyz Republic (excel) Review of investment incentives inventory in the Kyrgyz Republic and Inventory of investment incentives in the Kyrgyz Republic (excel)

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Tue, 01 Aug 2017 18:10:06 +0600 http://kabar.kg/eng/news/review-of-investment-incentives-inventory-in-the-kyrgyz-republic-and-inventory-of-investment-incentives-in-the-kyrgyz-republic/ http://kabar.kg/eng/news/review-of-investment-incentives-inventory-in-the-kyrgyz-republic-and-inventory-of-investment-incentives-in-the-kyrgyz-republic/
Regulation on out-of-court settlement of complaints (disagreements) related to investments Regulation on out-of-court settlement of complaints (disagreements) related to investments

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Tue, 01 Aug 2017 18:09:37 +0600 http://kabar.kg/eng/news/regulation-on-out-of-court-settlement-of-complaints-disagreements-related-to-investments/ http://kabar.kg/eng/news/regulation-on-out-of-court-settlement-of-complaints-disagreements-related-to-investments/
Licenses and permits Legislation

Licensing is regulated by the Law of the Kyrgyz Republic “On Licensing and Permits System in the Kyrgyz Republic”.[1] Banks, financial/lending institutions, and other institutions regulated by the National Bank of the Kyrgyz Republic are licensed subject to special laws[2] to the extent not inconsistent therewith. The procedure for issuing licenses for the use of mineral resources, including the procedure for the extension, suspension, termination or transfer of such licenses as well as the license conditions, license control, fees and charges are regulated by the legislation of the Kyrgyz Republic in the field of mineral resources. The procedure for issuing licenses and permits to carry out foreign trade activity is determined in accordance with the legislation of the Kyrgyz Republic in the field of foreign economic activity and the requirements of international treaties and acts constituting the law of the Eurasian Economic Union in the field of licensing. The export, import and transit of goods included in the common list of goods subject to prohibitions and restrictions on import or export by the member-states of the Eurasian Economic Union within the borders of the Eurasian Economic Community in trade with third countries are subject to non-tariff regulatory measures and restrictions in accordance with provisions of international treaties and acts constituting the law of the Eurasian Economic Union.

Licenses are issued on equal conditions and grounds to all persons (including stateless persons), regardless of the form of ownership .

Licenses are only required for activities and operations specified by law and to the extent necessary to maintain national security, government monopoly, law and order and to protect the environment, ownership , life and health of citizens. Under Kyrgyz law, licensing is mandatory for the following activities:

  • Production, transmission, distribution, sale, export and import of electricity (except electricity produced from renewable sources or from other sources for personal use with capacity up to 1,000 kWh);
  • Production, transmission, distribution, sale, export and import of heat (except heat produced from renewable sources or from any sources for personal use);
  • Processing of oil and natural gas, except industrial-scale production and sale of bioethanol produced from vegetable feed;
  • Production, transfer, distribution, and sale of natural gas;
  • Production and distribution of ethyl alcohol;
  • Production and distribution (storage for production or sale purposes, wholesale and retail trade) of alcoholic products;
  • Private medical practice (except under a service or employment contract with private medical institutions or individual entrepreneurs);
  • Production, manufacture and sale of medicines and medical equipment;
  • Production and sale of vaccines and serums in specialized veterinary enterprises;
  • Activities involving work with RG2 microorganisms;
  • Activities in the field of electric communication;
  • Activities in the field of postal communication;
  • Activities in the field of data transfer;
  • TV and radio broadcasting activities, including production, transmission, and distribution of broadcasting programs;
  • Urban planning, research and design of residential, public and production buildings and structures (Category I, II and III facilities);
  • Construction and installation operations, except construction of individual residential houses (Category I, II and III facilities);
  • Passenger transport services by motor vehicle (except taxi cars);
  • International cargo transportation by truck;
  • Passenger and (or) cargo transportation by air;
  • Aircraft ground handling in airports (aerodromes) during arrival and departure, except maintenance and (or) repair of aircrafts;
  • Passenger and (or) cargo transportation by water;
  • Banking operations specified by the legislation of the Kyrgyz Republic in the field of banking, micro-finance, payment systems and funds transfer, credit information exchange and credit union activities;
  • Credit union activities;
  • Microfinance activities;
  • Pawn shop activities;
  • Foreign currency exchange services;
  • Credit bureau activities;
  • Payment intermediary services effectuated through IT-based and electronic payment systems;
  • Acceptance, processing, and issuance of financial information (processing and clearing services) relating to payments and settlements between third parties and participants of the payment system of a given processing or clearing center;

  • Lottery activities (except stimulating lottery);
  • Transportation (including trans-boundary transportation) of toxic substances, including radioactive waste;
  • Design, manufacture and sale of military products (munitions, military equipment, military-technical property, documentation, intellectual property, military-technical information referred to military products under Kyrgyz law) and military services (maintenance, upgrade, disposal of munitions, military equipment and their transportation, supply, and storage);
  • Production, use, disposal of industrial explosive materials;
  • Sale of explosive substances and products (including pyrotechnic ones);
  • Production, repair, and trade in weapons and munitions;
  • Design, production, manufacture, processing, storage, issue, sale, purchase and distribution of narcotic drugs, psychotropic substances and their precursors;
  • Advocate practice;
  • Private notarial practice;
  • Voluntary universal life insurance services;
  • Voluntary personal insurance services;
  • Voluntary property insurance services;
  • Voluntary liability insurance services;
  • Mandatory insurance services;
  • Mandatory and voluntary inward reinsurance services;
  • Non-governmental pension fund activities;
  • Organized market for trading securities;
  • Securities broker services;
  • Security holders registry keeper services;
  • Securities depository services;
  • Securities dealer services;
  • Investment fund activities;
  • Investment trust activities;
  • Audit services;
  • Bankruptcy administration services;
  • Design, installation, adjustment and repair of anti-fire automatic devices; flameproofing of wooden structures and combustible theatrical display equipment;
  • Educational activities (except state and municipal educational institutions carrying out pre-school, primary, basic and secondary general education programs);
  • Import, export of arms and ammunition, as well as other products of military purpose according to the list approved by the Government of the Kyrgyz Republic;
  • Import, export, re-export of goods included in the National checklist of controlled products of the Kyrgyz Republic approved by the Government of the Kyrgyz Republic;
  • Insurance broker activities;
  • Actuarial activities;

Also, licensing is mandatory for the following activities involving the use of limited public resources:

  • Using radio frequency spectrum to provide electrical communication and (or) data transmission services;
  • Taking timber from the woodland at woods of the forestry fund (felling license, small-scale timber supply permit);
  • Taking flora resources for commercial purposes (flora resources taking permit, forest use permit);
  • Disposal, storage, burial and elimination of toxic waste, including radioactive waste;
  • Mineral tenure related activities (prospecting, exploration, or mining of mineral resources, including extraction and use of underground water, geological mapping and regional geological, geophysical and other scientific researches, building and operation of non-mining underground facilities, collection of mineralogical, paleontological materials for commercial purposes, collection of rock materials for decorative purposes and for their use as ornamental stones and building materials, and non-exploration and non-mining mineral tenure);
  • Generation, use, processing, formation, storage, and elimination of substances which can form explosive mixtures (filling stations which fill compressed or liquefied gas cylinders);
  • Generation, formation, storage, use and elimination of highly toxic substances.

Permits are required for the following operations:

  • Import of used automobile tires as waste for recycling purposes;
  • Blasting operations;
  • Mining operations;
  • Import and export of ore and rock samples, concentrates, residues and laboratory tests for analytical research;
  • Purchase of alluvial gold and gold concentrate;
  • Import of commodities of plant origin under quarantine;
  • Work permit issued to foreign citizens and stateless persons at employers’ request based on overall quota in the territory of the Kyrgyz Republic;
  • Employment of Kyrgyz citizens abroad;
  • Transit of weapons and military equipment through the territory of the Kyrgyz Republic;
  • Import, export, transit through the territory of the Kyrgyz Republic of narcotic drugs, psychotropic substances and their precursors;
  • Purchase, storage, transportation, carrying, collection, display, of civilian and duty weapons and munitions;
  • Purchase and sale of highly toxic substances;
  • Purchase, sale, storage, transportation, carrying, import, export of special means approved by the Government of the Kyrgyz Republic;
  • Test fishing for scientific purposes;
  • Placement of waste in the environment;
  • Discharge of pollutants into the environment;
  • Release of pollutants into the atmosphere by stationary sources of pollution;
  • Entry and exit from foreign country during international cargo transportation by truck;
  • Transit through the territory of a foreign state during international cargo transportation by truck;
  • International cargo transportation by truck;
  • Cargo transportation to or from third countries during international cargo transportation by truck;
  • International passenger transportation (regular and irregular);
  • Transportation of dangerous goods;
  • Storage of explosives materials used for industrial purpose;
  • Storage of pyrotechnic products ;
  • Import of pyrotechnic products to the Kyrgyz Republic;
  • Purchase of explosives materials;
  • Import to the Kyrgyz Republic of radio-electronic means (REM) and high-frequency devices (HFD), other technical means emitting radiofrequency radiation or high-frequency electromagnetic waves;
  • Frequency acquisition for operation of radio-electronic means;
  • Import and export of goods (products) subject to veterinary control;
  • Transit through the territory of the Kyrgyz Republic of goods (products) subject to veterinary control;
  • Transit through the territory of the Kyrgyz Republic of goods included in the National Checklist of controlled products of the Kyrgyz Republic approved by the Government of the Kyrgyz Republic;
  • Development, production, sale, purchase, storage, transportation of special technical means used for surreptitious obtaining of information

Licensing Authorities

Licenses are issued by the competent governmental authorities (licensors) exercising control over licensed activities. The list of the governmental authorities issuing licenses is set forth in the laws and acts of the Government of the Kyrgyz Republic.

Licenses issued in other countries are recognized valid in the Kyrgyz Republic as long as appropriate international treaties are in place.

License Issuance

To obtain a license, an applicant shall submit to the competent governmental authority the following documents:

  1. The standard application form;
  2. A copy of proof of identity document (for individuals);
  3. A copy of certificate of state registration of a legal entity or individual entrepreneur;
  4. A copy of proof of payment of the application fee and the license and (or) permit fee;
  5. Copies of documents set forth in the Regulation on Licensing of Certain Business Activities approved by the Government of the Kyrgyz Republic.

A licensor may not demand from the applicant any documents other than those provided by law or regulations. All documents submitted for the purposes of obtaining a license shall be duly registered by the competent authority. Applicants may apply for licenses and (or) permits online through licensors’ websites by completing and submitting their application forms and scanned copies of original registration documents. In return, they receive the licensor’s confirmation indicating the date of receipt of the application and the list of the documents submitted online.

Applicants may apply for an electronic license and (or) permit by indicating this in the application form.

Licenses are issued within thirty calendar days from the date of filing an application with all the required documents. The only exception is the license to use radio-frequency spectrum requiring coordination with neighboring countries of the Kyrgyz Republic.


[1] The Law of the Kyrgyz Republic “On Licensing and Permits System in the Kyrgyz Republic” No. 195 dated October 19, 2013 (with the latest amendments as of June 28, 2016).

[2] For more information on banking refer to Section 9.

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Tue, 01 Aug 2017 18:06:54 +0600 http://kabar.kg/eng/news/licenses-and-permits/ http://kabar.kg/eng/news/licenses-and-permits/
Legal status of foreign nationals
  • Visa and Registration Requirements
  • Subject to the legislation of the Kyrgyz Republic,[1] foreign nationals and stateless persons may enter the Kyrgyz Republic for temporary or permanent residence on the basis of a visa, temporary or permanent residence permit.

    Visa Requirements and Visa-Free Travel

    Initial issuance of all categories of visas is performed by diplomatic missions and consular offices of the Kyrgyz Republic.

    Below is a list[2] of the foreign countries whose nationals are subject to a simplified visa regime. The law provides that nationals of foreign countries included in this list are eligible to obtain Kyrgyz entry and exit visas from overseas diplomatic missions and consular offices of the Kyrgyz Republic and from consular offices in the Kyrgyz Republic at their personal request for a term of up to 90 days:[3]

    • Australia, the Republic of Austria, the Kingdom of Belgium, the Republic of Bulgaria, Bosnia and Herzegovina, the United Kingdom of Great Britain and Northern Ireland, the Republic of Hungary, the Federal Republic of Germany, the Hellenic Republic, the Kingdom of Denmark, the State of Israel, the Republic of Ireland, the Republic of Iceland, the Kingdom of Spain, the Italian Republic, Canada, the Republic of Cyprus, the Republic of Korea, the Republic of Lithuania, the Republic of Latvia, the Principality of Liechtenstein, the Grand Duchy of Luxembourg, the Republic of Macedonia, the Republic of Malta, Monaco, the Netherlands, the Kingdom of Norway, New Zealand, the Republic of Poland, the Portuguese Republic, the Republic of Romania, the Republic of Serbia, the Republic of Slovenia, Singapore, Slovak Republic, the United States of America, the Republic of Turkey, the Republic of Finland, the French Republic, the Republic of Croatia, the Republic of Montenegro, the Czech Republic, the Swiss Confederation, the Kingdom of Sweden, the Republic of Estonia, Andorra, Argentina, Brazil, Vatican City, Vietnam, the Kingdom of Thailand, the Kingdom of Saudi Arabia, Mexico, the United Arab Emirates, San Marino, the Philippines, the Republic of Albania, Brunei Darussalam, the Republic of Indonesia, Republic of South Africa, the Republic of Chile, the Bolivarian the Republic of Venezuela, the State of Qatar, the State of Kuwait, the Sultanate of Oman, the Kingdom of Bahrain, Japan.

    Visa-free travel possibilities are granted on the basis of the legislation of the Kyrgyz Republic[4] and international treaties to which the Kyrgyz Republic is a party. Nationals of the following countries may enter the Kyrgyz Republic visa-free:

    • Visa-free entry for up to 60 days for nationals of: the Commonwealth of Australia, the Republic of Austria, the Kingdom of Belgium, Bosnia and Herzegovina, the Vatican, the United Kingdom of Great Britain and Northern Ireland, Hungary, the Federal Republic of Germany, the Netherlands, the Hellenic Republic, the Kingdom of Denmark, Iceland, Ireland, the Kingdom of Spain, the Italian Republic, Canada, the Republic of Korea, Kuwait, the Republic of Latvia, the Republic of Lithuania, the Principality of Liechtenstein, the Grand Duchy of Luxembourg, the Republic of Malta, Monaco, New Zealand, Norway, the United Arab Emirates, the Republic of Poland, the Portuguese Republic, the Kingdom of Saudi Arabia, the Republic of Singapore, the Slovak Republic, the Republic of Slovenia, the United States of America, the Republic of Finland, the French Republic, the Republic of Croatia, the Czech Republic, the Swiss Confederation, the Kingdom of Sweden, the Republic of Estonia, the State of Qatar, the State of Brunei Darussalam, the Kingdom of Bahrain, Japan;
    • Visa-free entry for holders of all categories of passports of nationals of: the Republic of Armenia, the Republic of Azerbaijan, the Republic of Belarus, the Republic of Cuba, the Republic of Georgia, the Republic of Kazakhstan , the Democratic People’s Republic of Korea, Malaysia (for the period from 1 month up to 3 months depending on purpose of stay), the Republic of Moldova, Mongolia (up to 90 days), the Russian Federation, the Republic of Tajikistan, the Republic of Ukraine (up to 90 days), the Republic of Uzbekistan (up to 60 days), the Turkish Republic (up to 1 month), Vietnam, Lao People’s Democratic Republic.
    • Visa-free entry for up to 1 month for nationals holding diplomatic and service passports of: the Republic of Hungary, the Islamic Republic of Pakistan, the Islamic Republic of Iran (up to 30 days for holders of service passports), the People’s Republic of China, Turkmenistan, the Republic of Uzbekistan (up to 60 days), Singapore, the Republic of Korea, the Republic of Indonesia, the Republic of India (up to 90 days), the Republic of Romania (up to 90 days within a period of 180 days), the State of Kuwait (not exceeding 90 days per period of 60 months from the date of the first entry), the State of Qatar (up to 90 days).
    • Visa-free entry for nationals holding diplomatic passports of: the Republic of Austria, the Kingdom of Belgium, Canada, the Kingdom of Denmark, the Republic of Finland, the Republic of France, the Federal Republic of Germany, the Republic of Greece, the Republic of Iceland, the Italian Republic, the Grand Duchy of Luxembourg, the Kingdom of the Netherlands, the Kingdom of Norway, the Republic of Portugal, the Kingdom of Spain, the Kingdom of Sweden, the United Kingdom of Great Britain and Northern Ireland, the United States of America, the Slovak Republic (up to 30 days), the Republic of Poland (up to 90 days within a period of 180 days).

    Visa Categories

    • Diplomatic (issued to foreign nationals holding diplomatic passports and entering the Kyrgyz Republic for official purposes or for transit travel through its territory);
    • Service (issued to foreign nationals holding service passports and entering the Kyrgyz Republic for official purposes or for transit travel through its territory);
    • Business (issued to foreign nationals entering the Kyrgyz Republic for business purposes);
    • Investment (issued to direct investors entering the Kyrgyz Republic with the intent to engage in investment activities and providing required supporting documentation that proves their production-related contribution of money and valuables into the economy of the Kyrgyz Republic of USD 500 thousand );
    • Tourist (issued to foreign nationals entering the Kyrgyz Republic as tourists);
    • Work (issued to foreign nationals entering the Kyrgyz Republic for work under work permits);
    • Study (issued to foreign nationals entering the Kyrgyz Republic for study);
    • Private (issued to foreign nationals entering the Kyrgyz Republic for private purposes, such as visiting family and friends, undergoing medical treatment, permanent or temporary residence);
    • Religious (issued to foreign nationals entering the Kyrgyz Republic for cooperation with religious organizations with the consent of the public authority of the Kyrgyz Republic for religious matters;
    • Transit (issued to foreign national transiting through the Kyrgyz Republic to any third countries).

    Visas may be single-entry, double-entry, or multiple. A foreign national receiving a visa shall pay a state duty or a consular fee in the amount set by the Government of the Kyrgyz Republic.[5]

    Residence Permit

    A Kyrgyz residence permit is a document allowing foreign nationals and stateless persons to, temporarily or permanently, reside, stay, enter or exit from the Kyrgyz Republic visa free.

    Under Kyrgyz legislation[6], foreign nationals or stateless persons residing in the Kyrgyz Republic for not less than 6 months may file with the local offices of the Department of Registration of Population under the State Registration Service under the Government of the Kyrgyz Republicclosest to the place of location an application for residence permit.

    A Temporary residence permit is issued to foreign nationals or stateless persons in order to:

    • Work in the Kyrgyz Republic;
    • Study in an educational institution at the request of this educational institution and the Kyrgyz Ministry of Education and Science;
    • Pursue investment activities in the Kyrgyz Republic.

    A Temporary residence permit is issued to foreign nationals and stateless persons for a term of 1 year with the possibility of subsequent extension for not more than 5 years.

    The application for a temporary residence permit is generally reviewed within not more than 1 month.

    Temporary residence permits are issued in the local offices of the Department of Registration of Population and Affidavits of Civil Status under the State Registration Service under the Government of the Kyrgyz Republic.

    Permanent residence permits are issued to:

    • Those who have duly received a Kyrgyz permanent residence permit, including those who returned to the Kyrgyz Republic, whose Kyrgyz citizenship has been terminated in accordance with law;
    • Those who permanently reside in the Kyrgyz Republic but have not received Kyrgyz citizenship or whose Kyrgyz citizenship has been terminated in accordance with law;
    • Foreign nationals or stateless persons permanently residing in the Kyrgyz Republic upon the attainment of 18 years of age.

    Foreign nationals are issued permanent residence permits for a term of 5 years, but not longer than the foreign passport validity period, and upon the attainment of 45 years of age for the entire validity period of the foreign passport. Stateless persons are issued permanent residence permits for a term of 5 years, and upon the attainment of 45 years of age, for an unlimited term.

    The application for a permanent residence permit is reviewed within 1 year from the date of filing the application.

    The permanent residence permits are given out in the Department of Registration of Population and Affidavits of Civil Status under the State Registration Service under the Government of the Kyrgyz Republic.

    Upon receipt of the residence permit, foreign nationals or stateless persons must within 5 business days file for registration with the territorial bodies of the Department of Registration of Population and Affidavits of Civil Status under the State Registration Service under the Government of the Kyrgyz Republic that are closest to the place of temporary or permanent residence.

    Registration Procedure

    Foreign nationals and stateless persons (except foreign nationals exempt from registration) entering the Kyrgyz Republic for the period of more than 5 business days from the date of crossing the state border of the Kyrgyz Republic, must register a place of residence with the territorial subdivisions of the State Registration Services under the Government of the Kyrgyz Republic. The Kyrgyz Government is entitled to approve a list of countries, the citizens of which may stay in the Kyrgyz Republic without registration for a longer period of time[7]

    To work in the Kyrgyz Republic, foreign nationals or stateless persons must have a work permit. For more details on work permits for foreign nationals refer to Section 10.

    3.2 Basic Rights, Freedoms, and Obligations of Foreign Nationals

    Foreign nationals within the territory of the Kyrgyz Republic generally enjoy the same rights and bear the same obligations as the nationals of the Kyrgyz Republic.[8] Foreign nationals are equal under the law, regardless of sex, race, language, disability, ethnic origin, creed, age, political or other beliefs, education, social origin, property or other status, and other circumstances.

    Foreign nationals are entitled to work when it is compatible with the purpose and timeframe of their visit to the Kyrgyz Republic, or when a respective permit has been issued, except for the nationals of the Eurasian Economic Union member states.[9]

    Foreign nationals permanently residing in the Kyrgyz Republic are entitled to social services and healthcare, and may join public associations of non-political purposes on the same grounds as nationals of the Kyrgyz Republic unless otherwise provided in charters (bylaws) of such associations.

    Foreign nationals have the same right to leisure as citizens of the Kyrgyz Republic, enjoy cultural benefits and have property and personal non-property rights and all other rights equivalent to nationals of the Kyrgyz Republic.

    A foreign national can freely move throughout the territory of the Kyrgyz Republic and choose a place of residence in the manner provided by Kyrgyz law. In which case, they are guaranteed inviolability of person and dwelling.

    Foreign nationals are required to pay taxes and charges on the same basis as Kyrgyz nationals, unless otherwise provided by Kyrgyz law.

    Foreign nationals in the Kyrgyz Republic have the right to refer to court and other government bodies for protection of their personal, property, family and other rights. They enjoy the same litigation rights as Kyrgyz nationals.

    Foreign nationals who commit crimes, administrative or other legal offences in the territory of the Kyrgyz Republic are subject to the same liability as Kyrgyz nationals.

    A foreign national staying in the Kyrgyz Republic is provided with the opportunity to contact the diplomatic or the consular mission of his own country, or if such is not available, the diplomatic or consular mission of another country authorized to protect the rights and legal interests of nationals of his country of citizenship.


    [1] The Law of the Kyrgyz Republic “On External Migration” dated July 17, 2000, No.61 (with the latest amendments as of October 24, 2016 ).

    [2] Resolution No. 87 of the Government of the Kyrgyz Republic on Approval of List of Foreign States whose Nationals are Subject to a Simplified Visa Regime dated February 7, 2009 (with the latest amendments as of July 23, 2015).

    [3] Resolution No. 87 of the Government of the Kyrgyz Republic on Approval of List of Foreign States whose Nationals are Subject to a Simplified Visa Regime dated February 7, 2009 (with the latest amendments as of July 23, 2015).

    [4] The Law of the Kyrgyz Republic “On Introduction of Visa-free Regime for Citizens of Some States for up to 60 Days” dated July 21, 2012 No. 121 (with the latest amendments as of July 19, 2013).

    [5] Resolution On consular fees and charges for actual expenses No. 839 of the Government of the Kyrgyz Republic dated December 18, 2012.

    [6] Regulation on procedure for issuing temporary and permanent residence permits to foreign nationals and stateless persons in the Kyrgyz Republic approved by Resolution No. 626 of the Government of the Kyrgyz Republic dated November 13, 2008 (with the latest amendments as of July 15, 2015 ).

    [7] The Law of the Kyrgyz Republic “On External Migration” of July 17, 2000 No. 61 (with the latest amendments as of October 24, 2016).

    [8] The Law of the Kyrgyz Republic “On Legal Status of Foreign National in the Kyrgyz Republic” dated December 14, 1993 No. 1296-XII (with the latest amendments as of October 11, 2011);

    [9]Treaty on Eurasian Economic Union dated May 29, 2014.

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    Tue, 01 Aug 2017 18:04:38 +0600 http://kabar.kg/eng/news/legal-status-of-foreign-nationals/ http://kabar.kg/eng/news/legal-status-of-foreign-nationals/
    Investment visa According to the new instruction about an order of registration and issue of visas of the Kyrgyz Republic of March 15, 2017 the new, simplified order of obtaining the investment visa works.

    The investment visa (I type) is issued to investors or the head of foreign investment company and members of his family (spouse, minor children and parents who are in dependence) who is performing investment activities in the Kyrgyz Republic and submitted the necessary supporting documents certifying a contribution to economy of the Kyrgyz Republic of its monetary and material values equivalent to the amount of 10 (ten) million som for up to 3 (three) years intended for the following purposes:

    • Production;
    • Industry;
    • Agricultural industry;
    • Banking;
    • Power systems;
    • Education;
    • Medicine;
    • Construction purposes;
    • Information and communication technologies.

    The investment visa grants to the foreign investor the right during the term determined by the Ministry of Foreign Affairs of the Kyrgyz Republic to freely leave and enter the country and move within the country, observe the legislation of the Kyrgyz Republic for the purpose of development and management of own business, and also participate in tenders, auctions within the legislation of the Kyrgyz Republic.

    The investment visa (“I“ type) – is issued to foreign citizens on the basis of application to The State Agency for Investment and Export Promotion under the Ministry of Economy of the Kyrgyz Republic.

    The State Agency for Investment and Export Promotion under the Ministry of Economy of the Kyrgyz Republic is the authorized body for attracting foreign direct investments into the country's economy, as well as providing support to potential and existing investors.

    Also according to a new order, for convenience of investors the category of the family visa has been implemented.

    The family visa - "F" is issued to members of the family of the applicant (spouse, minor children and parents who are in dependence) staying in the territory of the Kyrgyz Republic with visas of category investment - "I", "labor - "W1" and "W2", educational - "S" for up to 1 year with a possibility of annual prolongation and without the right of implementation of a labor activity.

    For further information please contact at (+996 312) 623866 or mail@invest.gov.kg

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    Tue, 01 Aug 2017 18:03:47 +0600 http://kabar.kg/eng/news/investment-visa/ http://kabar.kg/eng/news/investment-visa/
    Free economic zones Free economic zones (the FEZ) are the zones where foreign economic and business activities55 are subject to preferential legal treatment. Companies working in free economic zones enjoy the following benefits and preferences:

    • Partial exemption from all taxes, dues, fees, and charges, for the entire period of activities within the free economic zone;

    • Allocations in the amount of 0.1 to 2% from the annual proceeds from goods and services to the General Directorate of the free economic zone for the tax and other benefits enjoyed within its territory;

    Simplified entry and exit procedure for foreign employees;

    • Simplified and accelerated registration of a business entity;

    • Simplified customs procedures; and

    • Direct access to major infrastructure objects, including telecommunications, water supply, power supply, and transportation, in the course of activities within the territory of a free economic zone.

    Companies registered in free economic zones are prohibited from:

    • development and production of mineral resources;

    • import, production and sale of excisable goods, except those meant for production purposes and production of goods other than excisable goods, after payment of taxes and customs duties in accordance with the laws of the Kyrgyz Republic;

    • production, repair and sale of weapons and ammunition, production and sale of explosives used in production of weapons;

    • production, processing, storage, deactivation, sale of radioactive, nuclear and other hazardous materials;

    • import, storage, production and sale of narcotic and psychotropic substances, except precursors used in production purposes and imported in accordance with the laws of the Kyrgyz Republic.

    Companies interested in operating in a free economic zone must be registered in it. Procedure for registration of business entities with foreign interest is established by the General Directorate of a free economic zone. Currently, there are 5 free economic zones functioning within the territory of the Kyrgyz Republic: the Bishkek FEZ, the Maimak FEZ, the Naryn FEZ, the Karakol FEZ and Leilek FEZ.

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    Tue, 01 Aug 2017 17:59:10 +0600 http://kabar.kg/eng/news/free-economic-zones/ http://kabar.kg/eng/news/free-economic-zones/
    Employment relations Labour Law

    The principal legal act regulating employment relations is the Labour Code of the Kyrgyz Republic.

    Treaties and other international law instruments ratified by the Kyrgyz Republic constitute an integral part of the current Kyrgyz law and are binding in their entirety and directly applicable in the Kyrgyz Republic. It must be noted that the rules of the treaties ratified by the Kyrgyz Republic which are more favourable to employees shall prevail over the rules set forth in the laws and other regulatory acts of the Kyrgyz Republic, contracts or collective agreements.

    Employment Contract

    An employment contract is an agreement between an employee and an employer whereby the employer undertakes to provide the employee with the work agreed on, to ensure proper working conditions as required by Kyrgyz law, collective agreement, contracts, internal regulations containing labour law provisions, to timely and fully pay salary to the employee, and the employee undertakes to personally perform his/her job functions in the relevant area of practice or official capacity and to observe the internal working regulations.

    An employment contract is executed in writing, in two counterparts signed by both parties. The hire of an employee is completed within three days by the order (instruction or resolution) of the employer based on the employment contract.

    An improperly executed employment contract may nevertheless be deemed concluded, if an employee has actually set to work with the consent and on the instruction of the employer or its representative. However, permitting the employee to work does not relieve the employer of the obligation to execute a written employment contract with such employee.

    Employment contracts are executed for an indefinite period or definite period (of not more than 5 years for fixed-term employment contracts) or such other period as may be set forth in Kyrgyz law.

    The fixed-term employment contract is entered into if employment relationship cannot be established for an indefinite period given the nature and conditions of the work to be performed, unless otherwise provided by Kyrgyz law.

    Unless the term of the employment contract is specified therein in writing, such contract is deemed executed for an indefinite period. If neither party demands the termination of the fixed-term employment contract due to its expiration, and the employee continues to work after its expiration the employment contract is deemed executed for an indefinite period.

    Employers are prohibited from executing fixed-term employment contracts without good cause to avoid offering employee rights and benefits guaranteed under Kyrgyz law.

    Probationary Period

    When executing an employment contract, the parties may agree to a probationary period to determine if an employee is suitable for a particular job. The probationary period must be stipulated in the employment contract and may not exceed three months for general staff and six months for executive staff including senior managers and their deputies, senior accountants and their deputies, chiefs of branches, representative offices and other standalone subdivisions, unless otherwise provided by Kyrgyz law. The probationary period may not be extended even with the employee’s consent.

    If the employee’s performance on probation is not satisfactory, the employer may terminate the employment contract by giving at least 3 days’ prior written notice to the employee stating the reasons for considering the employee to have failed to satisfactorily complete the probationary period.

    If during the probationary period the employee determines that this job is not suitable for them, the employee may terminate the employment contract by giving 3 days’ prior written notice to the employer without stating the reasons for such termination.

    If before expiration of the probationary period the employer made no decision to terminate employment, the employee is considered to have satisfactorily completed the probationary period and the employment contract can be subsequently terminated on the general grounds.

    The probationary period does not include temporary disability and other periods when an employee is actually absent from work (e.g. blood donors are permitted one day off).

    Job Transfer

    A transfer to a different permanent position with the same employer at the employer’s initiative, i.e. a change in employment functions or material terms of the employment contract, as well as a transfer to a permanent position with another employer or to another location together with the employer is allowed only with the written consent of the employee. The transfer of an employee to a job contraindicated for that employee due to their health condition is prohibited.

    Termination of Employment Contract

    Kyrgyz law provides a conclusive list of the grounds for terminating an employment contract. The termination of the employment contract is made by a respective order (instruction, resolution) of the employer.

    Working Time and Rest Time

    Working time is the period of time during which an employee performs their employment duties in accordance with the internal working regulations or work schedule or terms of the employment contract.

    The legislation limits the working hours per day, per week, per month.

    Working time may vary as follows:

    • Normal working hours;
    • Short-time working;
    • Part-time working.

    Normal working hours may not exceed 40 hours per week, with the exceptions specified in the Kyrgyz Labour Code. Fewer hours per week may be specified in employment contracts by agreement of the parties.

    Short-time working means working fewer hours than normal ones. It is limited to the following maximum working hours for the following categories of employees:

    • maximum 24 hours per week for employees aged 14 to 16; maximum 36 hours per week for employees aged 16 to 18;
    • maximum 36 hours per week for workers engaged in physically demanding labour or exposed to harmful or dangerous working conditions;
    • maximum 36 hours per week for employees with disabilities of groups I and II who are paid at the same rate as the employees working normal hours.

    Employees may work on a part-time basis by agreement of the parties and are paid in proportion to hours worked. The Kyrgyz Labour Code specifies a conclusive list of persons who are entitled to fewer hours per week or per day at their request.

    A five-day working week and two-day weekend or a six-day working week and one-day weekend is determined by the internal working regulations or watch schedules. In case of a six-day working week the maximum working hours per day or watch may not exceed: 7 hours per 40-hour working week, 6 hours per 36-hour working week, and 4 hours per 24-hour working week. The day before a holiday and at night, the working time is 1 hour less.

    Rest time is time when employees take a break from work and may do whatever they choose.

    Types of rest time are:

    o breaks during the working day or shift;

    o daily rest or rest between shifts;

    o weekly rest (days off);

    o non-working public holidays;

    o leaves of absence.

    During their working day or shift, employees have the right to one rest and meal break of minimum 30 minutes and maximum 1 hour not counted as time worked. The time and duration of breaks are stipulated in staff regulations or agreement between the employer and the employee. Some employees have the right to specific rest breaks during work time if so required by the technology, organization or conditions of work. The types of such work and duration of such breaks are stipulated in staff regulations.

    Employees have the right to uninterrupted weekly rest (days off). Days off are rest days during the working week. Employees who work a 5-day week are entitled to 2 days off per week; those who work a 6-day week are entitled to 1 day off per week.

    Non-working public holidays in the Kyrgyz Republic are:

    • January 1 – New Year’s Day;
    • January 7 – Christmas Day (Orthodox Christmas);
    • February 23 – Defender of the Fatherland’s Day;
    • March 8 – International Women’s Day;
    • March 21 – Nooruz National Holiday;
    • May 1 – Labor Day;
    • May 5 – Kyrgyz Constitution Day;
    • May 9 – Victory Day;
    • August 31 – Independence Day; and
    • November 7 – Great October Socialist Revolution Day.

    Islamic holidays of Orozo-Ait and Kurman-Ait (celebrated according to the lunar calendar) are non-working public holidays.

    When a non-working public holiday falls on a day off, it is extended to the next working day.

    Employees are entitled to 1 annual paid leave of 28 calendar days. The annual paid leave longer than 28 days (extended annual leave) is granted to employees in accordance with the Labor Code and other laws of the Kyrgyz Republic.

    The time on leave is counted as calendar days. If non-working public holidays occur during the leave period, these days will not be included in the leave period and will not be paid. The leave record card must be kept for each employee to reflect all data about leaves taken. The leave is documented by the order (instruction, resolution) or leave memo issued by the employer or its authorized person.

    Employees may be granted a leave without pay upon request for family or other valid reasons. The duration of such leave is determined by agreement between the employer and the employee. The employer must grant such leave in cases provided by the Labour Code such as birth of a child, registration of marriage, death of close relatives, etc.). While on leave without pay, employees retain the right to their jobs (positions). The Labour Code prohibits employers from directing employees to take leave without pay.

    Compensation of Employees

    Compensation of employees refers to wages paid by employers to employees for work done in accordance with laws, other regulatory acts, collective bargaining agreements, arrangements, internal regulations and employment contracts.

    Wage is monetary remuneration paid by an employer to an employee in exchange for work done depending on its complexity, quantity, quality, conditions and employee’s qualification plus compensations and incentives (for example, premiums). From the legal point of view, the term “wage” is more accurate that the term “compensation of employees” because it refers to the employee’s category. .

    Wage is paid in cash in the national currency of the Kyrgyz Republic (KGS). Employees may not pay compensation of employees with promissory notes, debt instruments, ration cards, or other similar money substitutes.

    Minimum Amount of Compensation

    A minimum wage (minimum compensation of employees) refers to a guaranteed monthly wage paid to an unskilled employee who completed minimum hours of ordinary work in ordinary working conditions.

    A minimum compensation of unskilled employees is established by law and applies throughout the territory of the Kyrgyz Republic and cannot fall below subsistence level of an individual able to work.

    In the Kyrgyz Republic, a statutory minimum wage is KGS 1,060 (approximately USD 14.27 as of March 2016).

    A monthly compensation of an employee who has completed minimum hours of work over the given period and performed their employment duties may not fall below the statutory minimum wage.

    A minimum wage does not include surcharges and bonuses, premiums and other incentive payouts, as well as payments for working in abnormal or particular climatic conditions or areas exposed to radioactive pollution, nor does it include other compensatory and social welfare payments.

    Due Date and Procedure for Payment of Wage

    Due dates for payment of wage are established by a collective agreement or internal regulations of an employer. Wage is paid at least once every calendar month.

    At the time of payment of wages, employers must notify employees in writing of all amounts comprising the wage and payable to them for the given period of time, the amounts withheld and the grounds for withholding, and the amount receivable.

    Wages may be paid to employees at place where they perform work or may be transferred to bank account specified by them as set forth in the collective agreement or employment contract.

    Wages are paid to employees directly, except as otherwise provided by law or employment contract, for example, via a proxy.

    If a regular payday falls on a weekend or public holiday, wage is paid on the day preceding the weekend or holiday. Vacation pay must be paid at least 3 days prior to such vacation.

    In case of employers’ failure to pay wages, vacation pays or other amounts payable to employees when due, such amounts will bear interest of 0.15% of the amount outstanding as of the date of actual payment per each calendar day of delay.

    In case of employers’ failure to pay all amounts payable to discharged employees when due will bear interest of 0.5% of the amount outstanding as of the date of actual payment per each calendar day of delay.

    In 2015, to balance the interests of the employee and the employer, the Government of the Kyrgyz Republic made amendments to labor legislation whereby the maximum default interest (0.15% and 0.5%) was limited to 200% of the principal. This maximum default interest limitation applies only to the period from the date of default to the date of receipt of the claim for payment of salary, leave allowance or other overdue amounts payable to the employee. After the date of receipt of the claim, the maximum default interest limitation does not apply and the default interest accrues until the date of actual settlement.

    Extra pay for dual employment/multiple jobs or replacement of temporarily absent employees is determined by agreement between the employer and the employee but may not be below 30% of the gross wage payable for extra job.

    Employees working at night must receive extra pay for each hour but not less than one and one-half times the regular pay rate.

    Employees working overtime must receive extra pay of at least one and one-half times the regular pay rate for the first two hours and double time pay thereafter.

    Employees working on day off or non-working public holiday must receive extra pay of at least double time pay.

    Employees having idle time through the fault of the employer must receive at least two-thirds of the regular pay rate. Employees having idle time through no fault of the employer and the employee must receive at least two-thirds of the regular pay rate (gross wage). Employees having idle time through their own fault receive no pay.

    Labour Dispute Resolution

    A party of the employment contract (an employer or an employee) which inflicted damages on the other party must reimburse it for such damages as provided by Kyrgyz labour law. The amount of damages may be specified in the employment contract or other agreements executed in writing and attached thereto. In which case, damages payable by the employer to the employee under the contract may not be less and damages payable by the employee to the employer under the contract may not be more than the amount specified in the Labour Code or other laws of the Kyrgyz Republic. Termination of the employment contract after infliction of damages does not relieve the contracting party of liability.

    Individual labour disputes, i.e. unresolved disagreements between the employer and the employee, are referred to labour dispute committees established within the employers (having 10 or more employees), or labour inspection authority or courts of the Kyrgyz Republic. The employee may at its own discretion choose one of these authorities to resolve a labour dispute. If there is no labour dispute committee, such dispute will be referred to the labour inspection authority or court.

    Generally, the period for referring disputes to the above authorities is 3 months from the date of becoming aware of a violation of rights or 2 months from the date of receiving the notice of dismissal or the date of handing over the service book in actions for wrongful dismissal. In actions for unpaid wages, the period of limitation does not apply.

    Employer’s Liability

    An employer incurs liability for damages caused to its employees by an occupational injury or disease or other health impairment arising out of employment and occurring both on and off site or on the way to or from work in a transport vehicle provided by the employer.

    Employment of Foreign Nationals

    Foreign nationals employed in the Kyrgyz Republic are subject to the requirements of the Labour Code, other laws and regulations of the Kyrgyz Republic containing the provisions of labour law, unless otherwise provided by Kyrgyz laws or treaties.

    Employees of legal entities based in the Kyrgyz Republic and fully or partially founded or owned by foreign companies or nationals (including subsidiaries of transnational corporations) are subject to the requirements of laws and regulations of the Kyrgyz Republic containing the provisions of labour law, unless otherwise provided by Kyrgyz laws or treaties.

    Rights of Foreign Employees

    Foreign employees have the right to use their ability to work and to choose their trade, occupation or profession freely provided that they have a proper proof of education or experience and other supporting documentation.

    Work Permit

    Employers may hire and employ foreign nationals on the basis of employment permits while foreign nationals may work or do business in the Kyrgyz Republic (except nationals of the Russian Federation, Republic of Kazakhstan, Republic of Belarus, Republic of Armenia[1]) on the basis of employment permits and work permits. The competent authority responsible for issuing permits to employers to hire foreign employees and work permits to foreign employees is the State Migration Service under the Government of the Kyrgyz Republic.

    There is a fee to apply for employment or work permits collected by the migration authority to cover the cost of issuing such permits. The cost of employment and work permits is determined by the Kyrgyz Government.

    The foreign worker quotas are set and approved by the Kyrgyz Government annually 4 months before the beginning of the calendar year with due regard being given to the interests of the state and the local labour market situation. The foreign worker quotas are distributed by the State Migration Service of the Kyrgyz Republic among the employers hiring foreign nationals and stateless persons to work in the Kyrgyz Republic with due regard being given to their input in the country’s economy and with preference in filling vacancies being given to Kyrgyz nationals.

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    Tue, 01 Aug 2017 17:55:16 +0600 http://kabar.kg/eng/news/employment-relations/ http://kabar.kg/eng/news/employment-relations/
    Accounting and Audit Financial Reporting

    In the Kyrgyz Republic, International Financial Reporting Standards developed by the International Accounting Standards Board (London) are applied as uniform basis rules for accounting and financial reporting. Small business enterprises may use simplified accounting and financial reporting rules established by the Kyrgyz Government.

    Financial institutions operating in accordance with the principles of Islamic banking and finance use Islamic financial accounting standards adopted in accordance with Kyrgyz law.

    Audit

    In the Kyrgyz Republic, International Standards of Audit issued by International Federation of Accountants through the International Auditing and Assurance Standards Board (New York City USA) are applied as auditing standards. Islamic financial institutions use the auditing standards for Islamic financial institutions developed by the Accounting and Auditing Organization for Islamic Financial Institutions, established and based in Manama, Bahrain.

    Under Kyrgyz law, external audit is mandatory for banks and other organizations licensed by the National Bank of the Kyrgyz Republic, insurance organizations, public companies making initial public offerings of securities, investment funds, private pension funds, and such other persons as may be specifically set forth in Kyrgyz law. For other persons, audit is optional.

    There are more than 100 licensed audit firms operating in the Kyrgyz Republic. [1]


    [1] Information is taken from the website of the State Service for regulation and supervision of financial market of the Kyrgyz Republic as of September 1, 2015: http://www.fsa.kg/?page_id=1960

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    Tue, 01 Aug 2017 17:53:47 +0600 http://kabar.kg/eng/news/accounting-and-audit/ http://kabar.kg/eng/news/accounting-and-audit/
    Cost of doing business in the Kyrgyz Republic 2 Cost of doing business in the Kyrgyz Republic 2

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    Tue, 01 Aug 2017 17:47:58 +0600 http://kabar.kg/eng/news/cost-of-doing-business-in-the-kyrgyz-republic-2/ http://kabar.kg/eng/news/cost-of-doing-business-in-the-kyrgyz-republic-2/
    Business in the Kyrgyz Republic: Legal Aspects - 2016 Business in the Kyrgyz Republic: Legal Aspects - 2016

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    Tue, 01 Aug 2017 17:44:26 +0600 http://kabar.kg/eng/news/http-www.invest.gov.kg-upload-file-doingbusinessinkrlegalaspectseng2016.pdf/ http://kabar.kg/eng/news/http-www.invest.gov.kg-upload-file-doingbusinessinkrlegalaspectseng2016.pdf/