Kazakhstan Economy Profile - Doing Business 2013
Core Content
This document provides an overview of the business environment in Kazakhstan as measured by the Doing Business 2013 report, which evaluates regulations affecting small and medium-sized enterprises (SMEs) across 11 key areas. The report compares Kazakhstan's performance with other economies and highlights the ease of doing business through rankings and indicators.
Key Information
- Region: Eastern Europe & Central Asia
- Income Category: Upper middle income
- Population: 16,558,459
- GNI per capita (US$): 8,220
- DB2013 Rank: 49
- DB2012 Rank: 56 (adjusted for data corrections and new economies)
- Change in Rank: -7 (improvement)
Main Topics and Indicators
1. Ease of Doing Business Index
- Purpose: Measures the ease of starting and running a business across 11 areas.
- Indicators Covered: Starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency, and employing workers.
- Methodology:
- Rankings are based on a simple average of percentile rankings on each of the 10 topics.
- The distance to frontier measure is introduced to assess how far an economy is from the best practices in each indicator.
2. Starting a Business
- Procedures: 6 procedures required (same in 2012 and 2013).
- Time: 19 days (same in 2012 and 2013).
- Cost: 0.6% of income per capita (down from 0.8% in 2012).
- Paid-in Minimum Capital: 0.0% of income per capita (down from 0.0% in 2012).
- Global Rank: 25th (improved from 55th in 2012).
- Best Performer: New Zealand (rank 1).
3. Business Registration Reforms in Kazakhstan
- DB2008 & DB2009: No reforms recorded.
- DB2010: Simplified documentation and abolished the requirement to register at the local tax office.
- DB2011: Reduced minimum capital requirement to 100 tenge ($0.70) and eliminated the need to notarize the memorandum of association and company charter.
- DB2012: No reforms recorded.
- DB2013: Eliminated the requirement to pay in minimum capital within 3 months after incorporation.
4. Other Key Indicators
| Indicator |
Kazakhstan DB2013 |
Kazakhstan DB2012 |
Comparator Economies |
Best Performer |
| Dealing with Construction Permits |
Rank: 155 |
Rank: 150 |
Rank: 67 (Kyrgyz Republic) |
Rank: 1 (Hong Kong SAR, China) |
| Procedures: 32 |
Procedures: 32 |
Procedures: 12 |
Procedures: 6 (Germany) |
|
| Time: 189 days |
Time: 189 days |
Time: 142 days |
Time: 26 (Singapore) |
|
| Cost: $103.5 per container |
Cost: $119.9 per container |
Cost: $1,140.6 per container |
Cost: $1.1 (Qatar) |
|
| Getting Electricity |
Rank: 80 |
Rank: 81 |
Rank: 177 (Kyrgyz Republic) |
Best Performer: 1 (Iceland) |
| Procedures: 6 |
Procedures: 6 |
Procedures: 7 |
Procedures: 3 (Germany) |
|
| Time: 88 days |
Time: 88 days |
Time: 159 days |
Time: 17 (Japan) |
|
| Cost: $71.1 per container |
Cost: $88.4 per container |
Cost: $2,428.6 per container |
Cost: $0.0 (Belarus) |
|
| Registering Property |
Rank: 28 |
Rank: 28 |
Rank: 11 (Kyrgyz Republic) |
Best Performer: 1 (Georgia) |
| Procedures: 4 |
Procedures: 4 |
Procedures: 4 |
Procedures: 1 (Georgia) |
|
| Time: 40 days |
Time: 40 days |
Time: 5 days |
Time: 1 (Portugal) |
|
| Cost: 0.1% of property value |
Cost: 0.1% of property value |
Cost: 1.8% of property value |
Cost: 0.0% (Belarus) |
|
| Getting Credit |
Rank: 83 |
Rank: 97 |
Rank: 12 (Kyrgyz Republic) |
Best Performer: 1 (United Kingdom) |
| Strength of Legal Rights Index (0-10) |
4 |
3 |
10 (Kyrgyz Republic) |
10 (Malaysia) |
| Depth of Credit Information Index (0-6) |
5 |
5 |
4 (Kyrgyz Republic) |
6 (United Kingdom) |
| Public Registry Coverage (% of adults) |
0.0 |
0.0 |
0.0 |
90.7 (Portugal) |
| Private Bureau Coverage (% of adults) |
39.3 |
37.6 |
24.6 |
100.0 (United Kingdom) |
| Protecting Investors |
Rank: 10 |
Rank: 10 |
Rank: 13 (Kyrgyz Republic) |
Best Performer: 1 (New Zealand) |
| Extent of Disclosure Index (0-10) |
9 |
9 |
8 (Kyrgyz Republic) |
10 (Hong Kong SAR, China) |
| Extent of Director Liability Index (0-10) |
6 |
6 |
7 (Kyrgyz Republic) |
9 (Singapore) |
| Ease of Shareholder Suits Index (0-10) |
9 |
9 |
8 (Kyrgyz Republic) |
10 (New Zealand) |
| Strength of Investor Protection Index (0-10) |
8.0 |
8.0 |
7.7 (Kyrgyz Republic) |
9.7 (New Zealand) |
| Paying Taxes |
Rank: 17 |
Rank: 16 |
Rank: 168 (Kyrgyz Republic) |
Best Performer: 1 (United Arab Emirates) |
| Payments (number per year) |
7 |
7 |
51 (Kyrgyz Republic) |
3 (Hong Kong SAR, China) |
| Time (hours per year) |
188 |
188 |
210 (Kyrgyz Republic) |
12 (United Arab Emirates) |
| Trading Across Borders |
Rank: 182 |
Rank: 178 |
Rank: 174 (Kyrgyz Republic) |
Best Performer: 1 (Singapore) |
| Documents to Export (number) |
9 |
9 |
8 (Kyrgyz Republic) |
2 (France) |
| Time to Export (days) |
81 |
76 |
63 (Kyrgyz Republic) |
5 (Singapore) |
| Cost to Export (US$ per container) |
$4,685 |
$3,130 |
$4,160 (Kyrgyz Republic) |
$435 (Malaysia) |
| Documents to Import (number) |
12 |
12 |
10 (Kyrgyz Republic) |
2 (France) |
| Time to Import (days) |
69 |
62 |
75 (Kyrgyz Republic) |
4 (Singapore) |
| Cost to Import (US$ per container) |
$4,665 |
$3,290 |
$4,700 (Kyrgyz Republic) |
$420 (Malaysia) |
| Enforcing Contracts |
Rank: 28 |
Rank: 28 |
Rank: 47 (Kyrgyz Republic) |
Best Performer: 1 (Luxembourg) |
| Time (days) |
370 |
370 |
260 (Kyrgyz Republic) |
150 (Singapore) |
| Cost (% of claim) |
22.0 |
22.0 |
29.0 (Kyrgyz Republic) |
0.1 (Bhutan) |
| Resolving Insolvency |
Rank: 55 |
Rank: 55 |
Rank: 155 (Kyrgyz Republic) |
Best Performer: 1 (Japan) |
| Time (years) |
1.5 |
1.5 |
4.0 (Kyrgyz Republic) |
0.4 (Ireland) |
| Cost (% of estate) |
15 |
15 |
15 (Kyrgyz Republic) |
1 (Singapore) |
| Outcome (0 as piecemeal sale and 1 as going concern) |
0 |
0 |
0 (Kyrgyz Republic) |
0 (Japan) |
| Recovery Rate (cents on the dollar) |
43.1 |
42.7 |
9.1 (Kyrgyz Republic) |
92.8 (Japan) |
Main Points
- Ease of Doing Business: Kazakhstan improved its rank from 56 to 49, indicating progress in regulatory reforms.
- Starting a Business: The process is relatively simple, requiring 6 procedures, taking 19 days, and costing 0.6% of income per capita.
- Construction Permits: Kazakhstan ranks 155th, with 32 procedures and 189 days of processing, far behind the best performer, Hong Kong SAR, China.
- Getting Electricity: Kazakhstan ranks 80th, with 6 procedures and 88 days, while Iceland is the best performer.
- Registering Property: Kazakhstan ranks 28th, with 4 procedures and 40 days, while Georgia is the best performer.
- Getting Credit: Kazakhstan ranks 83rd, with a strength of legal rights index of 4 and depth of credit information index of 5.
- Protecting Investors: Kazakhstan ranks 10th, with high scores on disclosure and shareholder suits but lower on director liability.
- Paying Taxes: Kazakhstan ranks 17th, with 7 payments and 188 hours of processing.
- Trading Across Borders: Kazakhstan ranks 182nd, with high costs and time compared to the best performer, Singapore.
- Enforcing Contracts: Kazakhstan ranks 28th, with 370 days of processing and a cost of 22% of claim.
- Resolving Insolvency: Kazakhstan ranks 55th, with 1.5 years and a cost of 15% of estate.
Summary
The report highlights that while Kazakhstan has made some progress in improving its business environment, it still lags behind many comparator economies in areas such as construction permits, electricity access, and trading across borders. The distance to frontier measure shows that the country is moving closer to best practices in some areas but still has significant room for improvement. Key reforms in recent years include simplifying the business registration process and reducing minimum capital requirements, which have positively impacted the ease of starting a business. However, further regulatory improvements are needed to enhance the overall business environment and competitiveness.