Most investors like doing business in countries that are stable both politically and economically. Economic consideration is usually given the first priority. A country with poor economy may not favour business growth and development while that with stable economy will provide favourable environment for business. There are quite a number of countries that are doing well economically in Asia. One good example is Kazakhstan. It is indeed true that Kazakhstan is one of the best countries for doing business. You will find the reasons here.
First and foremost,Kazakhstan is among the top 50 world economies. This is according to Doing Business Report that was compiled by World Bank. It was ranked at position 47. Some of the reasons why the country appeared in the top 50 list include favourable conditions for starting business. The government of Kazakhstan does not provide serious restrictions to investors who want to do business in the country.This has encouraged many people to set up businesses.
In addition, investors are protected together with their business. Laws have been enacted to prevent people from interfering , stealing or intruding into other people’s property. This has attracted many investors to do business in Kazakhstan.
Furthermore, political stability also favours business. Kazakhstan has not experienced civil wars or political upheavals like other countries especially in Africa and Middle East. It has continued to enjoy peace which is vital for business growth and development. Business people prefer to invest in places where their investments will be safe.
World Bank Business
World Bank Business Report that was released in 2011 described Kazakhstan as the fastest reformer in the world. This was due to implemenation of pro-business changes.The new changes attracted both local and foreign investors. This led to increase in number of business as many companies were established in the country.
According to 2012 report, Kazakhstan was ranked as the seventh best country for doing business, outshining many countries in Soviet Union and Eastern Europe. It topped countries like Hungary, Poland and Czech Republic.
In terms of protecting investors, the country was ranked at position 10.It moved 34 steps up from the previous year.This was quite remarkable. Some of the reforms that were made to protect investors include regulating approval of business transactions as well as suing directors and senior executives in case they make damaging transactions.
Another reform that enhanced business was lowering tax. This encouraged the growth of small and medium business. People could invest without worrying that all their small profits would be spend on paying tax. Reduction of taxes moved the country’s ranking to position 13 in the whole world. This is according to business report. The report also shows that companies pay taxes 7 times in a year. Approximate percentage of tax paid by firms is 16% of the total profits.
They are given a duration of 188 hours to file, prepare and pay tax. To add on, tax system has been simplified to a considerable level.
Regarding registration of property and enforcement of contracts, the country was ranked at position 29 and 27 respectively. This is according to Doing Business Report of 2002. [See also: Registration of Companies in Kazakhstan]
Import and Export
Perhaps the area that the country needs to work on is costs of import and export. They are relatively high when compared to countries with stable econmies such as US, Canada UK, Germany and more. The government should introduce reforms to reduce the costs of importing and exporting goods.This will greatly boost business and encourage many people to invest in import and export business. It will improve the country’s ranking from 176 to a better position.
Even though there are some trade barriers with the neighboring countries,the government of Kazakhstan has tried to reduce the barriers to encourage trade. This will also promote regional intergration which is key to economic development.
Growth Domestic Product
In terms of Growth Domestic Product, Kazakhstan government has made efforts to improve the country’s GDP from 1.2% in 2009 to 7% in 2010. This was quite impressive. The country has also tried to diversify its economy by investing heavily in manufucturing and agricultural sector to boost econmic growth.
In conclusion, it is quite evident that Kazakhstan is one of the best countries for doing business. Investors are protected, taxes are low, the country is stable politically and above all reforms are still being made to encourage business. If you have been wanting to invest in an Asian country, Kazakhstan is an excellent choice.
- Investment Opportunities in Kazakhstan
- Kazakhstan Is One Of The Best Countries For Doing Business
- Registration of Companies in Kazakhstan
- Business Areas In Kazakhstan
- Kazakhstan's Developing Economy
- Moving to Kazakhstan: Pros and Cons
Business and Economics News
Kazakhstan is offering a number of lucrative investment opportunities under its plan to privatize 106 companies under the Sovereign Wealth Fund of Kazakhstan. Samruk Kazyna invited investors both local and foreign to buy shares in the 106 companies that are part of the second phase of the privatization scheme. This is a continuation of what was started in the 1990s when the country was trying to introduce a free market economy.
The government had tried to run these companies on its own as it created an open market economy but it has since run into hurdles like lack of enough funding to fully capitalize the enterprises as well as the technical know-how. This has prompted Samruk Kazyna to invite investors to buy shares and help in the management and capitalization of the enterprises.