Employer of Record in Kazakhstan
Skuad’s Kazakhstan Employer of Record (EOR) solution provides an integrated, tech-enriched HR platform to help companies expand their business operations in Kazakhstan. The platform is a unified interface for the onboarding and management of remote teams in over 150 countries globally.
Whether it is recruitment and hiring or setting up payroll to manage employee compensations and benefits, Skuad’s Kazakhstan EOR solution will ensure 100% compliance with the local labor and employment laws. Contact us to know more about our customized EOR solutions.
Kazakhstan at a Glance
Population: 18.7 million people (2020)
Currency: Kazakhstani tenge (KZT)
Capital city: Nur-Sultan
Languages spoken: Kazakh and Russian
Gross Domestic Product (GDP): 4.5% growth; USD 159.8 billion (2020)
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Employment in Kazakhstan
What Should You Know Before Employing in Kazakhstan?
To commence business operations in Kazakhstan, you should be aware of the several facets of the local labor laws and regulations. Understanding and penetrating the Kazakhstani culture will also increase your reach in getting potential candidates for employment. This process of researching can be excruciating, as it is an intensive task.
You might even struggle to get the right employees for your preferred venture. Skuad’s EOR solutions in Kazakhstan can come to your aid by providing the best recruitment services while putting you at ease. The table below lists some of the mandatory labor entitlements that you must keep in mind while employing in Kazakhstan.
Learn more about local employment laws and how you can outsource a payroll provider to manage your HR responsibilities.
Contractors vs. Full-time Employees
In Kazakhstan, employment contracts can be,
- For a definite period
- To fill in for temporarily absent employees
Workers who work on different contracts independently are known as contractors. Contractual workers pay their taxes and manage their work independently. Full-time employees receive orders and instructions from the employer and are entitled to different perks for working full time.
Accounting and promoting departments are important functions that require regular supervision. So, it is better to employ full-time employees in these departments. On the other hand, it’s cheaper to employ contractors as they are more spontaneous, and the work is defined in the contract.
Advantages of Hiring Contractors
- Flexibility: Since contractors are hired on a short-term basis, you are free to determine the scope of their work temporarily. If new needs arise, new contracts can be drafted in the short term.
- Independence: Short-term contractors usually work independently and on their own timeline. They do not require close supervision, and your resources can be transferred elsewhere, as needed.
- Cost: Hiring contractors may be cheaper in the long run, although their individual rates are higher than those of full-time employees. This is because such employees are not entitled to employment benefits such as bonuses and tax compensations.
Advantages of Hiring Full-time Employees
- Loyalty and organizational commitment: Full-time employees are likely to be more loyal as they exclusively work for your company. As their individual success depends on the performance of your firm, they are likely to invest more effort into their work.
- Knowledge: All employees undergo training when they join a firm. The skills and knowledge gained by a full-time employee, however, stay within the organization.
- Legal freedom: Since full-time employees are defined as such in their contracts from the outset, misclassifications, and the repercussions thereof, can be avoided completely. When hiring full-time employees, you determine the terms of the contract and entitlements, and these are not liable to change unless mutually decided by both parties.
Book a demo with us to make the best decisions on whether to hire contractors or full-time employees in Kazakhstan.
Hiring in Kazakhstan
An employer must enter into an employment contract, which can either be for an indefinite period or temporary. Contracts must be written in the Kazakh language and state the responsibilities, benefits, salary, working time, and immunities. All money-related details must be listed in Tenga Currency. Skuad’s team of experts can aid you in hiring the perfect employees for your company with the help of local contacts. All the labor laws are based on the constitution of Kazakhstan. Important hiring laws are as follows.
- The Law on the Occupation of the Population (1998)
- The Law on the State Service (1999)
- The Law on Collective Labor Disputes and Strikes (1996)
- The Law on Employment of Population (2001)
The portals through which you can search for employees in Kazakhstan are,
For ensuring that your hiring process is compliant with the local laws, speak to Skuad experts today.
Probation & Termination
Probation in Kazakhstan
Article 15 of the labor laws in Kazakhstan mentions the probation period to test employee’s dedication and conformance to the organization. This period, however, cannot exceed three months and must be stated in the employment contract. The employer can terminate the employee with a written application stating a proper reason during the probation period. Connect with us to know more about the probation laws in Kazakhstan.
Termination in Kazakhstan
Know more about the termination laws in Kazakhstan from Skuad experts.
EOR Solutions in Kazakhstan
Skuad’s EOR solution for Kazakhstan will assist your business in expanding and getting traction quickly. We will ensure the smooth processing of salaries and benefits of your remote team without requiring an entity setup. Skuad’s unified employment platform enables seamless management of payrolls, work permits, taxes, employment contracts for your employees, and also ensures maximum compliance with the Kazakhstani taxes and employment laws in Kazakhstan. To learn more, Book a demo today.
General Employer of Record Service Terms
Outsourcing employment through an Employer of Record
It is vital to understand the path you’re choosing to grow your business in Kazakhstan. You may opt to find and train your local team and work with them to manage your day-to-day operations or decide to collaborate with an EOR partner that will manage end-to-end HR operations for you. Book a demo today to understand how Skuad’s bespoke EOR solution for Kazakhstan can scale up your business.
Types of Visas in Kazakhstan
The main types of visas in Kazakhstan are tabulated below.
Skuad can help you with visa processing and related formalities. Contact us now to know more.
Find out more about obtaining work permits in Kazakhstan through Skuad’s EOR services. Book a demo with us today!
Payroll & Taxes in Kazakhstan
How to Set Up Payroll in Kazakhstan
You will need to acquire a basic understanding of the Kazakhstani rules and regulations to set up and keep the flow of payroll and taxes going. Even though Kazakhstan is a great place for a new business venture, you might get confused. There are two ways you can tackle this.
- You can find and train your team to administer taxes and payroll.
- You can partner with Skuad’s EOR services for administering payroll and taxation.
To ensure absolute compliance with the Kazakhstani taxes and employment laws, Connect with Skuad today.
Incorporation: How to Set Up a Subsidiary in Kazakhstan
You must consider three factors before opening up your subsidiary in Kazakhstan.
- Business determinants: Kazakhstan has implemented several laws to encourage more businesses by eliminating restrictions on business laws. The administration has reduced the minimum capital required to start a business to KZT 100. Furthermore, the payment of minimum capital can be done within three months of incorporating any subsidiary.
- Intellectual property rights: Your ideas and plans should be registered under the market, as intellectual property rights differ from one place to another.
- Human rights: The corruption rate in Kazakhstan is high. Intricate laws for the business sector tend to restrict real market freedom.
You might face difficulties while dealing with banking and other institutions whose laws may be complex compared to the global standards. Working with Skuad’s EOR services can simplify the incorporation process for you.
A limited liability company (LLC) is the most popular form of business organization. It is a separate legal body with a set of rules, regulations, and responsibilities. To establish an LLC, an opening document must be written where the basic duties and the purpose of the organization are laid out clearly. A charter agreement must also be established among the founding members. The company can start functioning in Kazakhstan once it has been registered in the state records. However, the major drawbacks of LLC are the taxes imposed and currency legislation.
The steps for the incorporation of an LLC are as follows.
1. Registration of the subsidiary and obtaining the online signature and tax registration
All the required documents should be sent to the administration of Kazakhstan with a legal name. A certificate will soon be issued to the employer and an electronic signature will be provided in two or three days.
2. Obtaining verified certificate and other required documents
Foreign employees will have to apply for work permits at this point and the employer will also need to obtain all the necessary licenses and permits to set up a subsidiary.
3. Opening a bank account
The employer will have to create a current account bank in the country of Kazakhstan from any recognized banking institution. All the necessary documents must also be provided.
4. Registration of health insurances for employees
The employer must ensure that no employee is exempt from health other benefits before the operations of the subsidiary begin.
The entire process takes up to four weeks and the minimum capital required differs depending on the scale of the enterprise. Medium and Large enterprises need to have a minimum capital investment of KZT 161,800.
You can also choose to open up a joint-stock company. However, it is more complex and less independent. If you want to open up your subsidiary in Kazakhstan, trust Skuad to streamline the entire process of incorporation. Partner with us to learn more about Skuad’s services for incorporating a company in Kazakhstan.
Professional Employer Organization (PEO)
Hiring the right employees and compensating them properly forms an integral part of your business expansion in Kazakhstan. However, unawareness of the local law leaves a lot of room for error, which can result in heavy penalties.
To safeguard from this, companies can opt to engage the services of a professional employer organization (PEO). Even though you can outsource your HR requirements to both PEO and EOR organizations, understanding the minor differences between the two will help you choose better.
- A PEO acts as a co-employer, wherein it manages all the HR-related functions such as setting up the payroll, processing the compensation and other benefits, and handling all the tax-related compliances. However, your company will hold the allied liabilities and responsibilities.
- On the other hand, an EOR provider is a complete payroll outsourcing partner that provides all the services offered by a PEO, and in addition, becomes the legal employer of all the employees on your payroll. This means that they are responsible for compliance with the regulations and liable for non-compliance as well.
PEOs are suitable for companies looking for a long-term payroll partner, whereas EOR services are more suitable for companies looking for HR solutions for a quick international expansion. Further, while PEOs can only operate if you have an entity established in the country, EOR services have no such requirements.
Skuad provides EOR solutions for companies. Hire Skuad’s EOR solution for Kazakhstan to take care of all the compliance and HR-related tasks, from onboarding to training. Talk to Skuad experts to learn more.
Conclusion: What Gives Skuad’s Kazakhstan Solutions an Edge?
If your business is ready to benefit from lucrative business opportunities in Kazakhstan’s growing economy, collaborating with Skuad’s Kazakhstan EOR services can cater to all your expansion-related HR requirements.
Further, our tech-enriched, unified HR platform works with the help of our extensive network of experts from over 150 countries. We can ensure full compliance with the local laws in the country of your choice.
Want to know more about how Skuad can help your business? Get in touch with us today!