Employer of Record in Kyrgyzstan
Skuad’s Employers of Record (EOR) solution is perfect for companies looking to expand into the country without setting up an entity. Employ, pay, and manage a team of employees in Kyrgyzstan without any hassles. Skuad’s solution will take care of all employment-related functions such as onboarding and training, compliance issues, payroll management, taxation, probation, and termination. An otherwise arduous task that requires the grasp of the local culture, laws, regulations, and business practices, becomes easier with Skuad. Talk to Skuad experts to learn more!
Kyrgyzstan at a Glance
Area: Approximately 200 square kilometers
Population: Over six million inhabitants (6,632,230, as of 2021)
Capital city: Bishkek
Languages: Kyrgyz and Russian
Currency: Kyrgyzstani som (KGS)
Gross Domestic Product (GDP): USD 8.3 billion (2019)
GDP growth rate: 4.5% (2019)
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Employment in Kyrgyzstan
What You Must Know Before Employing in Kyrgyzstan
All business entities have to follow the mandates of the compliance laws, the Kyrgyzstan Labor Law, and the Kyrgyzstan Employment Law.
As per the applicable legislation, the workplace requirements and entitlements under the labor laws are as follows.
The following table presents the leave entitlements in Kyrgyzstan.
To ensure total compliance with the Kyrgyzstani employment laws, book a demo with Skuad experts today.
Contractors vs. Full-time Employees
Employment Contracts -Kyrgyzstan
An employment contract is a necessary document to be executed by both parties, the employer and employee, before the commencement of employment. Contracts are of two types: for a fixed term or without mentioning an employment period. Fixed-term contracts are usually for five years; however, most of the agreements come without a specific period.
In the employment agreement in Kyrgyzstan, the employer has to specify the allotted work, working conditions, salary details, internal regulations, and the rights and obligations of both the employee and the employer.
The employee must perform their duties as per the job requirements and adhere to the internal regulations.
The employment contract is an essential document in the Kyrgyz Republic. The agreement guides various provisions, sanctions, and severance of employment.
The employer must complete the hiring process within three days of executing the contract as per Kyrgyzstan’s prevailing employment contracts law.
In case of damages, either party has to compensate the other one under the Kyrgyz labor laws. The sum of money to be paid against various damages has to be mentioned in the main employment contract or additional documents.
Whether your organization requires contractors or full-time employees, Skuad’s employer of record service can cater to all your hiring requirements. Learn more by talking to Skuad experts.
Employee Health Benefits
The Kyrgyz Republic provides free primary health care to all citizens. Hospitalization requires co-payment. Both the employer and employee have to make a mandatory contribution to the national health scheme every month.
To learn more about Kyrgyzstan’s employment policies to ensure your expansion efforts fall within the legal requirements, book a demo with Skuad experts today. We can meet all your human resource (HR) needs while complying with the local laws.
Hiring in Kyrgyzstan
How to Hire Employees in Kyrgyzstan
The Kyrgyz Republic’s employment laws require a mandatory employment contract for hiring an employee. The contract can be for a fixed term (usually not exceeding five years) or for a non-specified time, meaning an indefinite period.
Complete information on salary, benefits, rights and entitlements, termination, and more must be clearly defined in the contract. In addition, all pay and wage-related matters and other monetary benefits must be given in the local currency, KGS. The employer must write the contract in the local language.
Besides a few local recruitment firms, many global HR platforms provide job search options for the Kyrgyz Republic. Foreigners have to go through securing a work permit and visa to be eligible for an employment contract. The country follows a policy of a quota-based annual work permit system for foreigners.
It may be quite difficult to recruit employees due to the time-consuming, detail-oriented hiring process. If you are an international business looking to expand in Kyrgyzstan, you need not worry about compliance as Skuad’s EOR solution can take care of finding, recruiting, and onboarding the best, most suitable talent from the country. Talk to Skuad experts to learn more about hiring in Kyrgyzstan.
Probation & Termination
Standard Probation Period
At the time of execution of an employment contract, both the employer and employee may agree to a probationary period.
- The period may not exceed three months for general staff.
- It is usually six months for the executive team, including managers, accountants, and other senior employees.
The Kyrgyz employment law does not permit extension of the probation period even with the employee’s consent.
Termination of Employment
The Kyrgyz law specifies an exhaustive list of grounds for terminating an employment contract. The process of termination happens by order of the employer.
Some of the reasons for terminating a contract are given below.
To ensure your expansion endeavors adhere to the laws regarding probation and termination in Kyrgyzstan, talk to Skuad experts and book a demo today.
EOR Solution in Kyrgyzstan
The Employers of Record (EOR) model is a smart solution for companies seeking to enter and expand in Kyrgyzstan fast and agilely. With the help of Skuad's Employer of Record solution, business entities abroad can quickly source and hire the right professionals as per the organization's requirements. Hired employees get onboard seamlessly, helping your business save up a huge percentage of hiring and onboarding costs. Skuad’s End-to-end solutions help manage employment contracts, process payroll and income tax, blend statutory benefits, and manage overall administration of the backend HR processes. Our platform works as a unified employment platform with automated workflows, digital signatures, employee payroll, contractor payout, and all types of compliance solutions. Book a demo today.
Outsourcing in Kyrgyzstan through an Employer of Record
Skuad’s global HR platforms offer EOR services in the Kyrgyz Republic. These service providers can hire and manage your local employees, handle all local issues, take care of mandatory compliances, and eliminate all your employment-related risks.
Besides, EOR service providers can arrange a work permit and business visa for your expatriate personnel. Skuad offers EOR services in Kyrgyzstan. Our integrated HR platform, our global network of more than 150 countries, and our skilled industry experts can provide bespoke EOR solutions for your expansion efforts in Kyrgyzstan. Talk to us today to book a demo.
Types of Visas in Kyrgyzstan
The application process for a visa starts at the embassy or consulate in the applicant’s country of residence. The demand for documents differs by the individual candidates’ nationality, visa type, and more.
An invitation letter from the prospective employer is necessary for initiating all work-related visa applications.
The process typically involves an inspection of the concerned employer's business facilities in Kyrgyzstan. First, business activities and documents are thoroughly inspected before clearance for the work visa application. The next step is obtaining a work permit.
The Kyrgyz Republic has several categories of visas.
As an EOR service for the Kyrgyz Republic, Skuad takes care of all the requirements and responsibilities related to employment, including applying for and obtaining visas. Get in touch with Skuad experts to learn more.
Foreign nationals may work or do business in the Kyrgyz Republic based on work or employment permits issued by the Kyrgyz Ministry of Labor, Migration, and Youth.
There are two types of permits.
- Kyrgyzstan Work Permit for foreigners, an employment permit, authorizing employment of foreigners.
- Kyrgyzstan Work Permit without a job offer, known as an employee permit, authorizing foreigners or stateless persons to work in the country.
Kyrgyzstan’s work permits for foreigners are quota-based, and the government finalizes yearly permit numbers depending on the country’s economic situation. The number varies by industry and region and gets distributed among employers willing to hire foreigners.
Work permits are issued against payment of the necessary fees. The indicative charges are KGS 4,000 for an employment permit and KGS 2,000 for an employee permit.
For temporary work permits, the employer has to deposit a specified amount as a security deposit to cover transportation costs from the republic.
Securing work permits is an essential task of Skuad’s EOR services. Partner with us today to expedite your expansion in Kyrgyzstan. To learn more, book a demo.
Payroll & Taxes in Kyrgyzstan
How to Set Up a Payroll in Kyrgyzstan
Setting up your payroll in Kyrgyzstan will require a thorough understanding of the local laws and regulations. There are three ways of managing your payroll
- Setting up an in-house operation
- Appointing a local firm
- Managing payroll through a global HR outfit
As per the local laws, you have to create a subsidiary in the Kyrgyz Republic before setting up your payroll in that country.
A local (incorporated in the republic) payroll processing company may do the job, but for a better hiring and management experience, it is best to avail the services of an EOR solution such as Skuad. It can take care of your payroll while ensuring compliance with the local laws.
Kyrgyzstan Tax Rates
To manage payroll and taxes while expanding in Kyrgyzstan, it is prudent to partner with an EOR service. Skuad’s Kyrgyzstan EOR solution can take care of all HR-related tasks for you while ensuring compliance with the local laws, including those on taxation. To learn more, get in touch with Skuad experts.
Incorporation: How to Set Up a Subsidiary in Kyrgyzstan
You can choose to do business in the Kyrgyz Republic in three legal structures.
- Representative or branch office
- Limited liability company (LLC)
- Joint-stock company
Different regions and cities have their own set of laws and guidelines for business, and in case you are not familiar with the requirements, it is best to take the help of a consultant.
For incorporating an LLP company, all relevant background documents of the participant showing ownership, authorized capital, business intent, and more, need to be notarized and legalized in the Kyrgyz Embassy of the participant’s country. However, such legalization of documents is not required for participants originating from CIS countries.
A foreign citizen or a Kyrgyz citizen can be appointed as a Director-General. A work permit is mandatory for a foreign citizen.
The process of incorporating a company in Kyrgyzstan may take about two months from the submission of documents. The physical presence of the participant is not necessary during the registration procedure.
The process of setting up a subsidiary and fulfilling all the statutory requirements such as getting it duly registered, obtaining the required capital, and getting approval could take several months. Any misstep can cause you to veer off your timeline for getting your business running in Kyrgyzstan. Skuad offers an easy alternative to all your HR needs by taking over the HR tasks of establishing a subsidiary as your EOR partner. Talk to us to learn more.
Professional Employer Organization (PEO)
A PEO provides various services like processing payroll, managing employee benefits, and taking care of tax payments and return filing. If you hire a PEO, it acts as your co-employer, and all business liabilities (tax and more) and responsibilities remain with your (principal) company.
An EOR service provides an alternate HR solution similar to that of a PEO. The vital difference between the two is in the status; the EOR firm is a legal employer and thus holds all liabilities and responsibilities of the employees.
When venturing into a new country, companies and enterprises usually avail themselves of payroll and tax-related services through either method.
Skuad’s EOR services are available in the Kyrgyz Republic. In a country with complex labor laws and employment contracts such as the Kyrgyz Republic, an EOR solution is often the preferred mode of hiring employees by many foreign investors.
Skuad’s EOR solutions help you focus on the critical areas of sales and business development in Kyrgyzstan; we handle payroll management, compliance, and HR-related responsibilities. To partner with us and expedite your expansion in Kyrgyzstan, book a demo today.
Conclusion: What Gives Skuad’s Kyrgyzstan Solutions an Edge?
Business is becoming increasingly global and competitive, forcing companies to scout for opportunities in countries the world over. With its natural resources and economic reforms, Kyrgyzstan is emerging as an investment destination in the northern part of central Asia.
Modern HR practices such EOR solutions facilitate easy and quick business activities in the Kyrgyz Republic. Managing a remote workforce is hassle-free for companies now, enabling them to focus on strategic management issues.
With Skuad, you can easily and quickly expand into Kyrgyzstan. Our EOR solution will help minimize the complexity and cost of doing business in Kyrgyzstan. We can take care of all HR tasks for you, including recruitment, hiring, onboarding, payroll, taxation, probation, termination, visa, work permits, and setting up a subsidiary.
Partner with Skuad experts today to expedite your expansion endeavors in Kyrgyzstan. Book a demo with us to know more.