16 May 2014 President of the Republic of Kazakhstan signed the Law “On the Permits and Notifications”
16 May 2014 President of the Republic of Kazakhstan signed the Law “On the Permits and Notifications” (hereinafter – the Law). The Law will regulate all issues concerning licensing, permission as well as submitting notifications to state authorities and other bodies for conducting certain type of activity.
The Law is divided to 3 parts:
I. Provisions of the Law of the Republic of Kazakhstan "On Licensing" dated 11 January, 2007 № 214-III with additional improvements hereto;
II. Provisions on notifications provided by the Law of the Republic of Kazakhstan "On administrative procedures" dated 27 November 2000 № 107;
III. Provisions on Permit Procedures that are not licensed.
Main new aspects of the Law are the following:
- The Law on the Republic of Kazakhstan “On licensing” dated 11 January 2007 No.214-III is declared to be no longer in force;
- The annexes to the Law provide a complete list of licenses, permits and notifications. Under this provision, state and other bodies may not require obtaining any permit document, if the latter is not included in the list approved by the Law.
- All permits are divided into categories, depending on the level of danger of object:
- The first category - licenses are imposed on types (subtypes) of activities or actions (operations) associated with high levels of risk;
- The second category - all permits which are not licenses, are imposed on types (subtypes) of activities or actions (operations) associated with the medium level of risk;
- The third category - the notice in relation to types of activities or actions (operations) associated with a low level of danger but require of awareness of the relevant authorized body.
- All permits are divided into six classes:
- Class 1 - "permits issued for activities";
- Class 2 - "permits issued by the professional activity to individuals";
- Class 3 - "permits issued for activities with limited resources or using quotas";
- Class 4 - "permits issued for objects";
- Class 5 - "single permit";
- Class 6 - "permits issued for the products."
- Under provisions of the Law, new state services for issuing, extending, reissuing, renewable and other activities provided by Kazakhstani law. In this regard, we assume that under the certain grounds provided by Kazakhstani law not only license must be reissued, but permit documents as well.
- The list of grounds for reissuing the license is expanded and the list of required documents for submission for reissuing the license is provided. Such reforms significantly make clear and simplify the procedure of reissuing the license. Meanwhile, the question of reissuing the permit remains unclear.
- Certain provisions concerning obtaining permit documents by foreign entities are provided. The Draft Law includes a number of provisions defining the procedure for obtaining the permit or license by foreign entities. As whole, we assume that the Draft Law is drawn up on the basis of the practice of obtaining the licenses by foreign entities, and several problems arising out from such provisions would be sorted out. For instance, foreign legal entities can submit the documents and make a payment for the fee though their branches and/or representative offices duly registered in Republic of Kazakhstan, by using the bank details of such branches and/or representative offices and their business identity numbers.
- The obligatory electronic form for licenses and permits as well as notification is provided.
- The Law is very strict in terms of the liability of state bodies for refusing to issue the permit document. So, the person of the permit authorized body is liable for damages incurred due to a non-motivated refusal to issue the permit document or due to a breach of rights of the licensee or someone possessing a permit of the 2nd category.
- Miscellaneous provisions of the Law state that it is not obligatory to obtain permits and notifications which are not indicated in attachment of the Law, and that activity carrying out without such permit or notification does not entail liability for individuals or legal entities.
- Once the Law is declared to be in legal force, all business activities which do not require obtaining the license under the Law of the Republic of Kazakhstan "On Licensing" dated 11 January, 2007 № 214-III, will be covered by permits or notification on the general grounds, if such activities are indicated in attachments to the Law.
Please note that at the present time the Law is still not officially published and will be declared in legal force in six month since the day the Law is officially published.
This legal alert contains the review of certain amendments to the current Kazakh law. If you have any questions, please, let us know!
This information is provided for your attention and is not legal advice. This review is provided for general information to our clients and other interested parties. This information is not to be used in resolving any issue without appropriate legal advice.
GRATA Law Firm