12.03.2012

Law on Amending Certain Legislative Acts Regarding the Improvement of the Regulatory Approval System: Changes in the Procedure of Licenses Issue

In Kazakhstan the Law on Amending Certain Legislative Acts Regarding the Improvement of the Regulatory Approval System (aimed at liberalisation of business by reduction of administrative burdens and permits) became effective from 30 January 2012.

In line with GRATA Law Firm’s practice of keeping clients informed of important legal developments that might influence their business, we would like to draw your attention to prospective changes in Kazakh legislation in connection with entry into force of the new Law on Amending Certain Legislative Acts Regarding the Improvement of the Regulatory Approval System.

In Kazakhstan the Law on Amending Certain Legislative Acts Regarding the Improvement of the Regulatory Approval System (aimed at liberalisation of business by reduction of administrative burdens and permits) became effective from 30 January 2012.

In line with GRATA Law Firm’s practice of keeping clients informed of important legal developments that might influence their business, we would like to draw your attention to prospective changes in Kazakh legislation in connection with entry into force of the new Law on Amending Certain Legislative Acts Regarding the Improvement of the Regulatory Approval System.

I. OVERVIEW

On the 15th July 2011 the President of the Republic of Kazakhstan signed the Law on Amending Certain Legislative Acts Regarding the Improvement of the Regulatory Approval System (hereinafter – the “Law on Amendments”), which became effective from 30 January 2012.

The Law on Amendments amended 54 Kazakh Laws, including the Environmental Code, the Tax Code, the Land Code, the Code on Administrative Offences, the Law on Licensing, the Law on Architecture, Town-Planning and Construction Activity, the Law on Industrial Safety and many others.

Some of the most important changes introduced by the Law on Amendments to the Law on Licensing in a part of the procedure of licenses issue are summarized below.

II. AMENDMENTS INTRODUCED TO THE LAW ON LICENSING

1. A new requirement on submitting to the licensor the information on branches and representative offices of licensee is introduced.

2. Carrying out of the activity without the relevant license is allowed for a period no more than 45 business days from the day of entry into force of the qualifying requirements for new types of licensed activity under the condition of submitting of documents for license (annex) issue in accordance with the established procedure.

3. The Law on Amendments provides for exemption from licensing for types of activity, included in a unified technological process and (or) that are the necessary element of execution of the type of activity.

4. In relation to the procedure of licenses issue.

  • During the obtaining of license (annex) it is provided the submitting of uncertified copies of documents.
  • The term of submitting by the state bodies of the response on conformity or non-conformity of the applicant to the requirements is reduced from 25 to 10 business days. The special term for subjects of small business enterprise is excluded.
  • The Law on Amendments establishes the condition that the license is considered to be issued in case of failure to submit the response by the state bodies.
  • The term of license (annex) issue is reduced from 30 to 15 business days from the date of application, except for the licensors in the sphere of use of nuclear energy, in financial sphere that issue licenses (annex) not later  than 30 business days. The special term for subjects of small business enterprise is excluded.
  • The requirement on written notification of the licensor on the beginning of carrying out the licensing activity, when the 5 day term of license issue is missed by the licensor, is excluded.
  • The Law on Amendments establishes the condition that the license is considered to be issued from the date of expiration of term for its issue in case of failure to issue such license or refuse in issue by the licensor within the established period.
  • The requirement on submitting the documents approving the fact of license (annex) loss or damage during the process of license (annex) reissuance and duplicates issue.
  • The term of issue of duplicates of licenses (annex) is reduced from 10 to 2 business days from the date of application.
  • The requirement on necessity of reissuance of license (annex) for legal entity is supplemented by the condition of change of legal address.
  • The Law on Amendments provides for the list of documents enclosed to the application on license reissuance.
  • The Law on Amendments provides for the condition that the licensee has to return to the licensor the previously issued license (annex) in case of obtaining of the reissued license.

III. CONCLUSION

The Law on Amendments represents a significant step toward the improvement of the existing permitting system of the Republic of Kazakhstan. The realisation of this Law will result in reduction of quantity of licenses that will simplify the existing position of most companies carrying out economic activity.

Zarina Syzdykova
Junior Lawyer
GRATA Law Firm

In order to receive more detailed information, please do not hesitate to contact our lawyers in the following branch offices of GRATA Law firm:

Almaty, Licenses and Permits Department

Leila Makhmetova, Senior Lawyer

+7 (727) 2445-777 
+7 701 221-90-16
licenses@gratanet.com
lmakhmetova@gratanet.com

Astana, Licenses and Permits Department

Dina Zhuzdubayeva, Lawyer

+7 (7172) 689-929      
+7 701 786-58-64      
licenses@gratanet.com
dzhuzdubaeva@gratanet.com

Leila Makhmetova

Counsel, Director of Environmental Law Department