LAW OF THE REPUBLIC OF KAZAKHSTAN

of January 31, 2006 No. 124-III ZRK

About private entrepreneurship

This Law governs the public relations arising in connection with implementation by physical and non-state legal entities of private entrepreneurship, determines the main legal, economic and social conditions and guarantees providing freedom of private entrepreneurship in the Republic of Kazakhstan.

Chapter 1. General provisions

Article 1. The basic concepts used in this Law

In this Law the following basic concepts are used:

1) information tools - information procedures for granting to state bodies or other persons according to requirements of the legislation of the Republic of Kazakhstan subjects of private entrepreneurship;

1-1) business incubators - the legal entity created for support of small business entities at stage of their formation by provision of production rooms, the equipment, organizational, legal, financial, consulting and information services;

2) social responsibility of business - voluntary contribution of subjects of private entrepreneurship to development of society in social, economic and ecological spheres;

3) the individual entrepreneur - the citizen of the Republic of Kazakhstan or the oralman performing individual entrepreneurship without formation of legal entity and corresponding to the criteria specified in Items 3 and 7 of article 6 of this Law;

4) individual entrepreneurship - the initiative activities of physical persons directed to income acquisition, based on property of physical persons and performed on behalf of physical persons for their risk and under their property responsibility;

5) private entrepreneurship - the initiative activities of subjects of private entrepreneurship directed to income acquisition, based on property of subjects of private entrepreneurship and performed on behalf of subjects of private entrepreneurship for their risk and under their property responsibility;

6) it is excluded

7) the state support of private entrepreneurship - complex of the state measures for stimulation of development of private entrepreneurship, to creation of favorable legal, economic and social conditions for realization of entrepreneurial initiative in the Republic of Kazakhstan;

8) infrastructure of private entrepreneurship - complex of the created or operational entities providing general terms of functioning and development of private entrepreneurship including assistance in the organization of own business, providing with information in the field of the right, marketing, engineering and management, support in providing with material, financial and other resources on commercial basis;

9) subjects of private entrepreneurship - the physical and non-state legal entities performing business activity;

10) consolidation of subjects of private entrepreneurship - the non-profit organization created by subjects of private entrepreneurship for the purpose of coordination of their business activity, and also representation and protection of the rights, legitimate interests of subjects of private entrepreneurship;

11) accreditation of associations of subjects of private entrepreneurship - recognition by the relevant state bodies of compliance of associations of subjects of private entrepreneurship to the established criteria on representation of interests of subjects of private entrepreneurship in advisory councils concerning entrepreneurship;

11-1) annual average income - the amount of gross annual incomes or the income of the subjects of private entrepreneurship applying according to the tax legislation of the Republic of Kazakhstan special tax regime on the basis of the patent or the simplified declaration, for the last three years, divided into three;

12) industrial zone - the earth of nonagricultural appointment provided with communications, provided by the state to subjects of private entrepreneurship for placement and operation of objects of the industry according to the procedure, established by the Land code of the Republic of Kazakhstan and other laws of the Republic of Kazakhstan;

13) authorized body on entrepreneurship - the state body performing management and cross-industry coordination in the field of development and support of private entrepreneurship;

14) advisory council concerning entrepreneurship (further - advisory council) - the advisory advisory body created under the central state and local executive and representative bodies for the organization of work on:

to receipt of expert opinions from accredited associations of subjects of private entrepreneurship and the interested non-profit organizations on projects of the regulatory legal acts infringing on interests of private entrepreneurship;

to development of offers on enhancement of activities of state bodies for the purpose of support and protection of private entrepreneurship, including to elimination of administrative barriers;

15) it is excluded

16) trade secret - the information determined and protected by the subject of private entrepreneurship, the open entry legally to which has the limited group of people, disclosure, obtaining which use can cause damage to its interests;

16-1) regulatory tools - the impact methods concerning subjects of private entrepreneurship, including permission and the notification determined according to the Law of the Republic of Kazakhstan "About permissions and notifications"; fields of activity of subjects of private entrepreneurship in which the state control and supervision according to the Law of the Republic of Kazakhstan "About the state control and supervision in the Republic of Kazakhstan" is exercised; information tools, stipulated by the legislation Republic of Kazakhstan;

16-2) toughening of regulation - establishment of additional requirements, obligations or other increase in load of subjects of private entrepreneurship in connection with introduction or use of regulatory tools;

16-3) analysis of regulatory impact - the analytical procedure of comparison of benefits and costs from the entered regulatory tool and the related requirements allowing to estimate goal achievement of state regulation in subsequent;

16-4) regulatory state agencies - the state bodies performing management in separate industry or the sphere of public administration in which it is entered or are planned to introduction the regulatory tool;

17) the centers of support of small business - the legal entities performing training, information support, rendering consulting and marketing services, conducting economic and technological examination of projects of small business entities.

Article 2. Legislation of the Republic of Kazakhstan on private entrepreneurship

1. The legislation of the Republic of Kazakhstan on private entrepreneurship is based on the Constitution of the Republic of Kazakhstan and consists of the Civil code, this Law and other regulatory legal acts of the Republic of Kazakhstan.

2. If the international treaty ratified by the Republic of Kazakhstan establishes other rules, than those which are provided by this Law then are applied rules of the international treaty.

3. Features of implementation of separate types of private entrepreneurship are established according to the laws of the Republic of Kazakhstan.

4. It is excluded

Article 3. Limits of legal regulation of private entrepreneurship

1. The private entrepreneurship can be limited only on the bases established according to the laws of the Republic of Kazakhstan.

2. Restriction of private entrepreneurship can take place only on the questions carried to exclusive competence of the state according to the laws of the Republic of Kazakhstan.

3. Acceptance by state bodies of the regulatory legal acts installing privileged position separately of the taken subjects of private entrepreneurship is forbidden.

Article 4. Main objective and principles of state regulation of private entrepreneurship

1. Main objectives of state regulation of private entrepreneurship are creating favorable conditions for development of private entrepreneurship and protection of interests of the state and the rights of consumers.

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