Government • 06 November, 2018

Conditions for development of entrepreneurship will improve systematically — Suleimenov on improving position of Kazakhstan in Doing Business ranking

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November 6 at the meeting of the Government chaired by Prime Minister Bakytzhan Sagintayev, measures to improve the business environment further were considered. Recall that the results of the Doing Business 2019 were announced earlier, according to which Kazakhstan ranked 28th among 190 countries of the world.

The Minister of National Economy Timur Suleimenov reported that, in accordance with the instructions of the Head of State, the Government had fulfilled the task of entering the top 30 countries in the world in the ease of doing business.

According to the Ministry of National Economy, Kazakhstan has improved its position in the Doing Business 2019 ranking by 36 points over the past 11 years. At the same time Kazakhstan is ahead of such OECD countries as Spain (30), France (32), Poland (33), Portugal (34), Switzerland (38), Japan (39), Turkey (43) and took the leading position among the countries of the Eurasian Economic Union (Russia (31), Belarus (37) and Armenia (41).

In 2018 the World Bank counted 9 reforms on 5 indicators. However, all the reforms included in the report of the current year’s rating are reforms of previous years. The reforms of the 6th package (15 reforms within 7 indicators), in turn, will be evaluated in the next editions of the World Bank report as a reserve.

Reforms of the sixth package.

1. Opening enterprises:

  • Remote opening of a bank account;
  • Mandatory life and health insurance of employees;
  • Reclamation print.

2. Obtaining a building permit:

  • Allocation of land;
  • Obtaining design plan and technical conditions;
  • Check State Building Control after receiving notification of the start of construction;
  • Inspection of construction sites for risk assessment;
  • The abolition of the technical passport for new objects;
  • Coordination of the act of acceptance of the object in operation on the principle of "one window.”

3. Connection to the power supply system:

  • Obtaining protocol for testing from accredited laboratories.

4. Property registration:

  • State guarantees for damages due to incorrect information in the register of real estate;
  • Secondary registration of rights to real estate on the principle of "one window"

5. Getting credits:

  • Automatic distribution of pledge rights to movable property for separable fruits, products and income.

6. International trade:

  • Reduction of time for export by transferring customs duties through an electronic gateway.

7. Insolvency Resolution:

  • Separation of lenders into categories when voting on the approval of a rehabilitation plan.

Regarding the first “Starting a Business” indicator, Kazakhstan took the 36th place, having risen by 5 positions due to the implementation of the reform to reduce the time for VAT registration from five to one working day. According to the “International Trade” indicator — improvement by 21 positions and the 102nd place of the rating.

“The number of declarations on goods issued in electronic form without the participation of customs officials, as of October 25, 2018, amounted to more than 600 thousand. The number of documents for customs declaration was minimized to one. The financial costs of customs clearance of goods and vehicles have been reduced,” Suleimenov said.

According to the indicator “Enforcing Contracts,” Kazakhstan took the fourth place, having risen by two positions compared to the previous year. Two reforms on the publication of court decisions and statistical reports on the results of the work of the court in open access have been read. Today, it is possible to submit a claim to the court within the framework of the “Judicial office” service, without leaving your home or office, and pay the state fee online. Thus, the share of applications in electronic form is more than 90%. In the framework of the indicator “Obtaining a construction permit,” Kazakhstan took the 35th place, having risen by 17 positions.

“The World Bank credited three reforms. The first. The need to obtain additional building permits from local executive bodies if the customer has rights to the land plot has been eliminated. Second. The timeline for approval of the draft design by the Department of Architecture and Urban Planning of Almaty has been reduced from 15 to 10 working days Third. The receipt of a construction permit in connection with the transition to a notification procedure, providing for the notification of the commencement of construction in electronic format, is excluded. Today, sending a notice online takes no more than 10 minutes,” said Suleimenov.

Under the indicator “Getting Credits,” Kazakhstan took the 60th place, having risen by 17 positions. The reform of the general description of the pledged item without the requirement of a specific description of the pledged security and without an assessment of the pledged item has been credited. According to the “Insolvency Resolution” indicator, Kazakhstan took the 37th place, rising to two positions. According to the indicator “Protection of Minority Investors”, the republic has retained its first place.

“The protection of the rights and interests of minority shareholders who invested in the company's securities has been established, an increase in the level of trust in relations between the company, shareholders, members of the board of directors and other interested parties has been ensured. The work aimed at real improvement of conditions for business development will continue on a systematic basis in the future,” the minister concluded.

It should be noted that at this stage, work is underway on the next 7th package of amendments to the legislation of the Republic of Kazakhstan, which provides for the introduction of systemic changes in the context of key indicators of the Doing Business rating.

In turn, the Chairman of the Atameken National Chamber of Entrepreneurs Ablay Myrzahmetov in his report noted the coordinated work of the state and business. Of the 10 basic indicators, Kazakhstan has improved its position on 6 indicators. The sixth package of amendments was signed by the Head of State publicly. The Chamber has provided more than 5 thousand proposals, most of which were accepted. This, according to Myrzakhmetov, suggests that work is being done in one direction.

The meeting also heard comments from relevant ministries on the ongoing work to improve the indicators “Taxation,” “Connection to the power supply system,” “Registration of property,” on which Kazakhstan occupies low positions.

Summarizing the consideration of the issue, the Prime Minister noted good performance indicators. However, it is necessary not to stop there. The government is conducting systematic work to create the most favorable conditions for the dynamic development of business. The seventh package of legislative amendments to improve the business environment is ready and is under consideration in Parliament. The Ministry of National Economy, jointly with the interested state bodies, is instructed to ensure the passage of the draft law in the Parliament before the end of this year. This will improve the indicators for the next year.

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