Investor’s guide

LICENSES AND PERMITS

Legislation

Licensing is regulated by the Licensing and Permitting System Law in Kyrgyz Republic.[1] Banks, financial/lending institutions, and other institutions, which are regulated by the National Bank of Kyrgyz Republic, are licensed in accordance to particular laws[2] .

The procedure of issuing licenses for the use of mineral resources, including the procedure for the extension, suspension, termination or transfer of such licenses as well as the license conditions, license control, fees and charges are regulated by the legislation of Kyrgyz Republic in the field of mineral resources.

The procedure for issuing licenses and permits to carry out foreign trade activity is determined in accordance with the legislation of Kyrgyz Republic in the field of foreign economic activity and the requirements of international treaties and acts constituting the law of the Eurasian Economic Union in the field of licensing.

Export, import and transit of goods included in the common list of goods subject to prohibitions and restrictions on import or export by the member-states of the Eurasian Economic Union (EEU) within the borders of EEU in trade with third countries are subject to non-tariff regulatory measures and restrictions in accordance with provisions of international treaties and acts constituting the law of EEU.

Licenses are issued on equal conditions and grounds for all persons, regardless of the ownership.

Licenses are required only for the activities and operations specified by legislation and to the extent necessary to maintain national security, government monopoly, law and order and to protect the environment, ownership, life and health of citizens. Under Kyrgyz law, licensing is mandatory for the following activities:

Production, transmission, distribution, sale, export and import of electricity (except electricity produced from renewable sources or from other sources for personal use with capacity up to 1,000 kWh);
Production, transmission, distribution, sale, export and import of heat (except heat produced from renewable sources or from any sources for personal use);
Processing of oil and natural gas, except industrial-scale production and sale of bioethanol produced from vegetable feed;
Production, transfer, distribution, and sale of natural gas;
Production and distribution of ethyl alcohol;
Production and distribution (storage for production or sale purposes, wholesale and retail trade) of alcoholic products;
Private medical practice (except under a service or employment contract with private medical institutions or individual entrepreneurs);
Production, manufacture and sale of medicines and medical equipment;
Production and sale of vaccines and serums in specialized veterinary enterprises;
Activities involving work with RG2 microorganisms;
Activities in the field of electric communication;
Activities in the field of postal communication;
Activities in the field of data transfer;
TV and radio broadcasting activities, including production, transmission, and distribution of broadcasting programs;
Urban planning, research and design of residential, public and production buildings and structures (Category I, II and III facilities);
Construction and installation operations, except construction of individual residential houses (Category I, II and III facilities);
Passenger transport services by motor vehicle (except taxi cars);
International cargo transportation by truck;
Passenger and (or) cargo transportation by air;
Aircraft ground handling in airports (aerodromes) during arrival and departure, except maintenance and (or) repair of aircrafts;
Passenger and (or) cargo transportation by water;
Banking operations specified by the legislation of Kyrgyz Republic in the field of banking, micro-finance, payment systems and funds transfer, credit information exchange and credit union activities;
Credit union activities;
Microfinance activities;
Pawn shop activities;
Foreign currency exchange services;
Credit bureau activities;
Payment intermediary services effectuated through IT-based and electronic payment systems;
Acceptance, processing, and issuance of financial information (processing and clearing services) related to payments and settlements between third parties and participants of the payment system of a given processing or clearing center;

Lottery activities (except stimulating lottery);
Transportation (including trans-boundary transportation) of toxic substances, including radioactive waste;
Design, manufacture and sale of military products (munitions, military equipment, military-technical property, documentation, intellectual property, military-technical information referred to military products under Kyrgyz law) and military services (maintenance, upgrade, disposal of munitions, military equipment and their transportation, supply, and storage);
Production, use, disposal of industrial explosive materials;
Sale of explosive substances and products (including pyrotechnic ones);
Production, repair, and trade in weapons and munitions;
Design, production, manufacture, processing, storage, issue, sale, purchase and distribution of narcotic drugs, psychotropic substances and their precursors;
Advocate practice;
Private notarial practice;
Voluntary universal life insurance services;
Voluntary personal insurance services;
Voluntary property insurance services;
Voluntary liability insurance services;
Mandatory insurance services;
Mandatory and voluntary inward reinsurance services;
Non-governmental pension fund activities;
Organized market for trading securities;
Securities broker services;
Security holder’s registry keeper services;
Securities depository services;
Securities dealer services;
Investment fund activities;
Investment trust activities;
Audit services;
Bankruptcy administration services;
Design, installation, adjustment and repair of anti-fire automatic devices; flameproofing of wooden structures and combustible theatrical display equipment;
Educational activities (except state and municipal educational institutions carrying out pre-school, primary, basic and secondary general education programs);
Import, export of arms and ammunition, as well as other products of military purpose according to the list approved by the Government of the Kyrgyz Republic;
Import, export, re-export of goods included in the National checklist of controlled products of Kyrgyz Republic approved by the Government of Kyrgyz Republic;
Insurance broker activities;
Actuarial activities;

In addition, licensing is mandatory for the following activities involving the use of limited public resources:

Using radio frequency spectrum to provide electrical communication and (or) data transmission services;
Taking timber from the woodland at woods of the forestry fund (felling license, small-scale timber supply permit);
Taking flora resources for commercial purposes (flora resources taking permit, forest use permit);
Disposal, storage, burial and elimination of toxic waste, including radioactive waste;
Mineral tenure related activities (prospecting, exploration, or mining of mineral resources, including extraction and use of underground water, geological mapping and regional geological, geophysical and other scientific researches, building and operation of non-mining underground facilities, collection of mineralogical, paleontological materials for commercial purposes, collection of rock materials for decorative purposes and for their use as ornamental stones and building materials, and non-exploration and non-mining mineral tenure);
Generation, use, processing, formation, storage, and elimination of substances which can form explosive mixtures (filling stations which fill compressed or liquefied gas cylinders);
Generation, formation, storage, use and elimination of highly toxic substances.

Permits are required for the following operations:

Import of used automobile tires as waste for recycling purposes;
Blasting operations;
Mining operations;
Import and export of ore and rock samples, concentrates, residues and laboratory tests for analytical research;
Purchase of alluvial gold and gold concentrate;
Import of commodities of plant origin under quarantine;
Work permit issued to foreign citizens and stateless persons at employers’ request based on overall quota in the territory of Kyrgyz Republic;
Employment of Kyrgyz citizens abroad;
Transit of weapons and military equipment through the territory of the Kyrgyz Republic;
Import, export, transit through the territory of Kyrgyz Republic of narcotic drugs, psychotropic substances and their precursors;
Purchase, storage, transportation, carrying, collection, display, of civilian and duty weapons and munitions;
Purchase and sale of highly toxic substances;
Purchase, sale, storage, transportation, carrying, import, export of special means approved by the Government of Kyrgyz Republic;
Test fishing for scientific purposes;
Placement of waste in the environment;
Discharge of pollutants into the environment;
Release of pollutants into the atmosphere by stationary sources of pollution;
Entry and exit from foreign country during international cargo transportation by truck;
Transit through the territory of a foreign state during international cargo transportation by truck;
International cargo transportation by truck;
Cargo transportation to or from third countries during international cargo transportation by truck;
International passenger transportation (regular and irregular);
Transportation of dangerous goods;
Storage of explosives materials used for industrial purpose;
Storage of pyrotechnic products;
Import of pyrotechnic products to Kyrgyz Republic;
Purchase of explosives materials;
Import to Kyrgyz Republic of radio-electronic means (REM) and high-frequency devices (HFD), other technical means emitting radiofrequency radiation or high-frequency electromagnetic waves;
Frequency acquisition for operation of radio-electronic means;
Import and export of goods (products) subject to veterinary control;
Transit through the territory of Kyrgyz Republic of goods (products) subject to veterinary control;
Transit through the territory of Kyrgyz Republic of goods included in the National Checklist of controlled products of Kyrgyz Republic approved by the Government of Kyrgyz Republic;
Development, production, sale, purchase, storage, transportation of special technical means used for surreptitious obtaining of information

Licensing Authorities

Licenses are issued by the authorized governmental authorities (licensors) executing control over licensed activities. The list of the governmental authorities issuing licenses is set forth in the laws and other legislative acts of the Government of Kyrgyz Republic.

Licenses issued in other countries are not valid in Kyrgyz Republic as long as appropriate international treaties are in place.

License Issuance

To obtain a license, an applicant must submit to the competent governmental authority following documents:

The standard application form;
A copy of proof of identity document (for individuals);
A copy of certificate of state registration of a legal entity or individual entrepreneur;
A copy of proof of payment of the application fee and the license and (or) permit fee;
Copies of documents set forth in the Regulation on Licensing of Certain Business Activities approved by the Government of Kyrgyz Republic.

A licensor may not request the applicant to provide any documents other than those provided by law or regulations. The authority shall duly register all documents submitted for the purposes of obtaining a license. Applicants may apply for licenses and (or) permits online through licensors’ websites by completing and submitting their application forms and scanned copies of original registration documents. In return, they receive the licensor’s confirmation indicating the date of receipt of the application and the list of the documents submitted online.

Applicants may apply for an electronic license and (or) permit by indicating this in the application form.

Licenses are issued within thirty calendar days from the date of filing an application with all the required documents. The only exception is the license to use radio-frequency spectrum requiring coordination with neighboring countries of the Kyrgyz Republic.

[text is provided by Kalikova & Associates]

[1] The Law of Kyrgyz Republic “Licensing and Permitting System in Kyrgyz Republic” No. 195 dated October 19, 2013 (with the latest amendments as of June 28, 2016).