Entrepreneurial Code Of The Republic Of Kazakhstan: Key Novelties

On 29 October 2015, the RK Entrepreneurial Code was passed. It will be effective (except for some provisions) as of 1 January 2016.

Consolidation

The Entrepreneurial Code consolidated the laws regulating business activity as a whole. Industry types of business activities (such as subsurface use, banking, insurance, etc.) will continue to be regulated by special laws.

In view of the above, the Entrepreneurial Code actually consolidated the provisions of the following six laws that will cease to be in force as independent normative legal acts as of 1 January 2016:

Law "On Peasant or Farm Household" Law "On Investments" Law "On Private Entrepreneurship" Law "On Competition" Law "On State Control and Supervision in the Republic of Kazakhstan" Law "On State Support of Industrial and Innovation Activities" It should be noted that the inclusion in the Entrepreneurial Code of the Law "On State Control and Supervision in the Republic of Kazakhstan," which applied not only to business entities, but also to all legal entities and individuals, as well as state authorities, is based on the principle of the prevalence of regulated public relations, as the said Law extended its effect mainly on businesses. Therefore, such consolidation within the Entrepreneurial Code of the provisions related to the organization and conduct of state control and supervision of the inspected entities does not narrow the scope of the state control and supervision.

Harmonization of legislation

Along with the enactment of the Entrepreneurial Code, the Law on Amendments to Some Legislative Acts of Kazakhstan on Issues of Entrepreneurship was also passed (the Law introduces amendments to 11 codes and 99 laws). In spite of the amendments to such an impressive number of laws, it should be noted that a significant part of such amendments is of a technical nature and is aimed at harmonizing the legislation in connection with the enactment of the Entrepreneurial Code.

One of the big fears in connection with the enactment of the Entrepreneurial Codeand the amendments to the legislation accompanying itwas that a conflict between the provisions of the Entrepreneurial Code and, above all, of the Civil Code will arise. However, the legislator has tried to address this point and to minimize the risks of this kind. Paragraph 2 of Article 1 of the Entrepreneurial Code provides that "Commodity-money and other property relations based on equality of the participants, as well as personal...

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