Arbitration as the Method of Settlement of Investment Disputes against the Kyrgyz Republic
AKIpress Analytics section, March 19, 2013

The Kyrgyz Republic has already participated in several arbitration proceedings. Therefore, it might be reasonable to analyze peculiarities of legal regulation of arbitration in the KR, the causes and consequences of arbitration disputes and make relevant conclusions…

What risks foreign investors should take into account while investing into the Kyrgyz mining sector,
The Times of Central Asia, March 1, 2012.

Overview of Anti-Corruption Laws in Kyrgyz Republic,
Comparative Summary of Anti-Corruption Laws in the CIS Economic Region, 2011,
The CIS Leading Council Network.

What a foreigner should know about tax regime in the Kyrgyz Republic?
The Times of Central Asia, publication expected.

Kyrgyzstan is not an offshore zone and does not provide tax exemptions, but the rates of many of them are not very high.

Employment of Foreigners and Stateless Persons in the Kyrgyz Republic: 8 Frequently Asked Questions

1. Who issues work permits to foreigners or stateless persons?

The State Migration Service under the Government of the Kyrgyz Republic (the "Migration Service") is the authorized state body charged with issuing work permits to foreigners and stateless persons wishing to work in the Kyrgyz Republic. The Migration Service issues two kinds of work permits: permits authorizing the hiring and employment of foreign employees – a document of a standard form authorizing legal entities and individuals to hire foreign employees in the Kyrgyz Republic (“Employment Permit”) and work permits (personal cards) authorizing foreigners or stateless persons to work in the Kyrgyz Republic (“Employee Permit”). The list of documents required for obtaining Employment Permit and Employee Permit is set by the Migration Service (the effective list of documents is available on the official website of the Migration Service: http://ssm.gov.kg). Applications for Employment Permit and Employee Permit can be filed in electronic format or hard copy.

2. Who sets quotas for hiring foreign employees?

The Government sets annual quotas for hiring of foreign and stateless employees. The quotas are established by industry and vary by regions of the Kyrgyz Republic, including Bishkek.

The quota for foreign labor provided in the Employment Permit, shall be annulled if it is not used within three months after the issuance.

3. Who is required to obtain work permit?

Kyrgyz individuals or legal entities planning to hire foreign employees must be issued Employment Permits before they hire foreign and stateless individuals. Foreigners and stateless individuals (who have reached the age of 18) who have legally entered the territory of the Kyrgyz Republic, and plan to work or do business in the Kyrgyz Republic must apply for Employee Permit.

4. In which cases can permits be refused or revoked?

Requests for work permits can be refused and valid work permits revoked if: ­

- suitable local professionals become available for hire in the domestic market; ­
- the data submitted in an application turns out to be inaccurate; ­
- employees are terminated from employment or the employers’ business activities in the Kyrgyz Republic cease; ­
- illegal actions are committed.

Decisions to dismiss (refuse), revoke and suspend permit may be appealed in the court. If an employer violates the procedure for hiring and employing foreign employees the Migration Service will issue an admonition to the employer requiring that they rectify the detected violations. If the violations persist, the Migration Service may suspend or revoke the Employment Permit. When the employer ceases business, the Employment Permit and the Employee Permit become invalid regardless of the term for which they were issued and are subject to return.

5. Who is exempt from the requirement to obtain work permit?

Pursuant to the Kyrgyz law the requirement to obtain the work permit does not apply to the following persons: ­

- Persons who have official refugee status or political asylum in the Kyrgyz Republic; ­
- Permanent residents of the Kyrgyz Republic; ­
- Persons who travel to the Kyrgyz Republic to supervise the installation of technological equipment which has been supplied by foreign companies; ­
- Students undertaking internships within the programs of Kyrgyz educational institutions and working during the school breaks; ­
- Persons working in diplomatic and consular missions, or with international organizations accredited by the Kyrgyz Republic; ­
- Foreign correspondents and journalists accredited by the Kyrgyz Republic; ­
- Persons subject to other employment requirements in accordance with international treaties; ­
- Ethnic Kyrgyz who have been granted status of returnee.

Accordingly, in connection with accession of the Kyrgyz Republic to the Eurasian Economic Union (EEU), starting from August 12, 2015 citizens of the EEU member states (the Russian Federation, the Republic of Kazakhstan, the Republic of Belarus, the Republic of Armenia) are not required to obtain work permits to work on the territory of the Kyrgyz Republic in the framework of an international treaty.

6. How long do permits remain valid?

Employee Permits for foreign executives or professionals are valid for one year with the possibility of annual extension. Employee Permits for skilled foreign employees are generally valid for two years. Foreign individuals registered in the Kyrgyz Republic as individual entrepreneurs (Entrepreneurs) can obtain Employee Permit valid for up to three years. However, in practice, all foreigners, irrespective of their position and qualification, are issued work permits for one year. Such practice is explained by the fact that the quota for hiring foreign and stateless employees is approved by the Government on an annual basis.

7. Can a valid permit be transferred to another employer?

Employment Permits are employer-specific and may not be transferred. Foreign workers who have been issued Employee Permits by a particular employer are not allowed to transfer them to another employer. If foreign professionals work for more than one company, they must obtain Employee Permits for each employer.

Entrepreneurs holding Employee Permits may only do business at the places specified in their application. If the Entrepreneurs holding a valid Employee Permit wish to do business in a place which was not included in their initial application, the Entrepreneurs must apply for an additional permit.

8. How much is the fee for the issuance of permits?

The Migration Service charges a fee of 4,000 Kyrgyz Soms (approximately USD 58) for the issuance of an Employment Permit. An Employee Permit's fee per person is 2,000 Kyrgyz Soms (approximately USD 29). Fee for a work permit for the Entrepreneurs is 20,000 Kyrgyz Soms (approximately USD 291).

 

 

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