Definition of NGOs

There is no formal definition of an NGO in the legislation of the Republic of Kazakhstan. The legislation uses a term of "non-commercial organization" that includes organizations with various legal forms, such as institutions, public associations, joint stock companies, consumers' cooperatives, foundations, religious associations, associations of legal entities in the form of association or union and other organizations established in other forms stipulated by the legislative acts (Article 6 of the Law "On Non-Commercial Organizations", as of January 16, 2001). However among the enumerated forms the requirement of membership exists only for a public association [1]. Although, there are various laws containing regulations concerning NGOs.

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Definition of NGOs

There is no formal definition of an NGO in the legislation of the Republic of Kazakhstan. The legislation uses a term of "non-commercial organization" that includes organizations with various legal forms, such as institutions, public associations, joint stock companies, consumers' cooperatives, foundations, religious associations, associations of legal entities in the form of association or union and other organizations established in other forms stipulated by the legislative acts (Article 6 of the Law "On Non-Commercial Organizations", as of January 16, 2001). However among the enumerated forms the requirement of membership exists only for a public association [1]. Although, there are various laws containing regulations concerning NGOs.

Founding of an NGOs

The Public Associations are created by the initiative of at least ten individuals, who call a general meeting/conference of founders, where the charter is being adopted as well as the structure of governing bodies of the organization (Article 10 of the Law "On Public Associations", as of May 31, 1996).

Aims that may be pursued by NGOs and rules applicable to members

Non-commercial organizations can be founded for achieving social, cultural, scientific, educational, charitable goals as well as defending human rights and freedoms of individuals. Non-commercial organizations can pursue goals both targeted at achievement of public welfare and welfare of their members (Article 4 of the Law "On Non-Commercial Organizations").

Functioning of NGO without state registration

The non-commercial organizations and in particular the public associations cannot exist without state registration and without getting a status of a legal entity. Nevertheless, the state acknowledges meetings and conferences of citizens at which they adopt a charter and establish governing bodies of not yet registered associations. However, obtaining a status of legal entity is a mandatory condition for activity of associations because establishment and activity of non-registered public associations is subject for administrative and criminal liability (Article 375 of the Code on Administrative Offences, as of January 30, 2001 and Article 337 of the Criminal Code, as of July 16, 1997 respectively).

Registration requirements for NGOs

The registration of NGOs is subject to authorization. Non-commercial organization can be established through creation and also as a result of reorganization of the existing non-commercial organization. Public associations are established upon an initiative of not less than ten citizens convening founders meeting (congress or conference) at which they adopt a charter and form organizational governing bodies (Article 19 of the Law "On Non-Commercial Organizations").

For registration of a public association there must be submitted an application to a registering body within a two months period from the day of its establishment. Charter, protocol of the founders congress (conference, meeting), at which the charter was adopted, information on the initiators of association establishment and documents confirming the place of a public association location and also payment of the registration fee must be enclosed to the application (Article 13 of the Law "On Public Associations"). Founding documents are filed in two copies and are made in the state (Kazakh) and Russian languages. State registration of public associations must be completed not later than within 10 days after filing an application with attachment of necessary documents. The period for registration of branches and representative offices and also re-registration of organizations is 15 days (Article 9 of the Law "On State Registration of Legal Entities and Registration of Branches and Representative Offices", as of April 17, 1995). The state fee for registration of legal entity is 20 minimum indices and currently is 18380 tenge (approximately $135) (Article 398 of the Code "On Taxes and other Compulsory Payments to the State Budget", as of June 12, 2001).

Authorized state bodies and NGO registry

The main state registry is functioning within the Ministry of Justice of the Republic of Kazakhstan. The state registration of countrywide, regional public associations, branches and representative offices of foreign and international non-commercial, non-government associations is made by the Ministry of Justice. State registration of local public associations, branches and representative offices is made by territorial bodies of justice (Article 13 of the Law "On Public Organizations", as of May 31, 1996). The Ministry and its regional bodies have to register the legal entities and put them in unified state register. The information on registration and on the registered legal entities is public (Article 13 of the Law "On state registration of legal entities and registration of branches and representative offices").

Denial of registration to NGOs

The non-commercial organization can be rejected the state registration in cases if:

- the procedure for establishing legal entities is not ruled;

- the founding documents of the registered and re-registered legal entity are incompliant to the laws;

- the 2 months deadline was missed and there are no documents justifying the delay;

- the charter or the goals of the applicant organization are in contradiction with the legislation of the Republic of Kazakhstan.

In case of denial of state registration or re-registration of legal entity the registering body must provide a motivated denial in a written form, containing a reference to incompliance to a specific law (Article 11 of the Law).

Branch offices of NGOs

Structural sub-divisions of public associations are established in accordance with the law "On Public Associations" (Article 24 of the Law "On Non-Commercial Organizations"). Branches and representative offices are established with a decision of legal entity and regulated by regulations on a branch or representative office, adopted by a legal entity. Branches and representative offices are subject to registration (Article 6-1 of the Law "On State Registration of Legal Entities and Registration of Branches and Representative Offices"). Heads of structural sub-divisions (branches and representative offices) of public associations are elected in accordance to the procedure stipulated by the charter of a public association and regulations on its branch or representative office. Branches and representative offices are not legal entities and the responsibility for their activity is born by the non-commercial organizations that created them (Article 24 of the Law "On Non-Commercial Organizations").

In order to confirm the status the countrywide and regional public associations are obliged to submit confirming registration of branches and representative offices in territorial bodies of justice copies of documents to a registration body prior to completion of a year (Article 7 of the Law "On Public Associations").

Operational requirements for international NGOs

Branches and representative offices of foreign and international non-commercial organizations created and acting on the territory of the Republic of Kazakhstan are covered with general requirements established for local non-commercial organizations (Article 3 of the Law "On Non-Commercial Organizations"). Branches and representative offices of foreign legal entities are registered in accordance with the same procedure as branches and representative offices of legal entities of the Republic of Kazakhstan. Documents of a foreign legal entity are filed together with translations into the state and Russian languages verified by a notary (Article 6-1 of the Law "On State Registration of Legal Entities and Registration of Branches and Representative Offices").

Foreign legal entity acting as a founder of a local legal entity must additionally submit a legalized receipt from the trade registry or other legalized document certifying the status of a legal entity according to the legislation of a foreign state (Article 6 of the Law).

International treaties of the Republic of Kazakhstan and generally recognized principles and norms of international law can stipulate a special procedure for application of normative legal acts of the Republic of Kazakhstan with regard to diplomatic representatives and some other officials of state bodies of foreign states and international organizations (Article 42 of the Law "Оn Normative Legal Acts", adopted on March 24, 1998).

Heads, officials, administrative and technical personnel of international organizations' representative offices have a possibility to get accredited at the Ministry of Foreign Affairs of the Republic of Kazakhstan (The rules for accreditation of heads, employees, military attaché and administrative technical personnel of diplomatic missions, consular establishments, representative offices of international organizations and foreign investors in the Republic of Kazakhstan were adopted by a decree of the Ministry of Foreign Affairs dated August 18, 2000).  For accreditation of international organization employees it is necessary to send a note to the state protocol service within 3 days period after their arrival. The note must have two copies of filled in applications, photos with the size 3х4 cm, copes of passport and a visa enclosed. The State Protocol Service of the Ministry of Foreign Affairs makes and issues accreditation cards of a relevant series within 7-days period (Item 10 of the Rules).

Re-registration requirements for NGOs

Re-registration of a public association is made in cases stipulated by the legislation. Law requires re-registration in case of making changes and amendments into public association's founding documents (Article 14 "On State Registration of Legal Entities and Registration of Branches and Representative Offices"). Branches and representative offices are subject to re-registration in case of change of the name (Item 7 Article 24 of the Law "On Non-Commercial Organizations"). Information on the changed legal entity data, which leads to re-registration, must be submitted within a monthly period (Article 18 of the Law "On State Registration of Legal Entities and Registration of Branches and Representative Offices"). Denial in re-registration is possible for the same as for registration reasons.

Re-registration of public associations is made not later than within 10 days after filing necessary documents and their branches and representative offices - not later than 15 days. The re-registration period is interrupted if not a full set of documents was presented and documents have drawbacks or it is necessary to receive an expert's conclusion on the founding documents (Article 9 of the Law). There is a fee for the state re-registration of legal entities and their branches and representative offices in accordance to the procedure established by the Tax Code of the Republic of Kazakhstan (Article 10 of the Law). The amount of the fee for re-registration is established by the Government of the Republic of Kazakhstan (Article 400 of the Code of Taxes and Other Obligatory Payments to the Budget, as of June 12, 2001).

Right of appeal of NGOs

The rejection as well as disputes on granting or not the status of a legal entity to an applicant organization can be solved through the court procedures (Article 17 of the Order of the President "On State Registration of Legal Entities and Registration of Branches and Representative Offices").

Authorized state bodies granting financial and other benefits to NGOs

There is no specific body dealing with the issue of granting benefits to NGOs, also because there are no benefits foreseen for NGOs. There are just some provisions concerning the income tax, but these are regulated depending of a character of particular legal entity after its registration.

Foreign funding of NGOs

Non-commercial organizations have a right to receive financial support from abroad, which is defined in the tax legislation as a grants or sponsorship support (Articles 10 and 120 of the Code on Taxes and other Obligatory Budget Fees). Although, the grants may be allocated only by international organizations, which are in the list of donors, approved by the Government.

Tax exemptions to NGOs

Revenue of a non-commercial organization in the form of a remuneration, grant, entry and membership fees, charitable assistance, free of charge transferred property, allocations and donations on a free of charge basis are not subject to taxation. The obligatory condition is observation of the requirements for an organization to carry out its activity in public interests and not to have an aim of making profit, not to distribute the received net profit or property among its participants. Other organization revenues are subject to taxation. The organization should keep separate records of all tax exempt and non-exempt expenditures for reporting purposes (Article 120 of the Code).

Reporting requirements of NGOs

All types of legal entities have to present periodical reports to the tax authorities and the state statistics bodies. There are no other obligations to provide reports to state bodies according to current legislation of the Republic of Kazakhstan. However, in practice the public prosecutor's bodies, Ministry of Information and local bodies of power try to oblige local non-governmental organizations to submit reports on their activity very frequently. Annual report on its activity must be published by such types of non-commercial organizations as a fund.

Termination, dissolution and liquidation procedure for NGOs

The activity of a non-commercial organization can be suspended for a period from 3 up to 6 months upon a decision of the court based on reports of public prosecutor offices in cases of a non-commercial organization committing the actions contradicting the Constitution or legislation of the Republic of Kazakhstan, repeated exceeding the framework of determined by its charter subject and aims of activity (Article 42 of the Law "On Non-Commercial Organizations"). If the court makes a decision on dissolution of the organization, its bank accounts and other assets may be taken under arrest. Before applying to the court the prosecutor's office and other law enforcement agencies usually send warning-letters to the organization. Only after 2 or more warnings the above mentioned state agencies apply to the court with proposal to dissolve the organization (Article 23 of the Law "On Public Associations"). The Administrative Code of the Republic of Kazakhstan also envisages dissolution procedures for non-commercial organizations in cases when these organizations are in breach of laws of Kazakhstan (Article 374 of the Civil Code).

Non-commercial organization can be liquidated voluntarily upon a decision of an authorized for that by founding documents body of a legal entity or forcedly upon a decision of the court in accordance to the procedure stipulated by the Civil Code of the Republic of Kazakhstan and other legislative acts. The body which took a decision on liquidation of a non-commercial organization must inform on that a relevant body of justice without any delay (Article 26 of the Law "On Non-Commercial Organizations", as of January 16, 2001).

Participation in law-drafting that affects the status of NGOs

The legislation does not grant non-commercial organizations authorities to participate in law-making activity. At the same time an authorized body developing draft normative legal act can authorize organizations to do it or involve on a contract basis other experts, scientific institutions, scientists or their collective, including foreign ones to develop this act using for those purposes allocated budget and extra budget funds (Article 14 of the Law "Оn Normative Legal Acts"). Involvement of non-governmental organizations into the process of development of socially important draft laws and program documents is planned within the framework of the Program on State Support of Non-Governmental Organizations of the Republic of Kazakhstan for 2003-2005.

[1] Yevgeny Zhovtis "Problems of Legal Regulation of Citizens' Right to Association in the Republic of Kazakhstan", presentation at the Round Table on the Draft Law on NGOs, 2003.

Analysis was prepared with assistance of the Kazakhstan international bureau on human rights and observation of law, representative office of the International center of non-commercial law, OSCE ODIHR Mission in the Republic of Kazakhstan, which completed the ODIHR questionnaire.

Posted: June 2005

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