Draft Law on Amendments and Additions to Some Legal Acts on Non-Commercial Organizations (2009)

Draft

LAW OF THE KYRGYZ REPUBLIC

‘On Amendments and Additions to Some Legal Acts of the Kyrgyz Republic’


 Article 1. The Law of the Kyrgyz Republic ‘On Non-Commercial Organizations’ (Bulletin of the Jogorku Kenesh of the Kyrgyz Republic, issue 2, 2000, Article 102) shall be hereby changed and added to as follows:

1. Article 1 shall be reworded as follows:
‘This Law shall establish the legal basis and the procedure of activities for noncommercial organizations functioning on the territory of the Kyrgyz Republic, forms of their governmental support and regulation.
Pursuant to this Law, noncommercial organizations shall include all non-commercial organizations, among them those created in the form of public associations, foundations, authorities, subsidiaries and representative offices of noncommercial organizations, including those opened by international or foreign organizations.
This Law shall not apply to political parties, trade unions, religious organizations and cooperatives, whose status, creation procedure and activities are regulated by other laws of the Kyrgyz Republic.’

 2. In Article 2:

 - parts two-four shall be deemed as parts two-five and reworded as follows:

‘A foreign noncommercial organization shall be a noncommercial organization created beyond the territory of the Kyrgyz Republic, under the legislation of a foreign state.

Noncommercial activity shall be activity of a noncommercial organization not pursuing the purpose of deriving a profit. In case of inflicting damage to third parties, noncommercial organizations shall be kept liable as provided for in the legislation of the Kyrgyz Republic.

Political activity shall be activity of political parties established with the purpose of implementing the political will of a certain part of the population and setting the major task of participating in the management of state affairs only in forms envisaged by the Constitution of the Kyrgyz Republic and the Law of the Kyrgyz Republic ‘On Political Parties’, also by making proposals to public authorities for improvements in the management of state and public affairs.

Activity in the processes of nation-wide voting shall be activity related to participation in referenda and elections within the limits and in forms established by laws on elections and referenda in the Kyrgyz Republic’;

 - parts five-eight shall be deemed as parts six-nine respectively:
 - in part nine, words reading ‘as well as noncommercial information on its activities’ shall be substituted with words reading ‘as well as any information on its activities in electronic or printed media, and results of creative activity’.

 3. Article 4 shall be supplemented with parts four-five reading as follows:
 ‘Participation of noncommercial organizations in political activities or activities in the process of nation-wide voting shall not be allowed in the Kyrgyz Republic
 Violation of provisions of this Law shall entail responsibility as provided for in the legislation of the Kyrgyz Republic’.

 4. In Article 5:
- part two shall be reworded as follows:
‘State support to noncommercial organizations shall be provided in the following forms:
- pursuant to the legislation, provision of preferential taxes, customs or other duties and payments to noncommercial organizations established for charity, education, cultural and scientific purposes, for the purposes of public health protection, development of physical culture and sports;
- targeted allocation of funds from the state budget to noncommercial organizations for implementation of profit-for-public programs;
- provision of other privileges to noncommercial organizations, including full or partial exemption from fees for state or municipal property usage;
- provision of state social contracts to noncommercial organizations on a competitive basis.
The procedure of allocating funds to noncommercial organizations for implementing profit-for-public programs, providing state social contracts shall be annually established by the Government of the Kyrgyz Republic’.

 5. In Article 6:
- part two shall be reworded as follows:
‘Noncommercial organizations may be established in the form of public associations, foundations and authorities’;

- part three shall be added, reading as follows:
‘Subsidiaries and representative offices of noncommercial organizations including those opened by international or foreign organizations shall acquire legal capacity from the date of registration in the order established by the legislation of the Kyrgyz Republic’.

6. The Law shall be supplemented with a new Article 6-1 reading as follows:
 ‘Article 6-1. Founders of a Noncommercial Organization
1. Depending on its organizational and legal forms, founders (participants, members) of a noncommercial organization shall be capable citizens of the Kyrgyz Republic and (or) capable legal entities.
2.Foreign citizens and stateless persons legally staying in the Kyrgyz Republic may be founders (participants, members) of noncommercial organizations on the territory of the Kyrgyz Republic, except for cases specified in international treaties of the Kyrgyz Republic or Kyrgyz legislation.
3.The following persons may not be founders (participants, members) of a noncommercial organization:
1) a foreign citizen or a stateless person, in cases and on the grounds stipulated by Article 7 of the Law of the Kyrgyz Republic ‘On External Migration’;
2) a physical or legal person, in cases and on the grounds stipulated by Articles 9 and 10 of the Law of the Kyrgyz Republic ‘On Counteracting Extremist Activities’;
3) a physical or legal person as listed in subclause 2, clause 2, Article 6 of the Law of the Kyrgyz Republic ‘On Counteracting Terrorist Financing and Laundering of Proceeds of Crime»;
4) a person kept in places of confinement by a court decision;
5) on other grounds as envisaged by the legislation of the Kyrgyz Republic’.

 7. Article 9 shall be supplemented with parts two-four reading as follows:
‘For registration of a subsidiary or representative office of a foreign noncommercial organization, the following documents shall be presented to authorities of justice:
- decision of an authorized body of the foreign country about registration of the foreign noncommercial organization and its foundation documents, notarized and legalized by diplomatic representative office of the Kyrgyz Republic in the foreign country or by the Ministry of Foreign Affairs of the Kyrgyz Republic;
- decision of the management body of the foreign noncommercial organization about establishment (opening) of a subsidiary or representative office of the foreign noncommercial organization, including its goals and objectives;
- approved statute of the subsidiary or representative office of the foreign noncommercial organization, including the address (location) of the subsidiary or representative office, and contact telephone numbers;
- decision about appointing a manager of the subsidiary or representative office of the foreign noncommercial organization, and an authorization issued to him/her by a foreign noncommercial organization.
The documents shall be presented in the state (official) language of the respective foreign country together with their translation in the state and official languages of the Kyrgyz Republic and attested as appropriate.
A justice authority shall no later than within ten days after the date of the documents receipt make a decision on registration of the subsidiary or representative office of the foreign noncommercial organization, make an entry in a respective registry and issue a registration certificate to the manager of the subsidiary or representative office of the foreign noncommercial organization.
Activities of the subsidiary or representative office of a foreign noncommercial organization registered on the territory of the Kyrgyz Republic, shall be insured on the territory of the Kyrgyz Republic for the amount of no less than one million soms within a month from the registration date unless otherwise stipulated by international treaties of the Kyrgyz Republic. Information about insurance of a subsidiary or representative office of a foreign noncommercial organization together with respective documents shall be presented to a justice authority no later than 10 days after the insurance date.’

 8. The Law shall be supplemented with Article 9-1 reading as follows:
«Article 9-1. Denial of State Registration of a Noncommercial Organization
1. A noncommercial organization may be denied state registration on the following grounds:
- if foundation documents of the noncommercial organization contradict the Constitution of the Kyrgyz Republic and the Kyrgyz legislation;
- if another noncommercial organization has been already registered under the same name;
- if the name of the noncommercial organization is insulting to morals, national and religious feelings of citizens;
- if documents necessary for the state registration as envisaged by this Law have not been presented fully or are not prepared as appropriate;
- if the person who is the founder of the noncommercial organization may not act as founder as stipulated by Article 6-1 of this Law.
The denial of state registration of a noncommercial organization may be appealed against in court.
The denial of state registration of a noncommercial organization shall not be an obstacle to repeated submission of documents for state registration provided that the grounds for the denial have been removed. The repeated application of a noncommercial organization for state registration and a decision in relation to the application shall be made in the order stipulated by this Law.

2. A subsidiary or representative office of a foreign noncommercial organization may be denied registration on the following grounds:
- if goals and objectives of establishing the subsidiary or representative office of a foreign noncommercial organization contradict the Constitution of the Kyrgyz Republic and the Kyrgyz legislation;
- if information and documents envisaged by this Law have not been submitted fully or are not prepared as appropriate;
- if the presented foundation documents of the foreign noncommercial organization contain information that is confirmedly untruthful;
- if goals and objectives of establishing the subsidiary or representative office of the foreign noncommercial organizations pose a threat to the sovereignty, political independence, territorial inviolability, national unity and identity, cultural heritage and national interests of the Kyrgyz Republic;
- if a court of the Kyrgyz Republic has earlier made a decision on liquidation (closing up) of the subsidiary or representative office of the foreign noncommercial organization’.

 9. Article 12 shall be reworded as follows:
‘Article 12. Activities of a Noncommercial Organization
A noncommercial organization may carry out activities that are not prohibited by the legislation of the Kyrgyz Republic and corresponding to the goals of the noncommercial organization as set out in its foundation documents.
A noncommercial organization may carry out entrepreneurial activities only to the extent it serves the purpose of achieving the goals for which it was founded.
Some types of noncommercial organization activities may be restricted solely by law. In cases stipulated by law, some types of activities may be carried out only if having a license or a special permission.
A noncommercial organization shall keep record of revenues and expenditures related to its entrepreneurial activity’.

 10. Article 15 shall be reworded as follows:
 ‘Article 15. Forms of State Regulation
1. Upon registration of a noncommercial organization, registration of a subsidiary or representative office of a noncommercial organization, the justice authority shall provide control over compliance of the noncommercial organization’s activity with its statutory goals and objectives.
For this purpose, justice authorities shall have the right to:
- request and receive from noncommercial organization’s management its order documents;
- request and receive from statistical and tax authorities, other bodies of state supervision and control information about noncommercial organizations that is available to them;
- send its representatives for participating in events arranged by the noncommercial organization;
- no more than once a year inspect the activities of the noncommercial organization, including money spending and use of other property, for compliance with the goals set out in its statute, in the order established by justice authorities.
2. The requested information and data shall be submitted to the justice authorities within 15 days.
3. Should the justice authority identify violations of the Kyrgyz legislation by the noncommercial organization, subsidiary or representative office of a foreign noncommercial organization, or commitment of actions that contradict its statutory goals and objectives, it shall have the right to issue a written warning to the noncommercial organization, subsidiary or representative office of a foreign noncommercial organization, indicating the violation and the remedy term of no more than one month. The warning issued by the justice authority may be appealed against in court.
4. Should the noncommercial organization, subsidiary or representative office of a foreign noncommercial organization fail to remedy the violations within the term established by the justice authority, also to submit the information stipulated in this Article, within the established term, the justice authorities shall have the right to suspend its activities for a term until the violation is remedied or the information supplied.
5. Repeated violation of its statutory goals and objectives or of laws of the Kyrgyz Republic, and failure of the noncommercial organization, subsidiary or representative office of a foreign noncommercial organization to submit the information and data stipulated in this Article,  shall be the grounds for revocation of its state registration or registration, with the justice authority subsequently applying to court for liquidation of the noncommercial organization, subsidiary or representative office of a foreign noncommercial organization.’
 
11. Article 16 shall be supplemented with part two reading as follows:
- ‘Should noncommercial organizations, subsidiaries or representative offices of foreign noncommercial organizations violate laws of the Kyrgyz Republic, they may be liquidated by court on the initiative of prosecutor’s bodies and justice authorities of the Kyrgyz Republic’.
 - part two shall be deemed to be part three.

 12. Article 17 shall be reworded as follows:
 ‘Article 17 Publicity and Transparency of Activities of Noncommercial Organizations
 1. Noncommercial organizations, subsidiaries and representative offices of foreign organizations shall:
- keep accounting and statistical records in the established order;
- present information on their activities to state statistical and justice authorities in the established order;
- submit to tax authorities information about the structure of their earnings and the size and composition of their property on the annual basis, no later than the month that follows the accounting period, in the established order.
2.  Money and property coming to noncommercial organizations, subsidiaries and representative offices of foreign noncommercial organizations from international organizations and foreign states shall be accounted in a separate balance sheet, and the procedure for their accounting and submission of information about them shall be established by an authorized state financial body.
3. A noncommercial organization, subsidiary or representative office of a foreign noncommercial organization shall annually inform the public via mass media about its activities; profit-for-public programs and governmental social contracts, implemented by the noncommercial organization; the amounts and sources of funding for its activities, the sizes and composition of its property, its expenditure; number and structure of personnel; use of unpaid labor of citizens in the activities of the noncommercial organization. The information shall be also submitted to justice authorities. Forms and terms of the information submission shall be determined by the Government of the Kyrgyz Republic.
4. For the purposes of protecting the constitutional order, morals, health, rights and legal interests of other persons, ensuring defense of the country and state security, a justice authority shall have the right to issue a motivated decision in writing prohibiting a noncommercial organization, subsidiary or representative office of a foreign noncommercial organization to transfer money and other kinds of property to certain recipients of the money and other kinds of property’.

Article 2. The Law of the Kyrgyz Republic ‘On State Registration of Legal Entities’ (Bulletin of the Jogorku Kenesh of the Kyrgyz Republic, issue 7, 1996, Article 106) shall be added to as follows:

1. Article 3 shall be supplemented with part 4 reading as follows:
‘Specific aspects of registration of noncommercial organizations, including those with foreign share, and registration of their subsidiaries and representative offices shall be stipulated also by the Law of the Kyrgyz Republic ‘On Noncommercial Organizations’.

2. Part eight of Article 6 shall be supplemented by words: ‘, Law of the Kyrgyz Republic ‘On Noncommercial Organizations’.

Article 3. This Law shall come into force three months after the date of its official publication.

Article 4. Enactment of this Law shall not entail re-registration with justice authorities of earlier registered noncommercial organizations, subsidiaries and representative offices of foreign noncommercial organizations, whose activities, statutory goals and objectives comply with this Law.

Article 5. The Government of the Kyrgyz Republic shall bring their normative legal acts in conformity with this Law within a period of two months.

 

President
of the Kyrgyz Republic