The criteria for mandatory individual entrepreneur registration have changed in Kazakhstan: what entrepreneurs need to know

As of September 15, 2025, amendments to the Entrepreneurial Code of Kazakhstan came into force, changing the criteria for mandatory state registration as an individual entrepreneur. Signed by the Head of State in July, the law aims to establish a more transparent system for tracking entrepreneurial activity and to bring self-employed individuals earning substantial income into the legal framework.

Key change: the shift from calculating the registration income threshold based on the minimum wage (MW) to using the monthly calculation index (MCI). This approach allows for greater flexibility in reflecting current economic conditions.

Who is now required to register as an individual entrepreneur?

According to the updated Article 35 of the Entrepreneurial Code of the Republic of Kazakhstan, a natural person must register as an individual entrepreneur if they meet at least one of the following conditions:

• Employment of hired labor: regular engagement of employees on a permanent basis.
• Exceeding annual income: total annual income from entrepreneurial activities exceeds 360 times the MCI as of January 1 of the relevant financial year.

Why was the criterion changed and what does it mean?

• Shift from MW to MCI: Previously, the threshold was set at 12 times the minimum wage. Using the MCI, which is approved annually by the Republican Budget Law, makes the criterion more stable and better aligned with macroeconomic indicators.
• Enhanced transparency: The new rules clearly define the boundary at which business activity ceases to be private and requires formal registration. This encourages bringing income out of the shadows and creates a level playing field for market participants.
• Legal clarity: Individuals with irregular or low entrepreneurial income can continue operating without registering as individual entrepreneurs. However, those regularly earning significant income must now legalize their status.

What should individuals keep in mind?

Individuals who were not previously registered as individual entrepreneurs should audit their activities and income annually. If income for 2025 exceeds the threshold (calculated based on the MCI as of January 1, 2025), they must proceed with state registration.

Failure to comply with the new requirements may result in administrative liability for conducting entrepreneurial activities without state registration.