Article 12. Formation of the authorized capital of a microfinance organization The Law on Microfinance Activities

Home / Laws / Article 12. Formation of the authorized capital of a microfinance organization The Law on Microfinance Activities

1. The founders of a microfinance organization are required to pay in full the minimum amount of the authorized capital of the microfinance organization being created by the time of its state registration (re-registration).

2. The minimum amount of the authorized capital of a microfinance organization is established by a regulatory legal act of the authorized body.

3. The authorized capital of a microfinance organization is formed exclusively in money in the national currency of the Republic of Kazakhstan.

The formation of the authorized capital during the reorganization of a microfinance organization in the form of conversion into a bank is carried out taking into account the specifics provided for in Article 25 of this Law.

4. The sources used to pay for the authorized capital or purchase a share in the authorized capital (shares) of a microfinance organization are:

1) for an individual:

income received by the founders (participants) of a microfinance organization from entrepreneurial, labor and (or) other paid activities not prohibited by the legislation of the Republic of Kazakhstan;

the monetary savings of the founders (participants) of the microfinance organization, documented.

In addition to the sources specified in part one of this subparagraph, money received in the form of donations, winnings, and income from the sale of gratuitously received property may be used to acquire a share in the authorized capital (shares) of a microfinance organization.

When acquiring a share in the authorized capital (shares) of a microfinance organization at the expense of property received as a gift, the founder (participant) provides information about the donor and the sources of origin of the specified property from the donor.;

2) for a legal entity:

income, receipts from entrepreneurial and (or) other activities not prohibited by the legislation of the Republic of Kazakhstan;

funds in the form of a contribution to the authorized capital of this legal entity.

For a legal entity that is a financial organization, the assets of a financial organization may be the sources of funds used to purchase shares, provided that the acquisition of a share in the authorized capital (shares) of a microfinance organization does not lead to a violation by the financial organization of equity adequacy ratios, liquidity ratios or other standards (limits) established by the legislation of the Republic of Kazakhstan.

The Law of the Republic of Kazakhstan dated November 26, 2012 No. 56-V.

This Law regulates public relations related to the provision of micro-loans, establishes the specifics of the creation and reorganization of organizations engaged in microfinance activities, the legal status, activities of organizations engaged in microfinance activities, and also defines the specifics of state regulation of organizations engaged in microfinance activities, control and supervision of their activities.

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Republic of Kazakhstan

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