Article 192. Grounds for State participation in entrepreneurial activity of the Entrepreneurial Code of the Republic of Kazakhstan

Home / RLA / Article 192. Grounds for State participation in entrepreneurial activity of the Entrepreneurial Code of the Republic of Kazakhstan

1. The State participates in entrepreneurial activity in the following cases::

1) the absence of any other possibility to ensure national security, the defense capability of the state or the protection of the interests of society;

2) the use and maintenance of strategic state-owned facilities;

3) carrying out activities in areas classified as a state monopoly;

4) the absence or low level of competition in the relevant commodity market;

5) carrying out activities by previously established state-owned enterprises, legal entities, more than fifty percent of shares (participation shares in the authorized capital) of which belong to the state, and persons affiliated with them. - Excluded by the Law of the Republic of Kazakhstan dated July 17, 2025 No. 213-VIII SAM

The list of activities carried out by state-owned enterprises, legal entities, more than fifty percent of shares (shares in the authorized capital) of which belong to the state, and persons affiliated with them, is approved by the Government of the Republic of Kazakhstan.

1-1. State-owned enterprises, legal entities, more than fifty percent of shares (participation shares in the authorized capital) of which belong to the state, and persons affiliated with them, including those operating on the grounds specified in subitems 1) – 4) of the first part of paragraph 1 of this Article, carry out entrepreneurial activities based on the list of types of activities, specified in the second part of paragraph 1 of this Article.

2. The State's participation in entrepreneurial activities is carried out by:

1) creation of state-owned enterprises (state entrepreneurship);

2) direct or indirect participation in the authorized capital of legal entities.

3. Legal entities with more than fifty percent of shares (participation shares in the authorized capital) owned by the state and their affiliated entities may not establish subsidiaries engaged in activities already represented on the commodity market by private business entities and legal entities with more than fifty percent of shares (participation shares in the authorized capital) owned by the state., and persons affiliated with them, except for the cases provided for in subparagraphs 1) and 2) of the first paragraph of paragraph 1 of this Article.

4. The establishment of state-owned enterprises, legal entities, more than fifty percent of shares (shares in the authorized capital) of which belong to the state, and affiliated persons who will carry out their activities in the territory of the Republic of Kazakhstan, is carried out with the consent of the antimonopoly authority.

It is prohibited to establish legal entities with more than fifty percent of the shares (stakes in the authorized capital) owned by the state, and affiliated persons who, in accordance with the criteria established by this Code, belong to small business entities, as well as state participation in them.

When expanding and (or) changing the types of activities carried out by state-owned enterprises, legal entities with more than fifty percent of shares (stakes in the authorized capital) owned by the state, and affiliated persons who will carry out their activities in the territory of the Republic of Kazakhstan, the consent of the antimonopoly authority is required.

4-1. Draft legal acts providing for the creation, expansion and (or) modification of the types of activities carried out by state-owned enterprises, legal entities with more than fifty percent of shares (shares in the authorized capital) owned by the state, and persons affiliated with them, are subject to mandatory approval by the antimonopoly authority.

5. The creation of legal entities, more than twenty-five percent of shares (shares in the authorized capital) of which belong to the state, and affiliated persons who will carry out their activities in the territory of the Republic of Kazakhstan, is carried out with the subsequent sale of shares (shares in the authorized capital) of the state, taking into account the payback period of the project.

6. In the case provided for in paragraph 4 of this Article, the body making the decision on the establishment of a state-owned enterprise, a legal entity, more than fifty percent of the shares (shares in the authorized capital) of which belong to the state, and affiliated persons who will carry out their activities in the territory of the Republic of Kazakhstan, submits to the antimonopoly authority a petition for such establishment. with the provision of supporting materials in the form prescribed by the antimonopoly authority.

Within sixty calendar days from the date of receipt of the application, the antimonopoly authority is obliged to:

1) examine the commodity markets where it is planned to establish a state-owned enterprise, a legal entity with more than fifty percent of its shares (shares in the authorized capital) owned by the state, and an affiliated entity that will operate in the territory of the Republic of Kazakhstan;

2) prepare an opinion on the level of competition in these commodity markets, including the duration of the presence of a state-owned enterprise, a legal entity with more than fifty percent of its shares (shares in the authorized capital) owned by the state, and an affiliated entity in this commodity market;

3) send a reasoned decision to the body that submitted the petition.

7. The antimonopoly authority refuses to grant consent to the establishment of a state-owned enterprise, a legal entity with more than fifty percent of its shares (shares in the authorized capital) owned by the state, and an affiliated entity that will operate in the territory of the Republic of Kazakhstan if such establishment leads to a restriction of competition.

8. The creation, expansion and (or) modification of the types of activities carried out by state-owned enterprises, legal entities, more than fifty percent of whose shares (shares in the authorized capital) belong to the state, and affiliated persons who carry out their activities in the territory of the Republic of Kazakhstan without the consent of the antimonopoly authority, are prohibited and incur liability established by the laws of the Republic of Kazakhstan..

In the cases provided for in the first part of this paragraph, the antimonopoly authority shall issue an order on the elimination of violations and their consequences.

9. The requirements of paragraphs one and two of paragraph 4, paragraphs 5, 6, 7 and 8 of this Article apply only to the cases provided for in subparagraphs 4) and 5) of paragraph one of paragraph 1 of this Article.

President

Republic of Kazakhstan

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