Article 3. Collection agency The Law on Collection Activities

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1. A collection agency is established in the organizational and legal form of an economic partnership.

2. The name of the collection agency must necessarily contain the words "collection agency". An abbreviation of the name of the collection agency is not allowed.

The name of the collection agency should not contain the word "national" or "republican" or "central" in full or abbreviated form in any language.

A legal entity that is not included in the register of collection agencies does not have the right to carry out collection activities, characterize itself as engaged in collection activities, and also use the words "collection agency" in its name, words derived from them, suggesting that it carries out collection activities.

2-1. A collection agency should not be affiliated with another collection agency in accordance with Article 12-1 of the Law of the Republic of Kazakhstan "On Limited and Additional Liability Partnerships".

3. No person, independently or jointly with another (other) person(s), may (may not) directly or indirectly own and (or) use and (or) dispose of ten or more percent of the shares in the authorized capital of a collection agency or have control if:

1) has not disclosed information about itself and individuals who directly or indirectly own and (or) use and (or) dispose of more than twenty-five percent of the shares in the authorized capital or outstanding (minus preferred and repurchased by the company) shares of the person specified in the first paragraph of this paragraph, as well as about individuals persons exercising control over the specified person, the authorized body;

2) is an individual with an outstanding or outstanding criminal record;

3) is a legal entity, the founder (shareholder, participant) or a senior employee of which was previously the first head or founder (participant) of a collection agency for a period not more than one year prior to the adoption by the authorized body of a decision to exclude this collection agency from the register of collection agencies on the grounds provided for in subparagraphs 1), 2), 3), 4), 5), 6) and 7) the first part of paragraph 1 of Article 9 of this Law.

4) has registration, place of residence or location in offshore zones, the list of which is established by the authorized body.

4. The founders of the collection agency are obliged to pay in full the minimum amount of the authorized capital of the created collection agency by the time of its state registration (re-registration).

The minimum amount of the authorized capital of a collection agency is established by a regulatory legal act of the authorized body.

The authorized capital of the collection agency is formed exclusively by money in the national currency of the Republic of Kazakhstan.

5. The collection agency is obliged to pay mandatory fees to the office of the Banking Ombudsman in case of acquisition of rights (claims) under a bank loan agreement concluded by a bank or an organization engaged in certain types of banking operations with an individual.

The collection agency is obliged to pay mandatory fees to the office of the microfinance Ombudsman in case of acquisition of rights (claims) under a micro-loan agreement concluded by an organization engaged in microfinance activities with an individual.

Notes.

1. For the purposes of this Law, indirect ownership and (or) use and (or) disposal of participation shares in the authorized capital or outstanding (minus preferred and repurchased by the company) shares of a legal entity means the ability to determine the decisions of a legal entity, a person or persons who jointly own and (or) use, and (or) managing ten or more percent of the shares of participation in the authorized capital of a legal entity, through ownership (voting) of shares (shares of participation in the authorized capital) of other legal entities.

2. For the purposes of this Law, control over a legal entity is understood to mean the ability to determine decisions made by a legal entity.

The Law of the Republic of Kazakhstan dated May 6, 2017 No. 62-VI.

This Law regulates public relations related to the implementation of collection activities, establishes the specifics of the creation and operation of collection agencies, and also defines the specifics of state regulation of collection agencies and control over their activities.

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Republic of Kazakhstan

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