Article 38. Termination of the activity of an individual entrepreneur of the Entrepreneurial Code of the Republic of Kazakhstan  

     1. The activity of an individual entrepreneur may be terminated voluntarily or forcibly, as well as in the event of the occurrence of circumstances provided for by this Code.

     On a voluntary basis, the activity of an individual entrepreneur is terminated at any time on the basis of a decision taken independently by the individual entrepreneur in the case of personal entrepreneurship, by all participants jointly in the case of joint entrepreneurship. In this case, the individual entrepreneur submits to the state revenue authority an application for termination of entrepreneurial activity.

     For voluntary termination of activity, an individual entrepreneur submits to the state revenue authority an application for termination of entrepreneurial activity.

     A decision to terminate a joint venture is considered adopted if at least half of its participants voted for it, unless otherwise provided by an agreement between them.

     2. The activity of an individual entrepreneur is forcibly terminated by a court decision in the following cases::

     1) excluded by the Law of the Republic of Kazakhstan dated December 27, 2019 No. 290-VI (effective ten calendar days after the date of its first official publication);  

     2) invalidation of the registration of an individual entrepreneur in connection with violations of the legislation of the Republic of Kazakhstan committed during registration, which are irreversible;

     3) carrying out activities with repeated or gross violations of the legislation of the Republic of Kazakhstan during the calendar year;

     4) declaring him dead;

     5) its inclusion in the list of organizations and persons related to the financing of proliferation of weapons of mass destruction, and (or) in the list of organizations and persons related to the financing of terrorism and extremism, in accordance with the legislation of the Republic of Kazakhstan;

     6) recognizing him as missing;

     7) established by the Code of the Republic of Kazakhstan "On Taxes and other Mandatory Payments to the Budget" (Tax Code), providing for compulsory termination of activities.

     3. The activity of an individual entrepreneur, in addition to the grounds provided for in this article, shall also be terminated in the following cases::

     1) personal entrepreneurship upon recognition of an individual entrepreneur as legally incompetent, with limited legal capacity, or upon his death;

     2) family business and simple partnership, if as a result of the circumstances listed in subparagraph 1) of this paragraph, there is one or no participant in the joint venture, as well as in the division of property in connection with the dissolution of marriage;

     3) established by the tax legislation of the Republic of Kazakhstan, providing for the termination of activities in a simplified manner;

     4) the entry into force of a court ruling on the completion of bankruptcy proceedings in respect of an individual entrepreneur declared bankrupt by a court decision.

     4. The activity of an individual entrepreneur shall be deemed terminated from the moment of de-registration as an individual entrepreneur with the state revenue authority on the basis of his application or a court decision that has entered into legal force, as well as in the cases established by paragraph 3 of this Article.

     An individual entrepreneur is deemed to have been removed from registration as an individual entrepreneur with the registration authority from the date of posting this information on the Internet resource of the authorized body responsible for ensuring the receipt of taxes and other mandatory payments to the budget.

     5. In the case of individual entrepreneurship without registration, in the established cases, it is considered terminated from the date of its actual termination on a voluntary basis or, accordingly, from the date of entry into force of a court decision – under compulsory procedure.

     6. For small business entities that have no outstanding obligations and are classified by government agencies as low- and medium-risk entities, the laws of the Republic of Kazakhstan establish a simplified procedure for reorganization and voluntary liquidation.

     The footnote. Article 38 as amended by the Laws of the Republic of Kazakhstan dated 25.12.2017 No. 122-VI (effective from 01.01.2018); dated 27.12.2019 No. 290-VI (effective after ten calendar days after the date of its first official publication); dated 13.05.2020 No. 325-VI (effective after six months after date of its first official publication); dated 12/30/2021 No. 95-VII (effective from 01/01/2023).  

President    

Republic of Kazakhstan     

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