Do I Need a Local Entity to Hire in Kazakhstan?

In Kazakhstan, a "local entity" typically refers to a subsidiary or branch office that allows you to be recognized as an employer. This setup is essential for fulfilling local payroll and employment obligations, ensuring compliance with Kazakhstan's labor laws.

Without a local entity, you won't be able to manage payroll, register as an employer, or comply with the necessary employment protections. An alternative is to use an Employer of Record (EOR), which can act as your legal employer in Kazakhstan, handling all compliance and payroll responsibilities.

What is Required to Employ Someone in Kazakhstan?

• Local employing entity required to directly employ? Yes (a local entity is necessary for direct employment)
• Payroll registration required? Yes (you must register with the State Revenue Committee)
• Withholding/tax remittance required? Yes (mandatory payroll tax withholdings apply)
• Social contributions required? Yes (employer contributions to the Social Insurance Fund are mandatory)
• Local employment agreement required? Yes (written employment contracts are standard practice)
• Mandatory benefits to budget? Yes (statutory leave, social security, and other entitlements)
• Works council/collective agreements considerations? Usually (depending on the sector, collective agreements may apply)

Best Options If You're Hiring in Kazakhstan

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but you should be cautious about how you structure the relationship.

Hiring contractors in Kazakhstan can be a viable option, but it comes with risks. The government closely examines contractor relationships to ensure they don't resemble employment. Misclassification can lead to significant penalties.

• Ensure contractors have independence in their work.
• Avoid controlling their hours or methods.
• Be cautious if the contractor's work is integral to your business.

How Long Does Entity Setup Take And What Does It Cost?

Typical entity setup timeline: It often takes 4–8 weeks to establish an entity in Kazakhstan, depending on the type of entity and registration processes.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 100,000–250,000 KZT per month ($220–$550)
• Payroll provider: Estimated 20,000–50,000 KZT per employee per month ($44–$110)
• Employer registrations and recurring compliance: Varies by complexity
• Corporate tax filings and annual reporting: Estimated 300,000–600,000 KZT per year ($660–$1,320)

EOR cost components (no-entity route):

• A per-employee EOR service fee (from $399 p/month with Playroll)
• Pass-through statutory costs (e.g., employer social security contributions)
• Any optional benefits you choose to provide beyond statutory minimums

How an Employer of Record Can Help You Hire in Kazakhstan

Hiring in Kazakhstan can be complex, but it doesn’t have to require setting up a local entity or taking on long-term overhead. With an Employer of Record like Playroll, you get a simple, predictable way to hire compliantly while keeping costs transparent and under control. We help you:

• Hire employees in Kazakhstan quickly without establishing a local entity, eliminating incorporation costs, ongoing administration, and exit complexity.
• Stay fully compliant with local payroll, tax, and employment regulations with Playroll’s payroll services.
• Control your total employment costs, with a clear monthly EOR service fee (from $399 per employee).
• Focus on growing your business, while we manage contracts, payroll, compliance, and labor law obligations end to end.
• Scale up or exit the market easily, without the financial or legal burden of closing a local entity.