REGIME FOR FOREIGN INVESTORS
Towards year-end 1994, direct foreign investment from Western enterprises was about $800 million, the largest single project being the $375 million development of the Kumtor gold field, believed to be the world's eighth largest. The number of joint ventures neared 400 (although only about a third were operational), and over 70 foreign companies were registered for business. Canadian investment accounted for 45% of the total, followed by Turkey (20%), the U.S. (23%) and China (10%).
Foreign investors must register with the State Commission on Foreign Investments and Economic Assistance (GOSKOMINVEST) and receive a "registration certificate" confirming the investment, its juridical status and the investor's rights to operate.
In September 1992, the Kyrgyzstan Cabinet of Ministers issued a decree setting out the procedures for creation, registration and closure of joint ventures. Joint ventures need to be registered with GOSKOMINVEST. Documents that need to be submitted to the ministry include: an application, a statement of consent from the local government where the joint venture is to be located, the articles of organization of the joint venture or a similar document such as a copy of the agreement to set up the joint venture, certification that the foreign partner is registered in its country of origin, a statement by a foreign credit institution guaranteeing the solvency of the foreign partner (the last two notarized with a certified translation into Kyrgyz or Russian). Wholly owned foreign-owned companies are also permitted to register and go into operation.
Good contacts for information on doing business:
U.S.-Kyrgyz Business Council Chairman: Senator Alan Cranston 1025 Thomas Jefferson Street, N.W. - Suite 304E Washington, D.C. 20007 tel: (202) 347-6540/fax: (202) 347-6537