Alert: Change affecting franchising arrangements in Kazakhstan under the Law on Permits and Notifications Effective: as of Q3 2027 (see note below on pending implementing regulations)
Recent changes to Kazakhstan's permit and notification regime under the Law on Permits and Notifications have altered the compliance obligations that apply when a foreign franchisor's trademark licence and know-how bundle is used in a sector requiring a state permit or licence in Kazakhstan. Foreign companies structuring or reviewing franchise networks in Kazakhstan — whether in food service, retail pharmacy, financial services, education, or other regulated sectors — should assess whether these changes affect their arrangements before the next franchisee licence renewal cycle.
Foreign franchisors whose Kazakhstan-based franchisees operate in a licensed sector are directly affected. Under the previous position, the notification and permit obligations arising from the franchisee's regulated activity fell exclusively on the franchisee as the locally incorporated operating entity. The amended framework introduces a notification step that may now engage the foreign franchisor in circumstances where the IP bundle transferred under the commercial concession agreement is integral to the licensed activity — meaning the franchisor's contribution goes beyond brand licensing and extends to the operational method or technical standard that the licensing authority evaluates. Franchisors who have structured their Kazakhstan arrangements on the assumption that all regulatory obligations are absorbed locally by the franchisee should review whether that assumption continues to hold.
The practical consequence is a potential obligation to file a notification with the relevant authority before the franchisee commences or renews a licensed activity using the franchisor's system. Failure to comply with the notification requirement under the Law on Permits and Notifications can result in administrative liability and, in some regulatory sectors, suspension of the franchisee's permit pending rectification — an outcome that carries direct commercial risk for the franchisor's network revenue.
Recommended action:
- Identify all Kazakhstan franchisees operating in sectors that require a state permit or licence under the current classification list.
- Review each commercial concession agreement to assess whether the IP and know-how bundle transferred is treated as integral to the licensed activity under the revised framework.
- Confirm with local counsel whether a notification obligation arises and, if so, the form, addressee, and deadline for that notification.
Note: Implementing regulations under the amended framework were at a consultation stage as of the date of this alert. The above reflects the direction of the legislative change; specific procedural requirements should be confirmed against the finalised regulations. Vetrov & Partners monitors regulatory developments across Kazakhstan and the EAEU in coordination with trusted regional counsel.
[CTA: For an assessment of how this change affects your Kazakhstan franchising arrangements — make an enquiry: info@vetrovpartners.com | WhatsApp/Telegram: +7 (983) 510-38-76]
For further context on market entry and distribution structuring in Kazakhstan, see our Kazakhstan jurisdiction page (/jurisdictions/kazakhstan/) and the Distribution & Franchising practice overview (/jurisdictions/kazakhstan/distribution-franchising/).
— Aigerim Serikbayeva Contributing Regional Analyst — Kazakhstan · EAEU Trade, Customs & Market Entry vetrovpartners.com/contributions/
This alert is for informational purposes only and does not constitute legal advice. Vetrov & Partners is a Russian-qualified law firm. Contact info@vetrovpartners.com for advice on your specific situation.