Regulatory update: public procurement participation in Kazakhstan under the Law on Permits and Notifications

Foreign companies participating in Kazakhstani public procurement have long operated under a layered regulatory framework, but the amendments introduced under the Law on Permits and Notifications (the "Law") represent a material shift in the conditions of market access. For inbound investors and cross-border suppliers with existing or planned Kazakhstan operations, the updated requirements alter the documentation threshold, the scope of permitted activity classifications, and – in certain sectors – the form of legal presence required to qualify as a tender participant. Understanding what changed, who is directly affected, and what steps need to be taken now is the practical priority.

Kazakhstan's Law on Permits and Notifications governs the conditions under which commercial entities – domestic and foreign alike – may conduct regulated activities, including participation in state and quasi-state procurement procedures. The Law distinguishes between activities requiring a formal permit (a licensing-type authorisation issued by the competent authority) and those that proceed by notification (a declaration of compliance filed with the authority before commencing activity).

The recent amendments revised three areas that directly bear on procurement participation.

First, certain activity categories previously subject to notification have been reclassified as permit-requiring. This reclassification affects suppliers in the construction, engineering, pharmaceutical distribution, and certain information-technology services segments. A foreign company that previously entered Kazakhstani procurement processes on the basis of a notification filing must now obtain a permit before it may register as a participant in a tender administered under Kazakhstani public procurement rules.

Second, the documentation standard for permit applications has been tightened. Applicants must now provide a certificate of conformity of their business activity with Kazakhstani legal requirements, issued by the designated competent authority in the relevant sector. For foreign legal entities, this creates an additional step: the certificate must be obtained from the Kazakhstani authority, not merely from the home-jurisdiction regulator, even where the foreign company already holds an equivalent licence in its country of incorporation.

Third, the amendments introduced a residency of representation requirement in specified high-value procurement categories. In these categories, a foreign supplier must either establish a branch or representative office registered in Kazakhstan, or appoint a locally registered agent with notarised powers of attorney, as a precondition for bid submission. The prior practice of submitting bids directly through a foreign parent entity without a registered local presence is no longer accepted in the affected categories.

The amendments are most immediately relevant to three categories of foreign company.

Foreign suppliers already registered in Kazakhstani procurement portals will need to review their existing activity classification against the revised permit/notification threshold. Any company whose activity has been reclassified from notification to permit must obtain the permit before the next bidding cycle in which it intends to participate. Participating without the required permit exposes the company to disqualification of the bid, potential deregistration from the procurement portal, and administrative liability under Kazakhstani law.

Foreign companies in the process of market entry and planning to compete in Kazakhstani public procurement as part of their commercial rationale should factor the updated permit timeline into their entry schedule. Permit issuance by the competent authority is not instantaneous; timelines vary by sector and by the completeness of the application package, but the process commonly extends to several weeks or longer for first-time applicants unfamiliar with Kazakhstani administrative procedure. An entry strategy that assumes procurement participation from day one without accounting for the permit stage is likely to encounter delay.

Russian-headquartered groups with Kazakhstani subsidiaries or representative offices – a common structure given the EAEU common market framework – face a specific consideration. The EAEU Agreement on Government Procurement provides that, in principle, suppliers from member states are treated on the same basis as domestic suppliers for most procurement categories. However, the EAEU procurement rules operate in parallel with, not in substitution for, domestic licensing requirements. The permit obligations introduced under the Law on Permits and Notifications apply to EAEU-member suppliers in the same way as to third-country suppliers. The common market framework does not exempt a company from the Kazakhstani permit requirement; it affects only the tender evaluation criteria.

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The practical steps depend on the company's current position.

For companies already participating in Kazakhstani procurement: the first action is an activity classification audit. Each activity category under which the company is currently registered should be checked against the revised classification list under the Law on Permits and Notifications. Where reclassification has occurred, a permit application should be initiated without delay. Continuing to submit bids under an expired or superseded notification registration creates regulatory exposure that is straightforward to avoid with timely action.

For companies in the market entry phase: the permit requirement and any representation structure obligation should be incorporated into the pre-entry compliance checklist. The legal form of presence – whether a branch, representative office, or locally registered agent – carries different consequences for tax treatment, employment obligations, and ongoing regulatory reporting under Kazakhstani law. Selecting the appropriate form at the outset avoids structural corrections later.

For Russian-based groups and EAEU-member entities: the recommended step is a targeted review of the EAEU procurement protocols against the domestic Kazakhstani permit requirements as amended. The interaction between the two frameworks is not always self-evident, and the practical outcome for a specific activity category will depend on the sector, the contracting authority, and the tender classification. Cross-border counsel with working knowledge of both the EAEU regulatory framework and Kazakhstani domestic law is the functional requirement here.

Vetrov & Partners advises on Kazakhstan-related regulatory and licensing matters from its Novosibirsk office, in close coordination with trusted local counsel in Almaty and Astana. Matters involving Kazakhstani permit applications, procurement portal registration, and cross-border EAEU structure reviews are handled with direct partner involvement at every stage.

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Q: What specifically changed under the Law on Permits and Notifications for procurement participants?

A: The amendments revised the classification of regulated activities, moving certain categories from notification to permit. They also tightened the documentation standard for permit applications – requiring a Kazakhstani-issued certificate of conformity rather than a home-jurisdiction licence – and introduced a local representation requirement in specified high-value procurement segments. Companies already participating in Kazakhstani procurement need to check whether their registered activity category has been reclassified and, if so, to obtain the relevant permit before their next bid submission.

Q: Which foreign companies are most directly affected by the amended requirements?

A: Three groups face the most immediate exposure: foreign suppliers already registered in Kazakhstani procurement portals whose activity has been reclassified from notification to permit; foreign companies planning market entry with procurement participation as part of their business model; and Russian-headquartered or other EAEU-member groups with Kazakhstani subsidiaries. EAEU membership does not exempt a company from domestic permit requirements – it affects only the evaluation criteria, not the pre-qualification obligations.

Q: What should a foreign company do before the next procurement bidding cycle?

A: The immediate priority is an activity classification audit against the revised list under the Law on Permits and Notifications. If reclassification has occurred, a permit application should be filed before the next bidding cycle. For companies in the entry phase, the permit timeline and representation structure obligation should be built into the pre-entry schedule. Early engagement with counsel who holds working knowledge of both Kazakhstani domestic law and, where relevant, the EAEU procurement framework will avoid the delays that come with last-minute compliance corrections.

• [Kazakhstan market entry: regulatory and licensing requirements for foreign companies](/jurisdictions/kazakhstan/regulatory-licensing/) [to be linked after import]
• [Kazakhstan company formation: branch, representative office, or subsidiary?](/jurisdictions/kazakhstan/company-formation/) [to be linked after import]
• [EAEU procurement rules and their interaction with domestic Kazakhstan law](/insights/) [to be linked after import]

Vetrov & Partners is a Russian boutique law firm established in 2009, recognised by Pravo-300 for eight consecutive years. The firm advises foreign companies and investors on cross-border matters involving Russia, Kazakhstan, and other EAEU jurisdictions.

The firm's regulatory and licensing practice assists inbound investors with permit applications, procurement portal registration, compliance audits, and the selection of appropriate legal presence structures in Kazakhstan and Russia. Kazakhstani domestic matters are handled in coordination with trusted local counsel in Almaty and Astana, with direct partner involvement maintained throughout.

Enquiries: info@vetrovpartners.com | WhatsApp / Telegram: +7 (983) 510-38-76 | t.me/vitvetcom

This publication is provided for informational purposes only and does not constitute legal advice under Russian or any other applicable law. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Vetrov & Partners is a Russian-qualified law firm. For matters governed by foreign law or requiring local admission in another jurisdiction, we collaborate with trusted counsel in the relevant jurisdiction. For advice regarding your particular situation, please contact info@vetrovpartners.com.

— Aigerim Serikbayeva Contributing Regional Analyst — Kazakhstan · EAEU Trade, Customs and Market Entry vetrovpartners.com/contributions/