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Opportunities of the AIFC platform for business

Central Asia is one of the key regions for the development of economic and financial projects. Attracting international investment requires the creation of certain conditions. They were successfully implemented at the site of the Astana International Financial Center (AIFC), organized at the initiative of the government of Kazakhstan. The center allows you to invest in private and public business projects, as well as create new financial products.

The AIFC is a unique platform that combines the best practices and modern capabilities of financial centers from New York to Singapore. The introduction of foreign experience was necessary because a business ecosystem of this level requires universal international conditions. 10 out of 13 existing financial centers use English law on their territory. This experience was applied to the AIFC through the legislative allocation of the territory. The official language of the AIFC is English.

Opportunities of the AIFC site for business

“Due to the fact that the government created special conditions for business on the territory of the AIFC, formed a financial and legal enclave, we decided to license a subsidiary of Muratov Partners - Muratov Law Firm Limited on its territory. The company specializes in corporate business services. Also, one of the decisive factors was the fact that we have experts in the field of English law, moreover, the head of our legal practice, Aynur Akhmetova, participated in the creation of a draft law for the AIFC.

In general, the benefits of the AIFC for business are the following:

1. Legal regime: a high-quality set of rules and regulations, attractive to foreign investors; the law of England and Wales is valid on the territory of the AIFC, which complies with the standards of the world's leading financial centers; an independent court and flexible approach to dispute resolution; flexibility in regulating many corporate issues.

2. Legal and organisational advantages of setting up a private company in the AIFC: ease of establishment and low costs, limited liability of shareholders, asset protection, flexible corporate management structure.

3. Tax preferences: benefits for IIT and CIT until January 1, 2066, other various benefits that allow to actively work and develop your business.

Many domestic companies have concerns due to the fact that it is not the Kazakh legal system that is applied, but English law, in connection with which some things that are familiar to local businesses become completely different on the territory of the AIFC. Our law firm is always ready to draw parallels between the Kazakhstani business practice and doing business on the territory of the AIFC, to help with all legal issues,” - Muratov notes.

“Speaking about the legal nuances of the AIFC and the possibilities of our law firm, - Aynur Akhmetova continues, - I would like to note the following:

Labor law

792 entities are registered at the site and more than 2,500 jobs have been created. Companies are faced with many questions about post-registration - meeting requirements, submitting reports, and validity of regulations. Work issues arise, since the AIFC has its own labor law and regulation, which require external legal competence.
Now the site is faced with a shortage of legal consultants who could act as “companions” for the companies presented there, provide timely expertise, legal opinions, etc., lead and supervise legal aspects.

Also, the principle of MLRO (Money Laundring Reporting Officer) is applied here - an officer who submits reports against money laundering and terrorist financing. We are one of the first to launch the MLRO service, since every company on the territory of the AIFC must have an officer who will submit reports that income and profits are honest and clean.

Corporate law and consulting

The license of Muratov Law Firm Limited allows us to accompany projects, conduct legal consulting and, in general, consulting of any kind. The license also assumes corporate management of clients: the creation of companies, the issuance of legal addresses, the appointment of directors, etc. This is necessary for the structuring of large transactions, when creating SPV-companies (Special Purpose Vehicle) for special purposes (projects).

Fintech direction

The AIFC has created excellent conditions for crypto exchange, with which we plan to work actively.
A regulatory framework and all the necessary conditions have been formed for it. In this area, our company can support projects and transactions of any level. The main areas of our work here: work on the basis of the AIFC to regulate the status and valuation of cryptocurrency; work at AIX on the withdrawal of companies with the direction of cryptocurrency; advice on legislation on the regulation of cryptocurrency and cryptoexchange.

Green economy

Another attractive area is green economy projects. There are green financing mechanisms - the placement of green bonds, the so-called green bonds on the AIFC stock exchange, within the framework of which enterprises operating in alternative energy are additionally financed.

Our law firm also specializes in environmental law. Now the new Environmental Code of the Republic of Kazakhstan is being adopted, and the direction of green technologies is actively involved in the development of the draft.

Islamic banks and finance

The AIFC is the first platform in the region that provides business with systemic access to the fast-growing segment of investments of Islamic finance. A large number of promising projects are expected in this area; this is one of the world trends.

In this direction, Muratov Law Firm Limited has expertise in the following issues: attraction of Islamic finance; managing clients using Islamic finance; opening of an investment boutique of Islamic finance; participation in the structuring of Islamic finance transactions.

The main factor that attracts Kazakhstani and foreign business to the AIFC is maximum openness and transparency at all levels. It is they who distinguish the jurisdiction of the AIFC from offshore - in accordance with the modern classification, it is more correct to call it a midshore, within which tax breaks coexist with extremely tough opposition to any illegal activity.”