How to Open a Bank Account for Individual Entrepreneurs in Kazakhstan

How to Open a Bank Account for Individual Entrepreneurs in Kazakhstan

So, you have registered as an individual entrepreneur. The next step is to open a settlement account with a bank. This is necessary for conducting legal business activities in Kazakhstan.

Do All Individual Entrepreneurs Need to Open a Settlement Account?

What benefits do cash and settlement services provide to entrepreneurs?

What type of settlement account can an individual entrepreneur choose, and which account is the best to open?

Let's answer these questions.

To Open or Not to Open: That is the Question

Individual entrepreneurs in Kazakhstan can operate without a bank account. However, this is often not very convenient.

For instance, if an entrepreneur receives payments on a personal bank card, they may later face the problem of distinguishing between business transactions and personal payments. Furthermore, during a tax audit, an inspector may consider personal transactions as business-related transactions, which increases the reported income and, consequently, the amount of taxes due. To address this, it will be necessary to prove the source of funds and demonstrate that they have nothing to do with business.

There are two ways out of this situation. The first is to use the card exclusively for business receipts. The second is to open a separate settlement account for IE. Moreover, it is not possible to connect acquiring (a service that allows accepting card payments) to a personal account.

Please note that having a settlement account is mandatory for individual entrepreneurs who:

• plan to settle with suppliers and clients in non-cash form, particularly accepting card payments.
• will accept payments from e-wallets.
• intend to transfer salaries to their employees' cards.
• want to pay taxes conveniently and quickly.
• plan to participate in public procurements and tenders (in case of winning a tender, settlements are made only through a bank account).

But even if the above points do not apply to you, there are many advantages to opening a settlement account.

• Having a bank account creates the image of a serious business. Such an entrepreneur is trusted.
• Bank statements can be provided for obtaining a loan.
• You can connect acquiring and accept card payments.
• It significantly simplifies the payment process: all transactions are carried out via Internet Banking without visiting bank branches.
• You can pay taxes, make settlements with suppliers, make social contributions, and more.

Additionally, cash and settlement services for individual entrepreneurs often offer favorable terms for currency exchange and conversion. This is important for entrepreneurs working with foreign suppliers and investors.

Therefore, an IE account opening is necessary for convenience and peace of mind.

How to Open a Settlement Account for Individual Entrepreneurs in Kazakhstan

You can open a settlement account for an individual entrepreneur online on the Bank's website. The procedure takes a minimum of time.

So, what is needed to open an account for an individual entrepreneur?

1. Fill out an application on the website, providing general information, contact details of the manager, and company information.
2. Select a tariff plan. Banks offer several tariffs based on the scale of the business, differing in the number of payments, the number of foreign transfers and corporate cards, the fee size for cash deposits and withdrawals, and the subscription fee depending on the plan selected.
3. Sign documents with an electronic digital signature.

Please note that a settlement account can be opened not only in KZT, but also in RUB, USD, or EUR.

You will receive the settlement account details within a few minutes by email. They can be immediately used for drafting contracts and preparing other documentation.

Banks offer bonuses to entrepreneurs who use cash and settlement services. For instance, at Bank CenterCredit, you will receive a #business card linked to your account. It can also be used to withdraw personal funds. The card easily connects to all e-wallets – Apple Pay, Samsung Pay, Google Pay. Additionally, Bank CenterCredit offers up to KZT 250 million credit limit on the account. Such lending does not require collateral. It is a good safeguard to ensure the smooth business operation. Access to the FX Platform allows for foreign exchange transactions with maximum benefit.

It is convenient to operate the settlement account via the BCC Business mobile app, which connects in a minute and does not require special software.

At the same time, the cost of opening a settlement account for start-up individual entrepreneurs is KZT 0. These are optimal conditions to get on your feet and adapt to business realities.

What Accounts Are Opened for Individual Entrepreneurs?

There are two types of settlement accounts – current and savings. The current account services the Company's key business processes, including money transfers. The primary purpose of a savings account is to accumulate funds. Essentially, it is a deposit: the entrepreneur deposits a certain amount, which accrues interest, and at maturity specified in the Contract, the money with interest earned is returned to the depositor.

Which account is needed for an individual entrepreneur? The entrepreneur can open both accounts. But when it comes to a settlement account, the current account is primarily implied, which allows:

• Receiving money from customers;
• Making transfers to other accounts;
• Withdrawing and depositing cash;
• Paying taxes, making social and other contributions;
• Withdrawing personal income to a bank card;
• Connecting acquiring;
• Connecting to a payroll card program;
• Generating statements and other documents.

You can also control your funds 24/7 – through a mobile application or internet banking for businesses.

When it comes to which account is more beneficial to open for an individual entrepreneur, the current account "wins" here too: many banks offer tariffs with free account opening and servicing for start-up entrepreneurs.

Useful Information for Entrepreneurs

Opening a settlement account is accompanied by many questions – we’ll answer the most common ones.

Do I Need to Notify the Tax Authorities of a Settlement Account Opening?

After opening the settlement account, you do not need to notify the tax authorities yourself – the Bank will do this within one day from the opening.

Can an Individual Entrepreneur Open Several Settlement Accounts?

The legislation does not limit the entrepreneur in the number of current accounts – there can be several accounts (including in different banks).

Can an Individual Entrepreneur Transfer Money from Their Savings Account to the Current Account?

Yes, such a transfer is possible. Entrepreneurs often use this option to replenish working capital. Moreover, such a transfer will not be considered income derived from business activities. In other words, this amount is not included in the calculation of taxes.

How to Withdraw Personal Income?

Personal income is withdrawn using a cash withdrawal order. Please note that this amount is not an expense. That is, the entrepreneur calculates the tax on the entire amount earned, regardless of the amount withdrawn for personal use.

To sum up. So, is a bank account needed for an individual entrepreneur? Even if the business activity allows to conduct business without cash and settlement services, opening a bank account will provide the IE with transparent financial reporting for regulatory authorities and facilitate many tasks, such as paying taxes or withdrawing personal income through remote channels without visiting the bank.

Opening a business account for an individual entrepreneur in Kazakhstan can be done online directly on the Bank's website – it takes a few minutes.

Please note that the entrepreneur can work with both a savings and a current settlement account.


Author - Broslavskaya Natalia Alexandrovna