How to Sue a Kazakh Company: A Comprehensive Guide for Foreign Companies on Filing Lawsuits and Debt Recovery in Kazakhstan
How a foreign company can file a lawsuit in Kazakhstan if a debtor fails to fulfill a contract.

This publication was prepared by Samat Serikovich Sagidanov, Attorney at the Astana City Bar Association.

If you do not have time to delve into the details, you can contact me directly:

• 📞 WhatsApp / Phone: +7 702 847 80 20

• 📧 Email: garantplus.kz@mail.ru

• 👉 Initial consultation — Free of charge

You may write in any language. I will arrange the translation myself and provide a legally precise response to eliminate any misunderstandings or financial risks.

⚠️ If you want to avoid dealing with Kazakh courts and procedural nuances yourself, or risk losing your money — simply reach out.

The Key Problem for Foreign Companies in Kazakhstan
Foreign companies from the USA, EU, China, Turkey, UAE, and CIS countries lose large sums of money in Kazakhstan every year due to:

• Breach of commercial contracts;
• Non-payment for supplied goods or services rendered;
• Fictitious or prolonged negotiations initiated by debtors;
• Incorrect legal actions taken at the initial stage.

❗ The main mistake made by foreign companies is waiting for voluntary payment and attempting to "resolve the issue remotely" without timely filing a lawsuit in the courts of the Republic of Kazakhstan.

In practice, this leads to:

• Loss of evidence;
• Missing of statutes of limitations;
• Loss of the actual opportunity for debt recovery.

Can a Foreign Company File a Lawsuit in a Kazakh Court?
Yes. A foreign company has the full legal right to apply to the courts of the Republic of Kazakhstan if:

• The contract is concluded with a Kazakh company or individual entrepreneur (IP);
• The delivery of goods, provision of services, or performance of work is connected to Kazakhstan;
• The debtor is registered within the territory of the Republic of Kazakhstan;
• Contractual obligations are breached in whole or in part.

📌 In Kazakh courts, foreign companies possess the same procedural rights as residents.

Rights of a Foreign Company in Kazakh Courts
A foreign company is entitled to:

• File a lawsuit in Kazakhstan;
• Recover debt, fines, penalties, and interest;
• Recover damages and forfeits;
• Terminate contracts;
• Initiate debt recovery proceedings in Kazakhstan;
• Act through an attorney without opening a business entity in Kazakhstan.

❌ NOT Required:

• Registration of a TOO (LLP) or branch;
• A permanent establishment;
• The physical presence of a director;
• Entry into Kazakhstan.

✅ A Power of Attorney (PoA) for an advocate in Kazakhstan is sufficient.

Why Foreign Companies Lose Money in Kazakhstan
Actual losses occur not due to a lack of rights, but due to procedural errors. The most common mistakes include:

• ❌ Filing a claim in the wrong court (incorrect jurisdiction);
• ❌ Formal violations of lawsuit requirements;
• ❌ Missing the statute of limitations;
• ❌ Incorrect calculation of claims;
• ❌ Acting independently without professional representation.

⚠️ Kazakhstani courts are strictly formal. Procedural errors are often impossible to correct later, even if the legal position on the merits of the case is strong.

Why Kazakhstan is a Complex Jurisdiction for Foreign Companies
Despite outward similarities to European legal systems, commercial disputes in Kazakhstan have specific characteristics:

• Strict requirements for evidence;
• A highly formalistic approach by the courts;
• Active procedural resistance from debtors;
• Rigid adherence to procedural deadlines and rules.

📌 Foreign companies often lose cases not on the merits of the dispute, but due to issues with form and procedure.

Court vs. Arbitration in Kazakhstan: Which to Choose?
A key question is whether to use a court or arbitration. A Kazakh court is suitable if:

• The debtor is registered in Kazakhstan;
• Assets are located in Kazakhstan;
• Rapid forced recovery is required.

Arbitration is possible if:

• It is explicitly provided for in the contract;
• Subsequent recognition and enforcement of the award in Kazakhstan is anticipated.

❗ In practice, a Kazakh court is often a more effective tool for real recovery than international arbitration without local assets.

Common Types of Lawsuits Filed by Foreign Companies
In practice, these are disputes regarding:

• Recovery of debt under supply contracts;
• Recovery of arrears under service agreements;
• Non-fulfillment of commercial obligations;
• Return of advances or deposits;
• Contract termination;
• Recovery of fines, penalties, and interest;
• Recovery of damages.

📍 If the contract was performed in Kazakhstan or the debtor is registered there, the foreign company has the right to sue the Kazakh company in local courts.

Which Court Handles the Claim?
Depending on the circumstances, the claim is filed in:

• The Specialized Inter-district Economic Court;
• The district court at the place of the debtor's registration;
• The specific jurisdiction stipulated in the contract.

❗ Choosing the wrong court almost always leads to the return of the claim and a loss of time.

Do You Need to Visit Kazakhstan?
No.

The entire process can be conducted fully remotely:

• The attorney acts under a Power of Attorney;
• Documents are filed electronically;
• Participation in hearings is possible without the client's presence;
• Case monitoring is conducted online.

This is especially important for companies from the USA, EU, China, and the Middle East.

Step-by-Step Guide: How to File a Lawsuit in Kazakhstan
1.      Legal Analysis: Determine the applicable law, jurisdiction, statutes of limitation, and the recovery strategy.

2.      Preparation of the Statement of Claim: Drafted according to Kazakh law, current judicial practice, and debtor counter-tactics.

3.      Filing the Claim: Submitted via the electronic court systems of Kazakhstan.

4.      Judicial Proceedings: The attorney represents the interests of the foreign company, files motions, and neutralizes the debtor's procedural tricks.

5.      Real Debt Recovery: After the court's decision, forced enforcement begins (seizure of bank accounts, asset tracing, foreclosure on property).

Language and Translations
Kazakhstani courts operate in: Russian and Kazakh.

For foreign companies:

• Document translations are organized;
• Notarized translations are provided where necessary;
• Court interpreters can be arranged.

👉 The client does not need to worry about linguistic or procedural details.

Risks of Acting Independently
The most frequent consequences of self-representation:

• Return of the claim;
• Dismissal without consideration on the merits;
• Wasted time;
• Loss of the ability to recover the debt.

❗ A single procedural error can cost the entire amount of the debt.

Why It Is Vital to Work with an Advocate in Kazakhstan
An advocate in Kazakhstan:

• Knows the local judicial practice;
• Understands the process from the inside;
• Interacts with courts and bailiffs;
• Ensures the case results in the actual receipt of funds, not just a formal paper judgment.

For a foreign company, this is not an expense—it is a protection of investment.

Legal Assistance for Foreign Companies in Kazakhstan
I am Samat Serikovich Sagidanov, a member of the Astana City Bar Association. I assist foreign companies with:

• Debt recovery;

• Filing lawsuits in Kazakh courts;

• Support in commercial disputes;

• Forced enforcement of judgments.

• 📞 WhatsApp / Phone: +7 702 847 80 20

• 📧 Email: garantplus.kz@mail.ru

• 👉 Initial consultation — Free of charge

Frequently Asked Questions (FAQ)
·         Can I file a claim without traveling to Kazakhstan?

o    Yes, the entire process can be done remotely.

• Can I recover money if the debtor is hiding?

o    Yes, asset tracing and property seizure are possible.

• Is an attorney mandatory?

o    Yes, your representative must be an advocate or a member of the Chamber of Legal Consultants.

• Is it realistic to actually get the money?

o    Yes, with the right recovery strategy, actual collection is achievable.