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Kyrgyzstan has passed a law on venture capital financing

Published

07/31/2026, 10:41

Kyrgyzstan has passed a law on venture capital financing

President Sadyr Zhaparov has signed the Law ‘On Venture Capital Financing’, which, for the first time, establishes a legal framework in Kyrgyzstan for the operation of venture capital investors, business angels, start-ups and venture capital funds. The legislation aims to foster innovative business, attract investment and create favourable conditions for the financing of high-tech projects.

The law establishes the key instruments of the venture capital market, including a share purchase agreement for future equity (SAFE), convertible loans and option agreements. The legislation also defines the status of business angels, venture capital managers, venture capital funds and start-ups, and permits the establishment of venture capital funds both as legal entities and without such legal status. However, only qualified investors and business angels will be able to invest in such funds, and public fundraising is prohibited.

Furthermore, the law provides for the creation of a public register of venture capital funds and fund managers, and introduces requirements for disclosure of information, auditing and fund management. State support for the sector will include improvements to legislation, tax incentives, staff training and the possibility of the state establishing a ‘fund of funds’ for co-investment with private capital. The Act will come into force 15 days after its official publication, and the Cabinet of Ministers must bring its regulatory acts into line with it within six months.

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