Published
11/18/2025, 09:18Sadyr Zhaparov signed amendments to the Civil Code. The document was adopted by the Jogorku Kenesh on 25 September and aims to increase the transparency of corporate structures consisting of a single participant, as well as to strengthen their liability for obligations.
A company can be the sole owner of another company, even if both have only one founder. Previously, such structures were restricted, but now they are permitted — on the condition that they are not controlled by foreign legal entities.
If a company consists of a single founder, it can now be liable for the debts of companies where it was the sole participant; companies that belonged to it alone, and all subsequent companies in the chain of ownership. That is, if companies create a long ‘chain’ and one of them is in debt, the liability can be shared by everyone higher up in the structure.
However, this does not apply to state-owned companies and organisations.
At the same time, it is now impossible to create overly long chains of companies where each has only one founder. The maximum is three levels. If the chain is longer, the new company will not be allowed to register.
State-owned companies are not subject to the new liability rules.
The amendments to the code are aimed at preventing the creation of confusing chains of companies through which owners can be concealed, reducing risks for creditors and partners, increasing business accountability, and making the corporate system more transparent and understandable.
