· ProFinance Consulting
This publication retains its 2024 text. Legislative changes after the publication date are not reflected in it.
The Law of the Republic of Kazakhstan on Financial Leasing was adopted on 5 July 2000 and entered into force on 13 July 2000. It has since undergone numerous amendments and additions.
The Law on Financial Leasing regulates relationships arising from financial leasing: a form of leasing in which the lessor acquires assets to subsequently lease them, in whole or in part, to an entrepreneur or lessee.
Under Article 2 of the Law, financial leasing is an investment activity in which a lessor undertakes to transfer an asset purchased from a seller and specified in the lease agreement to a lessee for temporary possession and use for a period exceeding 1 (one) year, for an agreed fee and on agreed terms.
As stated in Article 10 of the Law, leasing companies carry out leasing activities as lessors without a licence after notifying the authorised financial monitoring body of the commencement of their activities, in accordance with the Law of the Republic of Kazakhstan on Permits and Notifications dated 16 May 2014.
The Law's main provisions cover:
- definitions of key terms, principles, and the rights and obligations of the parties to a leasing transaction;
- the procedure for entering into and performing such transactions;
- and the procedure for terminating leasing relationships.
The Law on Financial Leasing distinguishes the rights and obligations of the lessor and lessee and establishes liability for breaches of a leasing transaction's terms. It also provides for state registration of leasing transactions to ensure their legality and protect the parties' interests.
Overall, this Law is an important regulatory act aimed at regulating and developing leasing in the country, providing legal protection to participants in leasing relationships and supporting the stable operation of the financial leasing market.