When do you graduate from an EOR to your own Kazakhstan entity?

The table below uses an illustrative KZT equivalent of the Teamed fee. The actual amount depends on the exchange rate at the time of invoice. Teamed charges from $599 USD with zero FX mark-up.

All entity cost figures in this table are typical ranges. They cover outsourced accounting, payroll filings, statutory returns, and HR admin for a small Kazakhstan LLP. They are illustrative, not law figures. Actual costs move with your outsourcing model and benefits programme.

From 2026 Kazakhstan taxes employment income at 10% up to 8,500 MRP a year, then 15% on the slice above that. The Monthly Calculation Index (MRP) sets that threshold at KZT 4,325/month for 2026. Employers also withhold a 10 percent UAPF pension contribution from each salary and pay social tax and social insurance on top. The pension and social charge base sits in the Tax Code and pension law, and the consolidated employer rate is not fixed in our trusted sources, so we describe it rather than quote a single number. These charges apply whether you use EOR or your own entity. They do not move the crossover much, but they do add filing weight to the entity side.

Run the Crossover Calculator with your own headcount and salary band.

1. Calculate the EOR cost

   Multiply the Teamed fee (from $599 USD) by your planned Kazakhstan headcount. This is the fixed variable cost. It grows in a straight line as you hire.

2. Estimate the entity fixed overhead

   Typically KZT 1,200,000 to 2,500,000 per month for a small Kazakhstan LLP. This covers accounting, payroll filings, income tax, UAPF pension, social tax and social insurance administration, and first-point HR. The cost does not grow much until headcount exceeds twelve.

3. Find the crossover headcount

   The crossover is where EOR monthly cost equals the entity monthly overhead. For most Almaty and Astana salary bands, this lands around seven to ten staff. Use the Crossover Calculator for your own numbers.

4. Factor in non-financial triggers

   The maths gives you a headcount threshold. Local substance requirements, public procurement eligibility, and market-validation reversibility are separate questions that may override the cost crossover in either direction.

5. Plan the graduation date

   Allow two to four weeks for LLP formation before the first payroll on your own entity. Factor in one to three weeks extra for the bank account. Start the GEMO process while EOR keeps running.

These are typical ranges, not law figures. No law sets what a Kazakhstan LLP costs to form. The range reflects real professional services rates in Almaty and Astana. It moves with share structure and how much you outsource.

Why the bank account gates payroll

Most Kazakhstan banks require a registered LLP with its BIN (business identification number) and tax registration before opening a corporate account. So the registration sequence matters. Expect 1 to 3 weeks from incorporation to an opened account once directors clear KYC checks. Foreign-owned companies should budget toward the longer end. Manage the sequence loosely and a 2-week incorporation becomes a 5 to 7 week wait before first payroll.

These figures are typical market ranges for a small Kazakhstan LLP with 1 to 12 employees. They are illustrative, not law figures. Actual costs depend on whether you outsource or hire in-house, and on the complexity of your payroll and benefits programme.

Above 12 employees, dedicated in-house HR and finance capacity typically becomes necessary, and the band widens. Group medical cover, near-universal in competitive Almaty and Astana hiring, can add KZT 25,000 to 70,000 per employee per month and sits outside the overhead estimates above.

Most cost comparisons skip the director-liability dimension because it is hard to put a number on. It is worth naming before you decide.

Personal duties of an LLP director

The director (first head) of a Kazakhstan LLP must run the company in good faith, keep proper accounts, withhold and remit payroll taxes correctly, and file statutory returns on time. Wages are governed by the Labour Code of the Republic of Kazakhstan, which sets out how and when staff must be paid. The director, not an outside accountant, answers to the authorities when a filing is late or wrong.

The monthly compliance rhythm

• Income tax withholding: deducted at 10% on most pay and 15% above 8,500 MRP, then remitted to the tax authority each month.
• UAPF pension: a 10 percent contribution withheld from each salary and paid to the Unified Accumulative Pension Fund.
• Social tax and social insurance: employer charges on payroll, filed and paid monthly to the state.
• Pay timing: wages must be paid in national currency at least once a month, by the 10th of the following month.
• Monthly payslips: each employee must get a written or electronic breakdown of pay and deductions every month.
• Annual statutory accounts: prepared and filed each year.

Each filing is individually manageable. Stacked across a year they consume real management attention and carry personal director risk on every missed deadline. An EOR carries all of these on its own entity.

• Under 5 Kazakhstan employees at typical Almaty or Astana salaries: EOR is cheaper every month. The entity overhead has nothing to amortise against at that headcount.
• Market validation phase: you are hiring 1 or 2 people to test commercial fit. Entity setup commits capital and management attention before you know whether Kazakhstan will deliver.
• Project-based hires: 6 to 12 month engagements where the formation cost will not amortise before the project ends.
• Uncertain headcount path: Kazakhstan is a priority market but you have not committed to long-term growth there. EOR keeps your options open.
• High wind-down risk: holding patterns or pilots where adding a local entity creates exit friction later.

• Sustained headcount above 10 Kazakhstan employees at typical salaries: the entity overhead amortises across enough people that per-head cost falls below the EOR fee.
• Local substance requirements: regulated sectors such as financial services, mining, and telecoms expect a registered Kazakhstan entity with a physical presence. EOR employment does not provide that substance.
• Public procurement eligibility: Kazakhstan's state tendering rules favour locally registered companies in many categories. An EOR employer does not qualify as a locally registered business for those purposes.
• Local-content and partner expectations: large domestic customers and joint-venture partners often prefer to contract with a Kazakhstan-registered company.
• Multi-year growth plan: you have line of sight to 12 or more Kazakhstan staff over 24 months. Starting formation early means your LLP is ready before the crossover, not after it.

The technical mechanic is contract transfer: the employment contract moves from Teamed's partner entity to your new Kazakhstan LLP on a set date. All terms carry across. Salary, pension contributions, annual leave entitlement, and continuous service date stay unchanged. The employee sees a different employer name on the payslip. Nothing else changes.

What we do operationally:

• Stand up your Kazakhstan LLP through GEMO, typically 2 to 4 weeks, while EOR keeps running in parallel.
• Register the new entity for income tax, UAPF pension, social tax, and social insurance with the relevant authorities and funds.
• Open the entity bank account and payroll mandate.
• Transfer every active employment contract on a single effective date.
• Migrate ongoing benefits, including any group medical cover, without a lapse.
• File final EOR-period returns and open new filings on the entity from the transfer date.
• Keep the same People Ops specialist as the primary contact after graduation.

The Graduation Model exists because every other EOR makes this hard. We treat the move as something we help you plan for from the day you hire your first employee through us.

Real HR and legal experts handle your Kazakhstan hires from the first offer letter through every monthly filing and annual audit period. An actual person, not a chatbot or a pooled queue. There is no setup fee and no exit fee. Every employer cost passes through at cost, itemised on every invoice. You see the income tax withheld at 10%, the UAPF pension line, the social tax and social insurance charges, and annual leave accruing toward 24 days. Nothing is hidden inside the management fee.

EOR payroll, contractor onboarding, and entity setup all live on one platform. Run the Crossover Calculator to see the month the model flips. Start from the Kazakhstan hiring overview. Key source: the Labour Code of the Republic of Kazakhstan.