Bankruptcy of Legal Entities: What Has Changed - FCHAIN

Bankruptcy of Legal Entities: What Has Changed

 

Since the beginning of 2026, significant changes have been introduced to the legislation of the Republic of Kazakhstan regulating bankruptcy procedures for individuals and legal entities. The amendments were signed on January 16, 2026, and introduced into the following laws:

• “On Restoration of Solvency and Bankruptcy of Citizens of the Republic of Kazakhstan”
• “On Rehabilitation and Bankruptcy”

These changes are aimed at increasing transparency of procedures, reducing abuse, and strengthening the protection of creditors’ rights.

 

Why the Changes Matter

In recent years, the legislation on bankruptcy of legal entities has remained relatively stable. However, legal practice has demonstrated the need to improve mechanisms, particularly in:

• preventing bad-faith schemes;
• increasing procedural efficiency;
• balancing the interests of debtors and creditors.

The amendments are being implemented in stages, allowing market participants to adapt to the new rules.

 

Key Changes Effective from March 19, 2026

Expansion of powers of the bankruptcy administrator

The bankruptcy administrator has been granted additional rights, including:

• participation in calculating additional remuneration;
• the right to apply to the court to invalidate the re-registration of a legal entity.

This strengthens control over debtor actions and reduces the risk of asset withdrawal.

 

Introduction of a mechanism for removal of the interim administrator

A procedure for removing the interim administrator has now been introduced, allowing prompt response to:

• inefficient performance;
• potential violations or conflicts of interest.

 

Expansion of methods for notifying creditors

The list of ways to notify creditors has been expanded regarding:

• creditors’ meetings;
• meetings of the creditors’ committee.

This increases accessibility and reduces the risk of decisions being invalidated due to procedural violations.

 

Establishment of a deadline for reapplying for bankruptcy

A restriction has been introduced on repeated applications for bankruptcy after a court refusal.

The aim is to prevent abuse and pressure on participants through repeated filings.

 

Restriction on the use of rehabilitation procedures

Rehabilitation is no longer allowed if the only creditor is the state (taxes and mandatory payments).

This is intended to prevent formal use of the procedure without real economic grounds.

 

Clarification of quorum for creditors’ meetings

Conditions have been defined under which creditors’ meetings are considered valid in cases of direct sale of the bankrupt’s assets.

This increases legal certainty and reduces the risk of challenging transactions.

 

Expected Impact of the Reforms

The adopted changes are aimed at:

• reducing bad-faith practices;
• increasing transparency of procedures;
• strengthening the role of creditors;
• improving the efficiency of administrators.

 

Legal Services of FChain

FChain provides a wide range of legal services for businesses in Kazakhstan — from company registration to comprehensive legal support and dispute resolution.

Our services include:

Company Registration – Full support in business setup: choosing the legal form, preparing documents, and turnkey registration.

Legal Support for Business – Ongoing legal assistance: консультации, transaction support, and protection of interests in relations with counterparties and government authorities.

Legal Audit – Comprehensive review of company legal activities: risk identification, contract analysis, and recommendations.

Company Liquidation – Support of liquidation and bankruptcy procedures from document preparation to full completion.

Contract Drafting – Preparation and legal review of contracts of any complexity in compliance with Kazakhstani legislation.

Mediation – Pre-trial dispute resolution with minimal time and cost, preserving business relationships.

 

Tax Reporting Deadlines in 2026: What Has Changed

 

Prepared by: Moldir Mukhtar

Business Development Specialist

FChain Kazakhstan

📩 almaty@f-chain.com
📱 WhatsApp: +7 771 214 1820