In accordance with the Presidential Decree "On drastic measures to improve the business environment in the Republic of Kazakhstan" dated by 27^th of February 2014, the Government was given an order to develop a draft law, providing for strengthening of the role of the National Chamber of entrepreneurs, including through the establishment of the institute of Business Ombudsman.

On 29^th of December 2014 the Law "On the National Chamber of Entrepreneurs of Kazakhstan" was amended with the norms on the legal status, functions, order of appointment and duties of the Business Ombudsman, as well as organization of his activities.

The Entrepreneurial Code entered into force on January 1, 2016, Chapter 28 of which discloses in detail the legal status of the Business Ombudsman.

Business Ombudsman – is a completely new institution in Kazakhstan. His high status and extensive powers allow to tackle more efficiently the systemic problems of Kazakhstani business, abuse of powers by officials and imperfection of the legislation.

According to Article 26.1 of the Law "On the National Chamber of Entrepreneurs of Kazakhstan", the legal status of the Ombudsman for the Protection of the Rights of Entrepreneurs of Kazakhstan is determined by the Entrepreneurial Code. His work is facilitated through the National Chamber.

The Ombudsman is appointed by the head of the state and is accountable only to the President. Moreover, no one has the right to impose functions on the Ombudsman for the protection of the rights of entrepreneurs of Kazakhstan, which are not stipulated by the Entrepreneurial Code. No illegal interference is allowed into his activities.

In the period of execution of his powers (4 years), the Ombudsman on the protection of the rights of entrepreneurs of Kazakhstan can’t engage in political activity, and therefore suspends his membership in political parties and other public associations.

The main functions of the Business Ombudsman include presentation, protection of rights and legitimate interests of entrepreneurs and consideration of their appeals. Each appeal addressed to the Ombudsman is placed under control and is processed by the staff of the administrative office of the Business Ombudsman. No appeal will be left without legal study and response.

Business Ombudsman has wide powers:

• to make proposals to the state bodies on protection of the rights of entrepreneurs, as well as recommendations on suspension of regulatory legal acts;
• to send to the state bodies (officials), due to actions (inaction) which violated the rights and lawful interests of business entities, recommendations on measures to restore the violated rights, including bringing to justice those, who are responsible for violations of the rights and legitimate interests of businesses;
• In case of disagreement with the views of state bodies, he can send a petition to the prosecution authorities in order to restore the rights of entrepreneurs;
• to request from the state bodies (officials) information, documents and materials related to the rights and obligations of the business entities, with the exception of information constituting state, commercial, banking and other secrets protected by law;
• to sue on behalf of the business community;
• to take other legal measures to restore the violated rights and lawful interests of business entities.

If violations of the rights of entrepreneurs are systemic in nature and the problems can’t be solved at the level of state bodies, the Ombudsman for the protection of the rights of entrepreneurs is entitled to appeal to the President of the Republic of Kazakhstan.

Initially the Institute of Ombudsman originated in Sweden. Riksdag (Parliament) of Sweden established the position in 1809. Today the institute of Ombudsman is widespread in many countries. There are Ombudsmen for protection of children's rights, on investments, banking, insurance Ombudsmen, finally, Business Ombudsman.