The activities of enterprises, companies and branches in Turkmenistan are regulated by the Civil Code of Turkmenistan, the Law of Turkmenistan on Enterprises, The Law on Foreign Direct Investment in Turkmenistan and other regulatory and legislative acts.
The main and most common forms of business activities in our country are the economic society (ES), open joint stock company (OJSC) or individual enterprise (IE).
What is an economic society?
An economic society is the union of two or more individuals and (or) legal entities for the implementation of joint activities. The economic society is created on the basis of an agreement concluded between its founders.
The founder of an economic society may be citizens of any country. There are no limitations for foreign citizens in regards with registration; there are no restrictions on participation as a founder, except in cases of violations of the laws of Turkmenistan or the international law. Registration period is 2.5-3 months from the date of submission.
The property of the economic society is formed at the expense of the association in its authorized capital of shares (deposits) of individuals and (or) legal entities that are members of the economic society. The minimum size of the statutory fund of the economic society should be 100 times the minimum wage in Turkmenistan. For example: for 2019, the minimum wage in Turkmenistan is set at 790 (seven hundred ninety) Turkmen manats. Respectively, the minimum size of the authorized capital for 2019 is at least 79,000 (seventy nine thousand) Turkmen manats. (USD/TMT: 3,5 TMM)
The establishment of the economic society, as well as the foundation of its work, is considered the constituent agreement, jointly written by and signed between the founders. The contract should specify the subject and purpose of the contract, the name and legal address, the statutory fund, the main activities and goals, management of the economic society, the rights and obligations of the founders, the procedure for sharing profits, the registration procedure and accounting, as well as confidentiality.
The procedure for managing an economic society and its affairs are determined by the Charter.
BT Legal Affairs Department
