The activities of local private enterprises and branches of foreign companies in Turkmenistan are regulated by the Civil Code of Turkmenistan, the Law of Turkmenistan on Enterprises, the Law of Turkmenistan on Foreign Investments and other legal and regulatory acts. Business activities are implemented as business companies, private enterprises or open joint-stock companies.
What is an enterprise?
Enterprises operate in the following legal forms:
- state enterprise;
- individual enterprise;
- cooperative enterprise;
- joint venture;
- enterprise public organization;
- economic society;
- Joint-stock company.
Enterprise establishment and management
The enterprise is created by the decision of its founder(s).
An enterprise is an independent subject of economic activity created in accordance with the Law of Turkmenistan for the production of goods, the sale of goods, the performance of work and the provision of services in order to meet the needs of society and to make a profit.
The legal status of an enterprise – it is the system of the rights and obligations of an enterprise as a legal entity enshrined in law.
The founders of the enterprise can be individuals and legal entities, including of foreign countries.
New enterprise can be created on the basis of the separation of one or several new enterprises from an enterprise.
Private enterprise is created by the decision of the owner(s) of the property. The constituent document of a private enterprise is its Charter, approved by the owner.
An individual enterprise can also be created as a result of the acquisition by an individual of an enterprise owned by other owners.
The property of a private enterprise is formed from the property of an individual, income received and other legitimate sources.
The minimum size of the authorized capital of a private enterprise should be 25 times the minimum wage in Turkmenistan. For example, this size for 2019 is defined as 19,750 (nineteen thousand seven hundred and fifty) manats.
The management of a private enterprise is carried out by its owner, or the owner has the right to transfer, under a contract, the authority to manage the business of the enterprise to another person (manager, executive director).
The owner of a private enterprise shall be fully liable for the obligations assumed by the individual enterprise.
An enterprise becomes a subject of law from the moment of its state registration.
More detailed information related to enterprises is available in the Law of Turkmenistan of June 15, 2000 No. 28-II “On Enterprises”.
