Legal Framework For Investments in Turkmenistan

BUSINESS TURKMENISTAN
Legal Framework For Investments in Turkmenistan
Investment activity is regarded as a set of practical actions of the state, individuals and legal entities to implement investments.

Investments are all types of property and intellectual values invested in objects of entrepreneurial and other types of activity, which will result in generation of profit (income) or achievement of social effect.

Such values can be:

  • cash, targeted bank deposits, stakes, shares and other securities;
  • movable and immovable property (buildings, structures, equipment and other tangible assets);
  • property rights arising from copyright, know-how, experience and other intellectual values;
  • rights to use land and other natural resources, as well as other property rights;
  • other values.

Investments in the reproduction of fixed assets can be carried out in the form of capital investments.

Investment activity

- Investment activity is regarded as a set of practical actions of the state, individuals and legal entities to implement investments.

- Investment activity is carried out on the basis of:

  • investment carried out by individuals, economic associations, societies and partnerships, as well as public and religious organizations, other legal entities of Turkmenistan, regardless of ownership forms;
  • state investment carried out by the authorities and administration of Turkmenistan, local executive authorities at the expense of budgets, extra-budgetary funds and borrowed funds, as well as state enterprises and institutions at the expense of their own and borrowed funds;
  • investments by foreign states, legal entities and individuals, as well as stateless persons;
  • joint investment carried out by Turkmenistan and foreign states, legal entities and individuals, as well as stateless persons.

Objects of investment activity

The objects of investment activity are newly created and modernized fixed assets and working capital in all sectors and spheres of economic activity, securities, earmarked cash deposits, scientific and technical products, intellectual values, other property, as well as property rights.

It is prohibited to invest in objects, the creation and use of which does not meet the standards of seismic resistance, fire and explosion safety, sanitary and hygienic, environmental and urban planning requirements, and also damages the legally protected rights and interests of citizens, legal entities and the state.

Subjects of investment activity

- Subjects (investors and participants) of investment activity can be individuals and legal entities of Turkmenistan and foreign states, as well as directly these states.

- Investors - subjects of investment activity, making decisions on the investment of their own, borrowed and attracted property and intellectual values. Investors can act as depositors, lenders, buyers, and also perform the functions of any participant in investment activities.

- Participants in investment activities are individuals and legal entities of Turkmenistan and other states that ensure the implementation of investments as executors of orders or on the basis of an investor's instructions.

Source: Law of Turkmenistan on Investments in Turkmenistan