Turkmenistan is an emerging market economy located in Central Asia. It is the second largest country in the region, with a population of approximately 5.7 million people. The country’s economy is largely based on the export of natural gas, which accounts for more than 90% of its exports. The government of Turkmenistan has been actively working to improve the corporate environment in the country.
The corporate environment in Turkmenistan is characterized by a favorable tax regime, low labor costs, and a stable political climate. The country has a flat tax rate of 12%, with no additional taxes on profits or dividends. Labor costs are also low, with the minimum wage set at $90 per month. In addition, the government has implemented several reforms to improve the ease of doing business, such as simplifying the registration process for businesses and reducing the number of required documents. If you plan to register your own firm in the country, keep reading the guide below.
Stages of company registration
It can be difficult to register an organization in Turkmenistan, but doing so is necessary for those who want to do business there. The following actions are necessary for trade registration:
- Choose a unique company name and have it approved by the Ministry of Justice.
- Draft the firm’s charter and have it notarized.
- Obtain a tax registration certificate from the State Tax Service.
- Register with the Chamber of Commerce and Industry.
- Open a bank account and deposit the minimum required capital.
- Obtain a corporate license from the Ministry of Trade and Foreign Economic Relations.
- File with the State Statistics Committee.
- Register with the Social Fund for mandatory social insurance.
- Obtain any necessary certifications or licenses specific to the industry.
- Complete the registration process with the Ministry of Justice.
Types of companies to register
When it comes to registering a company in Turkmenistan, there are several options available.
Limited liability company
The first type of company to consider is a limited liability company or LLC. This type of firm is popular because it offers limited liability for its owners and can be registered with a minimum of one founder. Additionally, an LLC can be established in a relatively short amount of time.
Joint stock company
Another option to consider is a joint-stock company or JSC. This type of firm is ideal for larger businesses that require significant capital investment. A JSC can be registered with a minimum of two founders and offers limited liability for its shareholders. Additionally, a JSC can issue shares to raise capital.
Sole Ownership
Finally, entrepreneurs may also consider registering a sole proprietorship. This type of company is ideal for small businesses and self-employed individuals. A sole proprietorship can be established quickly and easily, and the owner has complete control over the trade. However, it is important to note that a sole proprietorship does not offer limited liability protection.
Types of corporate licenses
There are the following types of permits and licenses needed to register a business in Turkmenistan.
Business registration permit
The trade registration license is obtained from the Ministry of Justice. This authorization is necessary to legally operate a business in the country.
Tax registration permit
Another type of permit is a tax registration permit, which is obtained from the State Tax Service. This permit is required to pay taxes and to receive tax benefits that are available to businesses in the country.
Industry-specific permits
Finally, some industry-specific permits and licenses may be required depending on the type of trade being conducted. For example, a restaurant may need a food service permit, while a construction firm may need building authorization.
It is important to note that failure to obtain the necessary documents and licenses can result in fines and legal consequences.
