Turkmenistan company registration

Turkmenistan company registration

DOING BUSINESS IN TURKMENISTAN

For over a decade, Healy Consultants has efficiently and effectively assisted Clients with Turkmenistan business registration:

Press the link headings below to read detailed, relevant, up to date information.

  • Advantages and disadvantages

    Advantages of Turkmenistan company registration

    1. Our Clients may enjoy certain benefits when registering their businesses in Turkmenistan including:
        business registration tips in Turkmenistan
      • Turkmenistan has seen consistently high growth over the past decade, with annual growth rates from 9-15% since 2005. Demand for foreign investment is high in the oil and gas sector, as well as the textile and construction sector, as outdated infrastructure is the only factor holding these industries back from dynamic growth;
      • Turkmenistan has a wealth of natural resources. Turkmenistan has the world’s fourth largest natural gas reserves, with substantial reserves of oil as well. Furthermore, Turkmenistan is home to significant amounts of irrigated land and is the tenth largest producer of cotton;
      • Turkmenistan has a corporate tax rate of 20%, but this is substantially reduced for companies investing in the gas and oil industry. Furthermore, Turkmenistan has double taxation treaties with many European countries, the United States, China, India, and Japan. Under these treaties, entrepreneurs can completely avoid withholding tax on repatriation of profits;
      • Compared to countries of the western world for Turkmenistan company incorporation, Turkmenistan is very cheap, including food, transport, utilities, rent, wages, etc. Specifically, office rental tend to be a fraction of what they are in most western cities and gas and electricity are free;

    Disadvantages of Turkmenistan company registration

    1. Turkmenistan suffers from high corruption, which can act as a barrier to completing many standard business practices. Turkmenistan is ranked 154th in the 2015 Corruption Perceptions Index by Transparency International. Entrepreneurs should expect under-the-table bribes in order to expedite business operations;
    2. The government of Turkmenistan is incredibly restrictive of investments, with foreign exchange accounts requiring government approval, with approval required for all transfers and payments as well;
    3. English is spoken by only a small minority of Turkmen, with Turkmen being the official and most commonly spoken language. Though 28% of the country speak have a different mother tongue, all official documents should be translated in to Turkmen, as federal agencies have been known to have discriminatory policies against the minorities in Turkmenistan;
    4. Turkmenistan’s court system is still underdeveloped and the judicial system is heavily influenced by bribery. The government owns all land with little in the way of ownership rights provided to any civilians and intellectual property rights are not protected in any sense;
    5. Turkmenistan lacks financial freedom, being ranked 174th in the 2016 Index of Economic Freedom by Heritage Foundation. The financial sector is almost entirely state-run, with the majority of corporate loans being approved for state-owned enterprises.
  • Best uses for a Turkmenistan company

    Exports to Russia and China

    1. While Turkmenistan is landlocked, it is very close to two major markets – China and Russia. Turkmenistan has also established free trade zones which offer preferential tax status and can allow for total tax exemption for businesses engaging in trade. In addition, the low cost of doing business in the country makes the cost base for a manufacturing company very attractive;
    2. The government of Turkmenistan has declared attracting foreign direct investment a priority and is especially welcoming of investments in line with its export-oriented industrialization policies. Though in practice, this applies almost exclusively to entrepreneurs investing in government targeted industries, such as the oil and gas industry, but the benefits can include preferential treatment with regards to customs, tax, and licensing.

Company registration

  • Time to incorporate: Eleven weeks
  • Cost to set up: US$23,600
  • Minimum capital: US$10,000
  • Physical office required: Yes

Required appointments

  • Shareholders: 2
  • Directors: 1
  • Company secretary: No
  • Resident director: No

Key facts

  • Corporate tax rate: 8 – 20%
  • Corporate tax base: Worldwide
  • Shelf companies: No
  • Main company type: Joint Stock

Contact us

For additional information on our company registration services in Turkmenistan, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Grace Odhiambo, directly:
client relationship officer - Grace
Ministry of foreign affairs Ministry of Finance tdh - Turkmenistan news Chamber of Commerce Turkmenistan airlines central bank of Turkmenistan government website