Business entities in Turkmenistan

Business entities in Turkmenistan

Foreign entrepreneurs generally prefer to setup either a limited liability company (LLC) or a joint stock company (JSC) in Turkmenistan. However, our corporate Clients have additional Turkmenistan business setup options including branch office and representative office. For more details, kindly refer to the information and table below:

Limited Liability Company

    Setup business in Turkmenistan
  • An LLC can be setup by 2 shareholders, who may be individuals or corporate entities. Furthermore, the company must appoint 1 director, who may not be a Turkmenistan national or resident;
  • The minimum share capital for a foreign owned LLC may not be lower than US$20,000. An LLC (with foreign participation) is obligated to submit its financial statements for an annual audit.

Joint Stock Company

  • This Turkmenistan business setup will require 2 shareholders and 1 director, who can be non-resident individuals or entities. The minimum requisite share capital must be 200 times the monthly minimum wage (US$33,600);
  • A JSC may be closed (shares distributed amongst founders) or open (shares offered to the public). A JSC is generally preferred when our Client plans to issue shares to the public;
  • Like an LLC, it is mandatory for a JSC to submit annual audited financial statements to the government.

Branch office

  • Some foreign companies may prefer to open branches, rather than subsidiaries. Branches are usually preferred when foreign companies wish to consolidate their income and expenses;
  • Like LLCs, our Clients may use their branches to work in any business sector in Turkmenistan. However, the scope of their operations will be defined by the parent company at the time of registration;
  • Lastly, a branch will not be considered a legal entity, separate from its parent company. Consequently, the parent company will be deemed legally responsible for operations of the branch.

Representative office

  • Our corporate Clients, who do not wish to start income generating activities in Turkmenistan, may setup a representative office in the country. This entity may perform promotional activities in Turkmenistan on the parent company’s behalf;
  • A representative office will be required to appointed a resident manager in the country. Lastly, the terms of existence of the representative office will be defined by the parent company at the time of registration.

Table of comparison between different Turkmenistan entities

Summary at a GlanceLLCJSCBranch officeRep office
How long to set the company up?11 weeks15 weeks10 weeks8 weeks
How long to open company bank account?4 weeks4 weeks4 weeks4 weeks
Estimated total engagement period?5 months6 months5 months4 months
Expiry period of this entity?UnlimitedUnlimited2 years2 years
Minimum share capital required at incorporationUS$20,000US$33,60000
Allowed to sign sales contracts with local Clients?YesYesYesNo
Allowed to invoice Turkmenistan Clients?YesYesYesNo
Corporate bank accountTurkmenbashi BankDayhanbankHalkbankPrezidentBank
Can rent office in Turkmenistan?YesYesYesYes
Physical office space required?YesYesYesYes
Allowed to import raw materials?YesYesYesNo
Allowed to export goods?YesYesYesNo
Can the entity hire expatriate staff in Turkmenistan?YesYesYesYes
Do you visit Turkmenistan for business setup?NoNoNoNo
Resident director/manager/agent required?NoNoYesYes
Resident shareholder required?NoNoNoNo
Minimum number of directors/managers1111
Minimum number of shareholders22Parent CompanyParent Company
Individual shareholders allowed?YesYesNoNo
Corporate shareholders allowed?YesYesYesYes
Corporate director(s) allowed?NoNoNoNo
Must translate documents into Russian and Turkmen?YesYesYesYes
Must legalize documents with the Turkmenistan embassy?YesYesYesYes
Public register of shareholders and directorsYesYesYesYes
Corporate tax payable in Turkmenistan?8%8%8%No
Social insurance contributions on gross salaries20%20%20%20%
VAT rate?0%0%0%0%
Statutory audit required?YesYesYesNo
Annual tax return to be submitted?YesYesYesYes
Total business setup costs in Year 1US$23,660US$25,600US$24,600US$23,650
Subsequent annual costs (incl. accounting & tax)US$3,400US$3,400US$3,400US$1,100
Healy Consultants fee to obtain letter of intention to lease office spaceUS$1,950US$1,950US$1,950US$1,950
Petroleum PEL License (if required)US$4,950US$4,950US$4,950US$4,950
Draft invoiceTurkmenistan LLC incorporation costTurkmenistan PLC incorporation costTurkmenistan branch incorporation costTurkmenistan RO incorporation cost

Contact us

For additional information on our business setup 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