Frequently Asked Questions (FAQ) for Company Formation in Turkmenistan:

1. What types of companies can be formed in Turkmenistan?

Turkmenistan allows the formation of several types of companies, including Joint-Stock Companies, Limited Liability Companies, General Partnerships, and Limited Partnerships.

2. What is the minimum number of shareholders or partners required to form a company in Turkmenistan?

The minimum number of shareholders or partners required to form a company in Turkmenistan depends on the type of company. For example, a Joint-Stock Company must have at least two shareholders, while a Limited Liability Company can be formed with a single founder.

3. What is the minimum share capital required to form a company in Turkmenistan?

The minimum share capital required to form a company in Turkmenistan varies depending on the type of company. For example, the minimum share capital required for a Joint-Stock Company is TMT 500,000 (approximately USD 142,857), while a Limited Liability Company can be formed with a minimum share capital of TMT 50,000 (approximately USD 14,285).

4. Can foreigners or non-residents form a company in Turkmenistan?

Yes, foreigners and non-residents can form a company in Turkmenistan. However, they may be subject to certain restrictions depending on the type of company and the industry.

5. What are the registration requirements for forming a company in Turkmenistan?

To register a company in Turkmenistan, the following steps must be completed: 

a) Reserve a company name with the Ministry of Finance and Economy; 

b) Prepare the company's charter and obtain notarized copies; 

c) Open a bank account and deposit the minimum required share capital; 

d) Register the company with the State Tax Service and obtain a tax registration number; and 

e) Obtain a business license from the Chamber of Commerce and Industry.

6. How long does it take to form a company in Turkmenistan?

The process of forming a company in Turkmenistan can take between two to three months. This is due to the various registration requirements and the need for approvals from different government agencies.

7. What are the tax obligations for companies in Turkmenistan?

Companies in Turkmenistan are subject to a corporate income tax rate of 20%. Additionally, social security contributions and value-added tax (VAT) may also apply.

8. Can a foreign company operate in Turkmenistan without forming a local subsidiary?

Foreign companies can operate in Turkmenistan without forming a local subsidiary, but they must register their business activities and obtain necessary licenses and permits. However, certain industries may require a local presence or joint venture with a local company.

9. What are the accounting and auditing requirements for companies in Turkmenistan?

Companies in Turkmenistan must maintain accurate accounting records and prepare financial statements in accordance with local accounting standards. Additionally, companies are required to undergo an annual audit conducted by a local certified public accountant.

10. Are there any special incentives or benefits for foreign investors in Turkmenistan?

Turkmenistan offers several incentives and benefits for foreign investors, including tax exemptions, duty-free imports of machinery and equipment, and the ability to repatriate profits and dividends. However, the availability and extent of these incentives may depend on the industry and the size of the investment.