Legal support of the activities of foreign investors and enterprises with foreign investments
The legal aspects of the activities of foreign investors and enterprises with foreign investments in the territory of Turkmenistan are regulated by the laws of Turkmenistan “On foreign investments”, “On hydrocarbon resources”, “On licensing of certain types of activities”, “On foreign exchange regulation and currency control in foreign economic relations” and other legislative acts and international treaties in force in the territory of Turkmenistan.
According to the current legislation, foreign investment can be carried out in the following forms:
- equity participation in enterprises together with legal entities and individuals of Turkmenistan;
- the creation of enterprises wholly owned by foreign investors, branches of foreign legal entities or the acquisition of the ownership of existing enterprises;
- the acquisition of movable and immovable property, with the exception of the legislation of Turkmenistan limited in civil circulation;
- providing foreign loans and borrowings;
- acquisition of property and non-property rights established by the legislation of Turkmenistan.
Foreign investors are given the freedom to choose the size, composition and capital structure of the newly created enterprise.
Turkmenistan provides legal protection, guarantees and benefits to enterprises with foreign investments from the date of registration of the investment project.
The legislation of Turkmenistan provides for the following state guarantees for the protection of foreign investment:
- guarantee of legal protection of foreign investors;
- compensation guarantee upon requisition of property of a foreign investor;
- a guarantee of the export of property and information in documentary form or in the form of a record on electronic media;
- a guarantee of the transfer of payments related to foreign investment;
- guarantee of protection of intellectual property rights;
- a guarantee of the transfer of the rights and obligations of a foreign investor and an enterprise with foreign investment to another person;
- a guarantee of the return on foreign investment in connection with the termination of investment activity.
In order to stimulate the growth of investment activity in Turkmenistan, the following main types of benefits are provided to foreign investors:
- on licensing;
- for certification.
The Law of Turkmenistan “On Free Economic Zones”, adopted in October 2017, defines the legal, organizational and economic foundations for creating free economic zones on the territory of Turkmenistan.
According to the Law, trade zones can be created in the territory of Turkmenistan, including free trade zones and export zones, industrial production zones, including export-import and industrial parks, technology and innovation parks, including technology parks and technopolises, service ones specializing in providing financial and credit, banking, tourist and recreational, information and other services, transport and logistics, including port, agricultural, as well as complex, combining the functions of various functional types pov free economic zones.
The state guarantees to the participant of the free economic zone stability of the conditions for conducting investment and entrepreneurial activity in the territory of the free economic zone in accordance with the legislation of Turkmenistan. Turkmenistan guarantees the observance of the rights and legitimate interests of participants in a free economic zone.