Set up
Company formation59 jurisdictions, one fixed price eachCrypto licensingExchange, custody and payment licences
See your price before you talk to anyone
Choose a jurisdiction and get a fixed quote.
By region
Europe
Africa and Indian Ocean
Ashgabat, Turkmenistan
- Company formation
- Turkmenistan
- Joint venture
Joint venture
Joint venture in Turkmenistan
A joint venture is a Turkmen company that you own together with a Turkmen partner, and every founder holds at least 10% of it. Sovera registers the company, coordinates the file between the two sides and keeps its books from Ashgabat.
At a glance
Set up a joint venture in Turkmenistan
A joint venture in Turkmenistan is a company that Turkmen and foreign founders form together under article 27-1 of the Law on Enterprises. Every founder must hold at least 10% of the charter capital, which starts at TMT 5,000. It is a legal entity of its own, it is registered after a state review, and it is rare in practice.
- 10%the least any founder may hold in the charter capital
- TMT 5,000minimum charter capital, half paid in before filing
- TMT 8,000state registration fee, about USD 2,290
- 10joint ventures on the state register on 1 July 2022
- On 1 July 2022 the register held 10 joint ventures and 2,703 LLCs (Eurasian Group, 2023). Most foreign companies choose a branch or an LLC with a local shareholder. See branch registration in Turkmenistan.
- A joint venture is the right choice when a real Turkmen partner brings something the business cannot get otherwise: buildings or equipment, a site, a licensed activity or a working relationship with a state customer.
- Sources: the Law on Enterprises (article 27-1, in Turkmen bilelikdäki kärhana, in Russian совместное предприятие) and the Law on Foreign Investment. Checked on 9 October 2026.
Step by step
How to set up a joint venture in Turkmenistan
Six steps from the first term sheet to a working bank account. The first two belong to the founders. We prepare and file the rest.
The six steps
- 1
Agree the terms with your partner
Settle the shares, the contributions, control, profit and exit. Anything contributed in kind is valued before signing (Law on Enterprises, article 45).
- 2
Sign the founding agreement and the charter
Every founder signs both, and the charter is approved unanimously (articles 12 and 13). Your lawyers and your partner’s agree the terms. We put the founding agreement and the charter into the form the registrar accepts.
- 3
Legalise and translate
Foreign documents are legalised at a Turkmen consulate or the Ministry of Foreign Affairs, unless a treaty with your country says otherwise, and translated. Turkmenistan is not a party to the Apostille Convention, so an apostille alone is not enough.
- 4
Pay in half the capital
The founders pay in at least half of the charter capital before filing. The rest is due within a year of registration (article 47).
- 5
File and pass the review
We file with the Tax Department of the Ministry of Finance and Economy. A state agency reviews the founders for up to 30 days, then an interdepartmental commission decides within 14 days.
- 6
Register for tax, seal and bank
After approval the company is entered in the Unified State Register of Legal Entities. It registers with the statistics office, applies for tax registration within 10 days, then registers with the Pension Fund, orders its seal and opens its bank account. The bank decides on the account. See our guide to opening a company bank account in Turkmenistan. A company’s register extract also runs for three years and is then extended (Eurasian Group, 2023).
Documents for a joint venture
- Application for registration
- The founding agreement, signed by every founder
- The charter, approved unanimously
- Passport copies of the founders who are individuals, notarised and translated
- For a founder that is a company: its certificate of registration and its charter, legalised and translated
- A bank reference for the foreign founder
- Confirmation of the legal address in Turkmenistan
- Proof that at least half of the charter capital is paid in
- Receipt for the state fee
Article 17 of the Law on Enterprises lists only the first three and the fee receipt. The review of a company with foreign investment asks for more about the founders. We confirm the current list before you start.
What a joint venture costs
- Our fee
- From USD 9,500
- State fees
- TMT 9,800TMT 8,000 registration and TMT 1,800 trade certificate, about USD 2,800
- Charter capital
- From TMT 5,000It stays in the company
- Time
- 6 to 9 monthsFrom complete documents
The state review, in days
The official periods for the state review, about 45 days together.
- Up to 30 daysState agency reviewA state agency reviews the founders.
- Within 14 daysCommission decisionAn interdepartmental commission decides.
Registration as a whole takes 6 to 9 months from complete documents.
Compare
Joint venture or LLC with a local shareholder
Both are Turkmen companies with a local side. They differ in how much the local side must hold, and so in how much say it has.
| Joint venture | LLC with a local shareholder | |
|---|---|---|
| Who owns it | Turkmen and foreign founders together | Two or more founders. Up to 99% foreign |
| Least local share | 10%, as for every founder (Law on Enterprises, article 27-1) | 1%, in registration practice |
| Charter capital | From TMT 5,000 | From TMT 5,000 |
| Profit tax | 8%, or 20% if the state holds more than half | 8%, or 20% if the state holds more than half |
| Best for | A partner who contributes assets, a site or a state relationship | A lasting local business where you keep control |
Do you need a local partner or only a local shareholder? A company with only foreign shareholders is not registered in Turkmenistan in practice, although the Law on Foreign Investment allows one on paper. For a small local holding, register an LLC. With no local side at all, see branch registration in Turkmenistan. When every founder holds 10% or more, the founders may choose either form. We tell you which one fits your partner and your sector.
Company registration in TurkmenistanLocal partner
Choosing a local partner and the joint venture agreement
The law leaves most of the bargain to the founders. Article 12 of the Law on Enterprises lists what the founding agreement must contain. Settle these six points before you sign.
- 01
Check who the partner is
Ask for the partner’s registration extract and tax number, and confirm who owns and directs it. See how to check a company in Turkmenistan. If the partner is a state enterprise, ask which approvals it needs to take part.
- 02
Shares and contributions
Each founder holds at least 10%. A contribution may be money, in manat or foreign currency, or property and rights that can be valued. The agreement states each contribution, its value and its due date.
- 03
Control
The general meeting of participants is the highest body. The charter sets the other bodies and what each decides (articles 27-1 and 13). Agree who appoints the director, who signs at the bank and which decisions need both sides.
- 04
Profit
The agreement must set how profit is shared and losses are covered. Agree the currency of payment too. See profit repatriation from Turkmenistan.
- 05
Deadlock and exit
The agreement must set how a founder leaves, and the charter how a share passes to someone else. Add what happens when the founders cannot agree. Keep the 10% minimum in mind whenever shares change.
- 06
Disputes
Under article 29 of the Law on Foreign Investment, an investment dispute goes to negotiation, to the Arbitration Court of Turkmenistan or, if the parties agree, to an arbitral tribunal. Write the forum into the agreement. The US Embassy in Ashgabat encourages US companies to negotiate for international arbitration.
- Sovera is not a law firm and does not advise on the terms of the agreement. Your lawyers and your partner’s agree the terms. We put the founding agreement and the charter into the form the registrar accepts.
- A founder who does not pay in on time is given a new date, no more than three months later. If the contribution is still unpaid by then, the meeting of participants excludes the founder (Law on Enterprises, article 48).
- “In most cases, the government requires that the state maintain a majority interest in any joint venture,” says the US State Department’s 2026 Investment Climate Statement.
Tax and profit
Tax on a joint venture and getting profit out
- 01
Profit tax and dividends
A joint venture pays 8% profit tax, or 20% if the state holds more than half (Tax Code, article 172). Dividends paid to a foreign founder carry 15% withholding tax, unless a treaty lowers it. See the Turkmenistan tax guide.
- 02
Sending profit abroad
After tax, a foreign investor may transfer profit and dividends abroad (Law on Foreign Investment, article 21). Converting manat at the official rate of 3.50 to the dollar is restricted. In our experience approval is rarely given. See profit repatriation from Turkmenistan.
- 03
Audit
The Law on Audit Activity (article 14) lists joint ventures among the companies audited when yearly income is TMT 1,000,000 or more, and companies with foreign investment among those audited every year, with no income test. A joint venture has a foreign founder, so on the text of the law it is audited every year. Our accountant confirms the tax office asks for it. See audit requirements in Turkmenistan and accounting services in Turkmenistan.
- 04
If the law changes
If a new law worsens a foreign investor’s position, the law in force at registration applies for ten years, tax law included. Changes made to protect the constitutional order, defence or security are not covered (Law on Foreign Investment, article 8). Property may be requisitioned only in an emergency named by law, with prompt compensation at market value, in foreign currency (article 26).
What goes wrong
What goes wrong with a joint venture in Turkmenistan
Four problems we would rather you met on this page than after you sign.
Ashgabat- 01
A founder below 10%
A joint venture in which any founder holds less than 10% does not meet article 27-1, and the registrar may refuse a file whose founding documents do not meet the Law on Enterprises (article 18). For a small local holding, register an LLC.
- 02
A partner in name only
This form gives your partner at least 10% of the capital and a seat at the general meeting, whether or not it brings anything beyond its capital. Choose it for a partner who brings something real.
- 03
The review refuses the file
From 2017 to 2021 the commission refused 77 of the 117 applications that non-residents filed (Eurasian Group, 2023). The reasons given were negative information about the applicant, the risk of questionable schemes and failure to provide all the information requested. Check your partner as carefully as the state will check you.
- 04
A state partner in the majority
When the state holds more than half, the company pays 20% profit tax and you sit in the minority. The charter is approved unanimously, so settle the protections you need before you sign it.
77 of 117
Applications refused by the commission, 2017 to 2021
Of the 117 applications that non-residents filed, the commission refused 77.
- Refused: 77
- Not refused: 40
Turkmenistan
More for a joint venture in Turkmenistan
Company registrationThe four structures compared, with cost and time.Learn more 
Branch registrationA branch or representative office of the company you already have.Learn more 
Accounting and tax returnsBookkeeping and every return, filed by our accountant in Ashgabat.Learn more 
Payroll and hiringSalaries, income tax, pension insurance and hiring paperwork.Learn more
- Guide / RegistryCompany registry search and tax numberHow to check a Turkmen company and read its tax number.Read the guide
- Guide / LicencesLicensed activitiesWhich activities need a licence and who issues it.Read the guide
- Guide / BankingOpening a company bank accountBanks, documents and currency accounts.Read the guide
Questions
Questions about joint ventures
Short answers to what foreign founders ask us before they commit to a partner.
Ask us something elseWhat is a joint venture in Turkmenistan?
A joint venture is a company formed under article 27-1 of the Law on Enterprises to earn profit by combining the property of Turkmen founders and foreign founders, who may be individuals or legal entities. It is a legal entity of its own, it answers for its obligations with its own property, and its highest body is the general meeting of participants.
What is the minimum share of each founder in a joint venture?
At least 10% of the charter capital for every founder, Turkmen or foreign (Law on Enterprises, article 27-1). The charter capital starts at TMT 5,000. At least half is paid in before filing and the rest within a year of registration.
Do I need a local partner to register a company in Turkmenistan?
For a company, yes. In registration practice an LLC needs a Turkmen shareholder with at least 1%, although the Law on Foreign Investment allows a company with only foreign shareholders on paper. In a joint venture every founder holds at least 10%. A branch of your existing company needs no local shareholder or partner.
What is the difference between a joint venture and an LLC with a local shareholder?
A joint venture must combine Turkmen and foreign founders, and each holds at least 10%. An LLC, which the law calls an economic society, needs two or more founders, and the law sets no minimum share. In registration practice an LLC needs a Turkmen shareholder with at least 1%. Both are legal entities with charter capital from TMT 5,000.
How much does a joint venture cost, and how long does it take?
The state charges TMT 8,000 for registration and TMT 1,800 for the certificate that allows foreign trade, about USD 2,800 together at the official rate. The charter capital, from TMT 5,000, stays in the company. Our fee for a joint venture starts at USD 9,500. State fees, legalisation, translation and courier are charged at cost, on top of our fee. Allow 6 to 9 months from complete documents.
What must a joint venture agreement cover in Turkmenistan?
Article 12 of the Law on Enterprises lists what the founding agreement must contain: the decision to create the company, its name and location, the founders, the size of the charter capital, each founder’s contribution with its value and due date, what happens when a contribution is late, how profit is shared and losses are covered, and how a founder leaves. Sovera is not a law firm and does not advise on those terms.
Does the local partner have to be a state body?
No. Article 27-1 speaks of individuals and legal entities of Turkmenistan, so a private company or a person can be the partner. The US State Department reports that in most cases the government requires the state to keep a majority interest in a joint venture. If the state holds more than half, the company pays 20% profit tax and not 8%.
Contact
Talk through your joint venture before you sign
Tell us who the partner is and what each side brings. We tell you which structure fits and what registration will take, in English or Russian.
- Kuliyev St 2127, Ashgabat 744000, Turkmenistan
- +993 62 99 78 66
- Monday to Friday, 9 am to 6 pm