On foreign investments (statements of the Mejlis of Turkmenistan, 2008, no. 1, p. 17) this law determines the legal bases for activities of foreign investors, enterprises with foreign investments on the territory of Turkmenistan and is aimed at engaging and effective use of foreign investment in Turkmenistan.
 
Chapter i. General provisions article 1. The basic concepts used in this law are used in this law the following concepts: 1) foreign investment-investment of foreign capital into an object of entrepreneurial activity on the territory of Turkmenistan as foreign investor-owned objects of civil law rights, including cash, securities, or other property, property rights having monetary value, exclusive rights to results of intellectual activity (intellectual property), as well as services and information : 2) foreign investors:-foreign legal entity, including its branch and representative office in Turkmenistan;
-International Organization;
-foreign State;
-foreign physical person, and person without citizenship, at the time the investment has been a permanent resident in the territory of a foreign State;
-citizen of Turkmenistan, having permanent residence outside Turkmenistan: 3) the enterprise with foreign investments was founded on the territory of Turkmenistan in the manner prescribed by the legislation of Turkmenistan, which is owned by the foreign investor fully or on a cost-sharing basis with natural and legal persons of Turkmenistan;
4) foreign direct investment-ownership, the acquisition by a foreign investor of not less than 10 per cent of shares (shares, contributions) statutory fund established or newly established enterprises on the territory of Turkmenistan; investment in fixed assets to be created on the territory of Turkmenistan of a branch of a foreign legal entity;
5) justification of investment project economic feasibility, amount and timing of capital investments, including design and estimate documentation developed in accordance with State standards (standards), as well as a description of practical actions for the implementation of the investment (business plan). Priority investment project-the investment project, which is carried out on the basis of the decision of the Cabinet of Ministers of Turkmenistan;
6) payback of the investment project-term from the date of the beginning of financing investment project using direct foreign investment until the day when the difference between the accumulated sum of net profit with amortization deductions and the amount of investment costs of an enterprise with foreign investments, branches of foreign legal entity will acquire a positive value;
7) reinvestment-implementation of capital investment in objects of entrepreneurial activity on the territory of Turkmenistan at the expense of profit (income) of foreign investors, enterprises with foreign investments, which they received from foreign investments on the territory of Turkmenistan;
8) free economic zone economic zone of free enterprise, national tourist zone, as well as other kinds of free economic zones, the procedure for the formation, functioning and the Elimination of which is established by legislation of Turkmenistan.
 
Article 2. Turkmen legislation on foreign investments 1. Turkmen legislation on foreign investments is based on the Constitution and consists of this law and other normative legal acts of Turkmenistan.
2. If an international treaty to which Turkmenistan stipulates other rules than those contained in this law and other normative legal acts of Turkmenistan, then the rules of the international treaty shall apply.
 
Article 3. Forms of foreign investments, foreign investments are made in the form of: 1) equity participation in enterprises jointly with legal entities and individuals;
2) establishment of enterprises, fully owned by foreign investors, branches of foreign legal entities, or acquire ownership of existing enterprises;
3) acquisition of movable and immovable property, except for limited civil circulation in the legislation of Turkmenistan;
4) provide foreign loans and loans;
5) acquire property and non-property rights established by the legislation of Turkmenistan.
 
Chapter II. State policy in the area of foreign investment and a mechanism for its implementation of Article 4. State policy in the field of foreign investment, development and implementation of public policies to attract foreign investment, the coordination of investment activities, assisting foreign investors in their activity on the territory of Turkmenistan are implemented by the Cabinet of Ministers of Turkmenistan and authorized State body (hereinafter referred to as the authorized body).
 
Article 5. Competence of the Cabinet of Ministers of Turkmenistan Cabinet of Ministers of Turkmenistan: 1) develops and implements the State policy in the sphere of international investment cooperation;
2) develops and provides implementation of State programs on attraction of foreign investments;

3) determines the priority sites, industry and territory, that it is expedient to attract foreign investment, as well as decides on the implementation of priority investment projects;
4) oversees the preparation and conclusion of agreements with foreign investors and enterprises with foreign investments, related to the implementation of their priority investment projects;
5) perform other functions to attract foreign investment in the economy of Turkmenistan.
 
Article 6. Competence of the authorized body Empowered body: 1) develops and implements activities to implement public policies encouraging foreign direct investments into the economy of Turkmenistan;
2) coordinates activities in the field of foreign investment, creates effective mechanisms for partnership between the State and business, provides interaction between State authorities, local executive bodies and local governments and foreign investors and enterprises with foreign investments;
3) carries out the creation and maintenance of a data bank on the preparation and implementation of investment projects with foreign investment, including with State sharing, including through the use of foreign loans and grants;
4) organizes expertise of investment projects with foreign investment, as well as their registration;
5) provides potential foreign investors services marketing information and consulting, as well as providing them with the necessary practical assistance;
6) shall oversee the implementation of the commitments undertaken by a foreign investor, enterprise with foreign investments for realization of investment projects;
7) conducts monitoring of attraction of funds from international financial institutions and donor countries; examines the international capital markets and develops proposals on further attracting foreign investment;
8) introduced in Cabinet of Ministers of Turkmenistan proposals on improving the investment climate and promote investment, reduce investment risks and administrative barriers;
9) implements measures aimed at fulfilling the obligations of Turkmenistan deriving from international treaties, international cooperation, study and use of advanced foreign experience;
10) shall oversee the implementation of the governmental authorities, local executive bodies and local self-government, legislation of Turkmenistan in the area of foreign investment;
11) exercise other functions aimed at attracting foreign investment, support and protection to foreign investors in Turkmenistan.
 
Article 7. Examination and registration of investment projects 1. Investment project with foreign investment shall be subject to mandatory State examination, including compliance with the standards of earthquake resistance, fire, explosion, ecological and sanitary-hygienic requirements.
2. Examination and registration of investment projects with foreign investment, as well as other forms of foreign investment are made in the order established by the legislation of Turkmenistan.
 
Chapter III. The legal regime of foreign investors and enterprises with foreign investments, article 8. The legal regime of foreign investors and enterprises with foreign investments 1. Foreign investors, enterprises with foreign investments is granted to national legal regime. Under national legal regime, it is understood that the legal regime of foreign investors and enterprises with foreign investments and the use of profits earned from investments, may not be less favorable than a legal regime for activities and use profits earned from investments provided by domestic investors.
2. Foreign investors, enterprises with foreign investment engaged in activities in the territory of the free economic zone, provided favourable legal regime. Under favorable legal regime, it is understood that the legal regime governing the activities of foreign investors and enterprises with foreign investments and the use of profits earned from investments, is no less favourable than the legal regime for activities and use profits earned from investments, provided investments of any third State.
3. foreign investors are free to choose the size, composition and structure of the capital of the created enterprise, unless otherwise provided by the legislation of Turkmenistan.
4. Activities and (or) the territory in respect of which the investment activities are limited or prohibited, as well as other restrictions for foreign investors may be established by laws of Turkmenistan only insofar as this is necessary to protect the foundations of the constitutional system, ensure national defense and security.

5. If the legislation of Turkmenistan causes bans and restrictions arising from the legal regime of foreign investors and enterprises with foreign investments, the law of Turkmenistan, in force at the time of registration of foreign investments, apply for them for ten years and to foreign legal entities, branches of foreign legal entities to implement investment projects on the basis of the decision of the Cabinet of Ministers of Turkmenistan, within the payback period on investment project declared in the manner prescribed by normative legal acts of Turkmenistan when it was registered.
The provisions of this part also apply to tax laws of Turkmenistan.
The provisions of this part shall not apply in the case of changes in the legislation of Turkmenistan, in order to protect the foundations of the constitutional system, ensuring the defence and security of the State.
6. With regard to foreign investment, limiting State on its territory, the legal regime of investment for economic entities of Turkmenistan, Turkmenistan legislation may establish similar restrictions.
 
Article 9. Customs privileges 1. Shall be exempt from customs duties property imported into Turkmenistan: 1) as a contribution of foreign investor to the Charter Fund of the enterprise with foreign investments in the fixed capital of a branch of a foreign legal person in accordance with the stated list of them;
2) foreign investors and enterprises with foreign investments on the basis of international agreements and contracts concluded in accordance with the decisions of the Cabinet of Ministers of Turkmenistan, as an investment.
The items listed in paragraph 2 of this article shall be exempt from customs duties on the payback of the investment project, established by the Treaty in question.
2. In the case of alienation of property specified in paragraph 1 of this article within three years after its entry into Turkmenistan recovery of sums of customs duties, including penalties for delay of payment thereof, shall be carried out in the manner prescribed by the legislation of Turkmenistan.
3. For customs clearance of assets specified in subsection 1 of this article, the customs duties are levied.
 
Article 10. Tax regulation of foreign investments taxation of foreign investors and enterprises with foreign investments, including tax incentives, is set by the tax code of Turkmenistan.
 
Article 11. Other measures to stimulate foreign investment 1. Enterprises with foreign investments, branches of foreign legal entities have the right without a license to export the products (works, services) of own manufacture and import the products (works, services) for their own needs.
2. foreign investors, enterprises with foreign investment engaged in activities in the territory of the free economic zone, have the right to rent the land depending on the payback period of investment projects in the manner prescribed by the legislation of Turkmenistan.
3. registration of investment projects, as well as enterprises with foreign investments, branches and representative offices of foreign legal entities engaged in construction and operation of facilities in the free economic zone, without charging registration fees.
4. foreign investors, enterprises with foreign investment engaged in activities in the territory of the free economic zone are exempt from payment) 1: consular and registration fees;
2) paying exchange fees for the registration of treaties;
3) payment of the State duty for issuance of licenses and its re-registration;
4) rent for land in the manner and under the conditions provided for by the legislation of Turkmenistan: 5) deductions from profits the extrabudgetary funds established by the legislation of Turkmenistan.
5. Certification of equipment and materials imported into Turkmenistan by foreign investors and enterprises with foreign investments, as well as their contractors and subcontractors, working on construction and exploitation of objects on the territory of the free economic zone, without charging a fee for certification services.
6. Enterprises with foreign investments, branches of foreign legal entities independently determine terms and conditions of its realization of goods (works, services), in addition to the products (works, services) prices for which are regulated by the State.
7. For socio-economic development of Turkmenistan of priority investment projects, concession contracts, ensuring steady economic growth progressive structural changes of the economy, strengthening and increase of export potential as well as increasing the level of employment, legislation of Turkmenistan may establish other privileges for foreign investors and enterprises with foreign investments.
 
Article 12. Commencement and cessation of business activities
 

Education, State registration, as well as the liquidation of an enterprise with foreign investments, branches and representative offices of foreign legal persons, State registration and termination of the activities of foreign physical persons and persons without citizenship as an individual entrepreneur shall be made in accordance with the procedure established by the legislation of Turkmenistan.
 
Article 13. Regulation of labour relations 1. Labor legal relations between the enterprise with foreign investments, subsidiary of the foreign legal entity and their employees, including non-citizens of Turkmenistan are regulated by labour legislation of Turkmenistan.
2. Salaries, wages and other monies lawfully received by the employees of the enterprises with foreign investments, branches of foreign legal persons who are not citizens of Turkmenistan may be transferred abroad, in the manner prescribed by the legislation of Turkmenistan.
 
Article 14. Social insurance and social security of enterprises with foreign investments, branches of foreign legal entities: 1) produce for their employees who are citizens of Turkmenistan, State social insurance contributions in the manner prescribed by the legislation of Turkmenistan;
2) has the right to transfer the payments of social insurance and social security for an employee, a foreign natural person or a person without citizenship, in the relevant funds of the State of nationality or permanent residence.
 
Article 15. Foreign investment insurance property insurance and risk foreign investors and enterprises with foreign investments is carried out, at their discretion, unless otherwise provided by the legislation of Turkmenistan.
 
Article 16. Observance of fair competition by foreign investors and enterprises with foreign investment, foreign investors, enterprises with foreign investments are required to prevent unfair competition, including through the establishment of the enterprise on the territory of Turkmenistan for any production using high demand goods, then the termination of its activities for promotion on the market of similar goods of foreign origin as well as the conclusion of an agreement on prices or on the distribution of product markets limiting the rights of other economic entities in Turkmenistan.
 
Article 17. Accounting and reporting Accounting, statistical accounting of enterprises with foreign investments, branches and representative offices of foreign legal entities on the territory of Turkmenistan shall be kept in the manner prescribed by the legislation of Turkmenistan.
 
Article 18. Assessment of foreign investment Score investments in the authorized Fund of the enterprises with foreign investments and fixed assets of the branch of the foreign legal entity shall be made in national currency of Turkmenistan in the manner prescribed by the legislation of Turkmenistan.
 
Chapter IV. Government guarantees of foreign investments protection Article 19. Guarantees of legal protection to foreign investors and enterprises with foreign investments 1. Foreign investors, enterprises with foreign investments on the territory of Turkmenistan are guaranteed the protection of rights and interests in accordance with this law and other normative legal acts of Turkmenistan.
2. foreign investors, enterprises with foreign investments, which were originally imported to the territory of Turkmenistan and property information in documentary form or in the form of records in electronic media as foreign investment and registered it, have the right of unimpeded (no quota, licensing and other measures of non-tariff regulation of foreign trade activity) export of specified property and information outside Turkmenistan.
3. foreign investors, enterprises with foreign investments shall acquire legal protection, guarantees and benefits established by this law, from the date of registration of an investment project with foreign investment, enterprises with foreign investments on the territory of Turkmenistan.
4. foreign investors, enterprises with foreign investments when implementing reinvesting profit received from foreign investments enjoy full legal protection, guarantees and privileges established by the present law.
5. Organs of State power and administration, local executive authorities and bodies of local self-government shall not interfere with the business activities of foreign investors and enterprises with foreign investments carried out in accordance with the legislation of Turkmenistan.
Bodies of State power and administration, local executive bodies and local governments in identifying violations of foreign investors and enterprises with foreign investment legislation of Turkmenistan may within the limits of their competence to take measures directly relating to addressing specific violations, and may not use the existence of a breach as grounds for intervention, suspension or restriction of other lawful activities of foreign investors and enterprises with foreign investments.

6. the acts of organs of State power and administration, local authorities and local self-government, contrary to the present law, violate the rights of foreign investors and enterprises with foreign investments, will be void and actions based on them is unlawful, in the manner prescribed by the legislation of Turkmenistan.
 
Article 20. Guarantee of visa regime and stay on the territory of Turkmenistan 1. Foreign natural persons and stateless persons, as well as their representatives, representatives of foreign legal entities, international organizations and foreign States, are foreign investors, foreign nationals working in enterprises with foreign investments, branches and representative offices of foreign legal persons and members of their families residing in Turkmenistan in connection with the exercise of investment activities, have the right to: 1) obtaining multiple-entry visas for a period of not less than one year;
2) free movement throughout the territory of Turkmenistan, with the exception of the territories, the conditions and procedure for the host on which shall be established by the legislation of Turkmenistan.
Foreign persons and stateless persons, as well as their representatives, representatives of foreign legal entities, international organizations and foreign States, are foreign investors, foreign nationals working in enterprises with foreign investments, branches and representative offices of foreign legal persons arriving in Turkmenistan to work during construction and operation of facilities on the territory of free economic zone, entry visas and permits in an expedited manner approved by the Cabinet of Ministers of Turkmenistan.
2. Foreign natural persons and persons without citizenship who are foreign investors, fully owning enterprises with foreign investments, have the right to permanent residence in Turkmenistan, in the manner prescribed by the legislation of Turkmenistan.
 
Article 21. Guarantees of use on the territory of Turkmenistan and Turkmenistan transfer outside revenue and profits 1. Foreign investors, enterprises with foreign investments shall have the right to open banks in the territory of Turkmenistan the bank accounts in national and foreign currency in accordance with the legislation of Turkmenistan.
2. foreign investors, enterprises with foreign investments after taxes and other obligatory payments, stipulated by the legislation of Turkmenistan have the right to freely use the revenues and profits on the territory of Turkmenistan, including reinvestment for purposes which do not contradict the legislation of Turkmenistan, as well as the unimpeded transfer abroad incomes, profits and other lawfully gained sums of money in foreign currency due to previously implemented their investment including: 1) income from foreign investments in the form of profits, dividends, interest and other income;
2) moneys pursuant to the obligations of the enterprise with foreign investments or branch of a foreign company under contracts and other transactions;
3) sums received by a foreign investor in connection with the liquidation of the enterprises with foreign investments or exclusion of invested property, property rights and exclusive rights to results of intellectual activity;
4) compensation provided for in article 26 of this law.
3. conversion of funds, as well as related to foreign investment, remittances in foreign currency in Turkmenistan and Turkmenistan are carried out by foreign investors and enterprises with foreign investments in the manner prescribed by the legislation of Turkmenistan.
 
Article 22. Warranty transfer of rights and duties of foreign investors and enterprises with foreign investments to another person 1. Foreign investors, enterprises with foreign investments shall be entitled to transfer its rights and obligations under the Treaty, including producing the assignment requirements and to transfer the debt to another person in accordance with the civil legislation of Turkmenistan.
2. If a foreign State or an authorized State body produce payment in favour of foreign investors and enterprises with foreign investments on guarantees (insurance contract) provided in relation to implemented investments on the territory of Turkmenistan, a foreign State or an authorized State body shall pass them right (assigned) foreign investors and enterprises with foreign investments on these investments, Turkmenistan recognizes the validity of this transfer of rights (cession) in accordance with an international treaty to which a specified foreign country and Turkmenistan.
 
Article 23. Guarantees for the protection of intellectual property rights, the exercise of intellectual property rights of foreign investors and enterprises with foreign investment and their protection are provided in accordance with the legislation of Turkmenistan.
 
Article 24. Guarantee access for foreign investors and enterprises with foreign investments to information
 

1. foreign investors, enterprises with foreign investment shall have the right of access to information in the manner prescribed by the legislation of Turkmenistan.
2. Normative-legal acts of Turkmenistan, somehow affecting the interests of foreign investors and enterprises with foreign investments shall be made available to them, and in the cases specifically provided for by the legislation of Turkmenistan, is published.
 
Article 25. Refund guarantee foreign investments in the context of termination of investment activities 1. Foreign investors, enterprises with foreign investments shall be entitled on termination of investment activity in Turkmenistan.
After the termination of the investment activity of foreign investors, enterprises with foreign investments shall have the right to free return of cash or in-kind of assets received as a result of the implementation of foreign investment, without prejudice to the fulfilment of the obligations of foreign investors and enterprises with foreign investments against Turkmenistan or other creditors.
2. Refund of foreign investors and enterprises with foreign investments may be suspended on the basis of a decision by a kazyeta in cases stipulated by the laws of Turkmenistan.
 
Article 26. The guarantee compensation paid when forced seizure of property 1. Compensatory forced dispossession foreign investors and enterprises with foreign investments in property or in the form of State loan requisition shall be permitted only in cases provided for by law, in order to overcome the circumstances that are of an extraordinary nature, including natural disasters, accidents, epidemics, epizootics, and their consequences.
2. Upon termination of the circumstances in respect of which the requisition is made, foreign investors, enterprises with foreign investments shall be entitled to demand the return of the remaining property to the condition return received compensation for confiscated property, minus losses from the decline in value of the remaining property.
3. When the requisition of property of foreign investors and enterprises with foreign investments: 1) compensation should be made immediately in foreign currency and on the request of the investor transferred abroad;
2) correspond to the market value of the investments at the time of adoption of the decision on the requisition.
4. rekviziruemogo Assessment of assets and losses from the reduction of its cost is carried out by the notified body or by an independent appraiser in the order determined by the legislation of Turkmenistan.
5. disputes about the legality of the requisition of property damages when requisitioned shall be made in the manner provided for in article 29 of this law.
 
Chapter v. responsibility for violation of the legislation of Turkmenistan on foreign investments. Settlement of disputes Article 27. Liability for violation of the legislation of Turkmenistan on foreign investments 1. Officials of the authorities, local executive bodies and local governments which violate the legislation of Turkmenistan on foreign investments shall bear responsibility in accordance with the legislation of Turkmenistan.
2. foreign investors, enterprises with foreign investments in the implementation of the investment activity on the territory of Turkmenistan must comply with the legislation of Turkmenistan, as well as commitments to implement investment projects.
In case of violation of the legislation of Turkmenistan and the contractual obligations of foreign investors, enterprises with foreign investments shall bear responsibility in accordance with the legislation of Turkmenistan and the terms of the contract.
3. the property of foreign investors and enterprises with foreign investments, branches of foreign legal entities, including funds, property rights, they can be used as a means of providing for obligations in the manner prescribed by the legislation of Turkmenistan.
4. Foreign legal person is responsible for the activities of the branch and representative offices established them on the territory of Turkmenistan, in the manner prescribed by the legislation of Turkmenistan.
 
Article 28. The responsibility of the foreign investment in Turkmenistan, Turkmenistan is not liable for the obligations of foreign investors and enterprises with foreign investments, except where those obligations are guaranteed by the State.
 
Article 29. Settlement of disputes disputes arising in connection with the implementation of foreign investments on the territory of Turkmenistan shall be resolved by negotiation or consideration in the kazyeta Aračy of Turkmenistan or by agreement of the parties in the Arbitration Court.
 
Chapter VI. Final provisions Article 30. The entry into force of this law 1. This law shall enter into force on the day of its official publication.
2. From the date of entry into force of this law shall be declared null and void the law of Turkmenistan "on foreign investment in Turkmenistan" adopted by the Majlis of Turkmenistan May 19, 1992 onwards, all subsequent laws or their relevant parts, which made changes and additions to it.

3. Normative-legal acts of Turkmenistan contrary to this law shall be subject to adjustment in accordance with the present law within one month from the date of entry into force of this Act.
 
    Turkmen President Gurbanguly Berdymukhamedov in Ashgabat City March 3, 2008 year no. 184-III