INFORMATION RELATING TO PROCEDURE AND ORDER OF LISENSING AND COMMENCEMENT OF CONSTRUCTION ACTIVITY IN TURKMENISTAN
Nowadays in accordance with Law of Turkmenistan on licensing that has been issued on 07.07.2008 and came into force on 07.09.2008, the construction activity in Turkmenistan is subject for obligatory licensing.
The licensing body is the Ministry of construction and construction materials industry of Turkmenistan.
In accordance with norms of the mentioned Law, foreign legal and physical persons, and also stateless persons have right to receive licenses on same conditions and same order, as legal and physical persons of Turkmenistan, except restrictions on execution by them separate types of activity established by legislation of Turkmenistan.
It is necessary to mention that in order to receive the license on construction activity the foreign legal person in Turkmenistan shall be presented as a minimum in the form of the Branch office. At the same time we draw your attention on considerable differences between the branch office and representative office of foreign company in accordance with norms of acting legislation of Turkmenistan.
So, in Turkmenistan the representative office executes only representative functions, including advertisement of company’s activity, participation in exhibitions, acceptance and accommodation of company representatives, whereas the branch office executes the entire spectrum of financial and economic activity and has right to conduct all non-prohibited types of commercial activity in the territory of the country.
As a rule, the branch office may hire unlimited quantities of personnel on the basis of its scope of work, whereas the representative office usually hires only office personnel.
In whole, in Turkmenistan as legal, so actual status of the branch office of the foreign company is higher than the status of the representative office of the company.
It is necessary to mention that type of activity to which the license is issued shall be specified in the Regulations of the branch office in the article “Types of activity” in a formulation that corresponds to State classifier of types of economic activity of Turkmenistan.
The license is issued for each licensed type of activity.
Type of activity to which the license has been received may be executed only by a person, who received such license.
The license applies to whole territory of Turkmenistan, except restrictions established by legislation of Turkmenistan.
In cases when for implementation of a separate type of activity the receipt of other permissions (land allocation and other), except license, is required, such permissions are issued after receipt of the license. Permission without the license is not valid.
Among licenses issued by the Ministry of construction and construction materials industry of Turkmenistan, usually the following is given to foreign legal persons:
1. License for execution of design, construction and erection works (in cases if in accordance with the Contract the foreign legal person shall execute only construction and erection works, then only the license for construction activity is needed and the license for design works shall be received by the party, who will execute the design works, but if the same Contract specifies that the Contractor – a foreign legal person shall execute design, construction and erection works, then the licensing body shall issue one uniform license;
2. License for production of construction materials, goods and structures.
In order to receive the license, the applicant shall submit an application on issuance of the license to the Ministry of construction and construction materials industry of Turkmenistan, where the following should be specified:
1) for legal person – full name, number and date of state registration, form of organization, legal address, type of activity and term of its execution, and also actual place of location, where the applicant is going to execute this type of activity;
2) for physical person – surname, name, patronymic name, place of residence, passport data, number and date of the document on state registration (for physical person, who registered as an individual entrepreneur), individual tax number, type of activity and terms of its execution, and also actual place of location, where the applicant is going to execute this type of activity.
The following should be attached to application:
1) for legal person – copies of charter documents, extract from Unified State Register of legal persons, certified in the established order and power of attorney or order certifying the authorities of the applicant’s representative;
2) for physical person – copy of the document on state registration of the applicant in the capacity of entrepreneur, certified in the established order and copy of his passport.
The applicant may attach to his application some other documents, confirming his potential to execute the license requirements and conditions, listed in Regulations on licensing.
The application and all documents (as per list) attached to it to the date of their receipt by the licensing body are accepted with the mark on date of their acceptance. Copy of such application is given to the applicant.
Ministry of construction and construction materials industry of Turkmenistan in accordance with Law on licenses within:
1) thirty calendar days from the date of receipt of the application and all documents attached to it shall conduct the check up on completeness and authenticity of the information, and also the potential of the applicant to execute all established license requirements and conditions, and on the basis of all this makes a decision on issuance or rejection to issue the license;
2) three work days after acceptance of the decision informs the applicant in writing on issuance or rejection to issue the license.
Notice on issuance of license is given to the applicant along with bank requisites and terms of payment of the state due. Notice on rejection is given to the applicant with explanation of reasons of rejection, including the copies of acts on check up of applicant’s potential to execute license requirements and conditions, if the reason of rejection is the revealed impossibility of the applicant to execute the specified requirements and conditions.
License is issued within ten working days after submission by the applicant the document confirming the payment of the state due.
If within thirty calendar days the applicant did not pay the state due, the licensing body makes a decision on cancellation of the mentioned license.
The price of the license on implementation of design, construction and erection works for foreign legal persons is defined at the rate of 0.15% of the Contract Price. Provided that such license of foreign legal persons is issued at presence of the signed Contract for construction of the facility or corresponding Decree of the President of Turkmenistan. The validity of this license is limited by the term of validity of the Contract for construction.
The price of the license for production of construction materials, goods and structures for foreign legal persons comprises ten thousand fifty (USD 10050) US Dollars when you receive such license for the first time, where 50 US Dollars are taken for consideration of documents. Term of the license is three years. The extension of such license is possible, whereas its price will comprise 0.45% of the scope of the works.
It is necessary to mention that at execution of construction works on civil and industrial facilities: plants, factories and etc. it is obligatory to receive the certificate on safety in Chief State Service “Turkmenstandartlary”. This certificate certifies the conformity of departments to the requirements of normative and technical documents on labor safety.