LAW OF TURKMENISTAN

About the Union of Industrialists and Entrepreneurs of Turkmenistan

(Gazette of Mejlis of Turkmenistan, 2011 No 2, p.42)

 

(As revised by the Laws of Turkmenistan dd. 26.08.2017 No 604-V; 04.11.2017 No 636-V)

 

This Law determines legal, organizational, economic basis of activities of the Union of Industrialists and Entrepreneurs of Turkmenistan and is directed to increase in its role in development of entrepreneurship in Turkmenistan.

Chapter 1. General provisions

Article 1. Legislation of Turkmenistan on the Union of Industrialists and Entrepreneurs of Turkmenistan

1. The legislation of Turkmenistan on the Union of Industrialists and Entrepreneurs of Turkmenistan is based on the Constitution of Turkmenistan, Law of Turkmenistan “About the public associations” and consists of the Law and other laws and regulations of Turkmenistan.

2. If the international treaty of Turkmenistan establishes other rules than containing in this Law, then rules of the international treaty are applied.

Article 2. Union of Industrialists and Entrepreneurs of Turkmenistan

1. The union of Industrialists and Entrepreneurs of Turkmenistan (hereinafter –the  Union) is the public organization combining the physical persons and legal entities performing business activity on the basis of the private forms of ownership (further - members of the Union) designed to express and protect the rights and legitimate interests of the members, to promote development of entrepreneurship in Turkmenistan.

2. The union is not entrepreneurial legal entity.

3. The union has the isolated property belonging to it on the property right, answers for the obligations this property, can acquire on its own behalf the property and personal non-property rights and perform duties, to be claimant and the defendant in court.

The union does not answer for obligations the members and members of the Union do not answer for obligations the Union.

4. The union has full name and has the right to have the reduced name in state language.

The union has the right to have also complete and (or) reduced name in one of foreign languages.

The phrase "Union of Industrialists and Entrepreneurs of Turkmenistan" can be used in the names only by the companies and the organizations which are a part of the system of the Union.

5. The union has seal with the symbolic and text of " Türkmenistanyň Senagatçylar we telekeçiler birleşmesi".

6. The location of the Union is the city of Ashgabat.

Chapter 2. Purposes, main objectives and functions of the union

Article 3. Purposes and main objectives of the Union

1. The purposes of the Union are:

1) assistance to development of economy and market relations;

2) forming of modern industrial and entrepreneurial infrastructure, private sector development of economy;

3) creation of new workplaces, increase in level of labor employment and entrepreneurial activity of the population.

2. The main objectives of the Union are:

1) protection of the rights and legitimate interests of members of the Union;

2) assistance in creation of industrial and other production structures, networks of technoparks, technopolises, business incubators, technological centers, centers of innovative activities and other market structures;

3) assistance to development of agro-industrial complex and entrepreneurship in the agricultural sector of economy;

4) assistance to development of tourist capacity of Turkmenistan;

5) support of production and promotion on the market of new types of import-substituting and export-oriented products and technologies;

6) rendering to subjects entrepreneurship, including small and medium entrepreneurship, assistance in preparation, retraining and advanced training of personnel, including by the organization of professional training and training of specialists in Turkmenistan and beyond its limits;

7) assistance to participation in foreign economic activity, interregional cooperation, and also to building-up of the export potential of subjects member entrepreneurships of the Union;

8) forming of line item of members of the Union on the most important issues of economic and social development of society and state;

9) ensuring participation of members of the Union in public procurements of goods (works, services).

Article 4. Functions of the Union

1. The union according to the purposes and tasks determined by this Law performs the following functions:

1) acts on behalf of members of the Union and represents without power of attorney their legitimate interests in the relations with public authorities, other legal entities in Turkmenistan and beyond its limits;

2) participates in development of decisions of state bodies according to the procedure and the amounts established by the legislation of Turkmenistan;

3) performs public examination of development programs of the non-state sector of economy;

4) participates in preparation of regulatory legal acts of Turkmenistan on the questions entering its competence;

5) analyzes the state of entrepreneurship, including small and medium-sized businesses, develop proposals on measures to stimulate its development in Turkmenistan;

6) participates in state programs for the development of scientific and innovative entrepreneurial activities, including participation in nationwide research and development;

7) takes part in the state program of denationalization and privatization of state property;

8) implement measures to create new industrial and other production structures, a network of technology parks, technopolis, business incubators, production and technical centers, innovation activity centers and other market structures;

9) carries out pre-judicial examination of disputes between members of the Union;

10) creates an information database containing legal, economic, statistical and other information, including generalizing foreign experience;

11) provides legal assistance and consulting services using information technologies to business entities-members of the Union, as well as to foreign business entities;

12) contributes to the creation of conditions for active production, investment and foreign economic activity;

13) participates in the preparation and holding of exhibitions, fairs, seminars, conferences, forums and other public events, including outside Turkmenistan, ensure the participation of members of the Union in these events;

14) establishes and develops links with international organizations, public associations of industrialists and entrepreneurs and other legal entities of foreign states in accordance with the legislation of Turkmenistan;

15) performs other functions within its competence in accordance with the legislation of Turkmenistan.

 

Article 5. Principles of the Union

 

1. The activities of the Union are based on the principles of combining public and state interests, legality and publicity.

2. The Union carries out its activities in accordance with this Law, other normative legal acts of Turkmenistan, The Articles of the Union.

3. The Union carries out entrepreneurial activity only in connection with the performance of statutory functions and does not distribute profits among its members.

 

Article 6. Relations of the Union and the State

 

1. The state ensures observance of the rights and legitimate interests of the Union.

2. The Union shall not be liable for the obligations of the state and the state shall not be liable for the obligations of the Union, except in cases when, in accordance with the legislation of Turkmenistan, they assumed such obligations.

 

Chapter 3. ESTABLISHMENT, REORGANIZATION, TERMINATION OF ACTIVITIES AND LIQUIDATION OF THE UNION

 

Article 7. General conditions for the establishment of the Union

 

1. The Union is established on the initiative of at least 250 founding members.

2. The members of the Union may be natural and legal persons of Turkmenistan and foreign states carrying out entrepreneurial activity on the basis of private ownership.

3. The Union shall have constituent documents stipulated by the legislation of Turkmenistan.

4. The registration of the Union is made by the Ministry of Justice of Turkmenistan in the order established by the legislation of Turkmenistan.

The Union is subject to mandatory inclusion in the Unified State Register of Legal Entities in the manner prescribed by the legislation of Turkmenistan.

5. Members of the Union pay entrance and annual membership fees, the amounts of which are approved by the Conference of the Union in accordance with its Artices.

In the event of secession from the Union, the membership fees paid and paid by the members, as well as the voluntary contributions made, are not returned.

6. The Union shall register the members of the Union by entering them into the register of the members of the Union in the form established by the Board of the Union.

7. Membership in the Union entitles:

1) participate in the adoption of decisions on matters within the competence of the Conference of the Union and other governing bodies of the Union;

2) to be elected to the management bodies of the Union in accordance with The Articles of the Union;

3) on the support of the Union of Entrepreneurship, protection of rights and legitimate interests, as well as state support in accordance with the legislation of Turkmenistan

 

Article 8. The Articles of the Union

 

1. The Articles of the Union is its constituent document.

2. The Articles of the Union shall contain:

1) the name and legal address of the Union;

2) the purposes, tasks and functions of the Union;

3) the conditions and procedure for admission to and exit from the Union;

4) information on the founders of the Union in accordance with the legislation of Turkmenistan;

5) the rights and obligations of the members of the Union;

6) the competence and procedure for the formation of the governing bodies of the Union, as well as the terms of their authority;

7) sources of formation of money resources and other property of the Union, Union's right to manage property;

8) the procedure for introducing changes and amendments to The Articles of the Union;

9) the procedure for reorganization, termination of activities and liquidation of the Union;

10) other provisions that do not contradict the legislation of Turkmenistan.

3. The Articles is approved by the Conference of the Union and signed by all founders of the Union.

 

Article 9. Reorganization, termination of activities and liquidation of the Union

 

Reorganization, termination of activities and liquidation of the Union are carried out in accordance with the legislation of Turkmenistan and The Articles of the Union.

 

Chapter 4. Property of the Union and Property Management

 

Article 10. Property of the Union and subjects of ownership

 

1. The Union possesses a separate property necessary for the implementation of its statutory goals and tasks.

2. Each individual member of the Union does not have the right to own a share of the property belonging to the Union.

 

Article 11. Financing of the Union

 

Sources for financing the activities of the Union are admission and membership fees, income from business activities, transfers of enterprises, organizations and institutions of the Union, voluntary contributions of legal entities and individuals and other income not prohibited by the legislation of Turkmenistan.

 

Chapter 5. RIGHTS AND OBLIGATIONS OF THE UNION

 

Article 12. The rights of the Union

 

1. The Union shall have the rights necessary to carry out its purposes, tasks and functions in accordance with its Charter.

2. The Union has the right:

1) to represent and defend their rights, act on behalf of the members of the Union and represent their legitimate interests without any power of attorney in relations with public authorities and other legal entities in Turkmenistan and abroad;

2) to initiate initiatives on issues of public and state life, to make proposals on these issues to state bodies;

3) participate in election campaigns and nominate candidates for elected office;

4) carry out entrepreneurial activities provided for by the Charter, including investment, in accordance with the legislation of Turkmenistan;

5) to own, use, dispose of the property of the Union in accordance with the legislation of Turkmenistan;

6) to create in accordance with the legislation of Turkmenistan:

a) branches and representative offices of the Union in Turkmenistan and abroad;

b) enterprises, organizations and institutions, including credit institutions, institutions of higher and secondary vocational education, as well as advanced training and retraining of personnel;

7) establish mass media, carry out publishing and advertising activities in the order established by the legislation of Turkmenistan;

8) to participate in the authorized capitals of other legal entities, as well as in shared construction jointly with the members of the Union;

9) determine the methods of carrying out its activities, the structure of the Union, approve its staffing, the form, the system and the amount of remuneration and incentives for employees of the Union in accordance with the legislation of Turkmenistan.

 

Article 13. Duties of the Union

 

The Union is obliged to comply with the legislation of Turkmenistan, including legislation on public associations, on licensing in the implementation of licensed types of activities, generally recognized principles and norms of international law concerning the scope of their activities, as well as the norms provided for by The Articles of the Union.

 

Chapter 6. BUSINESS ACTIVITY AND TAXATION OF THE UNION

 

Article 14. Entrepreneurial Activity of the Union

 

1. The Union may carry out entrepreneurial activities stipulated by the Charter, the revenues from which can not be redistributed among the members of the Union and are used only to achieve the purposes stipulated by the Charter.

2. Entrepreneurial activity of the Union is carried out in accordance with the legislation of Turkmenistan.

 

Article 15. Taxation of the Union

 

The taxation of the Union and its members is carried out in accordance with the tax legislation of Turkmenistan.

 

Article 16. Licensing of Entrepreneurial Activity of the Union

 

Licensing of the Union's business activities is carried out in accordance with the legislation of Turkmenistan

 

Article 17. State support of entrepreneurial activity of the Union

 

The Union and its members have the right to state support of their activities in accordance with the legislation of Turkmenistan.

 

Chapter 7. CONTROLS AND CONTROL OF THE UNION

 

Article 18. Governing bodies of the Union

 

1. The governing bodies of the Union are:

1) Conference of the Union;

2) the Board of the Union;

3) Chairman of the Union.

2. The highest governing body of the Union is the Conference, convened at least once a year.

At the request of not less than one third of the members of the Union, an extraordinary Conference may be convened.

3. The competence and procedure for the formation of the governing bodies of the Union, as well as the terms of their powers are established by The Articles of the Union.

 

Article 19. The Audit Commission of the Union

 

To audit the financial and economic activities of the Union, the Conference of the Union elects an audit commission from among persons who are not members of the Board of the Union.

The number of members of the Audit Commission is determined by the Conference of the Union.

 

Chapter 8. ACCOUNTING AND REPORTING THE UNION

 

Article 20. Accounting and Reporting

 

The Union provides accounting, compilation and presentation of financial and statistical reporting in accordance with the legislation of Turkmenistan.

 

Article 21. Accounting and storage of documents by the Union

 

The Union is obliged to ensure strict accounting and storage of documents in accordance with the legislation of Turkmenistan.

 

Chapter 9. FINAL PROVISIONS

 

Article 22. Settlement of disputes

 

Disputes arising in the course of the Union's activities are resolved in the manner established by the legislation of Turkmenistan.

 

Article 23. Responsibility for violation of this Law

 

Violation of this Law entails responsibility established by the legislation of Turkmenistan.

 

Article 24. Entry into force of this Law

 

This Law comes into force from the date of its official publication.

 

    President of                                        Gurbanguly

   Turkmenistan                                   Berdimuhamedov

 

Ashgabat city

21 May, 2011

No 198-IV.