Business in Turkmenistan

Doing business in Turkmenistan requires a thoughtful approach that considers the country’s unique cultural, economic, and regulatory landscape. Here are key steps and considerations for entering the Turkmenistan market:

  1. Market Research:
    • Understand Local Preferences: Conduct market research to understand the preferences, needs, and buying behaviors of Turkmen consumers.
    • Economic Landscape: Familiarize yourself with the economic conditions and trends in Turkmenistan.
  2. Legal and Regulatory Compliance:
    • Local Business Laws: Understand and comply with Turkmenistan’s business laws, regulations, and legal requirements.
    • Customs and Import Regulations: Be aware of customs and import regulations to facilitate the entry of your products into Turkmenistan.
  3. Cultural Sensitivity:
    • Language: Communicate in the local language, and ensure that product information and marketing materials are translated appropriately.
    • Cultural Nuances: Be culturally sensitive in your marketing messages and business interactions.
  4. E-commerce and Online Presence:
    • Digital Platforms: Utilize digital platforms and consider creating a localized website.
    • Social Media: Engage in social media marketing, keeping in mind the platforms popular in Turkmenistan.
  5. Payment Methods:
    • Local Payment Options: Accept local payment methods commonly used in Turkmenistan.
    • Currency Considerations: Be mindful of currency preferences and offer pricing in the local currency.
  6. Networking and Relationship Building:
    • Local Events: Attend industry-specific events, trade shows, and exhibitions to build relationships.
    • B2B Networking: Engage in business-to-business networking to connect with potential partners.
  7. Customer Service:
    • Responsive Support: Provide responsive and personalized customer support to address inquiries and concerns.
    • Local Customer Service Team: Consider having a local customer service team for better understanding and communication.
  8. Promotional Activities:
    • Promotions and Discounts: Consider running promotions or offering discounts to attract and retain customers.
    • Localized Marketing: Customize marketing campaigns to align with local cultural and seasonal trends.

By carefully addressing these considerations and adapting your business strategies to the Turkmenistan market, you can enhance your chances of success in establishing a strong presence and building successful business relationships in the country.

Reach out to us, and we will:

  • Undertake market research on the business climate, customer behavior, market trends, and other factors that are important for the success of your business in Turkmenistan
  • Create a business plan for your establishment in Turkmenistan
  • Develop a market entry strategy for Turkmenistan 

General information

Capital: Ashgabat

Population: 6,342,000

Official language: Turkmen

Main religion: Islam

Currency: Turkmenistani Manat (TMT)
Time zone: UTC+5

Economy of Turkmenistan

GDP per capita: $7,345

Economic growth: 6,2%

Unemployment: 4.8%

Inflation: 11.5%

FDI Inflow: $1.45 billion

Business in Turkmenistan

Popular type of legal entity: Limited Liability Company (LLC)

Minimum number of shareholders for LLC: 2

Terms of company registration: 30 days
Minimum share capital: TMT 10,000 (2,800 USD)

Restrictions for foreigners to start a business: Yes, should get the approval of the Ministry of Finance and Economy and some sectors might require special permits and licenses

A local director required: Yes

Corporate tax: 20%

VAT: 15%

Benefits and challenges

Benefits: strategic location at the crossroads of East and West Asia, abundant natural resources such as natural gas, government support through special economic zones and tax incentives, and low labor costs compared to other countries in the region

Challenges: bureaucratic and complex business environment, a relatively small market size, an unpredictable legal and regulatory environment, inadequate infrastructure particularly in transportation and telecommunications, and a perceived lack of transparency in areas such as government procurement and contract enforcement

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