The present Law states the general legal, economic and social basis of the Chamber of Commerce and Industry established in Turkmenistan, sets up practical legal rules and the nature of its activities, determines the state protection and support measures, provided to the Chamber of Commerce.

The present Law doesn't affect the members of Turkmenistan Chamber of Commerce, when they operate outside Chamber of Commerce and Industry business.


CHAPTER 1. GENERAL PROVISIONS

Article 1. Chamber of Commerce and Industry concept

The Chamber of Commerce and Industry is a social and economic organisation, which consolidates enterprises, organizations and entrepreneurs, irrespective of property forms (hereinafter referred to as Chamber of Commerce and Industry members), whose aim is to communicate and protect their interests.

The title "Chamber of Commerce and Industry" and words/word combinations, derived from it may only be used by organizations, which have been established in accordance with the present legal regulations and are members of Chamber of Commerce and Industry of Turkmenistan.

Other organizations are not authorised to use the words "Trade Chamber", "Industrial Chamber", "Chamber of Commerce" in their titles and are not to be registered by the State with titles including these words in any combination.

Article 2. Legislation on Chamber of Commerce and Industry

Legislation on Chamber of Commerce and Industry comprises the present Law and other legislative rules of Turkmenistan.

Article 3. Objectives and major tasks of Chamber of Commerce and Industry of Turkmenistan

The Chamber of Commerce and Industry is established to promote Turkmenistan's economic development, it's integration with the international economic system, the formation of a modern industrial, financial and trade infrastructure, the establishment of favourable conditions for business, harmony of relations between entrepreneurs and their partners, development of free enterprises of all types, development of trade and economic and scientific-technical relations of Turkmenistan with other states.

Turkmenistan Chamber of Commerce and Industry carries out the following major tasks:

- helps to communicate and protect the interests of it's members in dealing with economic activities in Turkmenistan and abroad, promotes the development of free enterprise, taking into consideration the economic interests of branches, regions and enterprises;

- promotes interaction between Chamber of Commerce and Industry members, their relationship with the State and its bodies, as well as with the social partners;

- makes arrangements for professional training and apprenticeship of specialists and other training programs, at home and abroad;

- promotes the export of goods and services, provides a practical assistance to the Chamber of Commerce and Industry members to generate transactions in foreign markets and assimilate new ways of co-operation;

- promotes the settlement of disputes between the Chamber of Commerce and Industry members and their partners;

- on behalf of Turkmenistan legal and physical entities and foreign States draws up the corresponding documents to be registered in the Turkmenistan patent department;

- on behalf of Turkmenistan legal and physical entities and foreign states carries out an examination on the control of the quality, quantity and completing of goods and determines cost of production and property;

- certifies the origin of goods' services, certifies the signatures of legal entities on the territory of Turkmenistan, draws up other documents for the export of goods and services, certifies force majeur, ensures compliance with the conditions of foreign trade transactions and international agreements of Turkmenistan;

- registers Turkmenistan enterprises and organizations, the fiscal and economic status of which guarantees their reliability as partners in business and foreign trade activities;

- arranges international and foreign exhibitions, prepares and holds exhibitions of Turkmenistan enterprise and goods' abroad, and arranges presentations of companies and organizations in Turkmenistan;

- establishes and develops relationships with trade chambers of other states, concludes agreements with them, arranges economic and trade missions and delegations exchange;

- provides assistance to business representatives and mission representatives in searching partners and in establishing business relationships, and also carries out the same functions for Turkmenistan managers going abroad;

- secures the provision of services, required for foreign companies and enterprises to carry out commercial activities:

- carries out other functions, complying with the Chamber objectives and tasks and Turkmenistan international agreement regulations, meeting the requirements of the legislation currently in force.

Article 4. Chamber of Commerce and Industry establishment and activity principles

Chamber of Commerce and Industry activity is based on the principle of a combination of personal, collective, public and state interests, on economic independence, self-supporting, financial incentives, social justice and legality. The Chamber of Commerce and Industry in carrying out these functions stipulated by its Charter and other acts, functions within the framework of Constitution and Turkmenistan Laws in force.

Chamber of Commerce and Industry carries out its economic activity only in connection with its Charter functions, acts on self-supporting principles and does not distribute profit among its members.

Chamber of Commerce and Industry is a legal entity, which may own the exclusive property by property rights, may purchase, in its own name property and personal non-property rights, bear responsibility, be liable as plaintiff or defendant in court, in Supreme Managerial Court and arbitration at Chamber of Commerce.

Chamber of Commerce and Industry is responsible for liabilities by its properties.

Chamber of Commerce and Industry is not responsible for its members' liabilities, nor are its members responsible for the Chamber's liabilities.

Chamber of Commerce and Industry is not responsible for the liabilities of enterprises, associations and organizations, created by it, nor are those enterprises, associations and organizations responsible for the Chamber's liabilities.

Article 5. State and Chamber of Commerce and Industry

The State guarantees the observance of the rights and interests of the Chamber of Commerce.

The State and its bodies are not responsible for the liabilities of the Chamber of Commerce and Industry nor is the Chamber of Commerce and Industry responsible for the liabilities of the State and its bodies.

The State ensures that Chamber of Commerce and Industry activity is in compliance with legislation.


CHAPTER 2. CHAMBER OF COMMERCE AND INDUSTRY ESTABLISHMENT

Article 6. Chamber of Commerce and Industry formation

Chamber of Commerce and Industry is formed by the initiative of not less than ten founders. Enterprises, associations, businessmen irrespective of type of property, departmental membership, or sphere of activities may be the Chamber's founders.

The founders of the Chamber of Commerce and Industry call the constituent congress or general meeting, where the Charter is to be adopted and the Chamber authorities are to be formed.

Article 7. Membership in Chamber of Commerce and Industry

The Chamber of Commerce and Industry members are enterprises and organizations, irrespective of property forms and legal status, legally registered entrepreneurs, who carry out economic activity or take part in carrying out economic, scientific-technical and trade relations of Turkmenistan with other states. The Chamber of Commerce and Industry members may also be associations and their alliances, uniting managers by branch or region.

The amount of initial and yearly dues for the Chamber of Commerce and Industry members is fixed by the Chamber of Commerce and Industry board, in accordance with its Charter.

Foreign legal and physical entities may be members of the Chamber of Commerce.

The Chamber of Commerce and Industry registers the above mentioned entities, who become the Chamber of Commerce and Industry members after the date of their registration.

The Chamber of Commerce and Industry membership gives the right to:

- take part in taking resolutions at General Assembly, in the work of other Chamber Board bodies and also to participate in setting up these bodies in accordance with regulations, stated in the Chartered documents, and other rules, being in force in Chamber of Commerce;

- get privileges and other rights in co-operation with foreign partners, stipulated in the Chamber of Commerce and Industry Charter documents.

Article 8. The Chamber of Commerce and Industry Charter

The Chamber of Commerce and Industry Charter is to provide:

- the title, objectives, tasks and functions of the Chamber;

- the terms and the order of admission to the Chamber's membership and the withdrawal from it;

- rights and duties of the Chamber members;

- terms of reference and the establishment order of head bodies, period of their powers, and order of taking resolutions;

- the sources of founding the Chamber funds and of other property;

- the order of making amendments and additions to the Chamber of Commerce and Industry Charter;
the order of Chamber dissolution.

Other regulations dealing with Chamber activities may also be stipulated in the Charter. The Chamber of Commerce and Industry Charter must not contradict the Turkmenistan legislation.

Article 9. State registration of Chamber of Commerce and Industry

State registration of Chamber of Commerce and Industry is carried out by the Turkmenistan Ministry of Justice. The founders' application for the Chamber of Commerce and Industry registration is to be presented within a month after the Charter adoption together with the properly certified copies of Charter and founding conference or general meeting minutes which approved the Charter. The resolution on the registration of the Chamber of Commerce and Industry has to be adopted within one month since the date of submission of application.

The Chamber of Commerce and Industry acquires the rights of a legal entity from the moment of obtaining the state registration (re-registration) certificate issued by the holder of the Unified state register of the enterprises and organizations of all types of property and managing.

Amendments and additions to Chamber of Commerce and Industry Charter documents are to be registered by state in the same order and within the same terms, as the Chamber registration has to be made.

The Chamber of Commerce and Industry state registration, future amendments and additions to its Charter documents are taxed in accordance with the conditions and amounts stipulated in Turkmenistan legislation.

If there is any breach of the Chamber establishment order, stipulated in this Law, or if the Chamber documents do not comply with the present Law, the Chamber of Commerce and Industry will not be registered. No other reason for refusal of registration is acceptable.

If the Chamber of Commerce and Industry has not been registered within the specified period, or if there are no grounds for the registration refusal, the Chamber may appeal against it to the court.

Article 10. Chamber of Commerce and Industry dissolution

Chamber of Commerce and Industry dissolution may take place by the way of reorganisation or liquidation. Reorganisation or liquidation of the Chamber of Commerce and Industry may be carried out on foot of a conference or general meeting resolution. Chamber of Commerce and Industry is considered to be reorganised or liquidated from the moment the necessary amendments have been inserted in the corresponding register.

The property of the liquidated Chamber after the creditors' claims have been satisfied is used for the purposes, stipulated in its Charter, or is turned over to the legal successor.


CHAPTER 3. CHAMBER OF COMMERCE AND INDUSTRY RIGHTS AND PROPERTY

Article 11 . Chamber of Commerce and Industry rights

Chamber of Commerce and Industry possesses the rights necessary to fulfil the objectives, tasks and functions, stipulated in its Charter.

Chamber of Commerce and Industry is authorised to:

- present and protect the legal interests of its members in the state bodies;

- perform transactions in Turkmenistan and abroad, such as foreign trade, credit, bill of exchange, transactions of shares and other securities, as well as with legal and physical entities;

- construct and purchase, alienate, rent and give for rent any kind of personal and real property both in Turkmenistan and abroad;

- establish in Turkmenistan and abroad enterprises, associations and organizations, possessing the rights of a legal entity, and also to participate in the establishment of joint chambers, joint ventures, trade houses, Joint-stock societies and other enterprises;

- determine the methods of carrying on its activities, establish the structure, list of staff, forms and amount of salary and financial incentives in accordance with Turkmenistan legislation;

- open branches and representation offices, in Turkmenistan and abroad;

- carry out other proxies, stipulated by this Law and other Turkmenistan legislative regulations.

The juridical documents, given by the Chamber of Commerce and Industry within its jurisdiction limits, are valid throughout Turkmenistan.

Chamber of Commerce and Industry rights are fixed in its Charter and carried out as stipulated by the legislation currently in force.

Article 12. Chamber of Commerce and Industry property

Chamber of Commerce and Industry may possess its own property which includes capital and current assets, buildings, structures, equipment, currency and other funds, enterprises, shares, bonds, other securities and other property necessary to fulfil the functions laid down in its Charter.

The property standing to the balance of the Chamber of Commerce, of its enterprises and organizations belongs to the Chamber, possesses the status stipulated by Turkmenistan legislation on property, and is managed in accordance with Chamber of Commerce and Industry Charter.

The enterprises, associations and organizations of the Chamber possess and dispose of its property, fully keeping its economy in accordance with objectives and tasks, stipulated by their Charters and regulations and by agreements as well, concluded by Chamber of Commerce and Industry with the above mentioned enterprises, associations and organizations.

The Chamber is funded by subscription fees and dues, assignments from profits of subordinate enterprises, associations and organizations and other sources.

Chamber of Commerce and Industry means are used for providing its activities and forming the Chamber funds.

If the Chamber members withdraw from the Chamber, dues paid will not be reimbursed and claims for property of the Chamber cannot be made.

The Chamber of Commerce and Industry property is protected by legislation.

Article 13. Chamber of Commerce and Industry profit taxation

The Chamber of Commerce and Industry profits are taxed in accordance with tax legislation currently in force.


CHAPTER 4. CHAMBER OF COMMERCE AND INDUSTRY BODIES

Article 14. Chamber of Commerce and Industry authorities

The Chamber of Commerce and Industry authorities are:

- Chamber of Commerce and Industry Congress

- Chamber of Commerce and Industry Board

- Chamber of Commerce and Industry Chairman

The Conference is considered to be the highest Chamber of Commerce and Industry authority.

The activity of Chamber of Commerce and Industry authorities is carried out in accordance with its Charter.

Article 15. Chamber of Commerce and Industry Auditing Committee

The Chamber of Commerce and Industry Conference elects the Auditing Committee for the period of five years in the number, stated by the Congress, the members of which are not the Chamber Board members. The Committee is to audit the fiscal-economic activity, taking, property and reporting records of the Chamber.


CHAPTER 5. ARBITRATION

Article 16. Arbitration at Chamber of Commerce and Industry

Arbitration is carried on by the Chamber of Commerce and Industry to solve parties' disagreements, which result from agreements and other civil-legal relations while performing foreign trade, other international economic and scientific-technical relations in accordance with Turkmenistan legislation.

If the parties disagree with arbitration verdict, they may appeal to the court and Economic court.

The establishment and activity of other Chamber of Commerce and Industry bodies are regulated by Turkmenistan proper legislative regulations.


CHAPTER 6. CHAMBER OF COMMERCE AND INDUSTRYINTERNATIONAL RELATIONS, PARTICIPATION IN THE INTERNATIONAL ASSOCIATIONS, INTERNATIONAL AGREEMENTS

Article 17. Chamber of Commerce and Industry international relations and participation in the international associations

Chamber of Commerce and Industry is authorised to keep direct international contacts, to conclude corresponding agreements according to its Charter.

The Chamber of Commerce and Industry represents its members' interests in the International Chamber of Commerce, International association of protecting international property, International Exhibition Bureau, International Labour Organisation for problems dealing with managing activity, and in other international organizations as well.

Article 18. International agreements

If the International agreement of Turkmenistan has established the other regulations than in this Law then the regulations of the International agreement are to be applied.

PRESIDENT OF TURKMENISTAN
SAPARMURAT NIYAZOV

Ashgabat, October 8, 1993