Definition of NGOs

The legislation of Turkmenistan does not use the concept of a non-government organization. The Civil Code introduces a definition of “non-entrepreneurial legal entities”, created in the form of public organizations and foundations. Non-entrepreneurial legal entities shall not set up the aim of conducting entrepreneurial (commercial) activity with the objective to receive a profit. The entrepreneurial activity having an auxiliary character does not change the character of a non-entrepreneurial legal entity (Art. 51 of the Civil Code).

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Definition of NGOs

The legislation of Turkmenistan does not use the concept of a non-government organization. The Civil Code introduces a definition of “non-entrepreneurial legal entities”, created in the form of public organizations and foundations. Non-entrepreneurial legal entities shall not set up the aim of conducting entrepreneurial (commercial) activity with the objective to receive a profit. The entrepreneurial activity having an auxiliary character does not change the character of a non-entrepreneurial legal entity (Art. 51 of the Civil Code).

Irrespective the stipulated by the Civil Code only two types of non-entrepreneurial legal entities, the public organizations and foundations, the legislation has a broad list which includes a public association, political party, religious organization, trade union, public organization, public movement, public foundation, non-commercial foundation, public self-initiative body (The Law “On Public Associations” as adopted on October 21, 2003). The activity of political parties, religious organizations, trade unions and non-commercial unions (associations) shall be regulated by special laws after their adoption (Until adoption of special laws the establishment and activity procedure for such organizations is regulated by the Law “On Public Associations”).

By territory of their activity public associations can be international, national and local (Art. 13 of the Law “On Public Associations”). Public associations can be established in three organizational legal forms: public organization, public foundation and public self-initiative body (Art. 6 of the Law). It is not clear why public association is also understood as a non-commercial union (association) created by commercial or commercial organizations, which are not individuals (Art. 7 of the Law).

Founding of NGOs 

Not less than 5 members pursuing the common goal are necessary to establish a public organization. For a public association with an international status there is a requirement to have 500 members (Items 4 and 6 of the Rules for Registration of Public Associations). In contrast to a public organization a foundation is established by one or several founders in order to achieve a publicly useful goal with the transfer of special property into its ownership (Art. 51 of the Civil Code). However, a concept of membership is not applied to a foundation and also some other organizations considered as public associations under the legislation of Turkmenistan (The Law “On Public Associations”).

Aims that may be pursued by NGOs, and rules applicable to members

The Civil Code specifies that the character of activity of a public organization or foundation shall not be commercial. The public association’s aim is determined by several persons being its members and reflected in the Charter (Art. 51of the Code and Art. 1 of the Law “On Public Associations”). Such a “common public useful aim” is being determined for a foundation by its founders (Art. 51 of the Civil Code).

Public organization is based on membership public association, which must pursue the aim of protection of common interests uniting citizens and achievement of Charter aims (Art. 7 of the Law “On Public Associations”). Public movement is characterized by a mass character and absence of membership and must pursue social, political and other publicly useful aims (Art. 8 of the Law). The aim of a public foundation is property formation based on voluntary fees and other earnings and use of this property for publicly useful aims (Art. 9 of the Law). For a body of public self-activity the aim is joint addressing of various social problems, which citizens face in the places of their residence, work or study, meeting the needs of an unlimited circle of persons, whose interests are linked with achievement of the Charter aims and implementation the programs at the place of body’s creation (Art. 10 of the Law). The law does not specify the aim for creation of public associations unions (associations) (Art. 11 of the Law).

The establishment and activity of public associations aimed at violent change of Turkmenistan constitutional order, undermining national safety, allowing violence, acting against constitutional rights and freedoms of citizens, propagandizing war, racial, national, social, religious hatred, threatening health and morals of people and also creation of military units is prohibited (Art.4 of the Law).

Participation in public associations aimed at achievement of mercenary and other immoral inducements, and also committing of other illegal actions aimed at grave violation of rights and freedoms of citizens, legitimate interests of state bodies of power and governance are punished with a fine in the amount from 10 up to 30 average monthly salaries or correctional labor for a period up to two years or imprisonment for a period up to one year (Art. 223-1 of the Criminal Code adopted by the Law “On Making Changes and Amendments into the Criminal Code” dated October 21, 2003).

Functioning of NGOs without state registration

NGOs functioning without state registration are banned (Art. 17 of the Law “On Public Associations”). Definition of a non-entrepreneurial legal entity also specifies that legal capacity of a legal entity start from the moment of state registration (Item 2 Art. 49 of the Civil Code). The law “On public associations” determines the beginning of the legal capacity of a legal entity after its registration in the Unified State Registry of Legal Entities. The Criminal Code of Turkmenistan foresees punishment for “violation of the legislation on public associations”, without defining of the complete corpus delicti. The Code establishes only a sanction in the form of a fine in the amount from 10 up to 30 monthly salaries or correctional labor for a period of one year or imprisonment for a period up to six months with confiscation of illegally received funds. The condition for initiation of criminal proceedings must be earlier applying to a person of an administrative punishment for such violation (Art. 223-1 of the Criminal Code).

Registration requirements for NGOs

The following documents must be submitted for registration of a public association: application, which must be signed by all founders and members of the managerial body of this public association with specified full names; 2 copies of public association’s charter, minutes of the founders’ congress (conference) or a general meeting containing information on establishment of the public association, adoption of its charter and formation of managerial and auditing bodies; founders’ data; document verifying registration fee payment; document providing public association the legal address (Art. 17 of the Law “On Public Associations”).

Documents for registration must be filed within a month from the day of conducting of a founding congress (conference) or a general meeting. Documents can be submitted by mail (Item 12 of the Rules for Public Associations registration). Registration must be completed within a monthly period from the day of submitting of necessary documents.

Registration fees are charged for registration of a public association, subsequent changes and additions in its charter. Registration is expensive and linked to a four-staged scale of fees depending on geographical factors (Brief Commentaries to New Rules for Registration of Public Associations of the Republic of Turkmenistan. The International Center for Non-for-Profit Law. Dated January 22, 2004 (with changes dated January 28, 2004)). Registration fee amount is based on the basic amount, which was 250 thousand manats in January 2004. There were established the following fee amounts: 6-times of the basic amount ($300) for registration of local public associations, 10-times of the basic amount ($500) – for registration of national public associations, 40-times of the basic amount ($2000) – for registration of international public associations (The specified amounts of registration fee are calculated in accordance with the official currency exchange rate. This fee is times of the “basic amount”, which in January 2004 amounted 250,000 thousand manats). For associations of disabled, veterans, and youth organizations the fee amount is 50 percent, and children’s organizations are exempt from fee payment.

Authorized state bodies and NGO registry

Public associations’ registration is made by the Ministry of Justice (Ministry of Adalat - the name of the Ministry in the Civil Code was changed by the Law “Оn Making Amendments and Changes into the Saparmurat Turkmenbashi’s Civil Code of Turkmenistan” dated September 21, 2003) in accordance to the procedure specified by the Civil Code and other legislation of Turkmenistan. Among legal acts regulating registration procedure there are Rules for public association registration, (adopted by a Resolution of the President of Turkmenistan dated January 14, 2004) which, according to various assessments, eliminated certain drawbacks, which were in the past. Information on public associations is entered into the Unified State Registry of Legal Entities (Art. 17 of the Law “On Public Associations”). In addition to registration at the Ministry of Justice it is necessary to be registered in the tax bodies and the state statistics bodies.

Denial of registration to NGOs

Public association can be rejected in registration due to several reasons:

- Public association charter contradicts the Constitution of Turkmenistan;

- Public association aim is violent change of Turkmenistan constitutional order, undermining national safety, allowing violence, acting against constitutional rights and freedoms of citizens, propagandizing war, racial, national, social, religious hatred, threatening health and morals of people and also creation of military units;

- Non-observance of requirements set up for founders, members and participants;

- Founding documents are not provided in the full list and are not designed in a due order;

- There is already an earlier registered public association with the same name at the specified territory;

- The name of the public association damages offends moral, national and religious feelings of citizens;

- The submitted for registration founding documents contain deliberately false information;

- One of the association’s founders is a person earlier convicted for committing grave crime;

- There was a violation of the established periods for filing documents.

In case of public association registration denial an applicant shall be informed on that in a written form with identification of the reasons for registration denial. Public association registration denial is not a barrier for the repeat filing documents for registration under condition of elimination of grounds, which caused the denial. Consideration of the repeat filed documents shall be made in accordance with the established order (Art. 18 of the Law).

Branch offices of NGOs

Representative offices and branches are not legal entities. They obtain the property of the legal entities established them and act based on the adopted by them regulations (Art. 56 of the Civil Code). Responsibilities of public associations and their structural sub-divisions on property management are mandatory specified in the charter and thus, require subsequent state registration.

In accordance with its charter public association can have a structural sub-division – organization, branch or a representation office in foreign states. In this case an organization will be acknowledged as international (Art. 13 of the Law).

Operational requirements for international NGOs

For registration of foreign organizations they apply the requirements established for local organizations with some exceptions. For registration of a structural sub-division of a foreign organization on the territory of Turkmenistan in addition to documents required for registration of local legal entities it is necessary to enclose the founding documents of the head organization created on the territory of a foreign state and certified by a notary (Item 4 of the Rules for Registration of Public Associations). The fee for registration of a structural sub-division of an international public association is 40-times basic amount (about $2000).

Absence of registration of projects and programs of foreign technical, financial, humanitarian assistance leads to suspension of processing of stock exchange and customs procedures. Conclusion on registration of the specified projects, programs and grants at the State Service for Foreign Investments under the President of Turkmenistan or Ministry of Justice can serve as a registration confirmation and also a receipt from the Unified Registry of Foreign Technical, Financial, Humanitarian Assistance and Grants (Item 5 of the Rules).

Re-registration requirements for NGOs

Organizations’ registration is stipulated in cases of making changes and amendments into the founding documents. Changes and amendments to charters of public associations and also change of legal facts are subject to registration and have to be registered in accordance with the same procedure and within the same periods as the public associations and obtain capacity from the moment of registration. The fee in the amount of 50% of the registration fee is charged for re-registration of public associations (Item 2 of the Rules).

Right of appeal of NGOs

Denial in public association registration must foresee a possibility of its appeal and also appeal procedure. Registration denial can be appealed in a court (kaziet) (Art. 57 of the Civil Code and Art. 19 of the Law “On Public Associations”).

Authorized state bodies granting financial and other benefits to NGOs

The state allows rendering support to public associations’ activity. State support can be in the form of targeted financing of some publicly useful public association programs upon their requests (state grants); concluding agreements including the ones for performing jobs and rendering services, social order for implementing various state programs for an unlimited circle of public associations on a render basis. The systematic state support of public associations is not established in practice.

Foreign funding of NGOs

The legislation allows public associations’ cooperation with international public organizations, maintenance of international contacts and relations and also conclusion of relevant agreements with involvement of the Ministry of Foreign Affairs of Turkmenistan (Art. 21 of the Law “On Public Associations”). However, the authorities of the Ministry of Foreign Affairs and limits of its participation in concluding the agreements are not quite clear.

The list of financing sources of the public associations includes a possibility to obtain targeted financing and earnings from foreign non-commercial and budget organizations in the form of grants. Restriction for receipt of foreign financial and other material assistance is related with preparation and conducting of elections and relates to public associations, which charters foresee participation in elections (Art. 25 of the Law).

Projects and programs of foreign technical and other assistance are subject to mandatory registration at the Ministry of Justice (Art. 22 За of the Law).  The registration requirement was introduced by the Resolution “On State Registration of Projects and Programs of Foreign Technical, Financial, Humanitarian Assistance and Grants” (adopted on November 14, 2003). The State Service for Foreign Investments under the President of Turkmenistan maintains the Unified Registry of Foreign Technical, Financial, Humanitarian Assistance and Grants.

Tax exemptions for NGOs

In general the legislation does not envision tax exemptions for public associations. Certain exemptions are related to the activity aimed at protection of disabled, inmates of children houses, veterans and humanitarian activities. Certain benefits in the form of decrease of the registration fee amount for registration and re-registration of some types of organizations.

Reporting requirements for NGOs

Public associations maintain accounting and maintain and submit statistical data (Art. 23 of the Law “On Public Associations”). Upon a request of the Ministry of Justice public associations must provide their managerial bodies and officials decisions, as well as annual and quarterly reports on their activities in the volume of information provided to tax bodies.

The law also requires from organizations annually inform the Ministry of Justice on their activity and identify the actual place of location of their permanently acting managerial bodies, their names, information on the leaders in the amount of information included into the Unified State Registry of Legal Entities. Public associations must without any delays submit to the Ministry of Justice information on the change of legal facts that are subject to registration.

Organizations are obliged in due time inform the Ministry of Justice on the date of conducting of their activities, allow the representatives of the Ministry of Justice to attend the conducted activities. Organizations must assist the Ministry of Justice’s representatives in getting familiarized with public associations activities in relation with achievement of charter’s goals and observation of Turkmenistan legislation (Art. 22 of the Law).

The Criminal Code envisions punishment for violation of the legislation on public associations. The article contains no clear corpus delicti allowing its broad definition. Criminal liability is stipulated for the repeat crime committing within a year after imposing of an administrative punishment. Violation leads to a punishment in the form of a fine in the amount from ten till thirty average monthly salaries or correctional works for a period up to one year or imprisonment for a period up to six months with confiscation of illegally obtained means (Art. 223-1 of the Criminal Code). Confiscation is evidently foreseen for violation of the requirement on registration of technical and other assistance projects and programs.

Termination, dissolution, and liquidation procedure for NGOs

The Ministry of Justice liquidates public association in cases foreseen by the charter as a result of achievement or impossibility to achieve its goals, cancellation of the registration (Art. 65 of the Civil Code). The law permits suspension the public associations’ activity by a decision of the Ministry of Justice or court for violation of the Constitution, laws and charter provisions. Renewal of the activity after elimination of violations requires applying with a written application to a body which took decision on suspension.

If a public association was issued more than two written warnings or instructions in violations elimination and also for a failure to submit to the Ministry of Justice of the updated subject to registration information within a year, the Ministry of Justice can apply to the court (kazyet) with an application on public association liquidation (Art 28 of the Law “On Public Associations”). The Ministry of Justice can also cancel registration if public association mainly shifted to entrepreneurial activity or if it is impossible to achieve the specified by the charter goal.

Participation in law-drafting that affects the status of NGOs

The Law does not stipulate public organizations authorities for participation in law-making activity.

This entry was prepared by the OSCE ODIHR Expert Dmitry Kabak with assistance of the OSCE ODIHR Mission in Turkmenistan, which filled in the questionnaire. The author extends his gratitude to the Ecological club “Catena” for assistance in retrieval of legal documents. The E-library of the Internal Center for Not-for-Profit Law at www.icnl.org and the legal database Blacksand Group at http://blacksand.boom.ru/athletic.htm were used for preparation of the entry.

Posted: April 2006

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