Illegal entrepreneurship is defined as conducting business activities without state registration or without obtaining a license, if required. State registration is not required, however, for small entrepreneurs paying “patent fees” and agricultural workers.
There are multiple penalties for illegal entrepreneurship prescribed by criminal, administrative and tax laws:
- Administrative fine of AMD 15,000 – 30,000 (USD 32-64);
- Tax fine in the amount of 50% of the illegal turnover, as assessed by the tax authorities;
- Criminal fine of AMD 500,000 to 2 million (USD 1,060 to 4,260) or imprisonment for up to 6 years.