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Starting a Business in Armenia 

Starting a Business in Armenia 2020

Company 2020.02.26

In 2019, Armenia's GDP grew by 7.6% - the highest rate in all of Europe. Foreign business owners and investors appreciate the pace of the economic reforms, Armenia's safety, freedom and openness. Many prefer to visit Armenia in person and register a business as a first step to enter the market. 


A knowledgeable local lawyer can help you to minimize risks by ensuring compliance with tax, labor, immigration and other regulations, avoid pitfalls and take advantage of tax benefits and other government assistance programs, especially if you do not speak Armenian or plan to run your business remotely.

Legal Guide to Company Formation in Armenia

#1. Corporate Forms

#2. Subsidiary, Branch Office, Representative Office

#3. Non-Profit Organizations

#4. Registration Process, Documents, Time, and Costs

#5. Business Name

#6. Legal Address

#7. Shareholders & Managers

#8. Bank Account

#9. Licenses & Permits

#10. Chambers of Commerce

#11. Changes & Dissolution

9 Reasons for a Company in Armenia

1. Ultra-Fast and Easy Registration

Company registration can be done in a single day if you are physically present in Armenia and choose to use sample registration documents. If the documents are customized or in case of remote registration (with a power of attorney) the process takes one to three business days. Setting up a corporate bank account normally takes one day. Only minimum documents are required, such as the passports of the shareholders and directors. You will get a registration certificate with a taxpayer ID number, ready to start operating immediately. 

2. Low Cost of Registration and Maintenance

There are no minimum capital requirements. The company's paid-up capital can be as low as $1. There are no government fees for registering or renewing the registration of a company. The company can be in good standing without paying recurring fees of filing reports.  Inactive (dormant) companies do not pay taxes and do not file tax returns. There are no requirements to rent an office, hire local people (directors, officers, secretaries, accountants, etc.), open a bank account, etc.

3. No Restrictions on Foreign Ownership

Foreigners can own 100% of an Armenian company. No local partners or agents are required. No restrictions apply to the citizenship or residency of the shareholders. All the directors and employees of an Armenian company can be foreigners. They are not required to reside in Armenia or have a local address. A foreigner can be the only director and the 100% owner of a company.

4. Residence and Path to Citizenship

Owning or managing an operational company in Armenia can qualify you and your family members for a residence status (temporary, permanent, or special). Foreign business owners and investors can directly petition the Prime Minister for citizenship by exception. Under general naturalization rules, a foreigner may become eligible for Armenian citizenship after three years of residency. 

5. Low Taxes

Zero-tax status is available to micro-businesses, IT start-ups, companies operating in free economic zones, industrial zones, certain border towns and villages. Other small businesses with annual sales of less than $240,000 are subject to sales (turnover) tax of only 1.5-5%. Dividends are generally taxed at 5% but this rate can be lower due to multiple double-tax treaties Armenia has signed. Armenia generally does not tax capital gains on the sale of securities, real estate or other assets. Insurance and pension payment are also exempt from taxes. There are no taxes on gifts, inheritance, net worth, etc.

6. Privacy and Reputation

It is possible to ensure the privacy of company ownership by selecting the right corporate structure or by using nominee services. Bank secrecy is strictly protected by law and it is a crime to disclose it. As of 2020, Armenia does not participate in CRS automatic exchange of information (AEOI). Armenia does not appear on any list of offshore jurisdictions, lending to its positive image and credibility. The country has an up to date anti-money laundering legislation, and the Central Bank has ensured the safety, stability and good reputation of the banking system.

7. Educated and Low-Cost Labor

It is possible to find highly educated and skilled workforce in Armenia. The adult literacy rate is 99.7%. Universities in Russian, English and French operate in Yerevan. The minimum monthly salary for full-time employment is $140, while the average monthly salary in the country is around $380. 

8. Economic Growth and Integration; Diaspora

In 2019, Armenia's GDP grew by 7.6% - the highest rate in all of Europe. Armenia is a member of the Eurasian Economic Union (EEU), a Russia-led economic block, with a single market of 180 million people. Armenia is also a member of the WTO, has free-trade agreements with ex-Soviet (CIS) countries and benefits from preferential status (GSP) with the EU, Canada, Japan, Norway and Switzerland. Armenia benefits from the human and financial resources of the Armenian diaspora - Armenian communities around the world numbering an estimated 7 million people. 

9. Investment-Friendly Environment

Armenia guarantees free repatriation of invested capital and profit. Foreigners are allowed to own land. Investment projects are encouraged with tax benefits and government assistance programs. Armenia has a wide network of agreements on double taxation and protection of foreign investment.

Country Overview

Area: 29,700 SQ.KM.

Population:   2,962,000

Capital: YEREVAN (1,075,000)

Religion: Christianity

lANGUAGE: ARMENIAN

LITERACY RATE: 99.6%

KNOWLEDGE OF ENGLISH: 40%

climate: summer 35c; winter 0c

Currency: Dram ($1 = 475 AMD)

average salary: $378

gdp growth: 7.6%

gdp per capita: $4,212

WB DB rank: 41

unemployment: 16.9%

inflation (2018): 2.5%

Get Free Advice

Armenia Company Formation Questionnaire 2018.05.03

Copyright 2020 - Vardanyan & Partners LLC

Nerses Isajanyan

Managing Attorney
LL.M. Georgetown University
New York Bar | Armenian Chamber of Advocates

We are a team of licensed lawyers based in Armenia and Georgia. Our primary commitment is to provide quality service to clients at a compelling value that helps manage risk, overcome regulatory issues and advance their personal and business goals. 


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Our Services

  • Company Formation
  • Remote Registrations
  • Bank Account
  • Legal Address
  • Virtual Office
  • Licenses & Permits
  • Corporate Secretary
  • Legal Services
  • Trademark Registration
  • Tax Planning
  • Tax Compliance
  • Payroll Services
  • Labor Compliance
  • Visa & Work Permit
  • Residence & Passport
  • Real Estate Transactions
  • Redomicliation
  • Nominee Services
  • Shelf Company
  • M&A
  • Reorganization
  • Dissolution

Industries

  • Information Technologies
  • Agriculture
  • Import & Export
  • Retail Trade
  • E-Commerce
  • Diamonds & Jewelry
  • Tourism
  • Hotels
  • Restaurants
  • Healthcare
  • Education
  • Construction
  • Energy
  • Financial Services
  • Cryptocurrency
  • Franchise Businesses

Nerses Isajanyan

Attorney

LL.M. Georgetown University

New York Bar | Armenia Chamber of Advocates

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