Company Formation in Armenia
Register your business in 1–3 days. 100% foreign ownership. Tax rates from 1% for IT companies. Full legal support from document preparation to post-registration compliance.
At a Glance: Company Formation in Armenia
Why Form a Company in Armenia?
Armenia offers one of the most founder-friendly business environments in the region. There are no minimum capital requirements, no government registration fees for LLCs, and no restrictions on foreign ownership. You can register your company remotely through a power of attorney — without ever setting foot in the country.
The tax system is equally attractive. IT companies registered in the High-Tech Registry pay just 1% turnover tax on revenue up to AMD 115 million (~$300,000). Micro businesses earning under AMD 24 million (~$62,000) pay 0% tax on qualifying activities. There is no capital gains tax on individuals selling their shares in a company, no wealth tax, and dividends are taxed at only 5%. Armenia also has 52 double tax treaties in force — including recent additions with Japan and Hong Kong — and is a member of both the EAEU and WTO, giving your company access to a combined market of over 184 million consumers.
Beyond tax and registration, company ownership in Armenia opens a direct path to residency — and eventually citizenship. This makes Armenia particularly appealing for digital nomads, freelancers, and entrepreneurs looking for a stable, affordable base with real immigration benefits.
Is Company Formation in Armenia Right for You?
Armenia’s combination of low taxes, fast registration, and a direct path to residency makes it attractive for a wide range of entrepreneurs and businesses. Company formation here is particularly well suited for:
If your primary goal is hiring local staff without forming a company, consider our employer of record services as a simpler alternative.
Choosing the Right Business Structure
Armenia offers several legal structures for businesses. The two most common choices for foreign entrepreneurs are the Limited Liability Company (LLC) and Private Entrepreneur (PE). Your choice depends on your risk profile, whether you plan to have partners, and how you want to structure your taxes.
Limited Liability Company (LLC)
The LLC is Armenia’s most popular business form and the recommended choice for most foreign entrepreneurs. Your personal liability is limited to your investment in the company, and registration is completely free. An LLC can have up to 49 shareholders, requires no minimum capital, and can be fully owned by foreign nationals with no local director requirement.
Key features of an Armenian LLC include single-director governance (the director can be an individual or a legal entity), optional board structures, and mandatory audits only when there are 20 or more shareholders. One important consideration: shareholders have a statutory exit right and can withdraw at any time to claim their share value. This right cannot be limited by the charter, which creates a potential liquidity consideration for multi-shareholder companies.
Private Entrepreneur (PE)
The PE is the simplest and cheapest way to start a business in Armenia. Registration costs just AMD 3,000 (approximately $8) and can be completed the same day. There is no minimum capital, and the accounting requirements are simplified compared to an LLC.
The key difference is that a PE is not a separate legal entity — you and your business are legally the same person. This means unlimited personal liability. PEs also cannot have partners or shareholders. However, PEs avoid the dividend tax layer that applies to LLCs, making them tax-advantageous under certain regimes. PEs are best suited for freelancers, solo consultants, digital nomads, and low-risk service businesses.
All Entity Types at a Glance
| Entity Type | Best For | Liability | Registration Fee |
|---|---|---|---|
| LLC | Most businesses, startups, foreign investors | Limited to investment | Free |
| PE | Freelancers, solo consultants, digital nomads | Unlimited (personal) | AMD 3,000 (~$8) |
| JSC | Large enterprises, complex share structures | Limited to shares | Free |
| Branch Office | Foreign companies expanding into Armenia | Parent company liable | AMD 50,000 (~$130) |
| Subsidiary | Foreign companies wanting limited liability + DTT benefits | Limited (separate entity) | Free (as LLC) |
| Representative Office | Marketing and liaison only (no commercial activity) | Parent company liable | N/A |
| Non-Profit (NGO) | Charitable foundations, membership associations | Limited | Free (up to 10 business days) |
For foreign companies entering the Armenian market, a subsidiary (registered as a local LLC or JSC) is generally recommended over a branch. A subsidiary provides limited liability, is eligible for double tax treaty benefits, and operates as its own Armenian legal entity. A branch, by contrast, exposes the parent company to full liability and cannot benefit from Armenia’s DTT network.
Branch Office vs. Subsidiary: Key Differences
The table below summarizes the most important differences between a branch office and a subsidiary (registered as a local LLC). This comparison is relevant for foreign companies deciding how to structure their Armenian operations.
| Factor | Branch Office | Subsidiary (LLC) |
|---|---|---|
| Legal Status | Extension of parent company | Separate Armenian legal entity |
| Liability | Parent company fully liable | Limited to capital invested |
| Income Taxed | Only Armenian-source income | Worldwide income (as Armenian tax resident) |
| Double Tax Treaty Benefits | Not eligible | Eligible for Armenia’s 52 treaties |
| Profit Repatriation | Non-taxable intra-company transfers | Dividends taxed at 5% (or lower via DTT) |
| Resident Tax Benefits | Generally not eligible | Eligible (turnover tax, IT regime, micro business) |
| Business Name | Must use parent company name | Can choose any name |
| Registration Fee | AMD 50,000 (~$130) | Free |
How Company Registration Works
Company registration in Armenia is handled by the State Registry of Legal Entities at the Ministry of Justice. You can register in person, remotely through a notarized power of attorney, or digitally through a certified representative. Our firm has certified digital access to the State Registry, which means we can handle the entire process on your behalf.
Choose Your Structure & Prepare Documents
We help you select the right entity type based on your business model, tax goals, and immigration plans. We then prepare all formation documents — articles of organization, board resolutions, and powers of attorney — and handle translation and notarization of your foreign documents.
Register with the State Registry
We submit your registration to the State Registry of Legal Entities. LLCs are typically registered within 1–3 business days; PEs can be registered the same day. You receive a registration certificate and tax identification number immediately upon completion.
Post-Registration Setup
After registration, we assist with opening a corporate bank account, ordering your company stamp, filing with the tax office, and submitting your Ultimate Beneficial Owner (UBO) declaration — which must be filed within 40 days of incorporation.
Select Your Tax Regime & Start Operating
We help you choose the optimal tax regime for your business — whether that’s the standard CIT, turnover tax, IT regime, or micro business status. Your company is then fully operational and ready to invoice clients, hire employees, and build toward residency eligibility.
Required Documents
For Individual Founders
- Original or apostilled passport with Armenian translation
- Power of attorney (if registering remotely — we prepare this)
- Completed registration forms (we prepare these)
For Corporate Shareholders
- Legalized certificate of registration of the parent company
- Legalized articles of association / incorporation
- Board resolution authorizing the formation
- Armenian translations of all documents
- Power of attorney for the authorized representative
Government Registration Fees
| Action | Government Fee |
|---|---|
| LLC Registration | Free |
| PE Registration | AMD 3,000 (~$8) |
| Branch Registration | AMD 50,000 (~$130) |
| Fast-Track Processing | AMD 30,000 (~$78) |
| Charter Amendments | AMD 5,000–20,000 (~$13–$52) |
| Share Transfer | AMD 10,000 (~$26) |
| Company Name with “Armenia” | AMD 600,000 (~$1,560/year; special approval required) |
Contact us for a free consultation and a quote on our professional service fees for company formation.
Tax Environment for Armenian Companies
Armenia’s tax system is competitive by regional standards, with several favorable regimes available depending on your business type and revenue level. Here is an overview of the key tax rates.
| Tax | Rate | Notes |
|---|---|---|
| Corporate Income Tax (CIT) | 18% | Standard rate on profits |
| Turnover Tax | 1–12% | On revenue (not profit); available under AMD 115M (~$300K) turnover. Rates vary by activity: trade 10%, production 7%, catering 12%, IT 1%, other services 5%. |
| IT Turnover Tax | 1% | For companies in the High-Tech Registry with ≥90% IT revenue; valid 2025–2031 |
| Micro Business | 0% | Revenue under AMD 24M (~$62K); limited to certain activities |
| VAT | 20% | Mandatory above AMD 115M (~$300K) annual turnover |
| Dividend Tax | 5% | Withheld at distribution |
| Capital Gains Tax | 0% (individuals) | No capital gains tax on individuals selling shares. For companies: exempt if shares held >2 years; otherwise taxable as part of CIT. |
| Wealth / Inheritance Tax | 0% | None |
The turnover tax election must be made annually by February 20. IT companies using the 1% rate must be registered in the High-Tech Registry, with at least 90% of revenue from qualifying IT activities and no overdue tax liabilities. Note that the IT company turnover tax benefit and the alternative general-regime salary incentives (200% salary deduction, 60% PIT reimbursement for new hires) are mutually exclusive — you must choose one path. We help clients select the optimal regime based on their specific revenue structure and business model. Learn more on our Armenia taxes page.
Business-Based Residency in Armenia
One of the most compelling reasons to form a company in Armenia is the direct path to residency. As a business owner — whether you register as a PE or hold shares in an LLC — you are eligible to apply for a residence permit. After holding temporary residency for three years, you can apply for permanent residency, and Armenian citizenship becomes available after three years of permanent residency.
Current Requirements (Before November 1, 2026)
There are no formal minimum capital or turnover requirements. However, immigration authorities assess whether your business is genuine by considering whether you have paid taxes, whether the business has employees, how long it has been registered, and whether you are physically present in Armenia. Of these, tax payment is the most important factor.
New Requirements (After November 1, 2026)
Starting November 1, 2026, Armenia introduces formal financial thresholds for business-based residency:
- LLC owners: Minimum charter capital of AMD 2,000,000 (~$5,200) or equivalent share value
- Private Entrepreneurs: Bank balance of AMD 1,000,000 (~$2,600) OR turnover of AMD 1,000,000 in the prior 60 days
The new system also introduces revocation triggers: capital falling below AMD 1,000,000 (~$2,600), no tax data within 180 days, or withdrawing your investment without reinvesting within one month. On the positive side, applications will be processed digitally, and the criteria become clearer and more predictable.
Both PE and LLC owners are treated equally for immigration purposes — the type of business structure does not affect your eligibility. IT versus non-IT business type is also irrelevant for residency; this distinction only matters for tax benefits.
Corporate Changes and Dissolution
Charter Amendments
Changes to a company’s name, statutory capital, legal address, or director require amending the articles of association and registering the changes with the State Registry. For LLCs, any changes in shareholding must also be registered. The standard processing time is two business days, with fast-track service available for an additional fee. All corporate changes can be handled remotely through an authorized representative with a power of attorney.
Dissolution
Dissolving a company in Armenia requires publishing a dissolution notice on the official gazette website (azdarar.am). This gives creditors a two-month window to submit claims. The tax office has 20 days to file any unpaid tax claims, often following a tax audit. The process also involves coordinating with the National Archive for document archiving and surrendering the company’s stamp to the Police.
Dormant (Inactive) Status
As an alternative to dissolution, a company can file a declaration with the tax office indicating its inactive status. Dormant companies remain registered but are exempt from tax return filings and tax payments. This is a practical option for entrepreneurs who want to pause their business without losing their registered entity — particularly useful for maintaining residency eligibility while not actively operating.
Reorganization
Companies can undergo reorganization through mergers, spin-offs, split-offs, or changes in corporate form (for example, converting an LLC to a Joint-Stock Company or vice versa). Public notification is required to inform potential creditors. Both dissolution and reorganization can be managed remotely by your authorized representative.
Alternative: Employer of Record Services
If your main goal is employing local staff in Armenia without forming a legal entity, employer of record (EoR) services may be a simpler and more cost-effective alternative. An EoR provider handles recruitment, payroll, tax compliance, and employee benefits administration on your behalf. This can be a good option for companies testing the Armenian market before committing to full company formation. Learn more about our employer of record services.
