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Outsourcing to Armenia 2020 

Outsourcing to Armenia 2020

Many American and European companies, including  powerful technology firms, such as Intel, Microsoft, Google, IBM, and Cisco, have established operations in Armenia because of its skilled workforce, communications infrastructure, business friendly environment, and low costs of doing business. Armenia's outsourcing strengths include software development and service, programming services, consulting and integration, computer graphics, animation and multimedia programs, mobile applications, web programming and design, microcircuits design, engineering, research and experimental services. The country's tech sector has been growing by 20-25% annually. 

Legal Guide to Outsourcing to Armenia

#1. Outsourcing Business Structure

#2. Outsourcing Contracts

#3. Intellectual Property Assignment

#4. Taxation

#5. Hiring & Firing, HR Matters

#6. Immigration (Work Permit and Residence Permit)

#7. Data Protection

8 Reasons for Outsourcing to Armenia

1. Skilled Local Workforce

Armenia has been a software development, electronics and semiconductor production center for many decades dating back to the Soviet era. Armenian developers are known by the quality of their solutions and their ability to deliver on time and on budget. The majority of IT specialists in Armenia have technical degrees in science, technology, math, and engineering areas and speak English. It is expected that by 2025 there will be 30,000 software developers in Armenia. 

2. Friendly Immigration Rules and Foreign Talent

With a low cost of living, low crime rates and abundant culture Armenia attracts professionals from many countries, including Iran, India, and Russia. Liberal immigration rules make it easy to obtain work permits and acquire residence status. 

3. Low Cost of Doing Business

Armenian businesses take advantage of low costs of workforce, rent, utilities, registration and other startup costs.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 or hire local employees etc. Compliance requirements are brought to a minimum. 

4. Tax Holidays

Newly registered IT companies can generally take advantage of tax holidays.


Zero-tax status is also available to micro-businesses, 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.

5. Business-Friendly Environment

Company registration can be done in a single day if you are physically present in Armenia and choose to use sample registration documents. 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. 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.

6. Government Assistance

In addition to various tax holidays and other benefits, the government of Armenia can provide assistance to important investment projects in the form of privatization of real property, financing under public-private partnership, loans, guarantees and subsidies, export insurance, etc.

7. Effective IP and Data Protection Laws

Armenia has adopted and enforces intellectual property (copyright, trade secrets, know-how, confidetional information, trademarks, etc.) and data protection laws in line with international best practices. 

8. Residency & Citizenship

Armenia offers temporary, permanent and special residence to foreign business people as well as citizenship-by-exception to important investors.

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2020.05.23 Outsourcing
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Country Overview

Header

Area SQ.KM.

29,700

PopulatioN

2,962,000

Capital:

Yerevan (1,075,000)

Religion:

christian (94.8%)

lANGUAGE: 

Armenian

LITERACY RATE: 

99%

Climate:

SUMMER 33C

WINTER 4C

Currency:

DRAM ($1 = 480 AMD)

Average Salary:

$387

GDP Growth (2019):

7.6%

GdP per capita:

$4,173

Unemployment:

18%

Inflation:

1.7%

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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. 


Why Us

  • Fully Licensed
  • 10+ Years of Experience
  • Broad Scope of Legal Services
  • Quick Communication
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Our Services

  • Company Formation
  • Subsidiary
  • Branch Office
  • Remote Registration
  • Bank Account
  • Legal Address
  • Virtual Office
  • Licenses & Permits
  • Corporate Secretary
  • Residence & Passport
  • Tax Planning
  • Tax Compliance
  • Labor Compliance
  • Payroll Services
  • HR Matters
  • Visa & Work Permit
  • Accounting & Audit
  • Operations
  • Procurement
  • Real Estate
  • Nominee Services
  • Dissolution 
  • Legal Services

Nerses Isajanyan

Attorney

LL.M. Georgetown University

New York Bar | Armenia Chamber of Advocates

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