At a glance
AMD 3,000 (~$8 USD)
1–3 business days
None
0% (micro) or 1% (IT)
For banking (not registration)
Required (1–14 business days)
Armenia has become an increasingly popular destination for foreign entrepreneurs, freelancers, and digital nomads looking for a simple, low-cost business structure. One of the most accessible options is the individual entrepreneur (IE), also known as IP or ИП in Russian-language documents. Both IEs and LLCs are available to foreigners, but IE registration is generally faster, less expensive, and does not require a residence permit.
This guide covers everything a non-resident foreigner needs to know about registering as an IE in Armenia: eligibility, documents, step-by-step process, tax regimes, bank account opening, and how IE compares to an LLC.
What is an individual entrepreneur (IE) in Armenia?
An individual entrepreneur is a natural person who is registered to conduct business activities in Armenia without forming a separate legal entity. Unlike an LLC, an IE is not a company — it is you, personally, operating a business under your own name.
The key characteristics of an IE include: no minimum capital requirement, no need for a company charter or founding documents, simplified registration, and access to Armenia’s favorable tax regimes for small businesses. However, an IE carries unlimited personal liability, meaning your personal assets are not shielded from business debts.
IE registration is particularly well suited for freelancers, consultants, IT professionals, small traders, and creative professionals who want a simple legal structure to invoice clients and operate in Armenia.
Can non-residents register as an IE in Armenia?
Yes. Armenian law permits any person with active legal capacity — whether an Armenian citizen, a foreign national, or a stateless person — to register as an individual entrepreneur. You do not need an Armenian residence permit to register an IE.
The only practical requirement is that you either appear in person at the State Register of Legal Entities or authorize a representative via a power of attorney (PoA) to submit documents on your behalf.
Online registration is technically available through e-register.am, but it requires an Armenian electronic ID card and digital signature — which most non-residents do not have. For this reason, the vast majority of foreign entrepreneurs register in person or through a legal representative.
If you are considering longer-term presence in Armenia, you may also want to explore the residence permit options or the digital nomad visa, which can simplify banking and other administrative matters.
Required documents for IE registration
The document requirements for IE registration are significantly lighter than those for LLC registration in Armenia. Foreign nationals need the following:
1. Valid passport — the original is presented at the State Register.
2. Notarized Armenian translation of your passport — must be done by a licensed Armenian translator and notarized.
3. Payment receipt for state duty — AMD 3,000 (~$8 USD), paid to the treasury before or at the time of registration (payment terminals are available at the State Registry).
4. Application form — drafted by the State Register employee at the time of submission. You do not need to prepare this in advance.
If registering via power of attorney: A PoA prepared in Armenian (or bilingually including Armenian) does not require notarization or legalization. Foreign-language PoAs prepared outside Armenia must be apostilled (under the Hague Convention) or consularly legalized, and translated into Armenian. Your representative will present the PoA along with the documents listed above.
Note that a PSN (Public Service Number) is not required for IE registration itself. You may need a PSN later when opening a bank account, though IEs already receive a tax identification number upon registration.
Step-by-step IE registration process
IE registration in Armenia is one of the fastest business formation processes in the region. Here is what to expect:
Step 1: Obtain a notarized Armenian translation of your passport from a licensed translator in Armenia. This typically costs AMD 5,000–10,000 and takes a few hours to one day.
Step 2: Pay the state duty of AMD 3,000 (~$8 USD). The most convenient option is to pay at the State Registry itself via a payment terminal. You can also pay at any Armenian bank. Keep the receipt.
Step 3: Visit the State Register of Legal Entities (or send your representative with a PoA). The employee will draft the application form, review your documents, and process the registration.
Step 4: Receive your registration certificate. Processing is typically immediate — within 10–15 minutes of document submission. In some cases it may take up to 1–3 business days.
Step 5: Select your tax regime by filing the appropriate election with the State Revenue Committee (SRC). Your legal representative can advise on the optimal regime based on your activities and expected revenue.
After registration, you may need to obtain a PSN and will need to open a bank account before you can begin operating and receiving payments. See the banking section below for details.
Tax regimes for individual entrepreneurs
Armenia offers several tax regimes for IEs, and choosing the right one can significantly reduce your tax burden. The main options are:
Micro-enterprise regime (0% tax)
IEs with annual turnover under AMD 24,000,000 (~$64,000 USD) may qualify for the micro-enterprise regime, which applies a 0% tax rate on business income. However, since January 2025, the eligible activities have been significantly narrowed under Armenian tax law. Many sectors are now excluded, including IT and software development, consulting, legal and accounting services, professional services, construction, trade, public catering in Yerevan, medical services, and financial services.
The micro-enterprise regime is now primarily available for small-scale services, artisan work, and certain niche activities outside the excluded categories. If your business falls within an excluded sector, you will need to consider the turnover tax or general system.
IT turnover tax (1%)
IEs engaged primarily in IT activities (at least ~90% of revenue from IT) can elect the IT turnover tax at a rate of 1%, applicable up to AMD 115,000,000 (~$307,000 USD) in annual turnover. This rate was reduced from 5% in 2025 and is currently legislated through 2031, making it one of the most competitive IT tax rates in the region. For more details, see our guide on Armenia’s 1% tech tax.
General turnover tax (STS)
For non-IT activities above the micro-enterprise threshold, the simplified turnover system (STS) applies rates based on activity type: manufacturing at 7%, trade at 10%, services at 10%, and catering at 12%. The STS is available for IEs with annual turnover up to AMD 115,000,000. Note that from 2025, certain professional services (including legal, accounting, consulting, and scientific/technical activities) are excluded from the turnover tax regime as well and must operate under the general taxation system with VAT.
General taxation system
If your turnover exceeds AMD 115,000,000 or you do not elect a simplified regime, you fall under the general system. IEs on the general system pay 23% income tax on net profit (this is higher than the 18% corporate income tax rate that applies to LLCs). VAT registration becomes mandatory at the AMD 115,000,000 turnover threshold, with a standard VAT rate of 20%.
E-invoicing and fiscal compliance
All IEs in Armenia are required to issue electronic invoices through the State Revenue Committee’s (SRC) digital invoicing system. This requirement has been in effect since 2016. IEs providing retail or consumer-facing services must also use certified cash registers (fiscal devices) linked to the SRC system and issue fiscal receipts for each transaction. Non-compliance with invoicing and cash-register rules carries significant penalties — the SRC actively enforces these obligations.
Mandatory health insurance
From January 2026, IEs (including foreign nationals) with prior-year gross revenue exceeding AMD 2,400,000 are subject to mandatory health insurance contributions of AMD 129,600 per year (~$346 USD), payable by April 20 of the following year. This applies under the Law on Universal Health Insurance and is self-assessed.
Opening a bank account as an IE
After registering your IE, you will need to open a bank account to receive payments and conduct business. Armenia has 17 licensed banks supervised by the Central Bank, and several are experienced in serving foreign entrepreneurs.
Required documents for IE bank accounts
Banks typically require your passport (with notarized Armenian translation), IE registration extract from the State Register, PSN certificate (or a police statement confirming the absence of a PSN), proof of address, and source of funds documentation. Requirements vary by bank, but these are standard across most institutions.
PSN: where and how to obtain it
The PSN (Public Service Number) is obtained from the Migration and Citizenship Service or territorial police offices. Any foreigner who is physically present in Armenia can obtain a PSN from the Migration and Citizenship Service, regardless of whether they hold a residence permit. The process is free and typically quick.
Timeline and remote options
In-person bank account opening for foreign nationals typically takes 1–2 weeks due to enhanced KYC and compliance checks. Most Armenian banks require the account holder to visit a branch for KYC verification. Some banks, such as Converse Bank and Evocabank, offer limited remote opening or PoA-based options, though these involve enhanced due diligence and may take 1–2 weeks. Banks may change their policies at any time and are not required to explain refusal decisions.
Deposit insurance and fintech compatibility
IE accounts are covered by Armenia’s Deposit Guarantee Fund: up to AMD 16,000,000 (~$42,700 USD) for AMD deposits and AMD 7,000,000 (~$18,700 USD) for foreign currency deposits, per depositor per bank. Payoneer works in Armenia through a partnership with Converse Bank and is widely used by IEs and companies. Stripe is not currently available in Armenia. For more on banking in Armenia, see our dedicated guide.
IE vs LLC: which is right for your business?
Choosing between IE and LLC is one of the most common questions we receive from foreign entrepreneurs. Here is a side-by-side comparison:
| Factor | Individual Entrepreneur (IE) | LLC |
|---|---|---|
| Registration cost | AMD 3,000 (~$8) | No state fee (notarization + charter costs only) |
| Timeline | Immediate (10–15 min) | 20 min (online) to 2–3 days |
| Personal liability | Unlimited — personal assets at risk | Limited to contributions |
| Minimum capital | None | None (de facto) |
| Can hire employees | Yes | Yes |
| Tax (general system) | 23% income tax | 18% CIT + 5% dividend tax on distributed profit = ~22% |
| Simplified regimes | Same STS/micro/IT rates | Same STS/micro/IT rates |
| Deposit insurance | Covered (AMD 16M / FX AMD 7M) | NOT covered |
| Bank account ease | Somewhat easier (personal KYC) | More complex (corporate KYC, UBO docs) |
| Conversion | No direct IE-to-LLC conversion | N/A |
When to choose IE: You are a freelancer, consultant, or small business owner with relatively low revenue (under AMD 24M for micro, or under AMD 115M for IT/STS), limited liability exposure, and no need for outside investment. IE is faster, cheaper, and simpler to maintain.
When to choose LLC: You expect significant revenue growth, need limited liability protection, plan to bring on investors or partners, or want to build a business with a separate legal identity. For more on LLC formation, see our business registration guide.
Note that there is no formal mechanism to convert an IE into an LLC. If you later decide to switch, you will need to register a new LLC, transfer contracts and assets, and close the IE registration.
Crypto and digital assets
Armenia adopted the Law on Crypto-Assets in mid-2025, with licensing regulations taking effect on January 31, 2026. Crypto-asset service providers must now obtain a license from the Central Bank of Armenia before commencing operations. Existing providers operating before the law’s effective date have until January 31, 2027 to obtain a license or cease activities. New IEs planning crypto-related services should be aware that licensing requirements lean toward legal entities (LLC or JSC), and restructuring may be necessary for full compliance.
Frequently asked questions
Can I register an IE remotely without visiting Armenia?
Do I need a residence permit to register as an IE?
Can an IE hire employees in Armenia?
What is the difference between IE and PE (private entrepreneur)?
Can I open a bank account for my IE remotely via power of attorney?
What taxes does an IE pay in Armenia?
Can I switch from IE to LLC later?
Do I need an Armenian PSN to register an IE?
Next steps
Registering as an individual entrepreneur in Armenia is one of the fastest and most affordable ways for a non-resident foreigner to establish a business presence. Once registered, IEs can automatically obtain a tax residency certificate through the SRC’s online platform — a useful document for claiming treaty benefits and confirming your tax status to foreign clients or tax authorities. Whether you choose to handle it in person or through a legal representative via power of attorney, the process can be completed in as little as one day.
Our team at Vardanyan & Partners regularly assists foreign entrepreneurs with IE registration, tax regime selection, bank account opening, and ongoing compliance. If you are considering the IE route, we can guide you through every step — from initial registration to your first invoice.
