DOING BUSINESS IN ARMENIA IN 2023
Since 2003, Healy Consultants Group has assisted our Clients with business registration in Armenia. Our services include i) Armenia company incorporation ii) government license registration iii) business bank account opening iv) employee recruitment v) visa strategies and vi) office rental solutions.
| Compare different Armenia entities | Tax resident LLC | IT Company | Free Zone company | Investment Fund | Representative office |
|---|---|---|---|---|---|
| Also known as | Onshore company | Tech company | Free economic zone company | Licensed fund | Rep office |
| Best use of company? | All products and services | Mobile & cloud solutions | Manufacturing & trading | Asset management | Marketing & research |
| How soon can you invoice Clients/sign sales contracts? | 2 weeks | 2 weeks | 2 weeks | 2 weeks | 2 weeks |
| How soon can you hire staff? | 2 weeks | 2 weeks | 2 weeks | 2 weeks | 2 weeks |
| How soon can you sign a lease agreement? | Immediately | Immediately | Immediately | Immediately | Immediately |
| How long to supply corporate bank account numbers? | 4 weeks | 4 weeks | 5 weeks | 5 weeks | 5 weeks |
| How long to supply company registration/tax numbers? | 2 weeks | 2 weeks | 2 weeks | 2 weeks | 3 weeks |
| Corporate tax rate on annual net profits? | 20% | 0% | 0% | 20% | None |
| Limited liability entity? | Yes | Yes | Yes | No | No |
| Government grants available? | Yes | Yes | Yes | Yes | No |
| Government approval required for foreign owners? | No | No | No | No | No |
| Resident director/partner/manager/legal representative required? | No | No | No | No | No |
| Minimum paid up share capital? | US$1 | US$1 | US$1 | None | None |
| Can bid for Government contracts? | Yes | Yes | Yes | Yes | No |
| Corporate bank account location? | ACBA - Credit Agricole Bank | Ameriabank | Armbusinesbank | Ardshinbank | Ineco Bank |
| Can secure trade finance? | Yes | Yes | Yes | Yes | No |
| VAT payable on sales to local customers? | 20% | 20% | 0% | 20% | 20% |
| Average total business set up engagement costs? | €9,400 | Request a proposal | Request a proposal | Request a proposal | €12,060 |
| Average total engagement period? | 2 months | 2 months | 2 months | 2 months | 2 months |
Armenia business setup summary
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Advantages of Armenia company registration
- A limited liability company in Armenia can be incorporated with a minimum of one shareholder and one director of any nationality. The minimum paid-up capital required is €1 for incorporation and our Client will not need to travel to complete the engagement;
- Starting a business in Armenia is quite simple and fast as it takes approximately 1 week to complete the incorporation process. Armenia is positively ranked as 47th out of 190 countries in ease of doing business by World Bank;
- Armenia’s close proximity to i) the large European Union (EU) markets ii) Commonwealth of Independent States (CIS) markets iii) Asian markets and iv) Middle East markets, provides a good platform for setting up of a manufacturing and export business entity as entrepreneurs can engage in trade with all these countries;
- Armenia has a considerable network of operational Double Tax Treaties with 46 countries and investors can also access markets through Free Trade Agreements including i) WTO members worldwide and ii) GSP (Generalized Scheme of Preferences) regimes with EU countries, USA, Canada and Japan, Switzerland and Norway and iii) CIS members;
- Armenia offers entrepreneurs tax incentives in the Free Economic Zones such as i) tax exemptions on income, profits and property taxes and ii) exemption from VAT;
- Armenia’s overall quality of infrastructure is highly ranked at 69 out of 141 economies by the World Economic Forum with high speed accessibility to internet throughout the country;
- In Armenia, there are no restrictions on i) foreign investments or ownership ii) foreign currency exchange and iii) repatriation of profits.
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Disadvantages of Armenia company registration
- Armenia is a landlocked country therefore making it quite difficult to transport products especially for manufacturing companies that heavily rely on shipping as a means of transportation of their products;
- Taxation in Armenia is quite high with corporate tax rate at 20% and VAT levied at 20%;
- Corruption is a major constraint in Armenia as the government and judicial system are riddled with corrupt leaders and this impedes the enforcement of contracts and slows down administrative procedures;
- In Armenia, the official language is Armenian therefore all business documents must be translated into Armenian or Russian. This slows down the process of company setup and is also a constraint when foreign investors need to communicate with employees and government officials.
