Doing business
Armenia is a land-locked country between Turkey, Azerbaijan, Georgia and (a small border) with Iran. The country is similar in size to the Netherlands and has a total population of around 3 million. The country was able to maintain impressive growth rates until recently. The recent recession had a negative impact on the country’s economy in 2009. The Armenian government predicts an economic growth again of 1.2 % in 2010. Armenia has a successful record of transition creating a favourable macroeconomic climate based on a market economy. The country has successfully implemented a comprehensive stabilization and structural reform program. New sectors, such as precious stone processing and jewellery making, information and communication technology, and tourism have begun to supplement more traditional sectors such as agriculture in the economy.
The investment and trade policies of Armenia are considered to be one of the most open in the CIS (Commonwealth of Independent States) by international organizations. Foreign companies are encouraged to invest and are entitled by law to the same treatment as local companies. Armenia's investment climate is continuously improving with a strong government commitment to attracting FDI, including refining the legislative framework. Potential sectors for investors are construction, IT (outsourcing), agriculture and tourism.
For additional market information you can visit the website of the National Statistical Service, or the website of Armenian Development Agency. More general information on the economy of Armenia is found at the EVD (Agency for International Business and Cooperation) website.
Armenia became a full member of WTO in February 2003 and has benefited from a Generalized System of Preferences (GSP) when trading with the EU, USA, Canada, Switzerland and Japan, Poland and Estonia. The EU is presently undertaking a feasibility study into the opportunities for a FTA between Armenia and the EU.
Maintenance of microeconomic stability and high rates of economic growth is still a key priority for Armenian Government together with social integration, development of human capital, establishment of effective public, local and self-governing systems and harmonization of regional development.
Based on the current import / export figures between the Netherlands and Armenia, the country has a one-star ranking under the NL matrix for economic priority countries. The Economic Department of the Embassy can assist you with the following:
- Providing general information about the business climate in Armenia
- Providing information about the regulatory / legal framework for doing business in Armenia
- Provide you with guidance and advise on finding local intermediate agents and/or relevant governmental agencies in Armenia
- Provide you with information about trade fairs
- Provide you with names of potential business counterparts (import/export/investment) agents, etc.
- Provide you with advice on how to best handle business related problems.
Useful Links
Usefull links in Armenia:
Government of Republic of Armenia –www.gov.am
Ministry of Foreign Affairs - www.armeniaforeignministry.com
Ministry of Agriculture – www.minagro.am
Ministry of Finance – www.mfe.am
Ministry of Economy – www.mineconomy.am
Central Bank of Armenia – www.cba.am
Armenian Customs Service – www.customs.am
National Statistical Service - www.armstat.am
EBRD – www.ebrd.com
IMF – www.imf.org
UNDP – www.undp.org
WB – www.worldbank.org
SME development national center of Armenia – www.smednc.am
Armenian Chamber of Commerce – 
www.armcci.am
Armenian Development Agency – www.ada.am
Business Support Centre – www.bsc.am
Usefull links in the Netherlands:
Financial Instruments
Development Cooperation Matchmaking Facility - MMF (link, like for Georgia)
Open for Armenia from October 2007, Small and medium companies looking for a Dutch partners can apply for support under the MMF .
A local company looking for an international (in this case Dutch) partner has to submit the Matchmaking application form to the Embassy. The Dutch Embassy and the Agency for International Business and Cooperation which is the part of the Dutch Ministry of Economy (EVD) will screen the intake form (final decision by EVD). If the result of the screening is positive, the EVD will start identifying suitable Dutch companies. The EVD will offer to the local company a voucher for EUR 5,000 only if possible contacts can be identified. For this amount the local company can hire a consultant company from a list provided by he EVD. The consultant will help the local company to establish contacts with potential Dutch business partners. Since October 2007, six rounds were open (every three months companies can submit the applications). 46 Armenian companies submitted their applications for the MMF programme. Nine Armenian have received the vouchers. Next round will open in January 2010. (" Intake Form MMF")
Private Sector Investment Programme – PSI (link like for Georgia)
PSI is a new name of a programme under which investments projects in Armenia have been eligible from 1998 (though the name of the programme was different – PSO; PSOM and now PSI). The programme supports innovative investments in developing countries, with the aim to strengthen economic growth, employment and income generation. The investment is to be realised by a Dutch company in cooperation with a local partner, with whom a sustainable relationship is being established.
The terms and modalities of the programme have been revised in 2008 and in the beginning of 2009 the programme was re-launched under its new name PSI. In 2009 the total annual budget was raised from EUR 55 million in 2008 to EUR 70 million. There are no budgets earmarked for particular countries, it is a competitive programme, managed on behalf of the Ministry of Foreign Affairs by the Agency for International Business and Cooperation which is the part of the Dutch Ministry of Economy (EVD).
The maximum grant percentage a particular investment project can get is 50% with a maximum project amount of EUR 1,500,000. PSI will have two tenders a year.
Number of Projects for Armenia – 1997-present: 13; No contracts have been awarded in 2005, 2006, 2007, 2008, 2009
The closing date for the second PSI Tender is end of February 2010
For more information please visit the following website www.evd.nl/psi
ORIO (former ORET) Facility for Infrastructure Development. (Link)
The Armenian government is eligible for grants under the ORIO facility as of January 2009. ORIO is a grant facility provided by the Dutch Ministry of Foreign Affairs under the responsibility of the Minister for Development Cooperation. It contributes to the development and implementation of public infrastructure projects in developing countries. An application for a grant must be submitted by a central government. The scope of the project budget must be between EUR 2 million and EUR 60 million. ORIO finances 50% of the budget for the development phase and 35% of the budget for the implementation and operation phases of the project. ORIO sectors chosen for Armenia are: Energy, Solid Waste and Public Works.
The first call for proposals was announced in March 2009 with the deadline on 15th of May. There were no proposals from Armenia.
Monday the 15 of February, the first ORIO Call for proposals for 2010 has opened. This Call will close on Monday the 26th of April 2010 at 17.00 CET. The second Call for Proposals for 2010 will most likely open end of May and close around mid September, exact dates are still to be confirmed.
2explore - Programme Economic Cooperation Projects (link)
2explore is a new name of PESP programme through which the Dutch companies can acquire funds to undertake a feasibility study and/or studies for the preparation of an investment. The aim of 2explore is to strengthen bilateral economic relations with non-OECD countries with the aim of increasing the likelihood of Dutch companies obtaining orders in those countries. Dutch companies and their Armenian counterparts can submit proposals for activities leading up to such export transactions. The activities may be feasibility studies, project identification, and investment preparation studies. 2explore is for projects and not for market research or acquisition activities of individual companies.
CBI - Centre for the Promotion of Imports from developing countries (link)
Since 2006 Armenia has been put on the country list of CBI. The main aim of CBI is to assist developing countries in strengthening their export capabilities towards the European Union. In the summer of 2009, an export coaching programme was launched which provides long term advice (until 2014) to selected Armenian IT companies.
For more information please visit following website: www.cbi.eu
PUM Netherlands Management Co-operation Programme (PUM) (link)
The Netherlands Management Co-operation Programme offers senior NMCP advisers (most of them retired or early retired persons) to companies and institutions that can transfer knowledge and experience from their own specialist fields. The expenses for this advice are extremely low, compared to commercial consultancy firms (the recepient company / organisation only has to cover costs for accommodation and meals). NMCP is funded by the Ministry for Development Co-operation and managed by the Netherlands employers federation.
Local representative in Armenia: Mr. Grigor Ghazaryan (gghazaryan@netsys.am)
Upcoming trade fairs/exhibitions in Armenia (List of Trade fairs)
Upcoming Trade Shows in Armenia
Health Service & Pharmacy
Date: 05-MAR-10 to 07-MAR-10
For 3 days, Health Service & Pharmacy will be hosted at premiere venue, Yerevan Exhibition Center, Japan. Being organized by Logos Expo Center, the show is directed towards tapping emerging opportunities of Pharmaceutical & Medical sector. Here trade professionals will get a viable platform for meeting and exchanging ideas under one roof. The show will attract people from Preventive medicine, Dairy produce, Clinical medicine, Stomatology, Pharmacy Diagnostics and many other sectors.
Venue: Yerevan Exhibition Center, Yerevan, Armenia
Expo Beauty-Armenia
Date: 05-MAR-10 to 07-MAR-10
Expo Beauty-Armenia provides professionals with the platform from which to interact and conclude business with their trade & consumer clients. At the expo, visitors will have a unique opportunity to meet and interact with companies who represent the products they admire so greatly, to gather the information they need to make informed purchase decisions, and indeed to purchase directly from the exhibitors on site.
Venue: TBA, Yerevan, Armenia
Building & Reconstruction Expo
Date: 02-APR-10 to 04-APR-10
Building & Reconstruction Expo offers a platform for a targeted exchange of information, for discussing recent developments and taking a look at pathbreaking trends and visions. It offers an overview of the current status and future development of information and communications technologies for all those involved in this field.
Venue: Yerevan Exhibition Center, Yerevan, Armenia
Rest & Entertainment Expo
Date: 07-MAY-10 to 09-MAY-10
Yerevan Exhibition Center will emerge as a venue of Rest & Entertainment Expo where varied products/services will be exhibited which are imperative for Sporting Goods sector. Being hosted by Logos Expo Center, it is an annual show which will offer opportunities for viewing latest new techniques and comparing latest items. Here worldwide exhibitors will display Access Control, Uniforms, Architecture/ Design, Cash Advance, Cash Handling, Cashless Gaming.
Venue: Yerevan Exhibition Center, Yerevan, Armenia
World Of Childhood Armenia
Date: 29-MAY-10 to 31-MAY-10
World Of Childhood Armenia creates an opportunity for the Armenian consumers to get acquainted with children's products of the Armenian and foreign companies, the education of children, as well as with the activities of companies applying the latest methods of children`s leisure- time. World Of Childhood Armenia organized by Logos Expo Center will be held at Yerevan Exhibition Center between 29 May to 31 May 2010.
Venue: Yerevan Exhibition Center, Yerevan, Armenia
Finance Credit Insurance & Audit Expo
Date: 10-SEP-10 to 12-SEP-10
Finance Credit Insurance & Audit Expo is the 3rd international specialized exhibition for Business services Industry. Finance Credit Insurance & Audit Expo is an annual three-day event, it features hundreds of Senior Government representatives, Heads of regional & international banks, Banking information technology specialists showcasing products and services.
Venue: Yerevan Exhibition Center, Yerevan, Armenia
Polygraphy Publishing Advertising Expo
Date: 10-SEP-10 to 12-SEP-10
Polygraphy, Publishing, Advertising Expo is an International Exhibition of Printing Equipment, Raw Materials, Spare Parts, Accessories, Services. It is the only show of its kind that offers international companies the opportunity to meet with the key buyers.
Venue: Yerevan Exhibition Center, Yerevan, Armenia
Expo Food & Drinks
Date: 10-SEP-10 to 12-SEP-10
Expo Food & Drinks is an event deliciously dedicated to indulging the palate - it simply bursts with irresistible larder fillers from seasonal meats and charcuterie to chocolate and fine wine.
Venue: Yerevan Exhibition Center, Yerevan, Armenia
Industrial Armenia Expo
Date: 10-SEP-10 to 12-SEP-10
Industrial Armenia offers the best opportunity for industrial professionals to talk with their colleagues and meet face to face with new and familiar suppliers. This exhibition will be held three days from 10 to 12 Sep, 2010 at Yerevan in the Armenia.
Venue: TBA, Yerevan, Armenia
Furniture Salon
Date: 10-SEP-10 to 12-SEP-10
Furniture Salon Expo will offer a great opportunity to Armenian and foreign furniture manufacturers to demonstrate their latest products, carry out marketing and promotion campaigns which are a prerequisite for success at the market, establish new commercial ties, and sign beneficial agreements.
Venue: Yerevan Exhibition Center, Yerevan, Armenia
TRANS EXPO ARMENIA
Date: 10-SEP-10 to 12-SEP-10
Auto Expo-Armenia is the largest international Automobile event in Armenia and its neighbouring countries, making it the perfect opportunity for exhibitors to establish their company's presence on the Armenian transport market and promote their products and services to a large number of potential clients. Auto Expo-Armenia is the main event in the Automobile industry in Armenia.
Venue: Yerevan Exhibition Center, Yerevan, Armenia
Comp Expo-Armenia
Date: 10-SEP-10 to 12-SEP-10
Comp Expo-Armenia will present the single largest retail platform in the IT and Electronics sector and will offer some of the finest deals and promotions. It will now showcase not just IT, but also the very best and the latest from the wide world of technology encompassing Digital Imaging, Telephony, Consumer Electronics, Multimedia, Office Automation, Gaming, Home Entertainment, Publishing, Education and more.
Venue: Yerevan Exhibition Center, Yerevan, Armenia
Build Expo-Armenia
Date: 10-SEP-10 to 12-SEP-10
Build Expo-Armenia offers the construction industry considerable opportunities for progress and added value. The industry has always been able to turn regulatory constraints and new orders to advantage to innovate and move forward.
Venue: Yerevan Exhibition Center, Yerevan, Armenia
Q&A
Who is a foreign investor?
A foreign investor can be any foreign state, foreign legal entity, foreign citizen, stateless person, citizen of the Republic of Armenia permanently residing out of the territory of the Republic of Armenia, as well as any international organization which engages, in accordance with the legislation of the country of its location, in investment in the Republic of Armenia.
What is a foreign investment?
Foreign investment is any type of property, including financial resources and intellectual values, which is being directly invested by a foreign investor in commercial and other activities implemented on the territory of the Republic of Armenia to gain profit (revenue) or achieve any other beneficial result.
What is an enterprise with foreign investment?
It is an enterprise of any organizational-legal type created in compliance with the legislation of the Republic of Armenia, the founder or a participant of which is a foreign investor.
What kinds of investment forms are there?
Foreign investors shall be entitled to investment in the territory of the Republic of Armenia by means of:
a) Foreign currency, other currency values and the national currency of the Republic of Armenia;
b) Movable and immovable property (structures, buildings, equipment and other material values) and any property right related to that property;
c) Stocks, bonds and other securities as established by legislation of the Republic of Armenia;
d) Any right to claim money or performance of contractual obligations;
e) Any valuable right to intellectual property;
f) A right, conferred by legislation of the Republic of Armenia or by contract, to engage in economic activities, including the right to explore, extract, develop or exploit natural resources;
g) Paid services:
h) Any other type of investment not prohibited by the legislation of the Republic of Armenia
What are the methods of implementing foreign investments?
Foreign investors shall be entitled to implement investments using the following methods:
a) creation of enterprises entirely owned by foreign investors; creation of branches, divisions and representative offices owned by foreign legal entities and takeover of ownership of acting concern;
b) foundation of joint ventures with legal entities and non-incorporated enterprises of the Republic of Armenia as well as citizens of the Republic of Armenia or acquisition of shares in acting concerns;
c) acquisition of stocks, bonds, and other securities within the limits defined and established by the legislation of the Republic of Armenia:
d) attainment of the right to use land independently or with the participation of legal entities or non-incorporated enterprises of the Republic of Armenia and procurement of concessions to use natural resources on the territory of the Republic of Armenia;
e) acquisition of other property rights;
f) other methods which are not prohibited by the legislation of the Republic of Armenia, particularly the conclusion of contracts with legal entities or non-incorporated enterprises of the Republic of Armenia.
Implementation of foreign investments may be prohibited or limited to the manner provided by the legislation of the Republic of Armenia.
What legal regimes of foreign investment are used in the Republic of Armenia?
The legal regime of the Republic of Armenia governing foreign investments and the methods of their implementation cannot be less favorable than the regime governing the property, property rights and investment activities of citizens, legal entities and non-incorporated enterprises of the Republic of Armenia.
To encourage foreign investments in the most significant fields of social and economic development, additional privileges for such investments may be established in a manner provided by legislation of the Republic of Armenia.
The legislation of the Republic of Armenia may define those areas, wherein the activities of foreign investors and enterprises with foreign investment are limited or prohibited due to requirements of national security.
Are there any guaranties in the event of amendments to the legislation of the Republic of Armenia?
In the event of amendments to the foreign investment legislation of the Republic of Armenia, the legislation, which is effective at the moment of implementation of investments, shall be applied upon the request of a foreign investor, during a five year period from that moment.
Foreign investments in the Republic of Armenia shall not be subject to nationalization. Government bodies cannot confiscate foreign investments.
Confiscation may be allowed only as an extreme means in case of emergency declared in accordance with the legislation of the Republic of Armenia, and it may be applied only upon the judgment of law court and with full compensation.
What compensation is assigned for damages caused to foreign investors?
Foreign investors shall be entitled to compensation, according to a court decision, for those material and moral damages, including lost profits, which damages are caused to them as a result of illegal actions performed by the Government bodies of the Republic of Armenia or their officials as well as improper performance by those bodies or their officials of their obligations established by the legislation of the Republic of Armenia toward a foreign investor or enterprise with foreign participation.
All the damages caused to foreign investors as a result of actions identified in Article 8 and Article 9 Clause 1 of this Law shall be subject to prompt compensation at current market prices or prices determined by independent auditors. This compensation shall be paid either in the currency invested or in any other currency mutually agreed upon by the parties.
For the period from the moment of origination of the right to compensation through the moment of its execution, interest on the due amount of compensation shall be calculated at current rates for deposit accounts established on the loan market of the Republic of Armenia.
What is the procedure of disposal of a foreign investor?s profits or revenue and other means?
A foreign investor's profit or revenue, after paying the taxes and other fees established by the legislation of the Republic of Armenia, shall remain under his/her disposal.
Foreign investors shall be entitled to open current and other accounts in the banks of the Republic of Armenia authorized by the legislation of the Republic of Armenia, in a manner established by legislation of the Republic of Armenia.
Foreign investors shall be entitled to legally acquire foreign currency or commodities in the domestic market of the Republic of Armenia, in a manner established by the legislation of the Republic of Armenia.
What customs duties exemptions are applicable?
Property imported by a foreign investor into the Republic of Armenia as the authorized capital of the foreign investment enterprise, as well as property (raw materials, semi finished production, supplementary items, spare parts, etc.) intended for use in the production process of such an enterprise, shall be exempted from customs duties.
Property imported into the Republic of Armenia by foreign employees of enterprises with foreign investment intended for their personal use shall be exempted from customs duties.
What are the particularities of export and import of products, work and services?
Enterprises with foreign investment shall be entitled to export their own products, works and services and import products, works and services for their own needs without any license, with the exception of the cases defined by the legislation of the Republic of Armenia and by international agreements. Regulations regarding the certification of exported products, works and services as private products of the above mentioned enterprises are established by the legislation of the Republic of Armenia.
Products, works and services being imported for the needs of the above mentioned enterprises are regulated according to the legislation of the Republic of Armenia.
Profits or revenues, including currency, gained by the above mentioned enterprises from the export of their own products, works and services, after the payment of taxes established by legislation of the Republic of Armenia, remains at the disposal of those enterprises.
Export and import of other products, works and services by enterprises with foreign investment shall be done on the basis established by legislation of the Republic of Armenia.
Are there any privileges related to taxation of enterprises with foreign investment?
Enterprises with foreign investment shall pay taxes and enjoy tax privileges in a manner established by the legislation of the Republic of Armenia.
Privileges established by this law shall apply to those enterprises with foreign investment where such investment is no less than 30 (thirty) percent at the moment of foundation.
For the purpose of drawing up the balance sheet and inventory, an enterprise with foreign investment shall convert foreign currency into the national currency of the Republic of Armenia at the exchange rate determined in accordance with Article 5 of this Law and other legislation of the Republic of Armenia.
JOINT-STOCK COMPANY
What is a joint-stock company in Armenia?
A joint-stock company is an enterprise which is a legal entity whose capital is divided into shares. There are two kinds of joint-stock companies, open and close.
What is the procedure for dismissal of officers?
Managers, members of the Board of Directors or members of the Supervisory Board may be dismissed by a vote of the General Meeting of the shareholders representing a working majority.
Must shares have a minimum nominal value?
Shares must have a minimum nominal value and the total nominal value of these shares must correspond to the amount of the registered capital.
What minimum amount of statutory capital is required?
The minimum statutory capital requirement is 100 times of the minimum monthly wage for a closed company and 1000 times the minimum monthly wage for an open company, although the foundation documents may provide a greater amount.
Are there special requirements for contributions in kind?
Contributions in kind must be valued by an independent auditor.
What is the minimum number of shareholders required?
A stock company may be established by domestic and foreign individuals and legal persons. According to the Civil Code a joint-stock company may be established by one person if he takes up all the shares of the company).
Are Board members required to be Armenian nationals or residents?
Board members, members of the Board of Directors or the Supervisory Boards and the Chairman of the Board of Directors are not required to be Armenian citizens or residents.
Are there any shareholder or management qualification rules for the Board?
The members of the Board of Directors can be shareholders.
What are the registration requirements to open a joint-stock company?
The foundation documents must record, inter alia, the enterprises' name and activities, names, addresses and capital contributions of its founders, the amount of statutory capital, rights and duties of founders, management structure, its by-laws and the procedure for making distributions. Any subsequent changes to the foundation documents must be recorded in the State Register.
Registration is carried out through a local office of the State Register. Initial registration requires the submission of a registration application (names and addresses of the partners, name and address of the registered office of a legal person, list of activities), thefoundation documents, any necessary licenses and any other documents required in specific cases, together with a registration fee. Once registered, a company is assigned a state registration number and a registration certificate.
HOW TO REGISTER YOUR BUSINESS
How to begin the process of registration for Sole Proprietors?
To begin the process of registration you will need to pay the State duty of 3,000 dram at any bank or bank branch (some post offices have bank branches).
Direct the payment to the account number for registering a sole proprietorship 900005160750.
Do this before going to the State Registrar's office in order to save a step in the process.
What do I need for the State Registrar?
Complete and submit the registration application at the State Registrar's office.
You will need:
a) a photocopy of both the photo page and the registration page of your passport
b) One 3cm X 4cm photo
c) Receipt for payment of State duty (of 3,000 dram) from the bank (from Step 1). (Make a copy of this receipt for your records before submitting it).
How long will it take for the State Registrar to accept or reject my application?
The State Registrar will accept or reject your application within two business days.
Where do I get my registration certificate?
If accepted, collect your registration certificate from the State Registrar's office.
How to register with the Tax Service?
Before registering with the Tax Service, you must determine whether to become a simplified or regular tax payer.
Complete and submit tax registration forms at the local tax office. You will need to submit a copy of your company registration certificate. Sole proprietors will need some form of identification such as a passport.
If you have registered a legal entity, you will also need to submit a copy of your charter.
TIP
You may request to become simplified taxpayer at this time.
Where do I get my Taxpayer Identification Number (TIN) from?
Return to the tax office to collect your Taxpayer Identification Number (TIN) - an eight digit number used for taxpayer identification and filing purposes. It should be available within one or two days of submitting the tax registration forms.
Where do I submit my social security registration?
Complete and submit social security registration at your local Social Security Fund office. You must do this within thirty days of registering with the State Registrar or you will face fines. Be sure to take a copy of your registration certificate, a copy of your charter and your TIN.
How should I obtain Seal?
If you need a seal to conduct your business, you must first obtain permission from the police, at 5 Yervand Kochar street, Yerevan. The following documents must be submitted:
a) Completed application form
b) Copy of Certificate of State Registration
c) Copy of charter
d) Tax Identification number (TIN)
e) Receipt for paying the State duty for requesting permission to order seal (6,000 dram), which can be paid at any bank or bank branch (direct your payment to account number 900005016473).
Permission is typically issued within one day.
Where to order Seal from?
Once you have obtained permission from the police, you may order your seal. This can only be done at "Seal" JSC, also located at 5 Yervand Kochar street, Yerevan. Producing your seal may take several days and depending on the design and delivery time will cost between 10,000-20,000 dram.
Do I need a license?
Simple License
To apply for a simple license, submit a written request to the Ministry of Finance and Economy at 1 Melik Adamyan street, Yerevan 0010. Include the following information: your name, address, geographical area of activity, copy of registration certificate and type of planned activity subject to licensing.
Compound License
Submit a written request for a license to the agency that oversees your economic activity (see table in Annex H). The following information must be included: company name, address, geographical area of activity, copy of registration certificate, type of planned activity subject to licensing, and documents confirming professional capability of people engaged in the activity subject to licensing.
Simple license
If the application is not rejected within three days after submission, you can assume your license has been approved and you may begin your business activity.
Compound license
If the application is not rejected within thirty days after submission you can assume your license has been approved and you may being your business activity.
Who needs to register with Customs Committee?
Not all companies are required to register with Customs; only those companies that plan on exporting and/or importing are required to register with customs. To register with your local customs office, be sure to bring with you the necessary documents indicated in Section 7, Registering with the Customs Committee, of this guide.
LEGAL ENTITIES
How to begin the registration?
Your first stop will be at a bank or bank branch (some post offices have bank branches) to pay State duties:
a) a. 5,000 dram for registering your company name. Direct the payment to account number 900005016200 and in order to save a step later;
b) b. 12,000 dram to the State Registrar's office for registering the company. Direct the payment to account number 900005160719. It is a good idea to verify these account numbers in case they may have changed.
Where to register the company name?
Go to the local State Registrar's office to register your company name. Be sure to bring the receipt for the 5,000 dram payment of State Duties. (Make a copy of the receipt for your records before submitting it).
To help organize the documents you will need to register a legal entity, use the following as a checklist to complete your application package.
a) Registration application form
b) Receipt for paying State registration duty
c) Copy of certificate of your company's name registration
d) Two copies of your charter
e) Minutes from Board meeting deciding to establish a legal entity
f) Proof of temporary bank account
What documents should I get from State Registrar's office?
a) Application form
b) Sample charter
c) Sample of the minutes from a Founder's meeting deciding to create a legal entity
Step 4.
It is necessary to hold a Founder's meeting where a formal decision is made to establish a legal entity. The minutes of this meeting must be written and signed by the Chairman and Secretary. All founders (of their proxies) must be present. (Sample minutes are available from the State Registrar's office).
How to develop a charter for your legal entity?
You may use the sample from the State Registrar, or develop your own with the assistance of a specialist or experienced business person. A sample may be found in Annex B.
Do I need to open a bank account?
You will need to open a temporary bank account. The amount required to deposit depends on the company type. The bank will provide you with a notice that you have a temporary account that must be included in your application package. When your registration is complete, you will be able to convert this to a standard bank account.
Where do I submit the completed application package?
Submit the completed application package to the local State Registrar's office.
Be sure to sign the application!
When will my application be ready?
Your application will be accepted or rejected within a maximum of five business days. If rejected, you should receive written notification within five days. If approved, collect the registration certificate at the State Registrar's office.
Am I a simplified or regular tax payer?
Before registering with the Tax Service, you must determine whether to become a simplified or regular tax payer.
How to register with the Tax Service?
Complete and submit tax registration forms at the local tax office. You will need to submit a copy of your company registration certificate. Sole proprietors will need some form of identification such as a passport. If you have registered a legal entity, you will also need to submit a copy of your charter.
TIP
You may request to become a simplified taxpayer at this time.
Where do I obtain my Taxpayer Identification Number?
Return to the tax office to collect your Taxpayer Identification Number (TIN)-an eight digit number used for taxpayer identification and filing purposes. It should be available within one or two days of submitting the tax registration forms.
Where do I submit my Social Security registration
Complete and submit social security registration at your local Social Security Fund office. You must do this within thirty days of registering with the State Registrar or you will face fines. Be sure to take a copy of your registration certificate, a copy of your charter, and your TIN.
How should I obtain a Seal?
If you need a seal to conduct your business, you must first obtain permission from the police, at 5 Yervand Kochar street, Yerevan. The following documents must be submitted:
a) Completed application form
b) Copy of Certificate of State Registration
c) Copy of Charter
d) Tax Identification number (TIN)
e) Receipt for paying the State duty for requesting permission to order seal (6,000 dram), which can be paid at any bank or bank branch (direct your payment to account number 900005016473).
Permission is typically issued within one day.
Where to order Seal from?
Once you have obtained permission from the police, you may order your seal. This can only be done at "Seal", JSC, also located at 5 Yervand Kochar Street, Yerevan. Producing your seal may take several days and depending on the design and delivery time will cost between 10,000-20,000 dram.
Do I need a license?
Simple/Compound
Many economic activities require a license. To determine if your business requires a license, refer to the table found in Annex H of the Roadmap guide. If you don't require a license, you may skip this section. If you do need a license, then you must determine what type of license (simple or compound) is required, and which agency is the licensor. That agency will also inform you of the cost of the license (or refer to the Law on State Duties). See Section 6, Licensing, of the Roadmap guide.
Simple license
To apply for a simple license, submit a written request to the Ministry of Finance and Economy at 1 Melik Adamyan street, Yerevan 0010. Include the following information: your name, address, geographical area of activity, copy of registration certificate and type of planned activity subject to licensing. If you are licensing a legal entity, you will also need to submit a copy of your charter.
If the application is not rejected within three days after submission you can assume your license has been approved and you may begin your business activity.
Compound license
Submit a written request for a license to the agency that oversees your economic activity (see table in Annex H). The following information must be included: company name, address, geographical area of activity, copy of registration certificate, type of planned activity subject to licensing, and documents confirming professional capability of people engaged in the activity subject to licensing. If you are licensing a legal entity, you will also need to submit a copy of your charter. If the application is not rejected within thirty days after submission you can assume your license has been approved and you may begin your business activity.
Who needs to register with Customs Committee?
Not all companies are required to register with Customs; only those companies that plan on exporting and/or importing are required to register with customs. To register with your local customs office, be sure to bring with you the necessary documents indicated in Section 7, Registering with the Customs Committee, of this guide.
