Armenia is one of the countries that emerged from the Soviet Union with one of the most rapid rates of technical development. There is a ready supply of knowledgeable IT personnel, minimal initial capital requirements, and investment policies in Armenia that are friendly and open. These are all aspects that support the formation of new firms in the country. The Armenian tax system encourages the growth of innovative technologies by, for instance, absolving newly founded information technology firms of income tax for five years and exempting all Armenian businesses from the payment of VAT. The nation is exerting a lot of effort to develop new laws and to cultivate a reputation for being one of the nicest countries.
Armenian organizational structures
The Civil Code of Armenia recognizes the following business structures as permissible under Armenian law: sole proprietorship, general partnership, limited partnership (partnership in commendam), limited liability company, subsidiary economic company, and joint stock company. Sole proprietorships are not permitted under Armenian law. The limited liability company is the most well-known and widespread form of corporate organization known as a corporation. However, you are obligated to carefully analyze all of your options and select the one that is most suitable for your information technology company.
Organizing your information technology firm in Armenia
The Agency for State Register of Legal Entities, which operates under the Ministry of Justice in the Republic of Armenia, is in charge of managing the registration process. The Republic of Armenian legislature and pertinent decisions made by the Government of Armenia has been updated to reflect a number of the advantages that the Government of Armenia has enacted to assist the information and communications technology industry. The Business Entry One-Stop Shop was first introduced by the Ministry of Justice in 2011, and there is no fee associated with registering for it. Tax identification numbers, information on registering a business, and name reservations are all available to you at this location. The issuance of TINs is under the purview of the State Registrar. There is a possibility that this might take up to three full business days to complete. Another way for electronic registration is available at www.e-register.am/am/, which requires an electronic signature in addition to the user’s electronic signature. This approach is gaining more and more popularity. On this website, a search for businesses that match a certain name or personality may be conducted.
Establishment of Armenian commercial activity
Without having to make a physical appearance, it will take ten to fourteen business days to officially establish a company. To become incorporated, a company in Armenia is required to go through the following processes:
- Describe the firm, including its full name, structure, share capital, and activities.
- Checking the database for the availability of the business name.
- Pay any applicable service costs.
- Provide the paperwork that is requested.
- Deposit the required share capital into a bank account that has been opened in Armenia.
- Register to participate in taxation.
- Obtain the necessary permissions and licenses before traveling to Armenia.
- Provide a local address for your business
- Adopt a circular seal that incorporates the components that have been designated by the government.
Documentation essential to the establishment of a company in Armenia
The documentation includes the company’s signed Articles of Incorporation and a power of attorney that has been notarized and authorizes a representative in Armenia to freely contact the government agency and the bank. Also, a decision that has been notarized to form an organization and designate the director of that organization (the document will be provided after the necessary amendments are agreed upon). It is required that the original copies of the papers listed above to be sent to Yerevan to be notarized and translated into Armenian there.
Make people aware of your business
Utilize a variety of marketing and advertising approaches to get in front of potential customers and build a name for your business. Some examples of this include the creation of a website, the growth of a following on social media platforms, and advertising in local media.