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Below, you will find the answers to the most common questions you may have. If you find that your question is not answered on this page, please e-mail us info@armcanchamber.com or call us during 9:00 AM to 6:00 PM at 1-514-8429944


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.
  You are now legally registered and on the road to...