Guide to Company Incorporation in Armenia

1. What is the minimum share capital for a Limited Liability Company in Armenia?

In Armenia, in order to incorporate a new limited liability company, there are no requirements for depositing a minimum share capital, unless the law stipulates that there is a minimum that has to be deposited by a certain type of business.

2. What is the minimum share capital for a Joint Stock Corporation in Armenia?

Joint Stock Companies in Armenia are either open or closed. No matter what type is chosen, there is no mandatory minimum capital requirement for its incorporation, except when the law requires a minimum capital requirements for certain types of activity. The only difference is that the open joint stock company can offer publicly its shares, while the closed joint stock company cannot do this.

3. Are there any special requirements for establishing a Limited Liability Company in Armenia?

In order to establish a Limited Liability Company in Armenia and register it, you need to name it and include in its name the type of company it is (LLC, OSJC or CJSC). Besides, you also need to have a definite address of the company’s location. 

4. How can I register for VAT in Armenia?

There is no special procedure that has to be followed by an individual which has to register for VAT in Armenia. In fact, as soon as one of the bellow criteria is met, the entity becomes automatically VAT payer.

The registration for VAT is mandatory for commercial activities with sales exceeding 58.35 million AMD in the previous year, the businesses which require a license which costs more than 10000 AMD or business which operates goods that are subject to the excise tax and other.

Certain transactions are exempt from paying VAT such as the transactions carried out by financial institutions, tuition for education, education materials, sales of agricultural seeds, plants and chemicals used in agriculture, veterinary medicines, fertilizers, newspapers, magazines, the supply of goods necessary for humanitarian and charitable action, services related to care of children.

5. How can I open a bank account in Armenia?

In order to open a bank account for a company, the applicant usually must deposit the following documents: an application for account opening(signed and sealed by the authorized person), the company’s charter, the state registration certificate and license (if available), a proof containing the tax payer’s registration number, State Registration Certificate enclosure with the data of the head of legal entity executive body or minutes/decision of the authorized body on appointing a manager/managers, signature specimen cards of the chief accountant, the head of the executive body, and persons responsible for the accounting and persons authorized to sign financial transactions with the Bank, seal specimen, passport copies of individuals possessing 10 % and above shares and director of the legal entity, a statement from the register of shareholders/ if the information on shareholders is not available in the Charter(mandatory for joint stock companies).

6. How can I recruit personnel in Armenia?

Local organizations and agencies for recruitment in Armenia can help any company find the best qualified personnel. Also publishing announcements in the papers regarding the vacant work places are helpful.

7. What is the average salary in Armenia?

The average monthly salary in Armenia at the end of 2012 was around 400 EUR.

8. What is the overall economic situation in Armenia?

Opening a company in Armenia is quite easy, with an estimated required period of 18 days to start a business. Foreign investment is encouraged by reduced taxes in some domains. For instance, the agricultural sector is tax-free. The last years’ economic growth of Armenia is stimulated mostly by the development of construction fields, internal consumption and services. Armenia is chose by the foreign investors mainly because of the cheap well trained labor force, high technologies, rather liberal and in continuous growth banking legislation, etc.