Registration of Sole Proprietorships and Legal Entities in Armenia
For foreign nationals considering Armenia as a location for their business or part of their business operations, there are no restrictions on the registration procedure. However, opening corporate and personal bank accounts requires a more thorough approach and prior preparation. The simplified tax rate in Armenia is relatively low compared to other countries. Accounting and tax reporting are conducted exclusively in Armenian, and when entering into an agreement with an accounting firm, these services are provided in full and at a high professional level. The key is to choose qualified professionals.
OPENING A SOLE PROPRIETORSHIP OR LEGAL ENTITY (e.g., LLC)
NOTARIZED TRANSLATION OF THE PASSPORTS OF THE DIRECTOR AND SHAREHOLDERS
PREPARATION OF THE CHARTER (FOR LEGAL ENTITIES ONLY)
REGISTRATION OF A SOLE PROPRIETORSHIP OR LLC
OPENING A BANK ACCOUNT
SIGNING A CONTRACT FOR ACCOUNTING SERVICES
ACTIVATION OF THE TAXPAYER'S ONLINE ACCOUNT
Required Documents for Registration
Documents may be submitted to the State Registry either in person or via a power of attorney through our specialists.
Legal Entity (LLC):
– Passports of the shareholders and the director
– Legal address of the company
– Company Charter
Sole Proprietorship (SP):
– Passport
– Social services number
AFTER REGISTRATION, BANK ACCOUNT OPENING TAKES FROM TWO TO TEN BUSINESS DAYS
Bank Requirements for Opening Corporate Accounts
After registration, business operations require the opening of bank accounts. The personal presence of the director is mandatory; in some cases, all shareholders must also be present. For sole proprietors or legal entities where the shareholders and director are foreign nationals or non-residents, Armenian banks typically request contracts with counterparties and proof of serious business intentions. In some industries, it may also be necessary to demonstrate relevant qualifications and experience. The higher the bank’s standing in the business banking sector, the more stringent the requirements may be. Each business project is unique, and the requirements may vary accordingly. Nevertheless, with proper preparation, working with banks can generally proceed smoothly.
Service Fees
Consultation on selecting the legal form, taxation, and choosing a bank.
Includes: registration of SP (possible by power of attorney), preparation of founding documents and registration of a legal entity (also possible by power of attorney), assistance with banks, and tax registration.
Sole Proprietorship – from
700 $*Legal Entity – from
950 $*Base rates. Do not include bank commissions, legal address provision, office or space rental, accounting services, legal support, or permanent financial management services. The total cost is calculated individually upon request, depending primarily on the citizenship and country of residence of the founders and director of the entity or SP.
Accounting support for your SP
Accounting support for your legal entity
*Payment is made in Armenian drams at the exchange rate of the Central Bank of Armenia on the day of payment.
Taxes in Armenia
Upon registration of an SP or company in Armenia, you must register with the tax authorities within a short period and, if applicable, obtain the simplified taxation regime. Simplified taxation means paying 10% tax on turnover.
IT Companies
For both SPs and legal entities: 10% income tax for employees (reduced by 50%)
SP and Legal Entity
General Taxation System VAT: 20%, Profit Tax: 18%
SP and Legal Entity
Simplified Taxation System 10% turnover tax
SPs
Under the simplified system Fixed pension contributions: not more than $15/month Social contributions: not more than $15/month Stamp duty (depends on annual turnover)
IT Companies
Under turnover-based taxation 1% of turnover
You may submit tax documents and start reporting independently, hire an in-house accountant, or contract an accounting firm (all reporting must be in Armenian and submitted electronically). Since small businesses are not required to employ a full-time accountant, it is strongly recommended to outsource to professional accounting firms. Under such contracts, the accounting firm bears responsibility for the accuracy of reports—not the SP or company director.
We look forward to assisting you
Initial consultation may be free or paid depending on the complexity of your case and the time required for review and discussion.
Which Bank to Choose for Opening an Account
All banks in Armenia are commercial institutions, each occupying a specific niche in business banking.
Here are a few notable banks and their special features:
ACBA Bank CJSC
Official representative of American Express in Armenia; supports Japanese JCB cards. Well-developed leasing services.
Inecobank CJSC
The only bank in Armenia directly partnered with Payoneer; operates its own processing system.
Araratbank CJSC
Offers investment (brokerage) services in local and international markets through the Araratbank Trading Platform, with access to over 5,000 financial instruments.
Ameriabank CJSC
A major universal bank and formerly the first investment bank in Armenia, offering a full package of banking services.
Ardshinbank CJSC
The largest bank by total assets. The first Armenian bank to issue Eurobonds. Specializes in project financing for large corporate clients. Has a representative office in France.
Converse Bank CJSC
Serves as an agent for managing Armenia’s public debt in the treasury bond market.
Evocabank CJSC
Focused on mobile services and digital banking innovations.
IDBank CJSC
Aims to become the “first-choice” bank with innovative digital solutions and personalized service. Cooperates with the Armenian payment system Idram.
When opening accounts for newly registered SPs or legal entities, banks assess applications individually, taking into account the business activity, country of residence, and citizenship of the shareholders and director. In most cases, all participants must be present. Armenian banks generally do not differ significantly in terms of service quality for corporate or individual clients. The banking sector in Armenia is known for its stability—there has not been a single case of bank bankruptcy in the history of the Republic of Armenia.
Three Key Business Sectors in Armenia
Excluding large-scale industries, the following are considered the most common areas of entrepreneurial activity in Armenia:
A rapidly developing sector with government incentives and tax benefits. Many Armenian IT firms specialize in software development, IT outsourcing, and related services.
An important part of Armenia’s economic growth, offering business opportunities in cargo transport, passenger services, and tourism-related transportation.
Tourism plays a significant role in Armenia’s economy. Opportunities include hotels, restaurants, entertainment venues, travel agencies, and other tourism-related services.
Given the described benefits and incentives, these sectors offer strong potential for entrepreneurship and business development in Armenia.
Starting a business in Armenia?
Start with a consultation. We will provide assistance at all stages of opening and relocating an organization. Initial consultation may be free or paid depending on the complexity of your case and the time required for review and discussion.
Our employee will respond to your request as soon as possible ↓
