INCORPORATION OF LLP IN ARMENIA

INTRODUCTION

Armenia is becoming an increasingly attractive destination for Foreign Entrepreneurs, thanks to its streamlined company registration process, government-backed investor support, and numerous trade agreements. The country has established official cooperation channels with major global economies such as the USA, Canada, and Japan, and maintains a robust relationship with the European Union through the Comprehensive and Enhanced Partnership Agreement (CEPA).

KEY FEATURES OF OPENING AN LIMITED LIABILITY COMPANY IN ARMENIA

To open a Limited Liability Company (“LLC”) in Armenia, certain legal requirements must be met:

• Both individuals and legal entities, whether residents or foreigners, can be participants.
• At least one director must be appointed, regardless of residency or citizenship.
• The LLC’s name must be unique and reflect its organizational structure.
• If a non-resident wishes to use national symbols or the word “Armenian” in the company name, approval from local authorities is required.

STEPS FOR REGISTERING AN LLC IN ARMENIA

New businesses are registered with the Agency of the State Register of Legal Entities under the Ministry of Justice. The documents can be submitted either in person or online via the Agency’s website.

The necessary Documents include:

• The decision to create the LLC, signed by the founders.
• The LLC’s charter (a standard one can be chosen).
• A notarized copy of the passport or a commercial register extract (for legal entities) with a translation into Armenian.
• A notarized copy of the director’s passport.
• An application and declaration detailing the LLC’s true beneficiaries (in Armenian and Russian).

For Online Registration, founders must provide:

• Information about the applicant, company name, and legal address.
• The LLC’s charter, activities, founders, authorized capital, and director.
• After submitting the required data and passing verification, applicants can complete the registration process remotely, using an electronic signature. There is no state fee for LLC registration.

LLC REGISTRATION PROCESS AND COSTS IN ARMENIA

Opening an LLC in Armenia is both time and cost-efficient. The registration process is handled by the State Register of Legal Entities and includes assigning a taxpayer number and corporate seal.

The standard registration fee is 8,000 drams (approximately $17), and it takes around two days to complete. No resident participation is required, allowing non-residents to fully own the company’s assets.

• No minimum capital requirement (it can be as little as 1 euro).
• When using national names or symbols, there is an annual fee of 600,000 drams (about $1,233).
• The name of the registered company is protected and can be verified through the Intellectual Property Agency or State Register.
• There are no limits on the powers of nominee directors.

The LLC is officially registered once it has been entered into the Unified State Register.

ARMENIA’S TAX SYSTEM FOR LLC

Armenia offers various tax regimes depending on the size and type of business:

• A 20% Corporate Income Tax (“CIT”) and 20% Value Added Tax (“VAT”) for medium and large firms.
• Businesses in certain sectors (e.g., restaurants, car dealerships) can operate under a patent system, paying a fixed monthly fee instead of VAT and CIT.
• Small businesses with annual revenue under 58.53 million drams can opt for a turnover tax ranging from 1.5% to 5%.
• Family businesses with turnover below 18 million drams are exempt from VAT.
• Income tax rates range from 23% to 36%, depending on earnings.
• Social contributions are between 5-10%.

CONCLUSION

Armenia presents a dynamic and welcoming environment for foreign entrepreneurs. With its streamlined company registration process, supportive government policies, free economic zones, and strategic trade partnerships, Armenia offers numerous advantages. The low costs of doing business, simplified tax regimes, and pro-business governance further strengthen its appeal. Whether you are a startup or an established business looking to expand, Armenia provides the right mix of opportunities for growth and success.