Investor Presentaiton
Regulatory Framework
Investment guide Armenia 21
Legal forms for establishing
a business
There are certain legal options for
establishing a business (commercial
activities) in the Republic of Armenia:
sole entrepreneurs;
business partnerships
(full partnerships and trust
partnerships);
limited liability companies;
supplementary liability companies;
joint-stock companies (open and
closed);
cooperatives;
branches.
Representative offices of foreign
companies can be established
in Armenia for the purposes of
representation and protection of the
rights of its founding company but are
not entitled to perform commercial
activities.
Incorporation of organizations
and sole entrepreneurs
Legal entities, their separate
subdivisions (branches and
representative offices) and sole
entrepreneurs are subject to
state registration in the Republic
of Armenia. State registration
includes also registration with the
tax authorities. The one-stop shop
principle is applied in the process
of state registration (including
registration of the firm name, state
registration of the company itself and
registration with the tax authorities).
The required documents can be
submitted either in hard copies or
electronically.
The registration of commercial entities
is made immediately (if documents
are submitted electronically or
approved templates of the required
documents are used) or within
2 working days (in other cases).
State duty for the registration of a
commercial legal entity is free of any
fee, for branch and representative
office is AMD 12,000 (approximately
USD 25).
Foreign investment legislation
The Law "On foreign investments"
sets forth the rights, guarantees and
privileges for foreign investors, who
can make their investment in various
forms, such as a joint venture or the
establishment of a wholly-owned
subsidiary.
The Law contains a grandfather
clause, which allows foreign investors
to apply the investment legislation,
effective for a five-year period
from the moment of making the
investment.
Investments made by foreigners shall
not be nationalized or confiscated.
Seizure of property can be applied as
an exclusive measure if authorized
by a court and where a state of
emergency has been declared by the
Government.
Seizure of property is subject to full
compensation. Foreign investors
are also entitled to compensation of
damages and losses (including lost
profit) resulting from unlawful acts of
state authorities or state officials or
improper performance of their duties.
Goods (from the list established by the
Government), which are imported by
foreign investors with the purpose of
paying up shares or the charter capital,
are exempt from customs duties.
However, if these goods are disposed
within 3 years after their import, the
customs duties shall be paid.
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