What are the advantages in Armenia for investment?
Every effort is being made at the governmental level in Armenia to attract investments from all over the world. The country has introduced a simplified procedure for opening new companies, there operates free economic zones with preferential tax treatment. The Armenian legislation does not stipulate any requirements for the size of the chartered capital and the mandatory presence of residents among the shareholders of the company.
What do I need to register a legal entity in Armenia?
For the state registration of a legal entity in Armenia, the registration authority has the right to apply: the founder (founders) of the legal entity; the head of the executive body of the legal entity selected by the founders; any person authorized by the persons having the right to submit the application.
Where do applicants submit documents for state registration?
The applicant submits the documents required for state registration to the registration authority in person or through documented authorized person. If the person has an electronic signature, the registration can be done online on the official website https://www.e-register.am .
What documents are required to register legal entities in Armenia?
List of documents required for state registration of legal entity in Armenia by a resident: The decision of the founders or the minutes of the founding meeting (congress or other statutory body) on the foundation of the legal entity, signed by all the founders or, in cases prescribed by law, by the chairman and the secretary of the meeting; The Charter of the legal entity, approved by the founder(s) or by the founding meeting (congress or other statutory body); a document confirming the payment of the state duty (payment receipt, payment made through the electronic payment system e-payments.am, etc.); information on the head of the executive body of the legal entity or the person temporarily acting as the head: passport data and number of the social card or a note on the person's refusal of the social card and the number of the relevant certificate, e-mail address.
What documents are required for state registration of legal entities in Armenia as a non-resident?
List of documents required for state registration of legal entity in Armenia by a NON-resident: The foreign passport of the company founder (if the owner is a natural entity); Legalized copies of the corporate documents - Articles of Association of the company, Minutes of the Shareholders' Meeting with the decision on the foundation of a legal entity in the Armenian jurisdiction; A receipt for the payment of the state duty; The amount of the charter capital; Details of the participants (if the number of shareholders is more than one) with the copies of passports, TIN or charters, if the founder is a legal entity(ies); Legal address.
What else is needed for registration?
Additionally, it is necessary to open a corporate account in a bank of Armenia, as well as specify the type/s of the planned activities. For the types of activities for which a license is required, please refer to the Law of the Republic of Armenia “On Licensing”.
How many days does it take to register a company?
The state registration of a company takes place no later than two business days after all the required documents are submitted to the registration authority.
What tax system exists in Armenia?
The tax system in Armenia is two-tiered; all taxes and other payments are paid to the state and municipal budgets. State taxes: corporate tax, income tax, excise tax, VAT. Local taxes: property tax, land tax, hotel tax, vehicle parking space tax.
What taxes do Armenian and foreign organizations pay?
Armenian and foreign organizations, which operate in Armenia through permanent representations, pay the following taxes: Corporate tax – 20%. Exceptions ● For investment funds, the rate is 0.01% of the net asset value of the fund. ● Taxpayers engaged in certain types of activities (catering, transportation, auto repair shops, etc.) are subject to flat fees or license fees. Under this system, the taxpayer pays a fixed amount of tax on the basis of the legal criteria and has the right not to pay income tax or VAT. The tax rate depends on the type of business activity. Startups can claim income tax exemption (see the section "Special exemptions for startups, IT-companies in the country"). 2) Investment income (dividends). Dividends of Armenian citizens are taxed at 5%, while dividends of foreign citizens are taxed at 10%. Dividends received by one Armenian organization from another Armenian organization are not taxed. 3) VAT. The standard rate is 20%. Exceptions There are reduced rates of VAT (1.5%, 3.5%, 5%, 10%). Certain types of imported goods are exempt from VAT at the border: raw materials, machinery and equipment imported under the article " reprocessing in the customs area". 1) Income tax. The rate of income tax for citizens with salaries up to 150,000 drams is 23%; the rate of income tax for those with salaries from 150,000 to 2,000,000 drams is 28%; the rate of income tax for those with salaries over 2 million drams is 36%. 2) Excise tax.
Where does the state registration of legal entities take place?
The state registration of legal entities in Armenia is performed by the Agency for the State Registration of Legal Entities under the Ministry of Justice, except for organizations registered with the Central Bank of the Republic of Armenia (banks, credit organizations, insurance companies, contractual investment funds and other financial organizations, including their branches, representative offices and institutions).
Where to apply for registration of a commercial legal entity?
Application for registration of commercial legal entities can be submitted to any service office of the Agency, regardless of the place of business of the legal entity. The address of the State Registry of Legal Entities is 49/3 Komitasi Avenue, Yerevan, 0051, Armenia (Arabkir administrative district). The phone number of the Service Desk is +374-10-201461. Telephone number of Coordination Unit of Territorial Service Offices: +374-10-2014446 For detailed information on the structure and telephone numbers of the Agency's departments, please, follow this link.
What documents are required to open a company's current account in a bank of Armenia?
List of documents required to open a current account of the company in a bank of Armenia: certified and apostilled scanned copies of corporate documents: certificate of incorporation, minutes of the first meeting, general power of attorney (if any), articles of incorporation (contract of founders, bylaws or articles of association); certified and apostilled scanned copy of the extract from the Registry not older than 6 months (certificate of incumbency and/or certificate of good standing); A scanned copy of the document with the tax number of the company; scanned copies of passports of beneficiaries, proxies; In the presence of nominee directors of the founding companies, notarized and apostilled passports not older than 1 year are required. It will also be required to provide contracts with partners for incoming and outgoing payments within the company's activities.
What laws and regulations govern e-commerce in the country?
the Civil Code of Armenia, the Law on Trade and Services, the Law on Consumer Rights Protection, the Law on the Use of Cash Registers. Also one of the regulators of the field of Internet commerce in Armenia is the law "On electronic communications" adopted in 2005.
What has stimulated the development of e-commerce in Armenia?
In Armenia, as well as all over the world, the development of the e-commerce field is driven by the increasing use of the Internet, credit cards and online banking. The vast majority of companies have their own websites/communities in social networks. Some supermarkets and other stores accept online orders through their websites. More and more people in Armenia are buying books, cell phones, computers, clothes, shoes, baby products, perfumes and other products online, since online shopping is often cheaper than in stores.
How popular is internet banking in the country?
Internet banking is becoming more and more popular in the country, and the residents of Armenia are already accustomed to this type of financial services.
E-commerce platform in Armenia
ONEX (Marketplace); GGtaxi (a cab startup that operates in Armenia, Georgia, and Russia. In addition to ggTaxi, there is a shipping-delivery service - ggTruck - and a car evacuation service - ggEvacuator;) iSheriman.com – Marketplace of goods and services from Armenia.
What is the NERUZH program and how to apply?
The NERUZH program of the Ministry of Diaspora of Armenia being implemented jointly with the IDeA, FAST and ImpactHUB Yerevan foundations, as well as the UWC Dilijan College is aimed at the representatives of the Armenian Diaspora between the ages of 18 and 35. The program offers young Armenian entrepreneurs from around the world the opportunity to apply, participate in an educational event and win a $15,000-$30,000 grant to launch and implement their startup in Armenia.
What recruiting agencies are in Armenia?
The list of companies providing recruitment services: Recruiting company «Танжер» – an organization providing recruitment services for professional fields such as business, management, sales, marketing, economics and finance, accounting, information technology, design, health care, tourism, law, and services. Human Resources Center «Аксепт» (ACCEPT) – a recruitment company that provides personnel recruitment services to local and international companies, specializing in senior and mid-level recruitment. Company 818 Consulting – provides consulting services in the field of human capital management, provides services for the search of specialists. Instigate Consulting – A company that provides consulting services for businesses in various fields, including recruitment. «Каскад КНСАЛТАНТС» – A human resource management consulting company, including personnel recruitment and human resource management services.
What platforms for accelerating startups are in Armenia?

There are a number of organizations working in Armenia that help startups to properly launch and develop their products.

The Impact Aim Venture Accelerator was created and operates with the support of the United Nations Development Program. It specializes in startups in agriculture and food processing, startups focused on development of rural regions and cities, green economy, innovations in public and social services (such as govtech/edutech/fintech), projects aimed at supporting vulnerable groups.

Enterprise Incubator Foundation, EIF. A business incubator founded in 2002 as part of the World Bank's Enterprise Incubator project. One of the largest business incubators in the region, cooperates with a number of international companies and organizations.

The EPIC Incubator from Entrepreneurship and Product Innovation Center (EPIC). The American University of Armenia Incubator provides a 12-week incubation program for startups at the idea stage, helps teams vet their ideas and create a business model.

York Enterprise Development Institute (YEDI) International START-UP program, which is implemented in cooperation with the Yerevan branch of Plekhanov Russian University of Economics.

Microsoft Innovation Center Armenia. It implements projects and activities that include training programs for startups. The Center has a Startup Acceleration Program. The Center helps entrepreneurs with generating ideas and assessing their feasibility; developing and testing a product prototype, developing a business plan; promoting the product in the local and global markets; providing opportunities to find funding for the project.

AI Incubator by Catalyst Foundation. The incubator program is designed to help innovative entrepreneurs scale business solutions based on the latest technologies.

 Beeline Startup Incubator. The incubator was created at the initiative of the largest telecommunications company in the country, VEON Armenia CJSC (Beeline trademark), as a hub to help digital startups. It unites startups, professionals, mentors, coaches and investors, organizes events for startups, including demo days. The goal of the incubator is to help startups develop to the point where they can present their project to investors.

KOLBA Lab. A project of the United Nations Development Program and the European Union in Armenia, functions as an incubator for social innovation projects.


 

Which Co-working spaces are in Armenia?

Name of the co-working space - 256 HUB Coworking

Address - 1/3 Tsitsernakaberd Highway, Yerevan, Armenia +37498355111, +37495140951

WEB-address - http://256.foundation/ 

Overview of the co-working space - https://www.coworker.com/armenia/yerevan/256-hub-coworking 

Working Hours - Mon-Fri. - Sat: 9:00 AM - 11:30 PM, Sun: 9:30 AM - 11:30 PM

The price for renting a fixed workplace - AMD 120000 (1 month)

Price of a workplace in Open Space - AMD 250000 (1 month)

Availability of personal office premises - yes (AMD 400000/1 month)

Availability of rooms for meetings - yes


Name of the co-working space - Team Time

Address - 10 Zakyan Street, 2nd floor, Yerevan, Armenia, +374 96 257555

WEB-address - teamtime.am 

Overview of the co-working space - https://www.coworker.com/armenia/yerevan/team-time 

Working Hours - Mon-Fri. - Sat. 9:00 - 23:30, Sun. 9:30 - 23:30

Price for rent of fixed workplace - (check with the administration +374 96 257555)

Price of a workplace in Open Space - 19000.00 (1 month)

Availability of personal office rooms - no

Availability of rooms for meetings - yes


Name of the co-working space - Innovative Solutions and Technologies Center (ISTC)

Address - 1/7 Alek Manukyan Street, Yerevan, Armenia

WEB-address - https://istc.am/ 

Overview of the co-working space - https://www.coworker.com/armenia/yerevan/innovative-solutions-and- technologies-center-istc 

Working Hours - Mon-Fri. - Mon: 10:00 - 21:00, Sat: 10:00 - 18:00, Sun: off

Price of renting a fixed working place - (check with the administration (+374)-12-219- 700)

Price of a workplace in Open Space - AMD 45000.00 (1 month)

Availability of personal office rooms - no

Availability of meeting rooms - yes

  

Name - LOFT Coworking

Address - 3 Moskovyan Street, Yerevan, Armenia

WEB-address - http://loft.am/, https://www.facebook.com/LoftCoworkingSpace/ 

Overview - https://www.coworker.com/armenia/yerevan/the-loft 

Working Hours - 24/7

Rental price of a fixed workspace

Price of a workplace in Open Space - 60 000 AMD/month

Rental of personal office space - / Availability of meeting rooms - yes


Name - EON

Address - 3ա, Teryan St, Yerevan 0010, Armenia

WEB-address - https://www.facebook.com/aeon.yerevan 

Overview - https://www.coworker.com/armenia/yerevan/aeon-co-work  

Working hours - 12:00 - 00:00

The price for renting a fixed workspace is

Open Space workspace rental price - 45 000 AMD/month

Personal Office Space Rental - / Meeting Rooms Availability -


Name - Mirzoyan Library

Address - 10 Maher Mkrtchyan St, Yerevan 0010, Armenia

WEB-address - https://www.facebook.com/mirzoyanphotolibrary 

Overview - https://adresglob.ru/mirzoyan-library 

Working Hours - 12:00 - 20:00

Rental price of a fixed workspace - 12:00 p.m.

Open Space workspace rental price – 

Personal office space for rent - Meeting room availability


Name - Co-working Armenia

Address - Marshal Baghramyan Ave, 1, Armenia, 0019, Yerevan 

WEB-address - https://www.facebook.com/Coworking.Armenia 

Overview - 

Working Hours - 9:00 - 22:00

The rent price of a fixed workplace

Open Space workspace rental price – 

Personal office space for rent – 

Meeting rooms available -


Name of the co-working space - Impact Hub Yerevan

Address - 80 Tigran Mets Avenue, 5, Yerevan, Armenia

WEB-address - https://yerevan.impacthub.net/ 


How to attract investments for a startup in Armenia?

There are a number of initiatives in Armenia to attract funding to startups, some of them are listed below.


State and international funding programs

STEP (Science & Technology Entrepreneurship Program) is a joint program of the Ministry of Economic Development and Investment of Armenia and the U.S. Civilian Research & Development Foundation. Within the framework of the events held under the patronage of STEP, enterprises can receive both consulting and financial assistance - in the amount of $6,000.


Support to SME Development in Armenia, SMEDA. The project is funded by the European Union and the German Federal Ministry of Economic Cooperation and Development. It is part of European Union initiatives in Armenia EU4Business and EU4Innovation. Focuses on grant support (up to 50,000 EUR) to small and medium enterprises in Armenia.



Angel Networks

Science and Technology Angels Network, STAN, is a network of business angels in Armenia in the field of science and technology, comprised of investors from Armenia, the US, Russia, and representatives of the Armenian diaspora from a number of countries. STAN funds projects in such fields as advanced materials, biotechnology, microelectronics, data science and IT.


Business Angel Network of Armenia, BANA is a network of investors, entrepreneurs and managers from Armenia and abroad.


Angel Investor Club of Armenia, AICA, is a nonprofit organization for the development of innovative entrepreneurship in Armenia. It helps startups find investors willing to invest in the development of their ideas.


Venture capital funds

SmartGateVC. A Silicon Valley-based venture capital fund that finances projects in artificial intelligence, security, Internet of Things, biotechnology, quantum computing and blockchain. The fund's Armenian division was established in 2017. One of the foundational projects implemented by SmartGateVC in Armenia is the Catalyst Foundation.


Granatus Ventures is a venture capital firm with offices in Yerevan, London and Singapore. It invests in start-ups with innovative and breakthrough value proposition, realistic business model and motivated team. Granatus Ventures primarily invests in startups that are related to the latest developments in the areas of social, mobile, analytics and cloud technologies.


HIVEVentures.  It invests in early-stage Armenian startups. In addition to funding, it provides mentorship services and access to Silicon Valley opportunities. HIVEVentures' mission is to develop the global Armenian technology system by investing in Armenian-founded startups.


The Awespme Foundation in Yerevan. it funds science and arts projects through $1,000 grants.


 

What is the possibility of using blockchain technology in Armenia?


The Central Bank of Armenia advises residents not to use cryptocurrencies because, according to Armenian legislation, digital currency (cryptocurrency) in Armenia is not included in the list of electronic money, and therefore its use is not regulated. At the same time, according to Spiur information system, there are organizations in Armenia specializing in the exchange of cryptocurrencies. Namely, "Blockchain City" company.


In 2017, the Nooor Armenian Blockchain Association was established. It is a non-profit association that unites and supports blockchain enthusiasts, experts, developers, startups, businesses, investors. It organizes international blockchain industry conferences ChainPoint 18, ChainPoint 19, ChainPoint 20.

 


In 2018, a working group for crypto-market research was established in the country with the participation of the Ministry of Finance of Armenia. One of the projects of the working group is a consulting and educational program "Introduction to Decentralized Register Technology (blockchain)" for civil servants with the participation of highly qualified international professionals/experts with practical experience in developing and implementing solutions in this field. Collaboration with the Ministry of Education, Science, Culture and Sports of Armenia on the implementation of blockchain technology has begun.


In November 2018, Blocktech, a blockchain company from New York, and the French University of Armenia (UFAR) announced the launch of the first academic blockchain lab. At the time of the launch, the lab was tasked with conducting interdisciplinary research into the crypto-economic implications of blockchain technology. More specifically, the research areas covered topics related to decentralized application architectures, including the development of smart contracts, tokenized accounting, a forecasting service on the Zap platform, and design models for cryptoeconomics.


In 2018, the city of Hrazdan became the country's fourth free economic zone (FEZ) with a data center for mining, according to an Armenian government decree. The organizer of the ECOS ecosystem is the company ECOS, which will be responsible for the development of the technology cluster. Today the ECOS community unites Blockchain and AI technology professionals, investors and government officials.


YLedger is Armenia's first consortium of independent companies and venture capital in blockchain development; a project of SmartGateVC Foundation. YLedger aims to create a sustainable blockchain community with experienced mentors, regular trainings, workshops and meetups.