Doing business in Armenia։ a perfect timing for startups
05 January, 2022
There are several reasons for this: active government measures aimed at instrumental support for development ideas and scientific breakthrough, a strong pool of highly skilled workforce, as well as a stable basis for the revival of the technological sector which was historically strong since the Soviet era. At the same time, tax incentives are envisaged for doing business in Armenia in the form of start-ups – 0% income tax for the first three years of activity, provided that the registered company has less than 30 employees and was not formed as a result of the reorganization of a legal entity or an individual.
Some Armenian startups have already gained world-known reputation, and over time these companies increasingly have strengthened their positions, demonstrating steady growth and development. Here are some of the many success stories:
- Krisp – the well-known real-time noise reduction application (during the pandemic, especially in view of increased number of users working remotely, the number of downloads grew by approximately 700%);
- PicsArt – video, photo editor, developed and launched in 2011 (currently available in 30 languages worldwide, for Windows , iOS and Android);
- SoloLearn – social mobile application (since 2013);
- IntelinAir – application for the agricultural industry which allows you to identify and eliminate problem areas for the farmers;
- Vineti platform for the correct selection of the treatment process based on advanced technologies.
Upon starting a business in Armenia by registration of a new start-up, foreign investors and businessmen are guaranteed to receive full investment protection at the state level. In addition, the opportunities for international cooperation in science and technology parks are expanding: venture funds and business angels are expanding in Armenia.
Having analyzed the available information on the Armenian technology sector, we can confidently say that this is an ideal platform for research and innovation. Indonesia has already explored and praised and advantages of the small Caucasian republic in the field of technology, and in 2019, an agreement was signed between Yerevan and Jakarta on the interaction of science and technology parks of the two countries aiming to establish new and expand existing business incubators.
Why it is recommended to choose Armenia for doing business as a startup? The following is the non-exhaustive list of undeniable advantages that the country offers:
- Skilled workforce – in many Armenian schools, children study robotics (in 2017, 15% of schools on the territory of the country included this specialty in their curriculum within the framework of the Armath Engineering Laboratories educational program); also, there is a US-accredited American University of Armenia providing educational services in the country, with a diploma recognized at the same level as a diploma issued in the USA);
- representative offices of many world technology corporations – Mentor Graphics , Microsoft , National Instruments , IBM , Synopsys , etc;
- there are popular Google resources on deep learning in Armenia – with the YerevaNN A 1 webpage (artificial intelligence research laboratory) leading the top list;
- Armenia’s high ranking in terms of Ease of Doing Business (7th in ranking, according to the World Bank Doing Business assessment) is particularly due to robust steps towards eliminating corruption and bureaucracy. Today it is possible to register a company in Armenia remotely in 1-3 working days;
- worldwide recognition of Armenian developments – in addition to the above startups, we should also note the Shadowmatic puzzle game from Triada Studio Games , which won the Apple Design Award in 2015;
- in 2019, for the first time in its history, Armenia entered the list of countries in the OECD Foreign Direct Investment Regulatory Restrictiveness Index rating (10th in ranking, among 69 countries);
- according to the ratings of the World Intellectual Property Organization, in 2019, the Armenia ranked the 64th in the Global Innovation Index (among 130 countries).