Good to know
Good to Know
- You do not need to travel to Armenia to incorporate — registration can be completed remotely through a notarized/apostilled power of attorney, letting a local lawyer or representative file on your behalf.
- As a foreigner you'll need a notarized Armenian translation of your passport before filing paperwork — budget a few hours to one day and a small fee for this.
- A company seal is not legally required to register, but several banks still ask for one before opening a business account, so it's worth arranging early if you plan to bank locally.
- IT companies that register in Armenia's High-Tech Registry can access a preferential turnover tax rate, which is a major reason many software/IT freelancers formalize as a company rather than staying informal.
- The freelancer-friendly headline rates (0% micro-entrepreneurship, 1% IT turnover tax) sound great but frequently do NOT apply to consulting, legal, accounting, audit, or general professional/white-collar services — many nomads doing knowledge work default to the standard turnover tax or general regime instead, so don't assume the lowest advertised rate applies to you without checking your specific activity code.
- Registering as an Individual Entrepreneur (IE) is usually the lower-friction starting point for a solo freelancer, since it can be done remotely by Power of Attorney and doesn't require a residence permit — an LLC is the better fit once you have co-founders, investors, or need a formal corporate counterparty for contracts.
- Mandatory health insurance for private entrepreneurs is a new obligation starting 1 January 2026 — factor the AMD 129,600 annual charge into your cost planning even if you already carry private insurance, since it doesn't exempt you.
Entity Options
LLC (Limited Liability Company)
- Min Capital
- No statutory minimum charter capital required for an LLC (some sources cite a formula tied to minimum wage for other entity types such as joint-stock companies, not LLCs).
- Government Fee
- AMD 0.00
LLC registration itself carries no government registration fee.
- Typical Timeline
- As fast as about 1 hour in person at the State Register counter, commonly cited as 1–3 business days when done remotely or via a legal representative.
- Local Shareholder Or Director Required
- No
- Description
- The most common structure for foreign founders. Up to 49 shareholders; single-director governance; the director can be of any nationality/residency.
Individual Entrepreneur / Sole Proprietorship (Ինդիվիդուալ ձեռնարկատեր, IE)
- Min Capital
- None.
- Government Fee
- AMD 3,000
- Typical Timeline
- Same day to 1–2 business days in person; under a day online with an e-signature.
- Local Shareholder Or Director Required
- No
- Description
- Simplest and cheapest structure; carries unlimited personal liability. Open to foreign nationals and stateless persons.
Branch or Representative Office of a Foreign Company
- Typical Timeline
- Roughly 2 business days.
- Description
- Used when a foreign company wants a local presence without forming a separate Armenian legal entity.
Typical All In Cost
- Self Filed LLC
- AMD 7,500
Reflects only the notarized passport-translation cost for a foreigner, since LLC state registration itself is free; excludes any lawyer/agent fee.
- Self Filed Individual Entrepreneur
- AMD 3,000
State duty only.
Using A Formation Agent Or Law Firm
- Note
- Local law firms and formation agencies quote all-in packages (registration, document drafting, registered address, bank-account assistance) typically starting from roughly $1,000–1,500 USD, on top of the near-zero official government fees. This is a private-service cost, not a government charge, and varies by provider.
Business Tax And Structure Options
- Scope Note
- Covers local business tax mechanics for a foreign-owned operation in Armenia (corporate/turnover tax rates and filing duties) and the practical freelancer/sole-proprietor (Individual Entrepreneur) vs. full company (LLC) choice.
Structure Options
LLC
- What It Is
- A full separate legal entity offering limited liability, distinct from its foreign owner(s).
- Who Its For
- Foreign-owned SMEs, businesses with co-founders/investors, or those needing formal contracting credibility that an IE cannot offer.
- Foreigner Access
- Fully open to foreign ownership; registration through the State Register is described as free and typically takes about 1-3 days.
Incentive Regimes
- IT/high-tech turnover-tax alternative: an Armenian-resident company with at least ~90% of revenue from qualifying high-tech activity can reportedly pay a reduced 1% turnover tax (2025-2031 window per one source) instead of 18% profit tax plus VAT — eligibility and exact scope should be independently confirmed before relying on this.
- A separate 'IT Virtual Zone' certification is also referenced in some sources as giving 0% profit tax and 0% VAT on export revenue for certified software/IT companies — treat this as needing case-by-case confirmation given it appears alongside the differently-structured 1% regime above (see internal note).
Standard Tax Treatment
- Corporate Income Tax
- 18% standard rate, applied to net taxable profit (not revenue) — deductible, properly documented business expenses reduce the taxable base.
- VAT
- 20% standard VAT alongside the 18% CIT under the general regime.
- Residency Basis
- Armenian tax-resident companies are taxed on worldwide income; non-resident companies operating through a permanent establishment in Armenia are taxed only on their Armenian-source income.
Individual Entrepreneur
- What It Is
- A natural person registered to conduct business without forming a separate legal entity — the person themselves is the business, not a company.
- Who Its For
- Freelancers, solo consultants, single-owner businesses; no separate legal entity or limited-liability shield.
- Foreigner Access
- Open to non-residents; registration is generally faster and cheaper than an LLC and does not require a residence permit. It can be registered remotely via Power of Attorney, so the founder does not need to be physically present in Armenia.
Other Obligations
- A fixed monthly turnover-tax administrative fee of AMD 5,000 applies to IEs on the turnover scheme.
- Social security contributions apply to individual entrepreneurs (Armenian citizens and foreigners alike).
- A monthly stamp duty (fixed amount depending on income received) applies to individual entrepreneurs, due by the 20th of the following month.
- Starting 1 January 2026, mandatory health insurance applies; for Private Entrepreneurs whose prior-year income was AMD 2,400,001 or more, this is a flat AMD 129,600 annual payment due by 20 April each year, and having private health insurance does not exempt you from it.
Tax Regimes Available
- Micro-entrepreneurship: 0% tax, but capped at AMD 24,000,000 annual turnover and generally restricted to specific activities (e.g. certain tutoring, manual trades/crafts) — most white-collar/professional/IT/consulting services do not qualify.
- Turnover tax: roughly 1-10% depending on activity, available up to AMD 115,000,000 annual turnover; IT-classified activity may qualify for the reduced 1% rate.
- General regime: individual entrepreneurs outside a simplified regime pay income tax on profit (sources vary between citing 20% and 23% as the applicable rate — see internal note).
Filing And Compliance Notes
- The Armenian tax year runs the calendar year (1 January - 31 December), and companies typically make monthly advance CIT payments with an annual reconciliation filing.
- Working commercially in Armenia without registering as an IE or LLC counts as illegal entrepreneurial activity.
Withholding And Other Cross Border Items
- Dividends paid by an Armenian company to shareholders (including foreign owners) are subject to a 5% withholding tax, withheld and remitted by the company.
- Payments to non-residents for Armenian-source services such as consulting, contracting, or licensing are generally subject to a 20% withholding tax, applied by the payer.
- Armenia has double tax treaties in force with a large number of countries, generally preventing double taxation of the same income via credit/allocation mechanisms; however, US citizens/green-card holders cannot reliably use treaty benefits in Armenia because the US and Armenia disagree on whether the old US-USSR treaty applies, and should instead rely on the US Foreign Tax Credit.
Armenia is widely regarded as one of the fastest and most foreigner-friendly places in the region to incorporate a business, with no local-partner, local-director, or residency mandate for any common entity type.
Official Registry
- Name
- Agency of the State Register of Legal Entities, Ministry of Justice of the Republic of Armenia
- Portal URL
- https://www.e-register.am
Core Steps For A Foreigner
Core Steps For A Foreigner
- Choose an entity type (LLC is standard for most foreign founders) and a unique company name that complies with Armenian naming rules.
- Obtain a notarized Armenian translation of your passport from a licensed translator in Armenia (typically 5,000–10,000 AMD, a few hours to one day) if registering as a foreigner.
- Prepare constituent documents — decision to open the company and the Charter — which the State Register can also provide on the spot for standard LLC setups.
- Submit the application in person at the State Register, online via e-register.am (requires an electronic signature), or remotely through a notarized/apostilled power of attorney letting a local representative or lawyer file on your behalf.
- Receive the registration certificate and Tax Identification Number (TIN), issued by the State Registrar as part of the same process.
- Open a corporate bank account (a separate step from registration) — most major Armenian banks serve foreign founders, generally needing just the passports of shareholders/directors; a company seal, while not legally mandatory, is often requested by banks.
Realistic Timeline For A Foreigner
Most sources converge on 1–3 business days to get an LLC fully registered with the State Register once documents (including the notarized passport translation) are ready, whether filed in person, online, or remotely by power of attorney. Opening a functioning bank account is a separate follow-on step that can add anywhere from a few hours to several days depending on the bank's KYC process.
Local Partner Or Sponsor Requirement
None. Armenian LLCs can be 100% foreign-owned, with no requirement for a local shareholder, local director, or Armenian residency permit for founders or directors.
AI-generated estimateData refreshed September 2026
Sources cited for this category
These are the sources cited in this business permits & incorporation for foreigners research for this city. Individual figures may not each trace to one of them.
More About Yerevan
Data last updated September 2026 · Verify anything important.