In the heart of the South Caucasus is Armenia, a small mountain country bordered by Georgia, Iran and Türkiye. Its capital, Evad, is one of the oldest cities in the world and, nevertheless, its modern economy is rapidly evolving.
In theory, Armenia can be overlooked due to its narrower size compared to neighbors, but the reality is very different. On the other hand, the country has become a better saved secret for aspiring entrepreneurs, resulting in the accelerated growth of new new companies.
So, if one were going to start a business there, what would be the process? We have gathered a complete guide for you, including everything you need to know before establishing a store.
Why should a business start in Armenia?
More entrepreneurs are fixing their gaze on Armenia’s economy for several reasons. Whether you are looking for an onset or start support, Armenia offers everything.
Cheaper start costs: The general cost of establishing a business in Armenia is much cheaper compared to Western Europe, including office spaces and public services.
Government support: The government asset supports new companies, with tax exemptions for people of IT, Tourism and Agriculture.
Start Assistance: Erevan is home to many incubator and accelerator programs, with joint work spaces such as Impact Hub and Hero House. These sacrifice launching nights and technological conferences to help new new companies take off.
EAEU: Armenia is part of the economic union of Eurasia and can trade freely with countries such as Belarus and Russia.
High growth potential industries
Armenian’s economy is several, with new companies taking off in multiple sectors. These in particular continuous prosper, offering numerous opportunities for newcomers in the start space.
IT development and software: In 2022, exports increased by 33% and have continued to increase since then. Multinational companies such as Krisp and Picart are based there, leading the way for new companies.
Tourism and hospitality: Armenia is incredible attraction for travelers, especially for those who enjoy food and hiking in areas such as Lake Sevan and Tatev.
Renewable energy: The Government plans that 30% of its electricity comes from a renewable source by 2030. To encourage this, solar, wind and hydroelectric energy projects are highly incentive.
Textiles: Armenia has very low job costs, which makes it ideal for new small -scale manufacturing companies.
Navigate the Armenian fiscal system
The Armenian fiscal system is considered to be very friendly with new companies in an effort to attract new businesses and investors around the world.
The standard corporate tax rate is 18%, while the Value Added Tax (VAT) is 20% in goods and services. Some narrower companies can be eligible to be exempt from barrel if they are below certain thresholds.
If your annual billing is below AMD 24 million, which is approximate £ 46,000, then could qualify for 0% income on income.
The new IT companies that are registered in the Ministry of the High-Tech industry can also receive a five-year fiscal party.
Visa and residence requirements for foreign entrepreneurs
In general, Armenian immigration policies are more relaxed and there are multiple avialization options for expatriates to consider. Up to 60 countries, including the United States, Canada, the EU and the United Kingdom, can enter Armenia without visa and stay for up to 180 days per year. Residents in other countries can request an online and online visa that is usual valid for 21-120 days.
Armenia also has a digital nomad visa that is ideal for freelancers or those who are elegant and want to live there.
If you plan to stay more time in Armenia and manage a business, you can request:
Temporary residence: This is valid for a year and is renewable, or is issued for work -related activities.
Permanent residence: Valid for five years, this option is available for those who have direct ties with the country, such as investments or relatives who live there.
How to register a business in Armenia
Setting your business in Armenia is a fairly simple process that is quite quick to complete and can be done online for comfort. Let’s take a look at the steps you would need to take.
Choose a legal entity
There are four common types of commercial structures in Armenia that you can choose.
LIMITED LIABILITY COMPANY: This is ideal for small to medium -sized companies (SME).
Unique Owner: Simple configure, a person is responsible.
Joint Action Company: Suitable for larger companies that have multiple shareholders.
Branch: This is for those who already have a foreign business and are expanding it.
Register in the State Registry
This can be done in the office of the Ministry of Justice based in Ereván or online. Applicants must provide their passport or identification, commercial name and selected structure, legal address and a foundation agreement if applicable.
Within 1-2 business days, you will receive your registration certificate and your taxpayers identification.
Open a business bank account
Most banks such as Inecobank and America have commercial accounts that offer online banking. To open an account, you will need your passport and all the company’s documentation.
Register for taxes
Duration The registration process will be automatically recorded in the State Revenue Committee, but if applicable, it must also be registered in Barrel.
Should you start a business in Armenia?
Armenia sacrifices a strange combination of affordability, resources and access to the market for bold entrepreneurs with ideas outside the box. For those who seek to innovate in technology, sustainability or tourism, opportunities are rapidly climbing with additional support and tutoring.
Since the government is more actively involved in promoting the growth of new companies, it has never taken a better time for new companies to take off.
Good luck!
