We continue our series of articles about doing busiess in trusted jurisdictions. Read about opening a company in Armenia with help from our local partner in Yerevan ArmGate Advisers.

What documents are required to open a legal entity

• The company name, which should be provided in Russian and in English (note that you have to translate the letters, not the words phonetically)
• Name of the company must not contain national names, names of towns, historical places or the word ARM. State duty for the use of such names is AMD 600,000 (RUB 95,000) per year.
• Scans of passports: foreign passport (first page) and internal passport (first page and registration) of the director and founders (specifying the shares amount)
• Signed electronically power of attorney* (draft text will be provided)
• The company’s activity

*Power of attorney that ArmGate Advisers can register the company on your behalf, submit reports to the tax authorities and other bodies requiring reports, such as statistics.

Timelines

After collection of documents, notary translation and signing the power of attorney electronically you can have your company registered in 2 business days.

Note, all company names are checked if they are not existing yet in the register, because in Armenia no two companies can have the same name.

After registration of the company, ArmGate Advisers gains access to the tax office, received a social security card (Armenian version of the Russian TIN + SNILS) and open a bank account.

The social security card and account opening procedure requires the presence of the director in person. This may take 3-5 working days.

Taxes of Armenia

LLC on simplified tax system (STS)

Turnover limit is AMD 115 000 000 (RUB 18 000 000).

STS: 5% of turnover (from the amount of services rendered or goods sold).

Dividends: 5% – 10%.

Payroll taxes: 28% – 33% (from the amount of wages). If a director gets a minimum salary of AMD 100,000 (RUB 16,000), every month the tax will be AMD 28,000 (RUB 4,500).  

LLC on regular taxation regime

There is no limit on turnover.

Income tax: 18%.

VAT: 20% (arises if goods cross the borders of Armenia).

Dividends: 5% -10%

Payroll taxes: 28% – 33% (from the salary amount). If you hire a director for a minimum salary of AMD 100,000 (RUB 16,000), then every month the tax will be AMD 28,000 (RUB 4,500).

Customs duties. Occurs if goods cross the borders of Armenia. The rate depends on the commodity code.

IT benefits

There is no limit on turnover.

Income tax: 0%.

VAT: 0% (arises if the service is rendered to resident companies on the territory of Armenia and is 20% in this case).

Dividends: 5% -10%

Payroll taxes: 18% – 23% (on the amount of the salary).

Individual Entrepreneur (IE) on STS 

Turnover limit is AMD 115,000,000 (RUB 18 000 000).

STS: 5% of turnover (from the amount of services rendered or goods sold).

Social allowance: AMD 10,000 per month.

Salary taxes: 28% – 33% (from the amount of wages). If a director receives a minimum salary of AMD 100,000 (RUB 16,000), there is a monthly tax of AMD 28,000 (RUB 4,500).   

IE on the ordinary mode of taxation

There is no limit on turnover.

Income tax: 18%.

VAT: 20%. Is incurred if goods cross the borders of Armenia.

Social allowance: AMD 10,000 (RUB 1,600) per month.

Payroll taxes (if there are employees): 28% – 33% (from the amount of wages). If the director is employed for a minimum salary of AMD 100,000 (RUB 16,000), then every month the tax will be AMD 28,000 (RUB 4,500).

Customs duties. Occurs if goods cross the borders of Armenia. The rate depends on the commodity code.

IT benefits

There is no limit on turnover.

Income tax: 0%.

VAT: 0%. Appears if the service is rendered to companies resident in Armenia and is 20% in such a case.

Social benefit: AMD 10,000 (RUB 1,600) per month.

Payroll taxes (if there are employees): 18% – 23% (from the salary amount).

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Read also:

Awara Guide on opening a bank account in UAE, China, Serbia

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Together with our reliable and professional partner ArmGate Advisers we’ll find the best way to support your company, to ensure smooth operations and reduce the sanction risk! Contact us for questions or a quote.

Our Contacts

info@awaragroup.com

+7 495 225-30-38 Moscow
+7 812 244-75-49 Saint Petersburg
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