Looking to expand your horizons and launch a company in a dynamic, welcoming market? Doing business in Armenia is more accessible and attractive than ever for foreign entrepreneurs and investors. Whether you’re interested in tech, manufacturing, trade, or services, Armenia offers a unique blend of low taxes, simplified regulations, and access to Eurasian markets. This guide explains everything you need to know to start, register, and successfully run a business in Armenia as a foreigner.
Why Do Business in Armenia?
Armenia stands out for its pro-business environment, strategic location, and supportive government policies. Here’s why foreign investors are taking notice:
- Low corporate taxes: Corporate tax is just 18%, with generous incentives for small businesses and startups.
- Strategic gateway: Armenia connects Europe, Asia, and the Middle East, and is a member of the Eurasian Economic Union (EAEU).
- Ease of company formation: Foreigners can own 100% of Armenian companies and face no restrictions on profit repatriation.
- Skilled workforce: High literacy rates, strong STEM education, and affordable labor costs make Armenia ideal for tech and innovation.
- Liberal currency regulations: Free flow of capital, easy banking, and access to multi-currency accounts.
- Special economic zones: Export-oriented businesses benefit from tax breaks and customs advantages.
Foreign investment in Armenia is encouraged at every stage, with support from local agencies and international organizations.
Legal Entities and Registration Steps
Choosing the Right Legal Entity
Foreigners can choose from several company types in Armenia, but the most common are:
- Limited Liability Company (LLC / ՍՊԸ): The most popular form for SMEs, requiring at least one founder (can be a foreigner).
- Joint Stock Company (JSC): Suitable for large projects and raising investment through shares.
- Individual Entrepreneur (IE): Ideal for freelancers, consultants, and microbusinesses.
Step-by-Step Registration
1. Reserve Your Company Name:
Check and reserve your business name online at the State Registry.
2. Prepare Documents:
You’ll need your passport, a legal address in Armenia (can be rented), and the company charter.
3. Submit Application:
Register at the State Registry of Legal Entities. All documents can be submitted online or in person.
4. Receive Certificate of Incorporation:
You’ll get your certificate within one business day—one of the fastest in the region.
5. Register for Tax Purposes:
Obtain a Tax Identification Number (TIN) from the State Revenue Committee.
6. Open a Bank Account:
Set up a company bank account in local AMD or foreign currency.
7. Register as a VAT payer (if required):
Compulsory if annual turnover exceeds 115 million AMD (~$290,000).
8. Obtain necessary licenses (if needed):
See next section.
Armenia company formation is straightforward—many expats and investors complete the process within a week.
Taxation and Accounting
Armenia’s tax system is designed to be business-friendly:
- Corporate income tax: 18%
- Dividend tax: 5% for non-residents; 0% for Armenian residents (paid by Armenian companies)
- Value-Added Tax (VAT): 20% (applies to companies with turnover over 115 million AMD)
- Microbusiness regime: 0% tax for annual turnover under 24 million AMD (~$60,000)
- Turnover tax: Small businesses may opt for a 1.5–5% turnover tax instead of corporate profit tax
Accounting and Reporting
- Mandatory bookkeeping: All companies must maintain accounts, submit annual financial statements, and pay taxes on time.
- Digital reporting: Armenia’s tax reporting is fully digital—returns and payments are made online.
- Foreign currency: Companies can invoice and receive payment in major currencies.
Tip: Consider hiring a local accountant familiar with Armenian tax law to ensure full compliance and maximize tax benefits.
Licensing and Permits
Not all businesses need a license, but regulated industries include:
- Banking and financial services
- Pharmaceuticals and healthcare
- Telecommunications
- Transportation
- Alcohol and tobacco sales
- Gambling
How to obtain licenses:
- Identify if your business activity requires a license (check the government list or consult a local advisor).
- Apply with the relevant ministry or agency.
- Submit supporting documents (company certificate, director’s passport, compliance documents).
- Most licenses are granted within a few weeks if requirements are met.
Armenia business registration is open to foreigners, but strict compliance is required for regulated sectors.
Labor Market and Hiring
Armenia boasts a young, well-educated, and multilingual workforce. Here’s what you need to know about hiring:
- Employment contracts: Written contracts are required by law.
- Social contributions: Employers contribute 22% of gross salary to social funds (for pensions, insurance, etc.).
- Minimum wage: As of 2025, the minimum wage is around 85,000 AMD/month (~$220).
- Work permits: Foreign employees may need work permits, but this is streamlined for most professional roles.
- Recruitment: Tap into local job boards, universities, or recruitment agencies. Many Armenians speak English, Russian, and other languages.
- Internships and training: Armenia’s universities often cooperate with businesses to offer student internships.
Labor law tip: Respect all legal holidays and overtime regulations to maintain a strong reputation as an employer.
Common Challenges and Tips
Common Challenges
- Language barrier: Most business and legal documents are in Armenian. English-speaking service providers are common in Yerevan but not everywhere.
- Bureaucracy in some sectors: While most processes are efficient, some licenses or government approvals may take extra time.
- Market size: Armenia is a small market (population ~3 million), so plan your growth strategy accordingly.
- Banking compliance: Banks may ask for extensive documentation for foreign founders, especially for high-value transactions.
Practical Tips
- Partner with a local advisor: Local lawyers or business consultants can help you navigate registration, compliance, and culture.
- Network actively: Join business associations, chambers of commerce, and events to build connections and trust.
- Start lean: Consider testing your business idea as an IE or small LLC before scaling up.
- Monitor law changes: Armenia’s business environment evolves rapidly—subscribe to local business news or consult regularly with your advisor.
- Explore the EAEU: Take advantage of Armenia’s membership in the Eurasian Economic Union for duty-free exports to Russia, Kazakhstan, Belarus, and Kyrgyzstan.
Frequently Asked Questions (FAQs)
Q1: Can foreigners own 100% of a business in Armenia?
Yes! Foreigners face no restrictions on company ownership and can repatriate profits freely.
Q2: How long does company registration take?
Typically, one business day for legal registration. Bank accounts and VAT registration may take a few more days.
Q3: Do I need to live in Armenia to run my business?
No, you can manage your company remotely. However, having a local representative can streamline operations.
Q4: What are the main taxes for businesses in Armenia?
18% corporate tax, 20% VAT (if above threshold), and possible turnover or microbusiness regimes for smaller companies.
Q5: Are there special zones for foreign investors?
Yes—Free Economic Zones offer major tax and customs benefits for export-oriented businesses.
Q6: What sectors are most promising for investment?
IT, agriculture, renewable energy, tourism, and manufacturing are top sectors for foreign investors in 2025.
Conclusion
Doing business in Armenia as a foreigner is straightforward, rewarding, and packed with opportunities. With fast company formation, competitive taxes, a supportive business culture, and strategic market access, Armenia stands out as a top destination for ambitious entrepreneurs and global investors.
Ready to take the next step?
Contact Relocation2Armenia for expert guidance and hands-on support with company formation, legal compliance, and business growth.
