Establish a turnkey company

1. VAT (value added tax) in Armenia is levied on supplied goods and services. The VAT rate may vary depending on the type of goods or services, in most cases 20% of the price of goods or services.

2. Income tax is imposed on legal entities and individual entrepreneurs. The tax base is the company's net profit for the tax year. The profit tax rate is 18%.

3. Turnover tax is a special tax regime replacing value added tax (VAT) and (or) profit tax (corporate tax) with a tax rate of 5% from total turnover. It can be applied by individual entrepreneurs (IE) and legal entities

4. Personal Income Tax (PIT) is a tax levied by the state on income earned by individuals. Income subject to tax may include wages, interest from bank deposits, rental income from real estate, capital investments, shares and other sources of income. The personal income tax rate may vary depending on the type of income.

5. Social contributions are withheld from employees' salaries and allocated to social security, including pension benefits and medical care.

6. Excise tax is levied on several specific goods such as alcohol, tobacco, gasoline and some other goods. Excise tax rates may also differ from each other.

7. Property tax in Armenia is levied by property owners and is based on the value of the property. The amount of tax may vary depending on the location and value of the property.

8. Customs duties are levied when goods are imported across the customs border of Armenia.

Each type of tax may have its peculiarities, rates and payment rules, so it is important to understand them in detail according to specific circumstances. However, with the Documan platform, there is no need to understand the intricacies of Armenian legislation: we will explain and help you quickly go through all the steps to choose the right type of taxation

A legal address is mandatory for doing any kind of business in Armenia. In case of absence, Documan can provide a correspondent address for your business in Armenia for a fixed yerly fee

Armenia offers several advantages for businesses, including:

1. Convenient geographical location: Armenia is at the crossroads of Europe and Asia, making it an ideal point to access a variety of markets.

2․ Access to EAEU markets: Armenia is a member of the Eurasian Economic Union (EAEU), which provides access to a large domestic market including Russia, Kazakhstan, Belarus and Kyrgyzstan.

3. Investment incentives: The government provides various tax breaks and investment incentives to attract foreign investors.

4. Skilled labor force: Armenia has an educated and technically competent labor force, which makes it attractive to companies requiring specialists in various fields.

5. Emerging IT sector: Armenia is becoming a center for IT and startups, providing tax benefits and many opportunities for innovation.

6. Low operating costs: Comparatively low costs for office rent, labor and energy make Armenia competitive

7. Quick registration procedures: The company registration process is relatively simple and quick.

8. Favorable investment environment: Armenia provides a stable political and economic environment, which is important for long-term investments.

We provide regular consultations, document preparation, registration and licensing, and assistance with tax and other legal matters. Our team of lawyers will make sure that you are aware of all legal requirements and can focus on your activities with peace of mind

Our primary goal is to enhance your tax efficiency. We offer expert tax advice, conduct a thorough analysis of your corporate situation, and assist you in optimizing your tax responsibilities. Our services encompass various aspects, including bookkeeping (comprising income and expense accounting), the preparation of financial statements, and the filing of tax returns. Our seasoned accountants ensure that you adhere to all accounting standards and requirements, maintaining accurate and up-to-date financial data.

Additionally, as part of our accounting support, we handle the preparation and submission of all necessary documents and declarations to tax authorities, thereby ensuring compliance and minimizing risks

An individual entrepreneur in the Republic of Armenia may be any legally capable person (citizen of the Republic of Armenia, foreign citizen or stateless person) whose right to engage in entrepreneurial activity is not restricted by law. In particular, a person cannot be registered as a sole proprietor if they have been deprived of the right to engage in entrepreneurial activity by a court of law. The criminal record has not been removed or extinguished by the established procedure, or the person has been recognised bankrupt by a court of law and, when applying for state registration, has not fulfilled his/her obligations that served as a basis for such recognition. IEs may have their employees

To register an IE on the territory of the Republic of Armenia, you will need:

1. Valid passport (Translation if necessary)

2. Armenian phone number

3. Legal address on the territory of Armenia

4. E-mail

5. Choice of type of activity

6. Choice of the type of taxation

Registering a individual entrepreneurship in the RA offers several advantages, including:

1. Cost-effective setup.

2. Ability to open bank accounts for individual entrepreneurs (IEs) and non-resident individuals.

3. Opportunity to obtain a residence permit in the Republic of Armenia.

4. Capability to receive and send payments from anywhere in the world.

5. Potential to conduct business with counterparties from any country

Yes, it doesn't take long to close an individual entrepreneurship. But before closing an individual entrepreneurship, you need to ensure you don't have any tax liabilities

After establishing a individual entrepreneurship in accordance with Armenian legislation, you are obligated to pay mandatory fixed taxes known as 'income tax' and 'compulsory social payments,' each amounts to AMD 5,000 per month. In addition, there is a variable tax called the 'trade turnover tax,' the amount of which depends on the revenue generated by the individual entrepreneurship

A limited liability company in the Republic of Armenia may be registered by any legally capable person (a citizen of the Republic of Armenia, a foreign citizen or a stateless person)

State Registration of a Commercial Enterprise in Armenia takes different time depending on circumstances:

If the founder is an individual, registration takes one working day.

If the founder is a legal entity, it takes two working days.

Preparation of necessary documents varies based on the founder's status.**:Non-Resident Founder: If the founder is a non-resident commercial company, the process typically takes five to eight working days.This includes opening a bank account and obtaining a company seal.

Additional Costs:Legal and accounting costs are calculated separately based on the service provider.

Documan offers a comprehensive package, including bank account opening, but excludes third-party fees (e.g., banking, translation, notary, courier) which are charged separately based on actual invoices from third parties

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