Armenia, a landlocked country located in the South Caucasus area of Eurasia, is progressively gaining recognition as an excellent destination for conducting international business. The country’s strategic location, favorable business environment and skilled workforce make it a prime location for entrepreneurs considering company formation in Armenia, including setting up Limited Liability Companies (LLC).
To register an LLC in Armenia, there are specific steps to follow, and it commences from decision making to the ultimate step of obtaining your business license. Before delving into the details, it’s noteworthy to consider a few essential aspects of Armenia and business in this country.
The Armenian Business Environment
Business Environment and Regulatory Framework
Armenia has been making significant strides in improving its business environment. It ranks highly in ease of doing business index, reflecting its commitment to developing a friendly business climate. The country has a well-defined regulatory framework that fosters transparency, competitiveness, and ease of starting and running a company.
Workforce and Infrastructure
Armenia prides itself on a young, educated, and competitive workforce. With over half of the population speaking English and a high literacy rate, communication barriers are minimal. It also boasts of modern infrastructure, with excellent transportation, logistics facilities, a stable energy supply, and digital connectivity.
Steps to Register a Limited Liability Company in Armenia
Step One: Decide on a Unique Company Name
The first step towards registering your LLC in Armenia is choosing a unique company name that doesn’t exist in the Armenian Company Register.
Step Two: Draft and Notarize the Company Charter
This document outlines the operational rules for your company. It should be drafted by legal professionals to ensure it complies with Armenia’s company laws. Once drafted, it has to be notarized.
Step Three: Open a Bank Account
You need to open a bank account in the name of your LLC. Once the account is active, you’re required to deposit a minimum initial capital of approximately 100,000 Armenian Dram.
Step Four: Register with the State Register Agency
Next, you provide the necessary details for your LLC registration to the State Register Agency. The information required includes the details of the director, shareholders, company address, among others. You’ll also need to provide the notarized company charter.
Step Five: Obtain Tax Identification Number (TIN)
After registration approval, the State Register Agency will assign your LLC a unique tax identification number. This number is crucial as it’ll be used in all tax-related operations for your company.
Step Six: Register for VAT
If your LLC anticipates a turnover exceeding the fixed threshold in a year, you should register for Value Added Tax (VAT) at the State Revenue Committee.
Final Step: Obtain Business License
Finally, depending on the nature of your business, it would be necessary to obtain licenses or permits from the relevant authorities. An example could be a trading license from the Ministry of Economy.
Overall, the process of registering an LLC in Armenia is straightforward, thanks to the country’s established regulations and procedures. While this guide provides a useful starting point, we recommend seeking legal and professional advice to ensure a smooth and successful registration process.
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