Redomiciliation of existing foreign legal entities to Armenia
Redomiciliation is the process of transferring a legal entity from one jurisdiction to another.
A decision to redomicile a company can be made by managers for several reasons:
– Impact of the worsened geopolitical situation in the country of primary registration;
– changes in tax conditions in the country of initial registration of the company;
– increase in costs related to the maintenance of the company’s “vital activity”;
– Decrease in the international image of the country of registration of the company;
– production necessity (change of conditions for import/export, which is carried out
through the company);
Organization transfer (redomiciliation) is relevant due to the fact that it already has its own useful history of relationships with contractors, contracts, relationships, bank account and name. For this purpose, a special regulation of the issue of transfer of the company in the legislation of primary registration is necessary. The legislation should allow companies to leave the legal space of the state and move to another state. Similarly, the host country should have a legal framework for the
relocation of companies from other countries.
The Republic of Armenia currently has developed legislation that allows for redomiciliation from any country and to any country. Redomiciliation is certified by the “Certificate of Continuation of Operations” (Article 59.1 (1) of the Civil Code of the Republic of Armenia, as amended in 2016). To register a company in the new state, the following conditions must be followed:
– The relocated company is preliminarily registered at the new location,
– A company that changes jurisdiction must cease operations in the country of previous registration and obtain a document confirming that its operations in the “old” jurisdiction have been terminated,
– a document on termination of the company’s activity confirming the termination of the company’s activity in the previous jurisdiction must be provided to the registrar at the place of new registration within a certain period of time from the moment of temporary registration.
Upon completion of the procedure for changing the state, the Company receives a standard paper copy of the REDOMICILATION REGULATION.
Thus, the redomiciliation procedure of the company is a complex and laborious process. We offer you the help of our office staff, which includes both the work on establishing a company in a new jurisdiction, and work to perform all the necessary formalities in the country of previous registration. We have many years of experience working with both procedures and we look forward to a fruitful