Registering a company in the Republic of Armenia
To carry out business activities in Yerevan and other cities of the Republic of Armenia one must register in the public register as a company, or as an individual entrepreneur. Both commercial and non-profit organizations must be registered in the public register of the Republic of Armenia, despite the fact that non-profit organizations are engaged in entrepreneurial activity only to achieve the objectives of their charter(s). To register one need to first determine the legal form of the company. One can register:
- LLC (limited liability company);
- LTD (Limited company);
- JSC (joint stock company).
Let us look at the registration of commercial organizations. Registration of the legal entity has its own characteristics related to the registration, with the requirements of registration authorities of the Republic of Armenia that are sometimes not completely legal. Registration of the legal entity in the Republic of Armenia is not only a technical procedure, as it is important to consider the needs of the customer, that the customer is consulted on all matters of interest, to determine the parameters of a legal entity and so on.
The procedure of registration of companies in the Republic of Armenia:
In the first place, when registering a company in the Republic of Armenia, one is required to determine the legal form of the legal entity which will be difficult to change at a later date. From the organizational and legal form depend all issues related to the activities of the company. For example, order management, profit distribution mechanism and so on. To register a company in the Republic of Armenia one will also need to determine the type of its activity. If, for example, transactions on the accounts are different from the type of activity provided for by the charter, the bank will require one to change the type of activity of the company. It is not enough to describe the scope of the company one also needs to determine the type of its activity.
The legislation of the RA provides for checking the name of the proposed organization. We do not recommend choosing a name for the company, which would coincide with existing trademark names, IE: JSC «BMW». Brand name may also be in a foreign language. One has the right to change the corporate name of the legal entity. Another important point relating to the registration of the company is the authorized capital. The share capital consists of a minimum size of the property and initial funds as defined by the legislation of the RA. For certain categories of organizations, such as banks and other credit and financial institutions, the legislator of the RA provides for a higher amount of authorized capital.
The charter of the organization is determined by the order of the government, which is dependent on the legal form of the company. Management determines the order of administrative structure, the order of their election and the procedure for the termination of their activities. One of the standard types of control systems in the RA is a double system whereby the company head is the head of the legal entity, as well as, the head of the board.
Company registration in Yerevan and throughout the Republic of Armenia is performed at the location of the organization. There are cases when the organization does not have an actual formal address to register. In such a case one can include any address in the founding document, which then may, or may not coincide with the actual formal address of the legal entity. The above is made possible, as the legislation of the RA does not oblige the entity to be present exactly at the registered formal address. Essentially, the definition of a legal address is one of the formalities of the registration.
After the implementation of all the actions listed above, qualified specialists of ‘Vardan Khechyan LLC’ will start drafting constituent documents of your company. The registration of legal entities in the RA is carried out by The Ministry of Justice of the Republic of Armenia. Upon registration of the legal entity, every minute detail must be considered in order to avoid the risk of liquidation of your company. The Republic of Armenia Registration Authority may accept the documents and carry out the registration, however, the risk of a further non-compliance with legal requirements of the Republic of Armenia legislation lies entirely with you. Please get in touch with our office to ensure your company documents are completed in the most responsible way, with a highly professional process of implementation for registration of your company.