The very first step to doing business is to register a business. This process lays down both the legal basis of your company and its legal status, taxation system and the possibility of development.

What organizational and legal forms are there in Armenia?

First, you need to decide on the form of the enterprise. Armenian legislation provides:

• Cooperatives (an association of individuals and/or legal entities, which is created by pooling the contributions of its members)
• Partnerships (an association of legal entities and/or individual entrepreneurs; a partnership can be full or trusted)
• Companies (can be created both by one person and as an association of legal entities and/or individuals; they are divided into limited liability companies (LLC) and companies with additional liability, joint-stock companies (JSC) – closed and open)
• IE – individual entrepreneur

The most common organizational and legal forms in Armenia are LLCs, closed and open JSCs, as well as individual entrepreneurs.

Individual entrepreneur

An individual entrepreneur can register any capable individual. The advantage of this form is the speed and simplicity of registration. It is best to register as an individual entrepreneur if a person works for himself or has a small number of employees. The disadvantage of an individual entrepreneur is that a person is responsible for his obligations with all property belonging to him.

To register as an individual entrepreneur, you must provide:

• application for registration;
• a copy of the passport (notarized translation, if the person is a foreign citizen);
• legal address;
• receipt of payment of the state duty in the amount of 3 thousand AMD.

Limited Liability Company and Joint Stock Company

Both an LLC and a JSC can be founded by the same person. The advantage of these organizational and legal forms is that their participants are not liable for the obligations of the company with their personal property. The authorized capital of an LLC is divided into shares, while in the case of a JSC, it is divided into stocks. In this sense, there is also a difference in the procedure for leaving the company. A member of an LLC can declare his withdrawal at any time and demand compensation, while in a JSC, the responsibility for removing his share for withdrawal lies with the shareholder himself. Another difference between LLC and JSC is that the list of JSCs is confidential for third parties, while the list of LLCs is open.

To register an LLC and JSC, it is necessary to provide:

• application of the authorized person of the founder(s) of the legal entity;
• minutes of the meeting (congress or other body established by law) of the founder(s) on the establishment of a legal entity, signed by the chairman and secretary (except for legal entities established by one individual). If there is a legal entity among the founders, then it is necessary to submit the decision of the management body authorized to do so by the founder – legal entity;
• the charter in at least two copies, approved by the meeting (congress or other body established by law);
• a copy of the director’s passport (a notarized translation if the person is a foreign citizen);
• copies of the founders’ passports (notarized translation, if the person is a foreign citizen);
• receipt of payment of the state duty in the amount of 10 thousand AMD.

Contact the law office of Vardan Khechyan and we will help you choose the right strategy for opening and developing your business. Our specialists will accompany you at all stages of this time-consuming journey.

☎+374 33 311 00   

✉vardan@khechyan.com   

🏢 0002 Yerevan, 6 Yekmalyan St., floor 2  

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