How to Become an Entrepreneur in Armenia

How can a person engage in entrepreneurship in the RA?

  • By registering as an individual entrepreneur,
  • By establishing a commercial legal person.

Who qualifies as an individual entrepreneur (IE)?

IE is a person who is entitled to carry out an activity without forming a legal entity, independently, on his/her behalf and at his/her risk, the main aim of which is to generate profit (income) from the use of property, sale of goods, performance of works and provision of services.

Who can be an individual entrepreneur?

  • RA citizens
  • Refugees
  • Foreign citizens
  • Stateless persons

An individual entrepreneur must possess property with the right of ownership and shall be liable for his/her obligations with that property. On his/her behalf he/she can acquire and exercise property and personal non-property rights, bear responsibilities, appear in court as plaintiff or respondent.

What documents are required to register as an IE?

  1. Copy of passport (in case of a foreigner – the copy of the passport should be translated and validated by notary),
  2. Fee of 3000 AMD.

You can also register as an IE also via the electronic register of the RA Government following this link: https://www.e-register.am/.

Who is a commercial legal person?

  • Limited liability companies,
  • Joint-stock companies.

 What is a limited liability company (LLC)?

It is a company founded by one or several persons, the authorised capital of which is divided into shares at rates prescribed by the by-laws of the company. The company as an ownership has separate property and is liable for its obligations with that property. It can acquire and exercise property and personal non-property rights on its behalf, bear responsibilities and appear in court as plaintiff or respondent.

Article 3 of the RA Law “On Limited Liability Companies”

 What are joint-stock companies (JSC)?

  • Open joint-stock company,
  • Closed joint-stock company.

What is an open joint-stock company?

 A company is considered open when its shareholders have the right to alienate (sell, donate etc.) the shares belonging to them without the consent of the other shareholders.The number of shareholders of open joint-stock companies is not limited.

What is a closed joint-stock company?

 A company is considered closed when the shares of the company are only distributed among its shareholders (including the founders) or between other pre-determined persons.

A closed joint-stock company shall have not more than 49 shareholders. When the number of shareholders exceeds 49 the company shall restructure within a period of one year or shall subsequently reduce the number of its shareholders. Otherwise it shall be liquidated by court.

Article 8 of the RA Law “On Joint-Stock Companies”

What documents are required for the start-up registration of commercial legal persons?

For an LLC only the copy (copies) of the passport(s) of the founder(s) is(are) required.

It is possible to register an LLC also via the electronic register of the RA Government following this link: https://www.e-register.am/.

For the registration of an open or closed joint-stock company, the following is needed:

  1. application,
  2. minutes of the founders’ meeting on founding of a legal entity. When a legal entity is founded by one person the written decision of the founder and the passport copy of the head of the executive body are submitted.

No fees are stipulated for the start-up registration of commercial legal entities.

For additional information contact the State Register Agency of Legal Entities of the RA, address: Building 49/3, Komitas ave., c. Yerevan, tel.: (010) 20-14-45, (010) 20-14-49.