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Armenia’s Compliance vs Regulations: A Balancing Act

As Armenia continues to evolve as a business-friendly destination, the government has implemented significant reforms aimed at simplifying requirements and procedures for obtaining permits and licenses.

Licensing Reforms

The law “On Licensing” provides for two types of licenses: simple and compound (automatic and non-automatic). While 96 types of activities are currently subject to licensing, only 12 are subject to simple licensing, with the remaining 4 requiring a compound procedure.

In addition to business start-up laws and regulations, several other legal acts apply to establishing a business in Armenia. These include:

  • Employment laws
  • Intellectual property rights policies
  • Inspections procedures

Labour Code of the Republic of Armenia

The Labour Code governs employment agreements, collective agreements, working conditions, and employee rights. The code corresponds to international criteria and provides protection for both employers and employees.

Intellectual Property Rights Policy

Armenia’s intellectual property (IP) rights policy regime aims to promote innovation and IP commercialization, while providing effective protection for proprietary rights to IP owners. Major legislation governing patents and intellectual property rights includes:

  • Civil Code of Armenia
  • Law “On Copyrights and Related Rights”
  • Law “On Trademarks”

Inspections in Armenia

Inspections are carried out by several state bodies according to the law “On Organization and Implementation of Inspections in the Republic of Armenia”. The system of inspections is being improved through ongoing reforms, including the introduction of a risk-based inspection system. Only 20% of enterprises are considered high-risk, with 70% of annual inspections conducted in these companies.

Simplification of Permit Issuance

The government’s efforts to simplify requirements and procedures for obtaining permits and licenses have led to significant improvements in the construction industry, where issuance of permits is now provided within 27 days, down from 137 days prior to reforms. Additionally, licenses can now be obtained online through a new electronic system at www.e-gov.am/licenses.

Conclusion

Armenia’s compliance vs regulations landscape presents a balancing act between promoting business and ensuring regulatory oversight. As the country continues to reform its laws and procedures, it is essential for businesses to stay informed about the latest developments and requirements to operate successfully in the market.