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Armenia’s Simplified Process for Orchestrating Local Payroll, Tax Submissions, Salary Disbursements, and Employee Benefits

Company Registration Process

The Armenian Ministry of Justice oversees the State Registry of Legal Entities, which handles company registrations. To streamline this process, authorized lawyers can facilitate by filing necessary documents with a power of attorney. The registration typically takes only one business day, although certain registrations may take longer.

Key Documents and Fees

To register a company in Armenia, you will need to provide:

  • Original or legalized copies (Apostille or consular legalization) of passports for individual shareholders and directors
  • Corporate shareholders and directors must furnish legalized copies of relevant documents
  • The following fees are applicable:
    • Registration fee: AMD 50,000 (approximately USD 130)
    • Annual registration fee: AMD 20,000 (approximately USD 52)

A company in Armenia must have a legal address, which serves as the recipient of official correspondence and notifications. This address can be the same as the actual business location or a residential address.

Shareholders and Managers

Armenia offers flexible shareholding options with no restrictions on foreign ownership. Shareholders enjoy limited liability protection, and individual shareholders are subject to a 5% income tax on dividends.

  • Companies in Armenia typically have a single director, who serves as the chief executive officer and has authority to act on behalf of the company.
  • Directors can be individuals or legal entities and may face liability for company damages resulting from unreasonable actions.

Recent Development

As of January 1st, 2023, Armenian companies must disclose their real beneficiaries (ultimate beneficial owners) through an online platform by February 20th, 2023. Companies with over 20 shareholders are required to have an internal auditor or audit committee.

Conclusion

Armenia’s streamlined process for company registration, tax submissions, salary disbursements, and employee benefits offers a favorable business environment for entrepreneurs and companies alike. By understanding the key documents, fees, and considerations outlined in this article, businesses can navigate the process with ease and focus on growth and success.