Armenia (AM)
Affordable Caucasus base with a fast-growing tech scene, rich culture, straightforward residency options, low flat income tax, strong diaspora links and increasingly international Yerevan.
Capital: Yerevan
Region: Europe
Language: Armenian
Currency: AMD (֏)
Cost of living: Very affordable (index 30)
Emergency: 911
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Business Setup
Start a business or go freelance in Armenia.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 Confirm whether your activity suits an Individual Entrepreneur (IE) registration or requires an LLC (e.g., for employing local staff, contracts with large clients).
- 2 Register with the State Register of Legal Entities at e-register.am — IE registration is available online and completes within 1–3 working days.
- 3 Simultaneously register with the State Revenue Committee (SRC) at src.am to obtain your taxpayer identification details and choose your tax regime.
- 4 Choose the correct tax regime before issuing invoices: Turnover Tax (5% of gross revenue) for IEs below AMD 115,000,000/year; standard VAT regime (20%) above the threshold; Micro-Enterprise regime (0% income tax) where eligible.
- 5 Open a business bank account at Ameriabank, Ardshinbank, Armeconombank or ACBA Bank — most require entity registration documents and a local phone number for OTP verification.
- 6 Set up compliant invoicing and accounting using Armenian-standard software or a local bookkeeper (heshvapah).
- 7 File quarterly and annual tax declarations through the SRC's e-services portal (esrc.am).
Tax registration
State Revenue Committee (SRC) of Armenia at src.am. Registration is linked to your entity registration at e-register.am. Receive your taxpayer identification number (HVHH) and access the SRC e-services portal (esrc.am) for all tax filings. Use a local accountant for the first return.
VAT threshold
AMD 115,000,000 annual turnover triggers mandatory VAT registration at 20%. Below this threshold, IEs and small LLCs may use the Turnover Tax regime (5% of gross revenue, collected quarterly) instead of VAT. The Micro-Enterprise regime (0% income tax on profit) applies to IEs with annual turnover under AMD 24,000,000 in eligible non-trade activities.
Invoicing
Armenian-compliant invoices must include: taxpayer name and HVHH number, client name and HVHH, invoice number, date, service description, currency and amount, applicable VAT rate and amount (or statement of turnover-tax regime), payment terms and bank account details. Cross-border service invoices require careful review of VAT place-of-supply rules.
Social security
Individual entrepreneurs and LLC directors should review mandatory funded pension contributions (5% of income for those born 1974 or later), income tax (flat 20%), military insurance stamp duty and any social payment obligations with a local accountant. There is no separate employer social insurance contribution stack like Germany's system.
💡 Armenia offers fast, low-cost entity registration and is an active destination for remote workers and tech companies. Banking compliance, tax-regime choice and source-of-funds documentation are the main practical bottlenecks. Consult a local accountant (heshvapah) before choosing between the turnover-tax, VAT and micro-enterprise regimes.
🏢 Business Structures
IE · Անհատ Ձեռնարկատեր — Individual Entrepreneur
Sole proprietor / self-employed
None required
Min. capital
1–3 working days once documents are ready
Setup time
Liability: Unlimited personal liability
Setup cost: AMD 3,000–10,000 in state registration fees and adviser costs; online registration via e-register.am is fast
Best for: Freelancers, consultants, small traders, remote workers and digital nomads testing Armenia as a base. Turnover tax regime (5%) available under AMD 115,000,000 threshold.
LLC · Սահմանափակ Պատասխանատվությամբ Ընկերություն — Limited Liability Company
Private limited company
No statutory minimum charter capital required under Armenia's Law on Limited Liability Companies
Min. capital
Several working days for registration; bank account setup and tax registration can take 1–3 weeks
Setup time
Liability: Limited to company assets; shareholders protected from personal liability if entity is properly maintained
Setup cost: AMD 30,000–120,000 in registration, legal drafting, accountant and bank onboarding costs
Best for: Agencies, startups, consulting firms, local employers, B2B contracting and businesses needing liability separation from personal assets.
JSC · Բաժնետիրական Ընկերություն — Joint-Stock Company (Closed or Open)
Joint-stock company / corporate entity
Closed JSC: AMD 100,000 minimum charter capital; Open JSC: AMD 5,000,000 minimum
Min. capital
Longer than IE/LLC; typically 2–6 weeks due to charter, share structure and notarial requirements
Setup time
Liability: Shareholders' liability generally limited to their share contribution
Setup cost: AMD 100,000–500,000+ in legal, registration and governance setup costs
Best for: Larger ventures, regulated sectors, companies seeking external investment or structured shareholding with a board of directors.
General Partnership · Լիակատար Ընկերություն — General Partnership
General partnership
None required
Min. capital
1–3 weeks
Setup time
Liability: All partners bear unlimited joint and several liability for partnership debts
Setup cost: AMD 20,000–60,000 in registration and legal costs; a written partnership agreement is essential
Best for: Small professional collaborations between trusted partners who accept full personal liability. Rarely used in practice — LLC is preferred for liability reasons.
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