How to Set Up an Entity in Armenia

Armenia has rapidly become one of the most attractive jurisdictions in its region for foreign business expansion. With a streamlined entity-registration process, minimal red tape, and favorable tax and ownership rules, it offers a compelling environment for entrepreneurs, tech companies, and service providers seeking a cost-efficient base with access to both European and Eurasian markets.

The primary challenges typically relate to administrative and documentary requirements. Non-resident founders must prepare foreign documents in compliance with Armenian standards, often requiring apostille or consular legalization followed by notarized Armenian translations. Choosing a compliant legal address, drafting a company charter that aligns with local legislation, and selecting the appropriate tax regime all require careful planning. Despite these steps, Armenia remains a cost-efficient and business-friendly location to operate a legal entity, offering a stable legal environment, competitive tax options, and a clear compliance framework once the company is established.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice. Always consult official sources before acting.

What does “opening an entity” mean in Armenia?

Opening an entity in Armenia means formally registering a legal company—most commonly a Limited Liability Company (LLC)—with the national registry, obtaining a legal entity status, a registration certificate, and the right to operate commercially (enter into contracts, employ staff, invoice clients, open bank accounts).

Entity overview in Armenia

Here’s a summary of the key structural, legal, and tax-related characteristics for setting up a company in Armenia:

Step-by-step guide: How to open an entity in Armenia

Step 1: Choose the right structure

The most common structure for foreign investors is an LLC. It limits liability to the capital contributed and offers simplified reporting. For larger companies or those seeking to issue shares publicly, a CJSC or OJSC may be considered a suitable option. For minimal operations or freelancers, registering as a Sole Proprietor (individual entrepreneur) may also be an option.

LLCs are generally recommended for small and medium enterprises, startups, and foreign-owned ventures. CJSC/OJSC are more suited for larger entities, joint ventures, or companies seeking equity investors or a public listing.

Step 2: Verify business name availability

You must choose a unique business name. Business names in Armenia cannot duplicate existing names and must not include banned terms (e.g., implying government or protected international organisations, or offensive language). Check existing business names on the government website.

Name reservation or registration occurs through the State Register Agency at the same time as company registration. If you want to use words like “Armenia” or “Armenian” in your company name, you may need a special permit and pay an annual state fee (for example, 600,000 AMD).

Step 3: Prepare incorporation documents

You will need to submit the following:

• Application form for company registration
• Founders’ decision or minutes approving the charter and establishing the company, indicating share allocation, director appointment, company name, and legal address
• Charter / Articles of Association of the company
• Declaration of the ultimate beneficial owner (UBO)
• Copies of passports (for founders and directors): for non-residents, passports must be apostilled or consularly legalized, then translated into Armenian and notarized
• Proof of legal address (e.g., lease agreement or property ownership document) in Armenia

Step 4: Register with the State Register Agency of Legal Entities

Businesses can complete the incorporation either online through the Ministry of Justice’s Electronic Register portal or by submitting documents in person at the State Register Agency office in Yerevan. Online filing is widely used and typically provides very fast processing once the documents are reviewed. After approval, the company receives its certificate of incorporation, state registration number, and official entry in the state register, giving the entity full legal status in Armenia.

Step 5: Register for tax and social security

After incorporation, you must register the company with the local tax authority (the State Revenue Committee of the Republic of Armenia via its operational branch, sometimes referred to as the Armenian Tax Service) to obtain a tax identification number (TIN). If you plan to hire employees, you also register as an employer for social security and payroll purposes.

Step 6: Open a corporate bank account

Once your entity is registered, you can open a corporate bank account in an Armenian bank. Banks typically require the company registration certificate, company charter, proof of address, and passport copies of directors/beneficiaries. For non-resident founders, additional documentation (such as legalized passports and possibly an apostille) may be requested. Due to some local banking practices, opening an account may require a short visit or additional due diligence—especially for non-residents.

Step 7: Set up payroll and employment compliance

If you plan to hire staff, you must comply with Armenian labor and social-security regulations. Employers manage payroll registration and all tax and social-security filings through the SRC, which administers income tax withholding, mandatory pension contributions, and employer payroll reporting. This includes registering employees in the funded pension system, calculating and remitting payroll taxes and social contributions, and ensuring employment contracts and benefits comply with local law. Many foreign-owned companies also work with a local accountant to manage payroll filings, particularly if directors are non-residents.

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Post-registration obligations

Once incorporated, companies in Armenia must comply with:

• Tax and financial reporting: Submit corporate income tax returns annually (or more frequently if required), VAT filings (if applicable), and maintain proper accounting under Armenian standards.
• Corporate registers: Maintain up-to-date records of shareholders, directors, and beneficial owners; report any changes to the registry.
• Compliance tracking: Keep track of deadlines for tax payments, social security contributions, licenses, and any required filings or renewals.
• Licenses and renewals: Depending on business activities, obtain relevant licenses or permits (e.g., if regulated). Renew permits or registrations as per local law.
• Recordkeeping: Retain accounting records, payroll, contracts, and HR documentation for the period required under Armenian law (typically several years).
• Employment law compliance: Ensure employment contracts, remuneration, benefits, social contributions, and labor protections follow the Armenian labor code and social security regulations.

Taxes and financial considerations

• Corporate income tax: 18%
• VAT: Standard rate is 20%, applied to domestic sales and imports; exports may be zero-rated or exempt, depending on regulations
• Payroll / social contributions: Employment income is taxed under a flat income tax system; the employee income tax rate is 20% (for both residents and non-residents as of 2023). Additional employer/employee social contributions apply (pension, social security, etc.), depending on salary bands.
• Accounting standards: Companies must maintain proper accounting and bookkeeping under the national law of Armenia; generally, national accounting standards apply

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Expand internationally with Deel

Whether you’re hiring through an EOR or establishing your own local entity, Deel’s all-in-one platform gives you everything you need to expand into the United Kingdom—quickly, compliantly, and with confidence. From market entry to ongoing operations, Deel helps you hire, onboard, and manage teams seamlessly from day one.

With Deel, you can:

• Test new regions using Deel’s local entities through our Employer of Record service—hire employees compliantly, delegate payroll and taxes, and access localized employment contracts.
• Open entities with Deel Entity Setup, where our team manages everything—from incorporation and tax registration to coordination with local experts.
• Centralize your compliance and records with Deel Entity Management, including automated filings, calendar reminders, and visibility across all entities.
• Integrate with Deel Payroll and Deel HR for compliant payments, benefits, and workforce oversight—all in one platform.

For companies transitioning from the EOR model to owned entities, Deel ensures a smooth handover and consistent compliance every step of the way. Enter new markets, onboard talent, and manage your global workforce—all through one unified platform.

FAQs

How long does it take to open an entity in Armenia?
It typically takes 1–3 business days from the submission of the completed documentation. Find out how long setup takes with our Entity Setup Calculator.

What is the minimum capital required?
There is no mandatory minimum capital requirement for LLCs.

Can foreign companies own 100% of an entity in Armenia?
Yes. 100% foreign ownership is permitted.

Do I need a local director or representative?
No special residency requirement; non-residents can serve as directors or shareholders. However, non-residents must provide apostilled and notarized passport copies and translated documents.

How much does it cost to register an entity?
Registering an LLC is free, with no government fees. Additional costs may include legalizations, translations, notary services, and possibly legal address leasing. Find out the setup cost with our Entity Setup Calculator.

Can I hire employees before the entity is fully registered?
Typically, no, you need a registered legal entity before officially hiring employees. However, you can use Deel’s Employer of Record (EOR) service to hire and pay talent immediately while you set up your entity.

Can Deel help me open an entity in Armenia?
Yes. Deel Entity Setup can manage the entire incorporation process (from initial registration and tax registration to coordination with local banks and expert advisors), making it easy to establish and operate your Armenian entity.

Does Deel offer ongoing compliance and payroll support?
Yes. Deel offers both managed services and self-service tools to help you stay compliant.

If you’re using Deel Entity Management, Maintenance, EOR, or Payroll, our team handles payroll, benefits, filings, and compliance obligations on your behalf.

For teams managing their own entities, Deel Compliance Hub makes staying compliant simple by providing real-time regulatory updates, risk alerts, and workforce insights across 150+ countries. Proactively manage compliance with our Compliance Monitor, Workforce Insights, and an AI-powered Worker Classifier, staying ahead of changing employment laws.

Can I switch from Deel EOR to my own entity later?
Yes. Deel supports seamless transitions when you’re ready.