Armenia is one of the top jurisdictions for foreigners looking to register individual entrepreneur or Sole Proprietorships (SPs) and LLCs, especially for businesses dealing with foreign partners. Below is information on the most suitable banks for SPs and LLCs in Armenia, along with the unique features of each bank and the Armenian banking system in general.
Best and Key Banking Features
1. Reliable Partner Banks
Some banks in Armenia work with major international partners, ensuring stable USD SWIFT transactions:
- ACBA collaborates with Raiffeisen Bank International AG (RBI)
- Ameria and Ardshinbank partner with Citibank
Additionally, some banks, like ACBA, support alternative SWIFT-like systems such as ACH, which may be useful for certain entrepreneurs.
2. Risk of Account Closure When Operating from Abroad
If the company owner is not a tax resident of Armenia and actively uses Armenian bank accounts or cards abroad, certain banks may flag such activity.
For example, Ineco Bank has been known to close accounts if they detect frequent foreign transactions.
3. Predictable AML (Anti-Money Laundering) Procedures
Different banks have varying approaches to AML compliance.
The banks listed above follow strict but transparent AML procedures.
If you have contracts, income proof, and tax documents, passing these checks should not be an issue, ensuring a stable and secure banking experience.
4. Favorable Currency Exchange Rates
Exchange rates fluctuate daily, but the following banks are noted for better rates:
- Evoca Bank offers better USD-to-AMD conversion rates (but does not open accounts for non-residents).
- ACBA provides good RUB-to-AMD exchange conditions.
These insights are based on community feedback and not deep statistical analysis, but they may be useful when selecting a bank.
5. Cost of Banking Services
Among the reviewed banks, the most affordable service fees are offered by ACBA, Ameria, and Converse Bank.
On the other hand, Ardshinbank is considered the most expensive for sole proprietors but offers certain advantages.
6. Risks of Working with Bank of Georgia
Some Armenian banks, including Converse Bank, ID Bank, and Ineco Bank, use Bank of Georgia as an intermediary for USD transfers.
This can result in payment rejections without explanation and deductions of intermediary fees.
However, EUR transactions via these banks do not seem to face similar issues.
7. Convenience of Mobile and Online Banking
By July 2024, most Armenian banking apps offer similar functionality, making it difficult to name a clear leader.
All major banks support key operations for SPs such as:
- Currency conversion
- Tax payments
- Transfers to other banks
However, ACBA, Ameria, and Ardshinbank have a slight edge in terms of app usability and convenience.
Differences in bank Account Opening for LLCs and Sole Proprietors (SPs)
Document Requirements
- SPs: Minimal documentation is required, including a passport, business registration certificate, and social card.
- LLCs: A more extensive document package is necessary, including founding and registration documents, proof of the director’s authority, and other supporting documents.
Timeframe for Account Opening
- SPs: The process is usually faster due to simplified document verification.
- LLCs: Takes longer as banks require a more detailed review of company documents and structure.
Capital Requirements
- SPs: No minimum capital requirements.
- LLCs: Some banks may require proof of capital formation, but Armenia does not set a mandatory minimum capital requirement.
Additional Requirements for LLCs
Banks may request:
- A business plan
- Information on expected transactions
- A list of key business partners
- Proof of Armenian residency, especially for non-resident companies.
Conclusion
Opening a bank account for an LLC in Armenia is more complex than for an SP and requires more documentation. It is recommended to check the specific requirements of the chosen bank in advance and prepare the necessary paperwork to avoid delays.
Overview of Banking Conditions and Fees in Leading Armenian Banks
1. ACBA Bank
- Account Opening: Free
- Annual Maintenance: Free if a minimum balance is maintained (calculated as the number of open accounts × 20,000 AMD). Otherwise, 1,000 AMD per month.
- International Transfers: 0.3% commission per transaction.
- Additional Services: Internet banking and a mobile app for convenient account management.
2. Ameriabank
- Account Opening: Free
- Annual Maintenance: 5,000 AMD
- International Transfers: Fees depend on the amount and transaction method.
- USD transfers via online banking: 0.15% of the amount, with a minimum of 7,000 AMD and a maximum of 20,000 AMD.
- Additional Services: User-friendly internet banking and a mobile app.
3. IDBank
- Account Opening: 3,000 AMD (for residents)
- Annual Maintenance: None
- Remote Banking: Free
- Additional Services: Modern online banking services for easy account management.
4. VTB Bank (Armenia)
- Account Opening:
- Free for residents
- 50,000 AMD for non-residents
- Annual Maintenance:
- 5,000 AMD for residents
- 50,000 AMD for non-residents
- Internet Banking:
- Setup & training: Free
- Monthly maintenance: 5,000 AMD
- Additional Services: SMS banking for 199 AMD per month.
5. Converse Bank
- Account Opening: Free
- Annual Maintenance: Information is available upon request at the bank.
- Transfers & Other Services: Fees depend on the type of operation and are available upon request.
- Additional Services: Provides statements and informational documents on request.
These banks offer different benefits depending on the business structure and operational needs. SPs can expect a faster and simpler process, while LLCs require more documentation and compliance checks.
Reviews on Opening Accounts for Sole Proprietors (SPs) and LLCs in Armenia
Client reviews of the Armenian banks mentioned earlier help to form an understanding of their service quality, ease of use, and reliability. Below is a summary of user opinions on each of these banks:
1. ACBA Bank
Clients highlight ACBA Bank’s reliability and its extensive branch network. However, some users report account freezes without explanation, which raises concerns. Additionally, the bank does not support Apple Pay, which can be inconvenient for those who rely on modern payment systems.
2. Ameria bank
Ameriabank is considered one of Armenia’s leading banks with a wide range of services. Users note that service fees are relatively high, especially for non-residents. The account opening process can be complicated, requiring a significant amount of documentation. On the positive side, clients appreciate the bank’s reliability and stability.
3. Ardshin bank
Ardshinbank is often described as having outdated processes and less user-friendly services. Users report instances of lost documents during account opening and difficulties with the mobile app. Additionally, some customers experience issues using Ardshinbank cards outside Armenia.
4. Converse Bank
Converse Bank receives positive reviews for ease of use and quality of service. However, clients note that the bank does not allow remote account opening, requiring personal presence. Many users praise the bank’s mobile application for its intuitive interface and stable performance.
5. ID Bank
IDBank is well-regarded for its modern approach to banking services. Users highlight the convenience of the mobile app and the ability to open an account remotely. Additionally, the bank offers competitive terms for transfers and account maintenance. However, some clients mention high fees for certain services.
Key Considerations When Choosing a Bank for SPs and LLCs
When selecting a bank, it is essential to consider not only customer reviews but also your specific business needs, as well as the terms and fees offered by each bank.