In recent years, Armenia has become one of the most attractive destinations for business among foreign citizens, particularly from CIS countries. This is due to simplified registration procedures, favorable taxation, and the ability to remotely establish a sole proprietorship (SP). In this guide, we will discuss in detail how to register an SP in Armenia remotely in 2024, what documents are required, and what to pay attention to.
Advantages of Registering an Sole Proprietorship in Armenia
- Simplified Registration Process:
The Sole Proprietorship P registration procedure in Armenia is extremely straightforward. Document preparation takes minimal time, and the application can be submitted without personal presence. - Low Taxes:
Small businesses benefit from a simplified taxation system (STS), allowing them to pay only 5% tax on annual turnover. For software developers and other IT services, a preferential rate of 1% will apply starting January 1, 2025. - Access to International Markets:
Armenia is a member of the Eurasian Economic Union (EAEU), providing businesses access to markets in Russia, Kazakhstan, Belarus, and Kyrgyzstan without customs duties. - Remote Registration:
Foreign entrepreneurs can register an SP in Armenia remotely, making the process convenient and quick. - Minimal Costs:
Registering an SP requires minimal financial expenditure, including government fees and representative services for remote registration.
For multiple founders, it is also possible to register an LLC remotely in Armenia.
Remote Sole Proprietorship Registration Procedure
Step 1 – Contact Us:
We will provide detailed consultation on all questions. To register an SP in Armenia remotely, follow these steps:
- Document Preparation:
- A passport with a notarized translation into Armenian.
- A power of attorney for the representative who will submit documents to the authorities on your behalf.
- A legal address in Armenia (can be a rented residence or office).
- Submitting the Application:
The representative with the power of attorney submits the application to the State Register of Legal Entities. Documents are reviewed within one business day. - Obtaining the Registration Certificate:
Once registered, the SP receives a certificate confirming their status as a sole proprietor. - Selecting a Tax Regime:
Sole proprietors in Armenia can choose from the following tax regimes:- Simplified Taxation System (STS): 5% tax (1% for IT) for turnover up to 115 million AMD per year.
- General Taxation System (for larger enterprises).
- Registering with Tax Authorities:
After registration, SPs must register with the tax authorities to ensure timely tax reporting.
Obtaining a Social Card
A social card (analogous to a Taxpayer Identification Number) is required for tax reporting and opening a bank account. However, for remote registration, obtaining it is not mandatory. It can be issued at a police station in Armenia by presenting a passport with a notarized translation. The process takes several days to a week.
Opening a Bank Account
To fully operate a business in Armenia, a bank account is necessary. Typically, personal presence is required for this, but some financial institutions offer remote account opening with a power of attorney.
Popular and reliable banks in Armenia:
ACBA, ID Bank, Ardshin, Ameriabank, Converse.
Required documents for account opening:
- Passport with translation.
- Proof of income (not always required).
- Social card (not always required).
- SP registration certificate.
Important Notes for Foreign Citizens
- Taxation:
Under STS, taxes amount to 5% of turnover. Some activities qualify for tax benefits. - Reporting:
SPs in Armenia must file quarterly and annual tax reports, and in some cases, monthly (statistical) reports. This can be done through the tax authority’s online platform with the help of a local accountant. - Accounting Services:
Accounting services for small SPs typically range from 20,000 to 30,000 AMD per month. - Registration Duration:
SP registration does not have an expiration date, but timely tax declarations are required to avoid penalties.
Conclusion
Registering an Sole Proprietorship in Armenia remotely is a simple and affordable way to start a business in a country with favorable conditions for entrepreneurs. Minimal costs, convenient tax regimes, and ease of registration make Armenia an ideal place for business. If you wish to register an SP remotely, prepare the necessary documents and contact us to expedite the process. Start and manage your business effortlessly in Armenia!