Benefits of Company Formation in Armenia
Armenia repatriates the profit from foreign shareholding in an Armenian company. The government encourages foreign investments and supports them through tax benefits. The multiple double-tax treaties Armenia has with other countries protect foreign investments, and ensure a lower tax rate for dividends.
Foreigners that are the owners or members in the board of directors of an Armenian company become eligible, along with their family for receiving residence status. Foreign major investors and owners of big corporates on the territory of Armenia can petition the Armenian prime-minister to be granted citizenship, avoiding the rule of 3 years of residency stipulated by the naturalization protocol.
With a literacy rate of 99.7%, finding skilled workforce in Armenia is not a problem. The country has a developed higher education system, comprising universities that operate in English, Russian and French. The average monthly salary is $38.
Term of registering
Company formation in Armenia might be completed in a single day. This is possible only if you are physically present in the country, and use sample documents for registration. It will take a little longer if you decide to set up a company while abroad. You will need to use the power of attorney, and wait one to three days for the registration to be completed. A corporate bank account can be established within 24 hours. As regards documents, you will need nothing but the passports of the shareholders and directors. Next, you receive your taxpayer identification number, and your company is declared legal.
There is a number of entities that are exempt from taxes. They include: micro-businesses, IT start-ups, and enterprises operating in free economic zones. Companies that have incomes of less than $240,000 are bound to a sales tax of 1.5- 5%. Foreign shareholders are charged 5% of their dividends, but oftentimes they pay less due to double-tax agreements that Armenia has signed with other countries. The capital gained from the sale of real estate is not taxed, as well as the insurance and pension payment. Net worth and inherited assets are also charged zero fees.
Foreigners are allowed to own 100% of shares in an Armenian company. Moreover, the board and the employees can also be people of non-Armenian descent. Foreign shareholders are not going to have problems with their residency and citizenship. They can even reside in a foreign country, without having the obligation to have a local address. A foreigner can hold all the shares in a company, and be its only director.
Thanks to good practices, experience gained, qualified theoretical knowledge, the experts employed by the Private Financial Services will quickly and qualitatively help to open and register the business activity in Armenia.