Armenia's attractiveness for IT companies
If you want to register an IT-company, succeed and not to pay income tax and VAT, pay attention to Armenia. The country is interested in the development of digital technologies, so opening an IT company in Armenia creates comfortable conditions for business, including a lot of tax benefits.
The advantages of the country for IT
The law, according to which the IT-sphere received tax privileges, was adopted in 2015. Since then, more than 500 privileged companies were registered in the country, which provided 2, 5 thousand jobs with high salaries.
- The income tax rate was reduced from 20 to 0%;
- VAT was reduced from 20 to 0%;
- The payroll tax was reduced from 23-36% to 10% for 3 years.
A non-resident can be a founder of a new company and enjoy tax benefits. There are no restrictions in this regard.
In order to attract foreign investors highly skilled professionals in the country, the government offers a lot of preferences and benefits. First of all, they have simplified business registration, and reduced the period of application processing to 1 day. Investors are granted tax benefits - a three-year deferral of VAT and exemption from customs duties.
Another advantage of Armenia is the absence of double taxation for non-residents. To this end, the country has signed an agreement with 47 countries, and the list is growing. Among them are Ukraine, Russia, Switzerland, Croatia, and the Czech Republic. This means that non-residents are automatically exempt from paying any taxes based on their status as a citizen of another country.
How to take advantage of tax benefits
In order for an IT company to be given tax exemptions, it must meet the following criteria:
- Must not be created after a reorganization of another company;
- Must not have more than 30 employees;
- A shareholder of any enterprise that has ceased to exist within the last three years cannot own shares;
- A shareholder must not own shares in a company that is going through bankruptcy proceedings;
- Owners of other IT companies must not own more than 20% of the shares in that enterprise.
So Armenia is ideal for start-ups and small companies.
The advantages of opening an IT company in Armenia
Armenia is the perfect place for IT business:
- The country boasts a powerful material and technical base;
- The biggest world corporations, which successfully cooperate with the local IT companies, are working in the market. Siemens, Deloitte, National Instruments, Oracle and Synopsys are among them;
- The country is confidently implementing digital technologies in all spheres of activity, so it is interested in new developments;
- Preferential tax regime;
- Absence of double taxation;
- Positive attitude to foreign investors;
- High salary on the background of inexpensive prices on products, rent, etc.
The cost of registration of IT companies
Price of registration starts from 5 thousand euros. The opening of a corporate account is paid separately.
Registering an IT Company in Armenia 2021
Non-residents must prepare the following documents to open an IT company in Armenia:
- passports of all founders;
- сharter, list of shareholders, minutes of the meeting
- information about the director, other managers;
- legal address;
- other documents upon request.
If you want to open an IT company in Armenia quickly, contact IT OFFSHORE specialists. We are aware of all the requirements and tax benefits for IT companies in the country; therefore, we can help you gather the documents and provide you with all the necessary information.