IT company registration in Armenia in 2023
If you plan to register an IT company in Armenia in 2023, here is the good news. The country's government is interested in the development of IT sphere, so the parliament simplified the company registration procedure as much as possible. They currently offer tax benefits and grants to startups. Other advantages of Armenia are qualified specialists available on the market, well-developed infrastructure and low operating costs. Plus, there is an opportunity to conduct scientific research according to international standards, and attend and organize IT conferences.
Launching an IT business in Armenia
It takes up to several days to open an IT company in Armenia, provided the paperwork is correct.
Step 1. Choosing a form of legal entity
Before registering a company in Armenia, you need to choose a legal form of organization. The most popular options are:
- LLC. There is no requirement for minimum registered capital. Shareholders are liable only within the limits of their contributions. Meetings must be held every year but you can do it remotely. The board of directors is not needed. If the head is a foreigner, they can get a residence permit.
- JSC. You need at least one investor. The annual meeting can be held remotely anywhere in the world. If the company has more than 50 investors, a board of directors consisting of 3 or more people is required.
For a large foreign company that plans to operate only abroad and does not want to open a separate business, it is more profitable to register a branch, rather than a subsidiary:
- If you open a branch, only income received in Armenia is taxed. A subsidiary, on the other hand, pays taxes regardless of where the income comes from.
- Transfers within the branch are not taxed, while the subsidiary pays a 10% fee.
- Transfers of assets from the parent company to the subsidiary are not taxed, while the subsidiary pays a fee.
- It is possible not to observe corporate formalities.
- Less tight foreign exchange controls.
- Authorized capital is not required.
- Information about shareholders is not available to the public.
When registering a branch, it is obligatory to use the name of the main office, and the director must have a power of attorney.
Step 2. Company Name
You should choose a unique name for the company, which is not used anywhere else. It should indicate the company's legal form (LLC, JSC, etc.). If you want it to have the words "Armenia", "Arm" and "Armenian" and their translations you have to get permission and pay a fee of 600,000 Armenian drams per year.
If a branch or a subsidiary company is registered, the brand has the right to use its trade name as a trademark, letterhead, etc.
Step 3. Legal address
The business address must necessarily be listed in the articles of association immediately upon registration. Several businesses can be entitled to the same legal address. Registering the company in a business center or other office building is not necessary. It is enough to indicate the address of an ordinary apartment.
Step 4. Shareholders and founders
Both individuals and legal entities can be owners and shareholders of the IT business in Armenia. Their citizenship does not matter. Non residents have to provide copies of their passports, translated into Armenian and notarized. In case they are not in Armenia, copies of documents should be additionally apostilled.
Step 5. Documents
To register IT business in Armenia you should submit the following documents to the State Register of Legal Entities:
- Application form.
- Founders' decision to register IT business in Armenia. There you should specify the form of the company, total number, and price of shares, general director, company's name, etc.
- A document that confirms the company's tax number (statement, protocol).
- Indication of the real beneficiary.
The required documents must be apostilled if the company has already been registered in another country.
When planning a fintech project, an application for starting a business must be submitted to the Central Bank. Not only will it register the organization, but it will also issue a license.
How to open a startup in Armenia quickly
To open an IT company in Armenia in 2023 contact the IT-OFFSHORE expert.