Armenia is a comparatively straightforward nation the place one might set up a enterprise

Armenia, a republic, is essentially a democracy. This unitary & multi-party nation with a really previous cultural legacy is, by and huge, mountainous and picturesquely situated within the South Caucasus space of Eurasia. Dotted with useless volcanoes &jagged and rock-strewn mountains, Armenia’s highest level is Mount Aragats, which is four,095 meters or 13,435 ft in peak. The nation’s topography is usually hilly and flat, with rapidly flowing rivers & some woods however with various timber. The nation’s climate is Highland continental and characterised by chilly winters & sizzling summers.

The nation is a really historical civilization even whereas it was the primary nation to formally make Christianity its faith someplace round A.D. 300. It's principally a landlocked nation within the Transcaucasia space, located between the Caspian & the Black Seas, and has Georgia and Azerbaijan on the north and east, and Iran and Turkey on the south and west respectively.

When it comes to geographical space, the nation is the smallest republic of the previous USSR. Actually, the trendy Armenia is only a small a part of the dimensions of early Armenia. The nation’s governmental, industrial, and cultural hub, Yerevan can also be the nation’s political capital. It's also the most important Armenian metropolis and a number one and the oldest continuously- populated metropolis.

Armenian--an Indo-European language--is essentially the most extensively language of the nation, and in addition its official language. The language has historically and traditionally been used throughout the Armenian Highlands, and is presently used extensively by the Armenians everywhere in the world.

Current day Armenia straddles the crossroads of Asia and Europe being bounded by Turkey (west), Georgia (north), Azerbaijan (east), and Iran (south). The nation is a gateway to the plentiful pure assets - like uranium, oil and pure gasoline - of the Central Asian area.

With a populace of over three million, Armenian ethnicity is settled firmly round household and conventional tradition locations satisfaction in hospitality. Russian is essentially the most extensively spoken overseas language, adopted by English. Yerevan (The capital metropolis) is residence to 1.1 million individuals with a literacy fee of 99.6% and comparatively decrease ranges of crime.

In response to worldwide rankings, Armenia is a comparatively straightforward nation the place one might set up a enterprise. The World Financial institution examine Doing Enterprise 2015 ranked Armenia because the 45th best nation with which to do enterprise, out of the 189 surveyed. Moreover, Armenia’s financial freedom ranks 52nd amongst 178 nations, as acknowledged inside the 2015 Index of Financial Freedom.

Armenia is a member of the World Commerce Group, United Nations, Council of Europe, Commonwealth of Impartial States, and different worldwide organizations selling financial cooperation.  On January 2, 2015, Armenia joined the Eurasian Financial Union comprised of Russia, Kazakhstan, and Belarus, a single financial market of 173 million folks and a GDP of two.7 trillion dollars.

The landlocked nation presents a picturesque expertise for guests. The pristine waters of Lake Sevan, swirling by means of mountain passes, valleys, and canyons, add to the pure fantastic thing about the nation. With all these topographical variations, the local weather too provides contrasts - from desolate lunar landscapes to wet forests to snow-capped mountains and huge alpine lakes.

Armenia provides a beautiful and investor-friendly enterprise setting with earned and continued assist from worldwide establishments (World Financial institution, IMF and EBRD), freely convertible and secure stream forex, decrease value of dwelling, and favorable tax circumstances.

Sited on a reservoir of mineral wealth and with a liberal enterprise regime, Armenia is a future business hub within the making. Since 1995 the nation has displayed robust financial development with insignificant charges of inflation. Armenia has just lately entered new and superior luxurious sectors equivalent to info expertise, jewelry making, treasured stones processing and tourism to help extra conventional sectors of the financial system. Continued evolution within the nation, ranks it amongst different former Soviet Republics within the United Nations, the World Commerce Group, the Council of Europe, the Commonwealth of Impartial States, and different worldwide organizations selling financial cooperation.

Armenia’s liberal immigration coverage is a quick and relatively low price process that favours free motion of people and companies, no particular requirement of enormous investments or acquiring actual property.

With the federal government’s zero emphasis on work allow for overseas events and unemployment round 18%, there are at the moment no quotas, labour market checks, or different restrictions in hiring international workers. The minimal wage set by regulation is US $ 117 per thirty days and common month-to-month pay is US $ 370.

Armenia has a continental local weather with dry, sunny summers and chilly, snowy winters. The nation has a well-developed street and transportation community, alongside phone, Web, and postal providers. The worldwide airport is positioned 12 km away from the middle of Yerevan. By way of safety, the nation’s crime fee is kind of low. There are each private and non-private colleges, whereas the populace has an official literacy charge of 99.6%. With Armenian being the primary language, Russian is the preferred overseas language at current, with English flanking at its heels. The capital metropolis of Yerevan is house to over 1.1 million of the nation’s inhabitants, with a wide selection of selections in eating, leisure and buying. Malls cater to the populace with each native and worldwide manufacturers.

The banking system is nicely regulated and there are strict financial institution secrecy legal guidelines which make it a criminal offense to reveal info on financial institution accounts. HSBC Financial institution Armenia, in addition to 20 different native and worldwide banks presents a variety of banking providers that pay as much as Eight-9% in annual curiosity for deposits in US dollars.

Enterprise & Taxation

Armenia has a pretty and investor-friendly enterprise atmosphere with:

  • A freely convertible and steady native forex

  • No restrictions on switch of cash and repatriation of capital or earnings

  • Low price of dwelling

  • A non-discrimination and five-year grandfather clause for overseas buyers

  • Allowance of possession of land and different actual property

Armenia presents beneficial tax circumstances for people, which embrace:

  • No tax on dividends regardless of the nation of origin, the extent of participation, and the character of funding

  • No capital good points tax on the disposition of shares, no matter holding interval

  • No present/inheritance tax

  • No web price tax

  • No tax on insurance coverage funds from international sources

  • Curiosity, royalties and lease are taxed at 10%

For workers, payroll (24.four%-36%) and social safety taxes (5%) are withheld by employers .

Armenia presents a beautiful tax setting for firms, with:

  • Low statutory tax charges

  • Tax exemptions for small and medium enterprises

  • No tax on dividends regardless of the nation of origin, the extent of participation and the character of funding

  • No stamp/switch tax on the sale of shares or actual property

  • No municipal enterprise tax

  • No capital/internet value tax

  • A robust community of double tax treaties with 41 nations, together with Russia, Cyprus, Luxembourg, Netherlands, UK, Eire, UAE, and so forth.

Armenian firms are topic to company revenue tax at a flat charge of 20%. The tax applies to resident firms and to Armenian everlasting institutions of international firms.

An optionally available tax regime (the “turnover tax” regime) is out there for companies with an annual turnover not exceeding $124,000(this threshold is prone to be elevated to $241,000 by the tip of 2015). There are not any restrictions on the variety of such companies a non-resident can personal. Turnover tax charges are 1% for commerce, three.5% for manufacturing, and 5% for different actions.

Household owned and operated companies with an annual turnover of lower than $38,000 are exempted from taxation.

As well as, Armenia provides particular tax regimes at no cost financial zones, corporations listed on the inventory change, massive exporting firms, and Authorities-approved enterprise tasks.

Actual Property

There aren't any restrictions on acquisition, holding, leasing or sale of actual property by foreigners in Armenia, except for agricultural land.

Signing a written contract of sale with detailed description of the property and buy worth does the switch of possession. The contract must be authenticated by a notary public or an worker of the Cadastre (state registry). The client then has 30 days to register her possession rights with the Cadastre. The failure to register will lead to invalidation of the transaction.

It's customary to signal a preliminary settlement by which the vendor agrees to take the property off the marketplace for an agreed time period in return for a small down cost. If the client then fails to signal the primary contract the down cost will probably be forfeited. If the vendor defaults she can be required to return the down cost and pay a penalty.

Title search and title insurance coverage are usually not frequent practices in Armenia. Nevertheless, the gross sales contract might be authenticated provided that a certificates issued by the Cadastre confirming that the property in query just isn't mortgaged, beneath arrest or in any other case topic to 3rd social gathering rights.

A number of banks provide escrow account companies, which allow the customer to deposit the funds with the financial institution and have them, transferred to the vendor solely when the transaction is accomplished and a brand new possession certificates is issued to the client.