Armenia
Register an SPE in Armenia in 1–3 days. 1% turnover tax for high-tech.
Foreign Ownership Eligibility
Armenia welcomes 100% foreign-owned companies
Fully remote formation — you never need to set foot in the country.
- 100% foreign ownership permitted — no local partner, local shareholder, or local director required
- No statutory minimum share capital for an SPE (LLC) or CJSC
- Single-person structure permitted — one foreign individual can be sole shareholder and sole director
- A registered office address in Armenia is mandatory — a lease agreement, office address, or registered agent address in Armenia is required before incorporation
- Foreign shareholder and director documents (passport, proof of address) must be notarised and apostilled; Armenian translations are required
- Branches and permanent establishments of foreign companies cannot access the turnover tax regime — they are taxed at the standard 18% CIT rate
- Banking, insurance, and mining activities require additional sector-specific licensing from Armenian regulators beyond the standard company registration
- Sanctions compliance must be observed — no nationality restrictions exist in general Armenian company law, but applicable international sanctions must be independently verified
Ownership
100% Foreign OK
Formation
100% Remote
Note
Physical presence is NOT required for incorporation — registration can be completed via a local agent with notarised power of attorney. However, bank account opening may require in-person attendance or an authorised local representative depending on the bank chosen. Evocabank offers digital onboarding; verify current availability. The turnover tax election (1% high-tech, 7% production, 10% trading) must be made before the first transaction — it cannot be changed mid-year without consequence.
Tax at a glance
Armenia Tax Overview
18%
Standard corporate income tax (CIT)
Applies to resident companies and permanent establishments; tax year is calendar year; return due 20 April of the following year
1%
Turnover tax — high-tech activities
For companies on the government-approved high-tech activity list with annual income ≤ AMD 115M (~€277,000); replaces both CIT and VAT
7%
Turnover tax — production activities
For qualifying manufacturing and production businesses with annual income ≤ AMD 115M; replaces CIT and VAT
10%
Turnover tax — trading and other activities
For trading, rental, and general commercial activities with annual income ≤ AMD 115M; replaces CIT and VAT
0%
Micro-enterprise system
Full tax exemption for companies with annual turnover ≤ AMD 24M (~€57,600); available from 1 July 2023
5%
Withholding tax on dividends (non-resident)
Standard rate on dividends from income generated from 2020 onwards; UAE treaty reduces to 3%; many EU treaties at 5%
20%
Value Added Tax (VAT)
Standard rate; exports and services to non-Armenian recipients are zero-rated; turnover taxpayers are not VAT-registered
0%
WHT on capital gains from securities
Standard rate for capital gains on securities sold on recognised exchanges — relevant for holding structures and equity exits
0.01%
Investment fund rate
Annual tax on net assets for Armenian-registered investment funds (excluding pension and warranty funds)
20 Apr
Annual CIT return deadline
Corporate income tax return for the preceding calendar year is due by 20 April; VAT returns filed monthly by the 20th
Pros & cons
Advantages & Considerations
Key Advantages
Eurasian Economic Union (EEU) member since January 2015 — free movement of goods, services, capital, and labour across Russia, Kazakhstan, Kyrgyzstan, and Belarus with no customs duties on intra-EEU trade. Combined EEU market of 185+ million people.
1% turnover tax for high-tech activities (on the government-approved list) for companies with annual income below AMD 115 million (~€277,000). This replaces both the 18% CIT and 20% VAT — an effective rate that is among the most competitive in the EEU. Verified: PwC Tax Summaries, Feb 2026.
5% withholding tax on dividends to non-resident shareholders — one of the lowest rates in the South Caucasus and CIS region. Further reduced under certain double tax treaties: UAE at 3%, many EU treaties at 5%. Verified: PwC Tax Summaries, Feb 2026.
Micro-enterprise system: companies with annual turnover at or below AMD 24 million (~€57,600) are fully exempt from tax. Available from 1 July 2023 onwards with PIT calculated at general rate of 20%. Verified: PwC Tax Summaries, Feb 2026.
0% withholding tax on capital gains from securities traded on recognised exchanges — material for holding structures, investment funds, and equity-exit planning. Verified: PwC Tax Summaries, Feb 2026.
Investment fund regime at 0.01% of net assets — Armenian-registered investment funds are taxed at a near-zero rate, making Armenia a low-friction domicile for fund structures. Verified: PwC Tax Summaries, Feb 2026.
No statutory minimum share capital for the most common entity type (SPE/LLC) — full liability protection with no required capital commitment at incorporation.
100% foreign ownership permitted — no local partner or local director required. A single foreign national can own and direct an Armenian SPE outright.
WTO member and not subject to Western sanctions — an Armenian entity can trade across both EEU and Western markets from a single, neutral, non-sanctioned jurisdiction. Verified: WTO membership confirmed.
Competitive double tax treaty network covering Austria, Belgium, Cyprus, France, Germany, Ireland, Netherlands, Switzerland, UAE (3% dividend), UK, and 40+ further jurisdictions. Verified: PwC Tax Summaries, Feb 2026.
Low operating costs — office space, labour, and living costs in Yerevan are materially below Western Europe, and the city has developed into a genuine South Caucasus tech cluster with an active startup community and available IT talent.
7% turnover tax for production activities (same AMD 115M revenue threshold) — replaces CIT and VAT for qualifying manufacturing or production businesses. Verified: PwC Tax Summaries, Feb 2026.
Considerations
18% standard corporate income tax rate — the highest among comparable South Caucasus and CIS jurisdictions in this peer group. Bosnia applies 10%, Moldova 12%, Albania 15%. The 18% rate applies to all companies outside the turnover tax eligibility threshold (AMD 115M annual revenue).
20% withholding tax on service fees paid to non-resident companies — a significant cost for Armenian entities that rely on foreign services providers, consultants, or technical contractors. This rate is not minor and is frequently overlooked at setup. Verified: PwC Tax Summaries, Feb 2026.
Geopolitical risk is material — the Armenia-Azerbaijan conflict over Nagorno-Karabakh, including the September 2023 Azerbaijani military operation, represents a significant and ongoing geopolitical risk factor. Borders with Turkey and Azerbaijan are closed. Regional stability cannot be assumed.
Landlocked with restricted border access — the closed borders with Turkey and Azerbaijan mean physical access is limited to Georgia (road), Iran, and air routes through Yerevan's Zvartnots International Airport. This increases logistics costs and time for goods-based businesses.
Small domestic market — Armenia's population is approximately 2.97 million and domestic GDP is small. The primary value of an Armenian company for most foreign investors is EEU market access and the tax regime, not the domestic market itself.
AMD (Armenian Dram) is not pegged to a major currency and is subject to exchange rate movements (approximately 390–410 AMD per EUR). Unhedged AMD exposure carries real devaluation risk for businesses with foreign-currency income or cost structures.
Structural Comparison
SPE / LLC (ՍՊԸ — Sahmanapakel Pataskhanatvotyamb Ynkerootyoon)
Closed Joint Stock Company — CJSC (ՓԲԸ)
Open Joint Stock Company — OJSC (ԲԲԸ)
Branch Office (Մասնաճյուղ)
Incorporation Process
The process is strictly digital. Each stage builds on the previous one.
Free consultation with XBandGlobal specialists to confirm the right entity type (SPE, CJSC, or Branch), verify sector-specific licensing requirements, check turnover tax eligibility, and agree on a realistic timeline and cost estimate.
Confirm a registered address in Armenia — a physical office, co-working space address, or virtual registered address arrangement with a local service provider. A valid Armenian address is a mandatory requirement before registration.
Prepare the incorporation documents: Charter (Articles of Association), founders' decision on establishment, and passport copies of all shareholders and directors. Foreign documents must be notarised and apostilled in the country of origin; Armenian translations are required.
Submit the registration application through the State Register of Legal Entities at e-register.am (online) or in person. XBandGlobal's Armenian partner handles submission and tracks the application through the State Register system.
Receive the Certificate of State Registration and tax code (HVHH/TIN) — issued in 1–3 business days for online submissions. The company exists as a legal entity from this point.
What you'll pay
Cost Architecture
Government Fees
Annual Ongoing
Professional Services
Government registration costs in Armenia are low — total state fees for an SPE are under €60. The real costs are professional services (notarisation and apostille of foreign documents, local agent or lawyer, Armenian translations) and ongoing accountant fees. The total setup cost of €200–800 and annual ongoing cost of €2,000–6,000 are verified estimates — confirm with a local specialist as rates vary significantly by provider and company complexity.
Still unsure about costs?
These are estimates — your actual cost depends on your structure
Every Armenia setup is different. A 15-minute call with one of our specialists will give you a personalised cost breakdown — completely free.
Fintech & Banking
Can non-residents open accounts without visiting? YES.
Banking options for non-resident founders in Armenia. Remote account opening availability varies by institution.
| Institution | Type | Ease for Non-Residents | Notes |
|---|---|---|---|
| Ameriabank | Local commercial bank | Low (Visit Required) | Largest Armenian bank by assets. Full corporate banking services including trade finance, foreign currency accounts, and international transfers. Preferred by larger foreign-owned companies and subsidiaries. Standard in-person KYC required for new corporate accounts. |
| Ardshinbank | Local commercial bank | Low (Visit Required) | Second-largest Armenian bank. Strong SME and foreign company services. Well-regarded for international correspondent banking. In-person or authorised representative KYC required for corporate account opening. |
| Evocabank | Digital-first commercial bank | High (Remote) | Digital-first bank with API banking capabilities. Widely used by tech startups and IT companies operating in Yerevan. Offers digital onboarding for corporate accounts — commonly referenced as the most accessible option for remote account setup. Verify current remote-opening availability directly with Evocabank before relying on this. |
| ACBA Bank | Local commercial bank | Low (Visit Required) | Well-established full-service Armenian bank with agricultural and commercial lending focus. Strong branch network across Yerevan and regional Armenia. Suitable for companies with physical operations or supply-chain activities in Armenia. |
Frequently Asked
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