Armenia’s technology sector is dynamically developing, becoming a source of inspiration for many young people and experienced professionals. If you have an innovative idea and want to create a tech startup, it’s essential to understand the steps for legal business registration, entering the tax field, and properly cooperating with state institutions. This article will help you complete all the necessary steps to legally register and operate a tech startup in Armenia.
Step 1: Preparation and Choosing the Legal Form of the Business
1.1. Deciding on the Legal Entity Type
In Armenia, startups are mainly registered under the following legal forms:
- Limited Liability Company (LLC) – The most common form. Suitable for small and medium-sized startups.
- Open Joint-Stock Company (OJSC) – Suitable for larger startups when you plan to attract investments and issue shares.
- Individual Entrepreneur (IE) – Has limited use in the case of startups; more suitable for freelancers and individuals providing personal services.
It is recommended to choose the LLC form, as it provides a simple ownership structure, limited liability, and the opportunity to attract investment.
1.2. Choosing and Verifying the Name
Your startup’s name must be unique. To check availability, you can use the website of the Ministry of Justice of the Republic of Armenia — e-register.am.
The name must not duplicate an already registered company name.
You can also reserve the name in advance to avoid losing it during registration.
Step 2. Legal Entity Registration
Business registration can be done online or in person at the State Register of Legal Entities. The legal registration process includes the following:
2.1. Required Documents
- Application for company registration
- Company charter (for an LLC, an approved copy is required)
- Copies of founders’ passports (for individuals) or company details (for foreign legal entities)
- Written consent from the property owner for the legal address (if you’re renting the address)
- Receipt of state duty payment (not required if registering online)
State registration fee: 0 AMD if you register online via e-register.am .
2.2. Registration Timeframes
Online registration can take as little as one working day, provided that the documents are correctly completed.
Step 3. Tax Registration
After registration, the company must be registered with the State Revenue Committee (SRC) of the Republic of Armenia as a taxpayer. This process can also be completed online.
3.1. Choosing a Taxation System
- Standard taxation system
- Small business taxation system (Micro-entrepreneurship / SMEs) – If the company has low turnover, it may benefit from preferential conditions.
- Choosing whether to be a VAT payer or non-payer – This depends on the annual turnover.
For tech startups, the micro-entrepreneurship system is advantageous due to its low tax burden and simplified accounting requirements.
3.2. Submission of Tax Reports
It is mandatory to maintain proper accounting, including salary calculations, income taxes, and turnover-related reports.
Step 4. Opening a Bank Account
After registration, the company must open a bank account for transactions. The following documents are required:
- Company registration certificate (LLC)
- Company charter
- Director’s passport
- Founders’ decision to appoint the director (if it’s a separate document)
Recommended banks: Ameriabank, ACBA, Inecobank, HSBC, Evocabank.
Some banks also offer special startup packages, such as minimal service fees or fast transfer options.
Step 5. Employee Registration and Employment Contracts
If you plan to hire employees, you are required to:
- Register them on the electronic platform of the State Revenue Committee (SRC)
- Sign employment contracts with them
- Calculate and pay income tax, social payments, and other mandatory contributions
In the early stages, startup founders often work without a salary, but from a tax perspective, it is recommended to set a salary for the company director.
Step 6. Tech Incentives and Participation in Sectoral Programs
6.1. Preferential Tax Program for the IT Sector
The Government of Armenia provides tax incentives for IT startups if:
- The company is newly established
- The main activity involves software development or services in the IT field
Incentives include:
- 0% corporate income tax
- 10% income tax for employees
To apply, you must register with the Ministry of High-Tech Industry of the Republic of Armenia to receive a preferential certificate.
6.2. Supporting Foundations and Programs
You may apply to the following programs and organizations to receive financial support or incubation assistance:
- Armenia Startup Academy
- Granatus Ventures
- FAST Foundation
- EIF (Enterprise Incubator Foundation)
- Innovative Solutions and Technologies Center (ISTC)
Step 7. Domain Name Registration and Online Presence
For a tech startup, having a professional website is essential. The steps include:
- Registering a domain name (e.g., .am, .tech, .io)
- Creating a website to showcase your services, team, and contact information
- Creating a business email address (e.g., contact@startup.am)
You can use local hosting providers or international services such as GoDaddy, Namecheap, Hostinger, and others.
Step 8. Legal Support and Compliance
It’s important to work with a lawyer or legal advisor to ensure that:
- Contracts are correctly drafted (with investors, partners, employees)
- Your business does not violate any intellectual property rights or patents
- All mandatory reports are submitted on time
Conclusion
Starting a tech startup in Armenia is simplified when you’re aware of all the necessary steps. With this guide, you can:
- Choose the appropriate legal structure
- Register your company online
- Select the right taxation system
- Open a bank account
- Launch and operate your startup on a legal basis
Also consider the IT tax incentives, government and private support programs, and the importance of staying compliant with relevant business laws.
If you have questions or need professional guidance, consult a lawyer or advisor specializing in startups.
