IT Company 0% Tax Benefits and Registration Process in Armenia

If you are a digital nomad or remote entrepreneur and are looking for options or alternatives to register your business, Armenia can be an incredible and tax-beneficial option. 

Patrick, a verified company formation advisor in Armenia, and Danish, visadb’s CEO, discussed the benefits for IT companies in the country as well as the process in the video session “IT Company 0% Tax Benefits and Registration Process in Armenia”.

Where is Armenia?

Armenia is essentially at the nexus of Europe and Asia. It is an old silk road country, but the country is evolving rapidly. It is in the South of Russia and Georgia, and in the North of Iran, East of Turkey, and West of Azerbaijan.

How is the startup scene in Armenia?

Armenia’s business scene is improving and it is the #1 country in the startup ecosystem in the region, and #60 on the planet. In terms of IT, high tech and startups, Armenia is quickly punching above its weight. It already has a few unicorns on the way, for instance, Picsart which is an editing app that has over a billion downloads is an Armenian unicorn.

What are the tax benefits for startups in Armenia?

Armenia recently started attracting global entrepreneurs from around the world by offering tax benefits.

There are separate wings of the tax benefits that are interesting for startups and digital nomads: 

1.  Apart from whether or not you work online, if you are an individual entrepreneur, you can register your company in nine minutes. You can do it digitally, and you can start operating the same day.
2.  If you are making under 24000 US dollars, you pay a 5% flat fee in Armenia, so you register as a non-VAT payer, and there is nothing else. You file quarterly and at the end of the year. There is just an extra small fee which is a military donation and a couple other smaller contributions that add up to approximately $230 USD.
3. If you work in IT, you can apply for an “IT certificate” and then you pay 0% tax.
4. If you have local Armenian employees, you pay even less social security. It goes down from 21% to 10%. 

Taavi Tammoja

Tax Optimization

International Tax Planning Consultation

International Tax Planning Consultation

$ 480 - $ 480

What qualifies as an IT business in Armenia?

If you are doing anything related to an online business e.g. marketing consulting services, writing code, graphic design, etc. 

How does banking work in Armenia?

In terms of banking, in Armenia you can do banking in Euro, USD, and the local currency, Rubles. They offer visa and mastercard, so the credit cards also offer travel insurance, lounge access, and they are saving accounts. 

If you are doing e-commerce, you need to know that you cannot access Stripe or Paypal in Armenia, so you would have to do it from another country. 

Do I need to visit Armenia to open a business?

It would be better to visit Armenia to open your bank account and business, but it might be possible to do it remotely. 

What are the requirements to open a company in Armenia?  

You need to show up at the government office, take a ticket, and when they call you up your company is registered in about 10 minutes. If you are doing the tax turnover, you have to pay an administration fee of an equivalent of $7 USD. 

Then, you can go to the bank and show them you set up the company and you can show up with your translated passport for your LLC. If you do not have articles of incorporation, they can provide you with a template one, and that takes a little less than 20 minutes. 

Can I get a work permit in Armenia by opening a business?  

If you want to become an Armenian resident, you can register your company and then apply for a work permit.

Can you be living in the EU, register your business in Armenia and do business with both?

Yes, there are no restrictions: anyone can go set up their company and you can do business.  

Why is it a good option to visit Armenia?

The nature is breathtaking, the food is incredible, the wine is world-class.

Is Armenia safe for foreigners? 

Last year, Armenia ranked at number 6 in terms of safest countries on the planet, so it is safe and friendly.

We hope this was helpful for you. Do not hesitate to reach out to Patrick if you have further questions or watch the video session below.