Starting a business in Armenia is much easier when you understand the basic accounting and tax requirements from the start. Here’s a simple guide for those taking their first steps.
Choose the right legal form
In Armenia, the most common business structures are:
Individual Entrepreneur (IE) – ideal for small businesses. Easy to register, minimal requirements.
Limited Liability Company (LLC) – a full-fledged legal entity, suitable if there are multiple founders.
There are also other forms (JSC, OJSC, etc.), but they are rarely used for small businesses.
Tip: Before deciding, consult with an experienced accountant or lawyer to choose the best option.
Choose the right tax regime
Several tax regimes are available in Armenia. It’s important to select the one that’s most beneficial for your type of business and expected turnover.
Turnover tax – if your annual turnover does not exceed AMD 115 million (for trade, services).
Preferential tax regimes – for certain industries.
General taxation – for larger businesses.
Self-employed – for specific activities with turnover up to AMD 24 million.
The choice of tax regime is made immediately after registration, and you cannot change it during the year.
Registration and reporting
Register through the Cadastre Committee (or online at e-register.am).
After registration, you must register with the tax authorities (if you are a legal entity).
Submit monthly tax reports electronically via efile.taxservice.am.
Even if you have no turnover, you are still required to submit “zero” reports.
Financial documentation
You are required to:
Keep all invoices, receipts, contracts.
Ensure that documents comply with established formats – either electronic or paper.
Retain documents for at least 5 years.
Hiring employees
If you plan to hire employees:
Register them in the tax system.
Pay income tax, social contributions, and other mandatory payments.
Submit monthly payroll reports.
How to manage accounting
Small IEs can keep basic records themselves, but it’s advisable to work with a professional at least initially.
LLCs usually hire an accountant.
You can also use accounting software: HIS, 1C, Restart, etc.
Useful tips
Follow updates on the https://hashvapah.com/ website.
Never postpone reporting deadlines.
Treat accounting services as an investment, not just an expense.
Check whether your specific industry is eligible for tax benefits.