Knowledge base / Sole proprietor (IE) in Armenia
Registering a sole proprietor (IE) in Armenia from scratch: a step-by-step guide for foreigners
Step by step
- Decide on your type of activity.
It determines which tax regime is open to you. You do not need to be an Armenian resident to register, and foreigners do not need any special permit. - Get a notarized Armenian translation of your passport.
A translator prepares it and an Armenian notary certifies the translator's signature. This usually takes anywhere from a few hours to one day. - Pay the 3,000 dram state fee.
You can pay through e-payments, by bank transfer to the state budget account or at a terminal in the service center. Keep the receipt: you will need it when you apply. - Go to a State Register Agency service center.
In Yerevan it is at 49/3 Komitas Avenue. A staff member drafts the application for you, so there is nothing to fill in beforehand. Online registration on e-register.am is only possible with an Armenian ID card and a digital signature. - Receive the registry extract by email.
The entry is made on the spot. Your tax ID (TIN) and social security number are assigned automatically, so you do not need to visit the tax office. A certified paper copy of the extract is issued free of charge at registration. - Choose a tax regime and set up your tax account.
The options are the micro-business regime and turnover tax. It is best to file the application on the day you register, directly through the registry officer. Your returns are later filed at file.taxservice.am. - Open an account with an Armenian bank.
This almost always requires an in-person visit. See "Business Bank Account in Armenia" for details.
Timing and costs
- State fee: 3,000 drams. The notarized passport translation is paid separately.
- Registry visit: 10–15 minutes, and the entry is made the same day. The whole process takes 1–2 business days.
- Choosing a tax regime: within 20 days of the registration date.
- Bank due diligence for a foreigner: usually 1–2 weeks.
- Micro-business: turnover of up to 24 million drams a year. Turnover tax: up to 115 million drams, usually at 10%, or 7% for manufacturing.
What to prepare
- Your original passport.
- A notarized Armenian translation of your passport. The full list of requirements is in "Documents for a Sole Proprietor (IE) in Armenia".
- The receipt for the state fee.
- An email address where the extract will be sent.
- A power of attorney that meets Armenian requirements, with a translation, if you are abroad and a representative applies on your behalf.
- A public services number (social card). You do not need it to register, but banks usually ask for it.
- Details of your place of business for the tax authority, submitted before you start operating, if you have an office, shop or point of sale.
- A cash register, if you will accept cash or card payments from individuals.
Common mistakes
- Missing the 20-day window and staying on the general regime with VAT until the end of the year. The next chance to choose a regime is by February 20.
- Choosing the micro-business regime for consulting, legal or accounting services. These activities are excluded from it.
- Not checking the Latin spelling of your name in the translation. Later, your details will not match the bank's records or your contracts.
Rules change from time to time, so we will confirm the details for your situation.
Frequently asked questions
How much does it cost to register a sole proprietor in Armenia?
The state fee for registering an IE is 3,000 drams. You can pay it through e-payments, by bank transfer to the state budget account or at a terminal in the service center. The notarized passport translation is paid separately.
Can I register a sole proprietor in Armenia online as a foreigner?
Online registration on e-register.am is only possible with an Armenian ID card and a digital signature. Otherwise you visit a State Register Agency service center, such as the one at 49/3 Komitas Avenue in Yerevan, where staff draft the application for you.
How long do I have to choose a tax regime after registering an IE in Armenia?
You have 20 days from the registration date. If you miss it, you stay on the general regime with VAT until the end of the year, and the next chance to choose is by February 20. It is best to file the application on the day you register.
Can I use the micro-business regime for consulting as a sole proprietor in Armenia?
No. Consulting, legal and accounting services are excluded from the micro-business regime. Choosing it for these activities is one of the common mistakes when registering an IE.
We will register your IE in one day, with no mistakes
We help with the translation, registration, tax regime choice and opening a bank account. We speak English and Russian.
Sources: hartak.am: IE registration, e-register.am: Law on State Registration, arlis.am: laws of Armenia and the Tax Code, State Revenue Committee of Armenia