Armenia Info
Joined: 20 Apr 2007
Posts: 14
Home Country: armenia
|
 Posted: Mon May 07, 2007 5:13 am Post subject: DOING BUSINESS IN ARMENIA / ARMENIA BUSINESS GUIDE |
 |
|
DOING BUSINESS IN ARMENIA
STARTING A BUSINESS
STANDARDIZED COMPANY
Legal Form: ApS
Minimum Capital Requirement: 50,000
City: Yerevan
Registration Requirements:
Procedure 1. Procure a written statement of deposited charter capital at a bank
Time to complete: 1 day
Cost to complete: no charge
Procedure 2. Procure a Registration Card from the State Registry Office and fill it out
Time to complete: 1 day
Cost to complete: no charge
Procedure 3. Pay the registration fee at any bank
Time to complete: 1 day
Cost to complete: no charge
Procedure 4. Register the name of the company at the State Patent Department
Time to complete: 2 days
Cost to complete: AMD 5,000
Procedure 5. Register with the State Registrar
Time to complete: 7 days
Cost to complete: AMD 12,000
Comment: According to a recent government decision, the state registry has 5 days to either approve or deny registration applications. according to the law on state registry of enterprises, a registration may be refused only if the founding documents of the legal entity are either incomplete or inaccurate. The fee for registration is AMD 12,000 for all types of business entities. For banks, investment funds, and insurance companies, the fee is AMD 40,000.
Procedure 6. Register with tax authorities and obtain a tax id - TIN
Time to complete: 2 days
Cost to complete: no charge
Comment: File the registration certificate from the State Registrar.
Within 30 days of registering with the state registry, all legal entities are required to register with the tax authorities and obtain a tax identification number (TIN). Within two weeks of submitting the application, the local tax inspectorate issues an 8-digit TIN and the entity is considered officially registered with the tax authorities. Social security registration is now also performed by the tax authorities
Procedure 7. Obtain a right at National Police Department to order a seal for all official company transactions
Time to complete: 1 day
Cost to complete: AMD 6,000
Procedure 8. Order a seal
Time to complete: 2 days
Cost to complete: AMD 15,500
Comment: File the TIN certificate from the tax authorities. By government decree, legal persons are required to register and obtain a company seal for all official company transactions. Business entities should apply for the company seal at the Ministry of Internal Affairs. it take from one to 30 days to obtain a company seal. The fee structure varies according to the time taken: the fee obtaining the seal in 24 hours is AMD15,500 and for 30 days the fee is AMD 2,800.
Procedure 9. Register with statistical office
Time to complete: 7 days
Cost to complete: no charge
TAXATION
Armenia's complex tax system was revised in 1997 and again in 2001. The top corporate profit tax rate was lowered from 30% to 20%. As of 1 July 2001 a single rate was applied to all taxable profits, defined as the difference between revenues and the sum of wages, amortization payments, raw and intermediate purchases, social security contributions, insurance fees, and interest expenses. Newly formed enterprises are exempt from taxes for the first two years, but there is no provision for carrying forward losses.
Individual income taxes are withheld by enterprises and are paid to the Ministry of Finance monthly. The personal income tax has been reduced from three bands to two: 10% for monthly taxable income up to AMD 80,000 ($144) and 20% plus a payment of AMD 8,000 ($14.40) for taxable income between AMD 120,000 and AMD 320,000 ($1,892) for monthly taxable income above AMD 80,000. Armenians also pay taxes to social security and pension funds. In 1992, Armenia introduced a value-added tax which stood at 20% in 2003. Excise taxes are applied to diesel fuel, oil, spirits, wine and beer at various rates. There are also land taxes and a property taxes. Achieving a higher level of tax collection has been an important part of Armenia's economic reform programs. The fiscal deficit was projected at 2.4% of GDP for 2003. |
|
Register
Log in
FAQ
Search
Memberlist
