Doing Business in Armenia

 

  • Gateway to  800M consumers in Europe, Middle East and Asia
  • A highly educated, entrepreneurial, and cost competitive workforces
  • Flexible work system
  • Secure and business friendly environment

Armenia at a glance

  • Population 3.018 million
  • GDP: $10.56 billion
  • GDP growth: 3.0%
  • Inflation: 3.7%
  • Average Labor cost: $388/month (2015)
  • Profit Tax: 20%
  • Value Added Tax: 20%

Investment opportunities

  • IT
  • Life Science
  • Wine and Brandy
  • Textile and garment
  • Jewelry making and diamond cutting
  • Renewable energies
  • Tourism
  • Bottled mineral water
  • Fruit and vegetable processing

An access to high growth markets at 0% or reduced tariff rates 

 

  • Growing business opportunities in Iran (78 million consumers), China, India and South East Asia
  • Member of Eurasian Economic Union (EEU) together with Russia, Kazakhstan, Kyrgyz Republic and Belarus, Armenia offers a free access to an integrated single market of 200M consumers
  • Free Trade Agreements with CIS countries: Ukraine, Moldova, Tajikistan, Turkmenistan and Georgia
  • Armenia is the only CIS country that currently enjoys “GSP+” arrangement with the European Union (EU) enables exporting over 7,000 items of products into EU countries under zero or reduced tariff rates
  • GSP agreement with US, Canada, Japan, Norway and Switzerland

Best business environment in Eurasia Economic Union

 

Over the past years, Armenia has undergone extensive business environment reforms and achieved a remarkable turnaround in its investment climate. In 2014–16, Armenia improved its Doing Business ranking, reaching 35th position out of 189 economies and is one of the best ranking among the CIS countries.

  • 3 days to open a company, 7 days to register property
  • Efficient E-Governance services
  • 100% ownership
  • No restrictions on investment sectors
  • Investment protection : 5 year guarantee protection against changes of legislation
  • Free exchange of foreign currencies and repatriation of profit
  • A sound and well-regulated banking system
  • Foreign companies, registered in Armenia have the right to buy land

 

A skilled, entrepreneurial and multicultural work force

Armenia’s workforce is one of Armenia’s strongest resources. The labor force is well educated, particularly in the medical and health sector, science, technology, engineering and mathematics. 100% of Armenia’s population is literate. Enrollment in secondary school is over 90 percent, and enrollment in senior school is about 85 percent.

 

Competitive operational costs

  • Average gross wage-USD 388/ month (2015),
  • Semi-skilled workers-USD 5,100/year,
  • Skilled employees-USD 9,200/year,
  • Electricity supply-$ 0.096 / kWh (day) -$ 0.075/kWH (night),
  • Water supply-$ 0.357/ m3,
  • Office space rental-$ 20/m2 /year,
  • Industrial space rental-$ 50/m2/year

 

Government support to business : a wide range of incentives

  • Up to 30% profit tax reduction for new jobs created for a period of 3 years
  • VAT payments postponement for up to 3-year period for importing equipment and goods
  • Profit tax privileges for large importers
  • Reduced corporate tax for large exporters
  • 0% VAT, corporate, property, customs duty taxes up to 10 years in Free Economic Zones: residents of Free Economic Zones (FEZ) are exempt from all taxes except the payroll taxes.
  • 0% corporate tax, income tax and VAT in specific territories of Armenia
  • Customs duty exemption for materials and equipment/technology
  • Support for creation of startups

 

Free Economic Zones: favorable business environment for innovative and export-oriented businesses

  • 0% VAT, corporate, property, customs duty taxes up to 10 years
  • “Alliance” Free economic zone is specialized innovative technologies in electronics, precision engineering, IT.  On Site « one stop» services and custom registrations
  • “Meridian” Free economic zone cluster for diamond cutting, watch and jewelry making

 

Access to finance

  • Venture capital fund(s)
  • Support of donor organizations, particularly USAID, EBRD
  • Loan guarantees provision for Small and medium size companies