How to open a sole proprietorship in Armenia
- Категории
Table of contents:
- 1. Why open an IP?
- 2. Is there a self-employed status in Armenia?
- 3. What documents are needed to open a sole proprietorship?
- 4. Where can I open an IP?
- 5. How to open an IP?
- 6. How to open an IP account?
- 7. What is the amount of tax for individual entrepreneurs, how to pay it?
- 8. Do I need to notify the Federal Tax Service about opening an IP account?
- 9. Electronic services for entrepreneurs
- 10. Sources
Previously blog we talked about the algorithm for opening IP. This article supplements and expands the material.
Why open an IP?
You will need to obtain the status of an individual entrepreneur (individual entrepreneur) if you plan to work for yourself in any way: open a business or carry out projects for foreign companies, as banks react negatively for regular transfers from abroad to a personal card.
In addition, opening an IP is one of the possibilities get a residence permit for 1 year or 5 years.
We do not recommend opening an individual entrepreneur in order to receive a salary from the employer. If 80% payments come from one account to an IP account, you will automatically start paying tax 20% as an employee, and not 5% as an entrepreneur.
Is there a self-employed status in Armenia?
In the Russian Federation, the status of self-employed made it possible to reduce taxes to 4% and not be engaged in accounting. There is no such status in Armenia.
What documents are needed to open a sole proprietorship?
To open an individual entrepreneur, a Russian internal passport is enough. It must be translated into Armenian and notarized.
Social number (SSN, social card), residence permit, a passport is not needed to open an IP.
Where can I open an IP?
IP can be opened in two state structures: the Agency of the State Register of Legal Entities of the Republic of Armenia and in the Unified Cabinet for Civil Law Transactions and Services. It makes no difference where exactly to open a legal entity.
| Name | Address | Working mode | |
|---|---|---|---|
| Agency of the State Register of Legal Entities | st. Vazgen Sargsyan, 3 | info@moj.am | Mon-Fri 09:00-18:00, break: 14:00-15:00 |
| Unified office for civil law transactions and services | Komitas street 49/3, 9th floor | info@e-register.am | Mon-Fri: 09:00-18:00, break: 14:00-15:00 |
How to open an IP?
- Make a notarized translation of your passport. If you register an individual entrepreneur in the Single Office, you can make a translation on the spot and notarize it. It will cost 2,000 – 8,000 ֏.
- Find the terminal, select the Russian language in it and the item “Registration of a legal entity”. You will receive a ticket in line.
Come to the Unified Office by 9:00. There are no visitors at this time, so you can arrange everything in 10-15 minutes.
The website of the Single Cabinet says about the electronic queue through the Earlyone application. Unfortunately, it will not be possible to queue up remotely for registration of IP through this application.
- When your turn comes, go to the window with the desired number and tell the operator that you want to register an IP. The specialist will ask you about the purpose of opening and help you choose activity code
- The operator will also ask you to tell the IP registration address. You can name absolutely anyone on the territory of Armenia. This information is not verified
- The employee will issue a check for payment of the state duty (3,200 ֏) at the EasyPay terminal. The terminal is in the same room. It is possible to pay only in cash. The machine does not give change, so you should prepare the required amount in advance
- After payment you will receive a receipt. With him, you need to go to the same window where you made out the IP. The employee will give you an extract of registration in Armenian. Check it for factual errors: correct spelling of full name, passport data
Since the registration statement and the translation of the passport are provided on A4 sheet, take a file or folder with you so as not to wrinkle them
How to open an IP account?
After opening an IP, you will need an account for it. You can open it in most Armenian banks (restrictions for non-residents apply to Evocabank and HSBC Armenia). We also recommend opening an individual account in the absence of it - paying for everyday expenses from an individual entrepreneur's account will complicate accounting.
Depending on the bank, the volume of required documents, as in the case opening a personal account, is changing.
Here is a comparative table about the conditions in Armenian banks:
| Bank | Opening cost (AMD) | Service cost (AMD) | List of documents |
|---|---|---|---|
| Acba Bank | Is free | 1 thousand per month (if the balance at the end of the month is not less than 20 thousand - free of charge) | IP certificate; Passport; Notarized translation of the passport; contracts with clients; Bank statement for 12 months; Lease agreement from 6 months; Social number (SSN); |
| Ameria Bank | Is free | 3.5 thousand (if the turnover per month is more than 300 thousand - free of charge | IP certificate; Passport; Notarized translation of the passport; Contracts with clients outside the Russian Federation; Bank statement for 12 months; Lease agreement or any other proof of residence; Certificate of registration in the RA; Social number (SSN); |
| Ararat Bank | 25 thousand | 500 per month (if the balance at the end of the month is not less than 20 thousand - free of charge) | IP certificate; Passport; Notarized translation of the passport; contracts with clients; Lease contract; Social number (SSN); |
| Ardshinbank | 100 000 | 5 thousand per year | IP certificate; Passport; Notarized translation of the passport; contracts with clients; Lease contract; Social number (SSN); |
| Converse Bank | 1 thousand | 4.8 thousand per year | IP certificate; Passport; Notarized translation of the passport; Contracts with clients outside the Russian Federation; Lease agreement from 6 months; Bank statement for 6 months; |
| ID Bank | 20 thousand | 10 thousand per month | IP certificate; Passport; Social number (SSN); Contracts with clients, if any; filled questionnaire from the site; |
| Inecobank | 50 thousand | 3 thousand per month | IP certificate; Passport; Notarized translation of the passport; Contracts with clients outside the Russian Federation; Lease agreement from 6 months; Bank statement for 6-12 months; |
What is the amount of tax for individual entrepreneurs, how to pay it?
5% if annual turnover is less than 115 million ֏ and 20% if more. Individual entrepreneurs with a residence permit will need to pay social security contributions and stamp duty.
Accounting is conducted in Armenian in the armsoft system. Therefore, you will need to hire an accountant or find one outsourced.
Do I need to notify the Federal Tax Service about opening an IP account?
According to article on the website of the Federal Tax Service of the Russian Federation: yes (part 2 of article 12 No. 173-FZ of December 10, 2003).
At the same time, it is not necessary to notify about the movement of finances on accounts. Since Armenia is a member of the Eurasian Economic Union, the exchange of information about residents occurs automatically.