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The investment and trade policies of Armenia are considered to be the most open in the CIS by international organizations. Foreign companies are encouraged to invest and are entitled by law to the same treatment as local companies, moreover they have certain advantages. Armenia's investment climate is continuously improving with a strong government commitment to attracting FDI, including refining the legislative framework.
The Law on Foreign Investment, adopted in July 1994, regulates foreign investment in Armenia. It provides guarantees to foreign investors and protects investors from changes in the business related laws for 5 years. According to the Law a "Foreign Investor" is any foreign company or citizen, a person without citizenship, an Armenian citizen permanently residing outside of Armenia, or an international organization that invests in Armenia. "Foreign investment" is any form of property, including financial assets and intellectual property, which is invested by a foreign investor directly in the territory of Armenia, in any economic or other venture.
Main Foreign Investors in the Republic of Armenia
Investment Incentives
- Political and Economic Stability
- Favorable Investment Legislation
- Investment Guarantees
- Strong Government Commitment to FDI Attraction
- Well Educated, Skilled and Easily Trainable Workforce
- Cost-Efficient Labor Force and Science Based Skills
- No Limitation on Foreign Ownership
- Competitive Energy Cost
- Access to CIS and Middle East Markets
- No Export Duty
- Foreign Exchange Free Conversion
- Free Repatriation of Profit
- No Restrictions on Staff Recruitment
- No Restrictions on Remittances
Foreign investors can make investments in Armenia through the establishment of fully foreign-owned companies (including representations, affiliates, and branches), the purchase of existing companies and securities, or the establishment of joint ventures. The company registration process takes about a week.
There are also incentives for exporters - no export duty and a VAT refund on goods and services exported.
There are no limitations on the volume and type of foreign ownership, the number of foreign employees and access to financial sources. Although foreigners can only lease land, a company registered by a foreigner as an Armenian business entity does have the right to buy land. Foreigners may obtain permission to use land under long-term leases, and concessions for the use of Armenian natural resources with the participation of an Armenian company.
To provide an effective mechanism to monitor the improvement in the investment climate, the Business Support Council (BSC) was established by a Presidential Decree in early 2001, where the Armenian Development Agency was appointed the secretariat to act as an intermediary for the business community. Chaired by the Prime Minister, the evenly balanced private/state membership (the Chief Economic Adviser to the President, the Ministers of Economy and Finance, the Mayor of Yerevan, the Executive Director of ADA - as the executive secretary of the Council, and six representatives from the business community on a rotation basis) represents a powerful and influential vehicle to improve the business and investment environment and eliminate administrative barriers to investment.
Taxation
Companies with foreign investment are subject to the same tax regime as Armenian companies.
For detailed information, please visit Law section.
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