Expanding your company into new countries is an exciting time. You’ll soon benefit from important business relationships, new employees, and opportunities to provide new products and services. However, learning how to set up your Armenia subsidiary as well as manage a new set of labor laws and employment compliance regulations can turn into a time-consuming process.
Instead of taking the time to learn all of Armenia’s subsidiary laws and set up your own entity, you can partner with a global Employer of Record (EOR) like G-P to start hiring quickly and compliantly.
How to set up an Armenia subsidiary
Instead of jumping right into setting up your Armenia subsidiary, it’s a good idea to take a look at possible locations and figure out how you want to operate in the country. Sometimes different regions or cities can have their own Armenia subsidiary laws that dictate separate costs, availability, ease of doing business, and more. If you’re not familiar with the different areas, we recommend working with a consultant, lawyer, accountant, or other expert to find the best place for your subsidiary.
Next, you should consider how active you want to be in Armenia. You can incorporate as one of several different types of subsidiaries, but each one has its own restrictions on what kind of business activities you can perform in Armenia. Before choosing between a limited liability company (LLC), joint-stock company, branch office, or representative office, make sure the type of entity gives you the freedom you need to operate in Armenia.
Many companies choose to incorporate as an LLC because of the numerous benefits. The steps to set up your Armenia subsidiary as an LLC include:
- Applying for registration.
- Providing resolution of founders on the establishment of the legal entity.
- Creating a charter of the legal entity that’s approved by the founders’ decision.
- Providing proof of your state fee payment.
- Giving information about the subsidiary’s director and their passport.
- Creating a statement on the real beneficiaries of the company.
- Submitting documents proving the status of a legal person as well as the organization’s founding documents.
- Choosing a unique name for the company.
Armenia subsidiary laws
The Armenia subsidiary setup process also includes following the laws that relate to your entity. LLCs need 1 director and 1 shareholder of any nationality to complete the incorporation process. You also need at least 1 EUR as minimum paid-up share capital. Since LLCs operate much like a residential company, you’ll need to submit annual audited financial statements to the country’s commercial registry.
Benefits of setting up an Armenia subsidiary
The biggest benefit of establishing a subsidiary in Armenia is getting to work in the country. Incorporating as an LLC will let your subsidiary operate under its own structure and culture and also protect the parent company from any fines incurred by the subsidiary.
Other important considerations
If you set up your Armenia subsidiary without the help of a global EOR, you’ll need an expert in the country’s laws, employment compliance regulations, and similar factors. We recommend working with a lawyer or consultant or even training a current employee who can learn the laws and help your company stay compliant.
You should also set aside the time you’ll need to travel back and forth to Armenia and complete every step of the subsidiary setup process.
Enter new markets with G-P — no new entities required.
Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 global employment platform to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.
Get in touch today to learn more about how we can streamline the global growth process.