Why to invest in Armenia

Located at the crossroads between the Middle East, Europe and the Caucasus countries, Armenia has become a country increasingly attractive for foreign investors. Positioning in Armenia - as demonstrated by the exemplary success of Pernod-Ricard, Castel, Grant Thornton Amyot, Véolia, SAUR, Air France, etc. - can be an open door to all markets of the Eurasian Economic Union, Commonwealth of Independent States (CIS) and Iran.

Armenia is one of the fastest growing trading centers in the Caucasus region, and is considered the most liberal and open economy of the CIS for its economy. The economy of the Republic of Armenia is booming and the possibilities to invest, to establish or to trade with Armenia, multiply.

The advantages of investing in Armenia:

Favorable legislation and climate for foreign investors.
Guarantee and free repatriation of invested capital and profit; Property rights.
Tax benefits for foreign investors.
Double taxation agreements.
Agreements for mutual promotion and protection of foreign investment.
Liberal Trade Regime: Member of the World Trade Organization and the World Customs Organization.
No quota and license for imports.
Free Trade Agreements with CIS countries.
Member of the Eurasian Economic Union.
Siting facilities (limited liability company, public limited company etc.).
No restrictions on the right of foreigners to manage local companies.
Registration of a company in the State Register: without delay.
Highly educated and skilled workforce, very low salary costs.
Potential and participation of the Armenian Diaspora in the rise of independent Armenia.
The weak spots:

Armenia has a small domestic market and transport costs are high (all goods have to pass through Georgia because of the embargo imposed by Turkey and Azerbaijan), which prevents the economic development of the country. country.
Corruption, nepotism and interferences at the level of state authorities are also problematic issues. Political instability can also be a negative element, as can the risk of natural disasters (earthquakes).
The poverty of the population is also a negative factor, especially in times of crisis, because the social climate and domestic consumption can be undermined.
The measures put in place by the government.

The Armenian government is aware of the need to create a more attractive business environment and targeted efforts have been made to encourage foreign investment, which is necessary for the development of a developing economy. The Poverty Alleviation and Corruption Act came into force, along with other reforms specifically related to the business environment. These include:

- Equal treatment for foreigners
- Unlimited access to property for foreigners;
- Free repatriation of profits;
- State interventionism and limited deregulation.
Procedures relating to foreign investment.

Freedom of establishment
The freedom of establishment is guaranteed.
The regulations concerning equity investments
Under the Government of Armenia's privatization program, the foreign investor can acquire an interest in a domestic company (whether public or private) by buying its shares or assets. State-owned properties and companies must be privatized before a foreign investor can acquire them. The privatization process in the country is regulated by the "Law on Privatization of State Property".

Reporting requirements.

Foreign investors can make investments in Armenia, but only through the establishment of wholly-owned companies (including representation, affiliates and branches) or the purchase of existing companies and investment securities or the establishment of joint ventures. There is no limit to the volume and type of foreign ownership, the number of foreign employees and access to financial sources.

In addition, a foreign investor will be held responsible for any violation of the legislation of the Republic of Armenia, as defined by the Legislation of the Republic of Armenia. The property of a foreign investor, including working capital and property rights may be used by this investor to guarantee any kind of obligations.

The organization to declare the investment.

Ministry of Finance.

Specific authorization request.

There are no limits to foreign ownership.

However, foreigners can only rent land and need permission to do so in the long run.

More information on the Foreign Investment in Armenia page of Globaltrade.net, the Directory for International Trade Service Providers.

Investment opportunities.

Investment aid agencies.

Armenian Development Agency.

Tenders, projects and public procurement.

Tenders Info, Tenders in Armenia

Globaltenders, Tenders & Projects in Armenia

DgMarket - Tenders Worldwide, Tenders Worldwide

Note of recommendations on the legal security of investments in Armenia
Note of recommendations on the legal security of investments in Armenia.

Note of the recommendations on the legal security of investments in Armenia (version in Armenian)

Conference of June 28, 2016 at the Paris Bar House

 

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