Armenia: Operating a Business

Setting Up a Company

Types of Companies and Capital (Max/Min)	Number of Partners/Shareholders and Liability
Joint-Stock Company The minimum capital requirement is 100 times the minimum monthly wage for a closed company and 1,000 times the minimum monthly wage for an open company.	The number of shareholders is not limited when it is an open joint-stock company while in case of a closed joint-stock company the total number of shareholders should not be more than 49. The participants in a joint-stock company are not liable for its obligations and bear the risk of losses connected with the activity within the limits of the value of the shares of stock belonging to them.
Limited Liability Company 50,000 AMD	1 (Minimum) The liability of its owners is limited to the initial investment.
General partnerhsip 50,000 AMD	2 or more The partners jointly bear liability with all their property for the obligations of the partnership.
Limited partnership There is no minimum share capital required but share value is fixed by the Civil Code.	2 or more Unlimited incase of full partnership, and limited (restricted to the amount of the partner's contribution in the partnership) in case of limited partnership.

The Competent Organization: The State Register Agency of Legal entities of Armenia.
Search a Company or a Financial Report: SPYUR, Company Register of Armenia.

Source: Doing Business.

Business Setup Procedures: Consult Doing Business Website, to know about procedures to start a Business in Armenia.
Spyur, Company Register.

Legal Weekly Duration: Normal: 40 hours, 8 hours per day.
The maximum duration, including overtime work carried out at the request of the employer, should never exceed 48 hours per week and 12 hours per day.
Retirement Age: Men: 65 years
Women: 63 years.
Working Contracts: The 'employment contract' is defined by the Labour Code of the Republic of Armenia which was adopted in 2004. According to this law, it is obligatory to have a written 'employment contact' between an employee and an employer. The contract should not contain any condition less favourable to workers than those stipulated by labour law.
The contract could be terminated by mutual agreement of both parties, provided that a seven-day written notice is generally respected.

Minimum Wage: The minimum wage is 30,000 AMD (USD 80) per month.
Average Wage: The average wage in Armenia is AMD 81,000 (USD 227). It varies from AMD 45,000 in the public sector to AMD 75,000 in the private sector. High category workers (eg. engineers or software programmers) can be paid around AMD 120,000.
Social contributions: Social Security Contributions Paid By Employers: If monthly gross salary is less than 20,000 AMD, the employer's contribution is 7,000 AMD,
If monthly gross salary is greater than 20,000 AMD, the employer's constribution is 15% of the amount exceeding 20,000 AMD plus AMD 5,000,
If monthly gross salary is above 100,000 AMD, the employer's contribution is 5% of the amount exceeding 100,000 AMD plus 17,000 AMD.
Social Security Contributions Paid By Employees: 3%, withheld by the employer at source.

Social Dialogue and Involvement of Social Partners: Armenia is a member of the ILO (International Labour Organization). It has also ratified the convention on 'Freedom of Association' in 2006 as well as the convention on 'Right to Organize' (in 2003).
The primary trade union centre in Armenia is the Confederation of Trade Unions of Armenia (CTUA), which is the reconstituted remains of the former Soviet trade union structure. Article 22 of the Labour Code states that representation in collective labour relations is deemed effective if the representatives are mandated by the majority of workers.
Unions
Unionization Rate: The Confederation of Trade Unions in Armenia estimated that 290 thousand people were affiliated to labour unions in the country.
Labor Regulation Bodies: Ministry of Labour and Social Affairs, Republic of Armenia
National Statistical Service of the Republic of Armenia
National Institute of Labour and Social Researchers, Republic of Armenia

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