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State registrations

Record-registration of an individual entrepreneur

One of the ways for a person to engage in entrepreneurial activities is to be placed on record-registration as an individual entrepreneur.

 

How mandatory is placing on state record-registration?

The mandatory requirement for being an individual entrepreneur is to be placed on record-registration by the State as prescribed by law, as a result of which a person is provided with the opportunity to engage in entrepreneurial activities at his or her risk, on his or her behalf and own assets without establishment of a legal person.  

 

What are the advantages of being an individual entrepreneur?

The positive aspect of being placed on record-registration as an individual entrepreneur is the quick process of record-registration with minimum requirements for documents, absence of a balance, annual income taxation, etc.

 

What are the disadvantages of being an individual entrepreneur?

The disadvantage of being an individual entrepreneur is that he or she is responsible for his or her obligations by the property belonging thereto by the right of ownership, except for the property upon which no execution may be levied in accordance with the law.

 

Who is eligible to be an individual entrepreneur?

Any person having active legal capacity (citizen of the Republic of Armenia, foreign national or stateless person) is eligible to be an individual entrepreneur the right whereof to engage in entrepreneurial activities is not limited. Particularly, a person may not be placed on record-registration as an individual entrepreneur, if he or she has been deprived of the right to engage in entrepreneurial activities through judicial procedure and the conviction is not quashed or expunged or the person has been declared bankrupt through judicial procedure and, at the moment of filing an application for state record-registration, has failed to fulfil his or her obligations having served as a ground for bankruptcy.

 

Which body carries out the state record-registration?

State record-registration of an individual entrepreneur is carried out by any service office of the Agency for State Register of Legal Persons within the Staff of the Ministry of Justice of the Republic of Armenia (hereinafter referred to as "the Agency") irrespective of the place of activity of the individual entrepreneur.  

 

What documents are required for state record-registration?

For the purpose of state record-registration of an individual entrepreneur submits to the Agency the following:

-        passport (which is returned after identification of the person) and its copy;

-        document attesting the payment of state duty (payment receipt, payment made through the e-payments.am electronic payment system, etc.).  

The relevant application for placing an individual entrepreneur on state record-registration is drawn up by the employee of the Agency based on the information and documents provided by the person.  If the person has an electronic signature, the record-registration may be carried out via Internet, through https://www.e-register.am official website.

 

What is the time-limit for record-registration?

Placing a person on record-registration as an individual entrepreneur is carried out immediately upon submission of the required documents. 
A person is considered as placed on record-registration as an individual entrepreneur from the moment of recording the information prescribed by law in the State Unified Register.

 

What is the rate of the state duty?

The amount of state duty for the state record-registration of an individual entrepreneur comprises AMD 3000 (three thousand) which shall be paid to the following treasury account: 900005160750.

 

In which cases may the body in charge for placing on state record-registration reject the placing on record?

Placing a person on record-registration as an individual entrepreneur is rejected, if:

(a) he or she has been already placed on record-registration as an individual entrepreneur;

(b) the documents or information submitted thereby are incomplete; 

(c) he or she has been deprived, as prescribed by law, of the right to engage in entrepreneurial activities, and the conviction has not quashed or expunged as prescribed by law. 

Moreover, it is prohibited to reject placing the person on record-registration as an individual entrepreneur based on inappropriateness.

 

What is the procedure for appealing the actions (omissions) of the body carrying out the record-registration?

Rejection of record-registration, evasion of carrying out record-registration, as well as evasion from providing information may be appealed by way of superiority to the Minister of Justice of the Republic of Armenia or to the court.

 

In which cases is an individual entrepreneur removed from record-registration?

An individual entrepreneur may be removed from record-registration based on his or her (authorised person’s) application or in case the individual entrepreneur dies, is declared missing or as bankrupt through judicial procedure.   

 

Which body removes an individual entrepreneur from record-registration?

Removal of an individual entrepreneur from state record-registration is carried out by any service office of the Agency for State Register of Legal Persons within the Staff of the Ministry of Justice of the Republic of Armenia (hereinafter referred to as "the Agency"), irrespective of the place of activity of the individual entrepreneur.

 

What is the procedure for removing an individual entrepreneur from record-registration?

The individual entrepreneur is removed from record-registration upon the application of the person placed on record-registration as an individual entrepreneur or his or her authorised person, which is accompanied by his or her statement on compliance with the requirements set forth in part 6 of Article 20 of the Law of the Republic of Armenia "On archive keeping", and where the application is filed by the authorised person, the relevant letter of attorney and passport must be submitted as well. 

Where an individual entrepreneur has died, any concerned person may file the application on removal from record-registration by submitting a document proving the fact of death, and — in case the individual entrepreneur is declared missing through judicial procedure — the copy of the court decision.  

If the individual entrepreneur is declared bankrupt, the application for removal from record-registration is accompanied by the copy of the court decision entered into legal force and statement on compliance with the requirements of part 6 of Article 20 of the Law of the Republic of Armenia "On archive keeping".

 

 

No state duty is levied for removing an individual entrepreneur from record-registration.

Moreover, removal of an individual entrepreneur from record-registration does not exempt him or her from tax obligations, as well as from liability for non-fulfilment or improper fulfilment.

 

What is the time-limit for removal from record-registration?

An individual entrepreneur is considered as removed from record-registration from the moment of submission of the application, except for the cases when the person placed on record-registration as an individual entrepreneur is included by the State Commission for the Protection of Economic Competition of the Republic of Armenia in the list of economic operators having monopoly or dominant position. In this case, the Agency, within a three-day period after receiving the application, makes enquiries to the Commission to confirm the absence of initiated and pending administrative proceedings against the given individual entrepreneur, as well as the absence of liabilities towards the Commission. Based on the enquiries, the Agency removes the individual entrepreneur from record-registration or rejects it based on the statement issued by the Commission.  
Moreover, the need to make enquiries ceases to be necessary, where the above-mentioned statement is submitted by the individual entrepreneur. 

 

What is the procedure for appealing the statement issued by the Commission?

A person has the right to appeal to the Commission against the statement issued by the Commission through administrative procedure or to the Administrative Court of the Republic of Armenia through judicial procedure.  

The person may re-apply to the Agency to be removed from the record-registration in the case the appeal is upheld or the pending administrative proceedings are completed and all the obligations against the Commission are fulfilled.

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