ABOUT ARMENIA

Amongst all the countries in Europe, Armenia, officially the Republic of Armenia, is a landlocked country located in the South Caucasus region of Eurasia. It is known for its ancient Christian heritage (being the first nation to adopt Christianity as its state religion), stunning mountainous landscapes, rich cultural traditions, and a dynamic diaspora. Armenia is actively pursuing economic diversification and integration with global markets. The capital of Armenia is Yerevan, which is its largest and most populous city, serving as the country’s primary economic, cultural, and political hub. According to the World Bank, Armenia is classified as an Upper Middle-Income Economy. It has demonstrated notable economic resilience and growth, particularly in its high-tech sector, and is a member of the Eurasian Economic Union (EAEU). The currency of Armenia is the Armenian Dram (AMD). As of today’s exchange rates (June 2025), 1 Armenian Dram is approximately 0.224 Indian Rupee (or 1 INR is approximately 4.46 AMD). The population of Armenia is estimated to be around 2.97 million in 2024. Its neighbouring countries are Turkey to the west, Georgia to the north, Azerbaijan to the east, and Iran to the south. The official language of the country is Armenian, with Russian widely spoken by a significant portion of the population due to historical ties, and English gaining increasing popularity, especially in business and tourism sectors. The majority of the Armenian population practices Armenian Apostolic Christianity, with smaller communities of other Christian denominations and other faiths. Currently, Armenia has two international airports: Zvartnots International Airport (EVN) in Yerevan and Shirak International Airport (LWN) in Gyumri, with Zvartnots being the primary international gateway. As a landlocked country, Armenia relies on the Black Sea ports of neighbouring countries, particularly the Georgian ports of Poti and Batumi, for its international maritime trade, with goods transported mostly by road and rail.

The corporate income tax rate in Armenia is a flat 18%. For certain sectors, there are also benefits such as a simplified tax regime for small businesses or incentives for IT companies. Notably, companies operating within Free Economic Zones (FEZs) can benefit from significant tax exemptions, including exemption from corporate income tax, VAT, customs duties, and property tax, making them highly attractive for export-oriented manufacturing and service activities. The Armenia IT Park also offers specific tax benefits. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a rental property for your office.

Establishing a business in Armenia is relatively straightforward, supported by its “one-stop-shop” principle for company registration and a generally liberal foreign investment regime. The Investment Support Center of Armenia (Enterprise Armenia) is the primary government body promoting and assisting foreign investors. A foreign investor who is planning to start his business in Armenia can form various company types, with the most common being a Limited Liability Company (LLC – Sahmanapak Pataskhanatvutyamb Enkerutyun or OOO) or a Joint Stock Company (JSC – Bats Aktsionerakan Enkerutyun / Pak Aktsionerakan Enkerutyun or CJSC). A Limited Liability Company (LLC) is the most popular choice due to its flexibility, allowing 100% foreign ownership and requiring no minimum share capital (it can even be 1 AMD). Armenia’s laws treat foreign investors equally to domestic ones, and there are no general restrictions on foreign ownership in most sectors.

In case an investor is planning to establish an LLC in Armenia or a corporate business setup, Opesh Group will be helping you in taking the right decision for setting up your business in Armenia and we will also guide you about how to follow the procedure while formulating your company in Armenia.

Types of Business which can be started in Armenia:

• Information Technology (IT) & High-Tech: This is Armenia’s fastest-growing sector, driven by a highly skilled workforce, government support, and numerous successful startups (e.g., Krisp, Picsart). Opportunities abound in software development, AI, FinTech, cybersecurity, engineering services, and R&D centers.
• Tourism & Hospitality: With its rich history, cultural sites, and natural beauty, Armenia offers significant potential. Opportunities include developing hotels, eco-tourism ventures, adventure tourism, cultural tours, and specialized services.
• Agriculture & Food Processing: Armenia has fertile land and a tradition of high-quality agricultural products. Opportunities lie in modernizing farming, organic agriculture, and value-added food processing (e.g., brandy, wine, dried fruits, dairy, canned goods) for both domestic and export markets.
• Mining & Metallurgy: Armenia is rich in mineral resources, particularly copper, molybdenum, gold, and other non-ferrous metals. Opportunities exist in mineral extraction, processing, and related services, adhering to sustainable practices.
• Renewable Energy: Armenia has significant potential for solar, wind, and hydropower. Opportunities are growing in developing renewable energy projects, energy efficiency solutions, and smart grid technologies to enhance energy independence.
• Pharmaceuticals & Healthcare: The sector is developing, with opportunities in the import, distribution, and potentially the manufacturing of generic drugs and medical devices, catering to both local demand and regional exports.
• Jewelry & Diamond Processing: Building on a long tradition and skilled artisans, opportunities exist in design, manufacturing, and processing of jewelry and diamonds, often leveraging the country’s Free Economic Zones.

Advantages of Starting Business in Armenia:

• Growing & Resilient Economy: Despite regional challenges, Armenia has shown robust economic growth, particularly in recent years.
• Skilled & Cost-Effective Workforce: A highly educated talent pool, particularly in STEM fields, offering competitive labor costs.
• Strategic Location & EAEU Membership: Provides access to the large EAEU (Russia, Belarus, Kazakhstan, Kyrgyzstan) market, along with preferential trade regimes with the EU (GSP+) and CIS countries.
• Attractive Tax Regime: A flat 18% corporate income tax rate, coupled with significant tax exemptions in Free Economic Zones and for certain IT activities.
• Liberal Investment Climate: Equal treatment for foreign and domestic investors, 100% foreign ownership allowed, and strong legal protections for investments.
• Developing Digital Infrastructure: Strong internet connectivity and a government committed to digital transformation.
• Vibrant IT & Tech Ecosystem: A thriving startup scene and a supportive environment for innovation.

Business Opportunities for Indians in Armenia:

There are excellent business opportunities in Armenia for new investors who are planning to start their business abroad. Armenia’s strategic location, its EAEU membership, a growing high-tech sector, and a skilled workforce offer compelling avenues for Indian companies. Indian investors with strengths in IT services (especially software development, AI, and IT outsourcing), pharmaceuticals (distribution and potentially manufacturing), agro-processing (especially for export), education services (given the growing number of Indian students), and potentially in mining or renewable energy, can find significant potential for investment, technology transfer, and market expansion into the EAEU and CIS regions.

Imports & Exports:

Many goods are imported and exported from Armenia. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Armenia (including to India):

• Mineral products (e.g., copper ore, molybdenum, zinc concentrates)
• Precious and semi-precious stones, metals (e.g., gold, diamonds)
• Beverages (especially brandy, wine)
• Machinery and mechanical appliances
• Prepared foodstuffs (e.g., fruits, vegetables)
• Tobacco and manufactured tobacco substitutes

Major items which are imported in Armenia (including from India):

• Mineral fuels and oils (e.g., natural gas, petroleum)
• Machinery and mechanical appliances
• Electrical machinery and equipment
• Vehicles
• Pharmaceutical products
• Chemical products
• Foodstuffs (e.g., cereals)
• Textiles and apparel

Manufacturing:

Manufacturing in Armenia is diverse, with significant activity in metal processing (especially copper and molybdenum concentrates), food and beverage processing (brandy, wine, dairy, canned foods), and light manufacturing (textiles, jewelry). The high-tech sector, including electronics and software, is also increasingly contributing to manufacturing output, focusing on high-value-added products.

Mining:

The mining sector is a cornerstone of Armenia’s economy, with rich deposits of copper, molybdenum, gold, and other valuable metals. This sector accounts for a substantial portion of exports and foreign investment. Opportunities exist in further exploration, extraction, and particularly in the processing of ores to produce higher value-added metallic products, with a growing emphasis on environmental responsibility and modern mining techniques.

Major Indian companies which are currently working in Armenia:

While large-scale greenfield investments by major Indian conglomerates are still developing, there is a growing interest and presence, particularly in certain sectors and through trade relationships.

• Pharmaceutical Companies: Several Indian pharmaceutical companies have a strong market presence through distribution networks in Armenia, supplying a wide range of generic medicines.

• Education Sector: A significant number of Indian students study in Armenian medical universities, leading to the presence of Indian education consultants and support services.

• Defense Sector: India has emerged as a significant defense supplier to Armenia, providing various defense equipment.

• IT Services: Some smaller and medium-sized Indian IT firms or individual professionals might be providing software development and IT outsourcing services, leveraging Armenia’s tech talent.

• Trade: Various Indian companies are active in bilateral trade, facilitating the import of Armenian mineral products and brandy, and the export of Indian pharmaceuticals, textiles, and agricultural products.

• GDP = $25.5 billion (nominal, 2024 est.)

• GDP Growth = 5.9% (2024 est.), 4.0% (2025 forecast by World Bank)

• Ease of doing business rank = Not directly ranked by the World Bank’s ‘Doing Business’ report (discontinued), but Armenia has consistently ranked high in categories like “Starting a Business” and has a generally improving business environment.

• GDP per Capita = $8,500 (nominal, 2024 est.)

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