The process of opening an individual entrepreneurship (IE) may often seem complicated, but in reality, it is quite simple and fast.

First, let’s understand what an IE is.

What Is an IE?

An Individual Entrepreneur (IE) is a natural person who has the right to conduct business activities independently, in their own name and at their own risk, without forming a legal entity. The main purpose of such activity is to generate income from the use of property, sale of goods, performance of work, or provision of services.

An IE is liable for obligations with all of their personal property.

An IE Can:

• Hire employees and have their own seal and bank account.
  
  
• Conduct business activities within the Republic of Armenia with all rights and obligations provided by law.

If, when opening an LLC, you can assign a specific company name, an IE is registered strictly under your own first and last name.

Where to Apply to Open an IE

To register an IE, you need to apply to the State Register Agency of Legal Entities or visit the nearest HayPost branch.

You must bring your:

• Passport
  
  
• Copy of passport
  
  
• Receipt confirming payment of the state duty (3.000 AMD)
  
  

Any legally capable individual may register as an IE – a citizen of the Republic of Armenia, a foreign citizen, or a stateless person, provided that their right to engage in entrepreneurial activity is not restricted by law.

A person cannot open an IE if they have been deprived by court decision of the right to engage in entrepreneurial activity and their conviction has not been removed or cleared in accordance with the law, or if they have been declared bankrupt by a court and, at the time of application, have not fulfilled the obligations that served as the basis for the bankruptcy.

Registration of an IE is carried out upon submission of the required documents, meaning effectively at the moment they are presented.

How Much Does IE Registration Cost?

To open an IE, a one-time payment of 3.000 AMD must be made to the following treasury account: 900005160750.

There is no state duty for online registration.

What Taxes Does an IE Pay?

The tax obligations of an IE depend on the chosen taxation system. The most common system is the turnover tax regime, which applies to businesses with an annual turnover of up to 115 million AMD. The tax rate ranges from 1% to 20%, depending on the type of activity.

Under this regime, the IE pays:

• A monthly 5.000 AMD income tax and 5.000 AMD social payment (if subject to social contributions).
  
  
• An annual stamp duty ranging from 18.000 to 120.000 AMD, depending on turnover.
  
  
• Taxes for employees, if there are any.
  
  

How Long Does IE Registration Take?

Team2B provides a full IE registration package within 1 day. The process includes:

• Registration of a legal address
  
  
• Tax registration
  
  
• Assistance with opening a bank account
  
  
• Payment after successful registration
  
  
• Issuance of a power of attorney
  
  

You can see the advantages of an IE compared to an LLC here.

Can an IE Be Closed and How?

Deregistration of an IE is a fairly simple process.

To do this, you need to apply to the State Register Agency of Legal Entities, submit the required documents, and provide confirmation of payment of the state duty. Based on the submitted information, an application for deregistration is prepared.

If applying online, you must log into the system through the “Yes Em” identification platform by choosing one of the available identification methods.

In short, opening an IE in Armenia is a quick and accessible process. However, choosing the correct tax regime, understanding your obligations, and considering legal nuances are crucial to avoiding future problems.

If you want to save time, avoid mistakes, and ensure that the process is handled properly and completely, Team2B specialists are ready to support you at every stage — from registration to the full launch of your business.

A successful start to your business begins with the right choice.