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I want to become an entrepreneur. Where should I start?

Nowadays starting an entrepreneurship has become popular. Everybody wants to start their own businesses, make certain steps towards them, but only a few really know how to start right to not face problems in the future and have a secure business process.

Let’s find out what steps one can take on the way of becoming an entrepreneur.

To be more precise: before starting a business it’s essential to generate a business idea, find finances for it, explore the market, do analysis and only then have a certain development plan.

Registering a business and obtaining the right to operate in a legal field is also one of the first stages of starting an entrepreneurial activity.

To register an entrepreneurship it’s important to register an Individual Entrepreneur or a Legal Entity. 

As the fields of activities differ and their registration processes flow in different standards: it’s important to understand what kind of Individual Entrepreneur or Legal Entity needs to be registered. In this stage you’ll have to get professional assistance, address the specialists, get a consultation and begin initiating all the processes.

Another very important thing to be considered before starting an entrepreneurial activity is the company name. It will be necessary to create a unique name, register it in the legal field, and obtain a document confirming the copyright.

How to open an Individual Entrepreneur (IE) and an LLC?

At Team2B, it is possible to open an IE and an LLC within 1 day. Let’s see what is required to start the process and what results you can expect.

Opening an Individual Entrepreneur

To open an IE, you need to provide an internal/Russian or international passport, the name of the IE, and specify the type of activity.

What you receive:

  • IE registration certificate

     

  • Legal address

     

  • Consultancy services

     

  • Support with choosing the tax regime

     

Assistance with opening a bank account

What document we provide:

  • Power of Attorney

Process stages:

  1. The company issues a Power of Attorney

     

  2. Within 24 hours the individual entrepreneur’s data is registered

     

  3. A Power of Attorney is issued for tax registration

     

  4. The company will help open a bank account (within 3–10 working days)

     

Opening an LLC

To register an LLC (on-site or remotely), an Armenian passport/ID card or a foreign passport is required.
 During the process, we will clarify the company name, help determine the charter capital, type of activity, legal address, share distribution between founders, and identify the director.

We will prepare the founders’ decision or the minutes of the founders’ meeting, the LLC charter, and the Power of Attorney for representation. If necessary, we will assist with notarization and obtaining certified passport translations.

How the process works:
  1. You fill out the form

     

  2. Our lawyers prepare the main documents and send them to you for signing

     

  3. You sign and return them to us, attaching a notarized copy of your passport

     

  4. After receiving the package, we register the LLC within 48 hours

It is important to understand the tax regimes applicable to Individual Entrepreneurs (IE) and Limited Liability Companies (LLC).
 Every IE or LLC operates within the tax framework and, by paying taxes stipulated by law, contributes to the economic stability of the country.

In the Republic of Armenia, three main tax regimes apply to Individual Entrepreneurs (IE):

1. Microentrepreneurship

This regime may be chosen by Individual Entrepreneurs whose annual income does not exceed AMD 24 million, and only if the type of activity is permitted by law.

Within the microentrepreneurship regime, taxes mainly relate to income paid to employees or other individuals, as well as the IE’s stamp duty.

Reporting requirements are simplified, making this regime especially suitable for start-up and small businesses.

2. Turnover Tax

The turnover tax regime is intended for Individual Entrepreneurs whose annual income does not exceed AMD 115 million.

Under this system, tax is calculated on turnover and varies depending on the type of activity (in some exceptional cases, higher rates may apply).

In addition, Individual Entrepreneurs must pay personal income tax, social payments, and stamp duty related to their employees.

Under this regime, Individual Entrepreneurs pay turnover tax, which replaces Value Added Tax (VAT) for IEs,
 while for organizations it replaces VAT and/or profit tax.

The turnover tax regime is particularly suitable for small businesses engaged in property rental, freight transportation, and similar activities.

3. General Taxation System

The general taxation system is chosen by Individual Entrepreneurs who:

  • have higher turnover, or

     

  • carry out activities that cannot be included in special tax regimes.

Under this system, the following taxes are payable:

  • Value Added Tax (VAT),

     

  • Profit tax,

     

  • For employees: personal income tax, social payments, and stamp duty.

     

Although this system requires a professional accounting approach, it offers an important advantage — the ability to deduct allowable expenses from income, which can significantly reduce the tax burden.

It is especially suitable for Individual Entrepreneurs engaged in exports, as well as in cases where their customers in Armenia are VAT-paying organizations.

Tax regimes for Limited Liability Companies (LLC)

The following tax regimes apply to LLCs:

  • Turnover tax,

     

  • General taxation system.

The microentrepreneurship regime is generally not applicable to LLCs.

At this stage, it is important to have the code of the business activity classifier, as it officially defines the type of business activity. (KVED – or OKVED in Russia, NAICS for USA,Canada and Mexico)

Why it is important to know your activity code
  1. For government registration
     When registering, the main type of activity must be indicated.
     Registration will not be accepted without specifying the code.

     

  2. For choosing the correct tax regime
     Some types of activities are not allowed under microbusiness or turnover tax regimes.
     The code determines which tax system your business can operate under.

     

  3. To avoid tax risks
     If the actual activity does not match the registered code, you may face:

     

    • fines

       

    • tax recalculations

       

  4. To understand licensing or permit requirements
     Certain codes require:

     

    • a license

       

    • a special permit or registration

       

  5. For reporting and contracts
     The code is used in tax and statistical reporting.
     It is often required in banking documents and contracts.

     

  6. For future business expansion
     You can add new activity codes without closing the business.
     It is important that the new activity also fits within the chosen tax regime.

     

Thus, the activity code forms the foundation for business registration, selecting the tax regime, and operating legally. Choosing the correct code helps avoid tax risks and ensures stable business growth.

One of the next most important steps is securing the financial part: creating and servicing a bank account, determining the taxation regime (micro, small business, turnover tax, etc.).

 

Up next comes the branding, which is one of the other most important points. This is the main component that speaks for the business before getting to know its operations.

What does the term “branding” include:

  • brand idea
  • brand vision
  • brand values
  • targeted audience involvement
  • emotional connection and comprehension
  • brand positioning

Competent branding and campaigns will secure the emotional connection with the customers at its best.

Besides all of this, it’s important to be aware of the risks present in the field you’re active in, the risks that can often lead to complications and hinder the process of real development.

Having risk management is extremely important in a competitive environment.

If we put aside all the administrative points, it will be crucial to concentrate on your mindset.

So, here are 5 mindset tips that will help you if you’re just getting started.

  1. Don’t be afraid of changes – they’re part of growth.

     

  2. Don’t give up when facing challenges – they make you stronger.

     

  3. Believe in your vision, even when others don’t.

     

  4. Stay consistent, even on days you’re not motivated.

     

  5. Take risks. A comfort zone can never be a guarantee for growth.

Still hesitating where to start from? Team2B is here to help you find solutions.

Make sure to book a free consultation with professionals to light up your way to entrepreneurial activity.