Sole proprietorship in Armenia for Russian citizens in 2026: a step-by-step guide

Yes. Armenian law allows foreign nationals to register as sole proprietors on equal terms with Armenian citizens. A residence permit is not required for registration. More than that, a sole proprietorship often becomes the grounds for obtaining one.

A sole proprietor in Armenia may carry out any activity that is not prohibited by law. The exception is licensed activities — financial services or medicine, for example: those require a separate licence or a different legal form.

The key difference from an LLC matters here: a sole proprietor is liable for their obligations with all the property they own. If you are unsure which form suits you, compare the two before deciding.

The list is short, but it is better to prepare every document in advance.

A foreign national without a residence permit can obtain a social security number in order to register a sole proprietorship or take part in an LLC. Check in advance where to apply and which documents to bring.

If you are still in Russia, part of the steps can be handled through a representative. Check which ones, and what the limits are, before preparing the documents.

If you come to Team2B, the set we need from you is minimal. We do the rest ourselves.

For Armenian citizens the list is shorter: a passport or ID card, a social security number, registered and residential address, phone, email and the types of activity.

The whole thing usually takes one working day. If the details arrive in the afternoon, registration is completed by the middle of the next day.

The state duty for registering a sole proprietorship is 3,000 drams — we pay it on your behalf and include it in the invoice. No state duty is charged when registering an LLC.

We say this upfront so there are no surprises:

• Queues. A Haypost branch or the State Register can be busy enough to push the filing to the next day.
• A refusal at a particular branch. If registration does not go through at one post office, we try another branch or file directly with the State Register.
• Errors in the client’s documents. If the name in the passport and in its translation differ, the paperwork can be delayed. That is why we check the documents before filing.
• Circumstances on the state side. Technical failures and changes in regulations occasionally shift the timeline. In such cases we tell you straight away.

Armenia has three main tax regimes for sole proprietors. The choice depends on annual turnover and on the type of activity.

Rates, payment deadlines and the 2026 changes are covered separately, with worked examples for a freelancer and for a marketplace seller.

What the start-up costs consist of:

• notarised translation of the passport;
• the state registration duty, where one applies;
• a power of attorney, if you work through a representative;
• consultant fees, if you would rather not handle it yourself.

A realistic timeline is three to seven days from arrival to a working business: translation, social card, registration. The bank account can take anywhere from a few days to a few weeks.

Registration is only the beginning. From day one a sole proprietor has obligations:

Check the full list of reports and the calendar of deadlines with your accountant.

Not filing the regime application. The business stays on the general regime and the tax burden turns out higher than expected.

Skipping nil reporting. Reports are due even if the business was dormant. Failing to file risks fines.

Forgetting about Russia. If you remain a Russian tax resident, income from an Armenian business may also be taxed in Russia. Opening an account with a foreign bank has to be reported to the Russian tax authority within the set deadline.

Mixing personal and business money. Client payments to a personal card lead straight to questions from the bank and the tax office.

The types of activity determine which tax regime is available to you and at what rate the tax is calculated. They are worth choosing deliberately.

• Do not list everything at once. Unnecessary activities can close off the micro-business regime and raise questions at the bank.
• The main activity has to match reality. If you are a developer but the documents say retail trade, it will be noticed during an inspection and when applying for a residence permit.
• The IT incentive only covers the list in the high-technology law. Design, marketing and SMM are not part of it.
• Activities can be added or changed later. That is a separate procedure at the state register.

If you work in several directions at once — developing software and consulting, say — discuss in advance with an accountant how that affects the rate.

The payment setup depends on where your clients are.

Beyond taxes, a sole proprietor has recurring costs. A rough annual list:

• accounting services — the main line of spending;
• bank account maintenance and transfer fees;
• renewing the residence permit, if you hold one;
• translations and notarisations as needed;
• a cash register or online services, if your activity requires them.

Tax amounts are worth calculating separately, at your own rate.

Closing is a procedure at the same state register, but every obligation has to be settled first:

1. File all reporting, including the period up to the closing date.
2. Pay off taxes, interest and fines, reconciling the figures with the tax authority.
3. Close the bank account or move the money out.
4. File the application to cease activity.
5. Keep the documents — they may be needed during a later inspection.