An important prerequisite for ensuring the effectiveness of NGOs' activities is their financial sustainability. In this regard, an important tool has been provided for the NGOs- it’s the right to engage in entrepreneurial activities in accordance with the objectives set out in the NGO Charter, which wasn’t envisaged by the applicable law before. Previously NGOs could engage in entrepreneurial activity only by creating a commercial organization or becoming a participant in such a company. Meanwhile, in the Council of Europe member states, except for the Republic of Belarus, Republic of Armenia was the only country where non-profit organizations haden’t had the right to engage in entrepreneurial activity. Such a regulation exists in the laws of the United States and some other developed countries.
Further the NGO-s may, in accordance with its objectives and business activities, carry out entrepreneurial activity as well as establish a commercial organization or become its participant in the manner prescribed by law in the Republic of Armenia.
The name of an NGO that carries out entrepreneurial activity is its brand name as well. The state registration of the NGO is carried out in 2 days (previously 21 days), if it uses samples available.
The amendments are adopted on 16.12.2016, signed by the president on 16.01.2017.