An individual entrepreneur (IE) can be registered both in person and through a representative based on a power of attorney:
It is advisable to carry out the registration by a specialized person, which will allow obtaining necessary legal advice regarding the legal status of the entrepreneur, as well as avoiding possible problems and wasting time. Below are the answers to frequently asked questions regarding the status and registration of an individual entrepreneur:
One of the most common forms of engaging in entrepreneurial activity is registering as an individual entrepreneur, while the other is the registration of a company, mainly a limited liability company (LLC). Both have their advantages and disadvantages. Here are the features of registering as an individual entrepreneur.
Is state registration mandatory, or is it possible to conduct commercial activities without registering as an IE?
The basis for being an individual entrepreneur is having state registration in accordance with the procedure established by law, as a result of which the individual is granted the opportunity to engage in entrepreneurial activities at their own risk, in their own name, and with their own funds without creating a legal entity. Engaging in entrepreneurial activities without a legal basis is subject to criminal liability.
What are the advantages of being an individual entrepreneur?
The positive aspects of registering as an individual entrepreneur include the quick completion of the registration process with minimal documentation requirements, not having a balance sheet, being taxed on annual income, etc.
What are the disadvantages of being an individual entrepreneur?
The disadvantage of being an individual entrepreneur is that they are responsible for their obligations with all the property they own, except for property that, according to the law, is not subject to seizure. This is the biggest disadvantage of being an IE. Unlike establishing a limited liability company, where the founder of the LLC is not liable for the company's obligations.
Who can be an individual entrepreneur?
Any capable individual (citizen of the Republic of Armenia, foreign citizen, or stateless person) can be an individual entrepreneur.
Where is the state registration of an IE carried out?
The state registration of an individual entrepreneur is carried out at the State Register of Legal Entities (State Register) regardless of the location of the individual entrepreneur's activities.
What documents are required for state registration?
For state registration, the individual entrepreneur submits to the Agency - a passport (the passport is returned after the individual is identified) and a copy,
- a document confirming the payment of the state duty (payment receipt, payment made through the e-payments.am electronic payment system, etc.): the registration fee is 3000 (three thousand) AMD, which must be paid to the following treasury account: 900005160750:
The application for state registration of an individual entrepreneur is prepared by the Agency's employee based on the information and documents provided by the individual.
What are the timeframes for registration?
As an individual entrepreneur, the registration of the individual is carried out immediately upon submission of the necessary documents. That is, the registration is carried out on the day the relevant documents are submitted to the register.
In what cases can the registering authority refuse registration?
The registration of an individual as an individual entrepreneur is refused if:
a) they are already registered as an individual entrepreneur.
b) the documents or information they submitted are incomplete.
c) they have been deprived of the right to engage in entrepreneurial activities in accordance with the law, and the conviction has not been annulled or removed in the prescribed manner.
Removal of an individual entrepreneur from registration: in what cases is an individual entrepreneur removed from registration?
An individual entrepreneur can be removed from registration at their (or the authorized person's) request or in the event of the individual entrepreneur's death, being declared missing by a court, or being declared bankrupt:
The disadvantage of being an individual entrepreneur is that they are responsible for their obligations with all the property they own, except for property that, according to the law, is not subject to seizure.
Who carries out the removal of an individual entrepreneur from registration?
The removal of an individual entrepreneur from state registration is carried out by the State Register of Legal Entities (hereinafter referred to as the Agency) regardless of the location of the individual entrepreneur's activities.
What is the procedure for removing an individual entrepreneur from registration?
The removal of an individual entrepreneur from registration is carried out at the request of the individual registered as an individual entrepreneur or their authorized person, accompanied by a certificate from them regarding compliance with the requirements of Article 20, Part 6 of the Law of the Republic of Armenia on "Archival Affairs," and if the application is submitted by an authorized person, the relevant power of attorney and passport must also be submitted:
If the individual entrepreneur has died, any interested person can submit the application for removal from registration by presenting a document confirming the fact of death, and in the case of being declared missing by a court, a copy of the court decision:
If the individual entrepreneur has been declared bankrupt, a copy of the court decision that has entered into legal force must be submitted along with the application for removal from registration, as well as a certificate from them regarding compliance with the requirements of Article 20, Part 6 of the Law of the Republic of Armenia on "Archival Affairs":
No state duty is charged for the removal of an individual entrepreneur from registration:
Moreover, the removal of an individual entrepreneur from registration does not exempt them from fulfilling their tax obligations, as well as from liability established for non-fulfillment or improper fulfillment.
On June 17, 2016, by the law adopted on making amendments to the Law of the Republic of Armenia on "Individual Entrepreneurs," it is advisable to apply to the tax authority before being removed from state registration to verify the accuracy of budgetary relations.
What is the timeframe for removal from registration?
An individual entrepreneur is considered removed from registration from the moment the application is submitted.