Ensuring financial stability. NGO shall be entitled to carry out entrepreneurial activity in Armenia
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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.
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The Law on Tax Advantages for Self-Employed persons came into a force on 01 January 2017, which constitutes total tax free regime on certain activities in Armenia. The law is enforceable both on physical persons and private entrepreneurs. In the first case the latest will obtain a TAX number, when applying for the Advantages to the tax authorities.
The law has an exemption for VAT and an excise duty which are payable in ordinary course.The tax exemption applies to self-employed persons where the revenue from sales of all types of goods during the previous calendar year (hereinafter referred to as turnover) does not exceed AMD 9.0 million .
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The staff of ILex Law Firm congratulates all clients Christmas and Happy New Year. 2017 will surely be accompanied by health and success, and in the case of small problems is always possible to find appropriate solutions.
We wish you and your family all the best and prosperity in the coming 2017.
Best wishes Ilex law office team.