Beneficial owners are considered to be:

• Members who own more than 20% of the voting shares or shares of the organization or who have a stake of more than 20% in the authorized capital.
• Officials who control the organization by actual or other means (for example, the director, deputy director of the organization, or any representative of the management staff who participates in the control of the organization but does not own shares).

The declaration of beneficial owners by organizations in the mining and financial sectors has some specific features, which you can familiarize yourself with in the video guides.

The beneficial ownership declaration allows for:

• Reducing the risks of de facto control and profiteering by others over the organization.
• Identifying persons attempting to commit legal violations by using a legal entity.

A bank account is important for managing a company's finances. For legal entities, having a business account is mandatory.

Having a business bank account allows you to:

• Separate business cash flows, expenses, and income from personal funds.
• Easily track and pay taxes.

A cash register (known in Armenia as HDM) is also linked to a business bank account.

Apply to any bank operating in Armenia and submit the following documents:

For Legal Entities:

• A copy of the state registration of the legal entity (also known as the "State Register Certificate").
• The director's passport, social security card, or identification card.
• Copies of the passports and social security cards or identification cards of all founders.
• The original charter of the organization.

For Individual Entrepreneurs:

• The passport and social security card or identification card of the registered person.

Note: Other documents may also be required, depending on the specific requirements of the bank.

Regardless of the type of taxation or activity, all organizations, individual entrepreneurs, and notaries that receive cash payments must use a cash register.

Businesses providing services or trading through electronic platforms use an Electronic Cash Register.

The following should be considered: 

• The maximum amount of cash for each transaction is 300 thousand AMD (including VAT); for the total number of such transactions within a month, it is 3 million AMD (including VAT).
• The maximum amount of cash received from an individual in retail trade for each transaction is 3 million AMD (including VAT).
• If a VAT refund tax invoice is issued for the supply of goods in retail trade, the maximum cash acceptance limit does not apply to these transactions (a VAT refund tax invoice is issued when a foreign person submits a claim for a VAT refund from a taxpayer).

For the following types of activities, using a "Cash Register" is not mandatory when cash settlements are made:

• Remote sales through communication or television shops providing electronic communication.
• Providing public utilities with proof of payment required for cash transactions
• Sale of lottery tickets.
• Sale of tickets for passenger transportation, cargo transportation, and traffic by automobile, water, railway, and air transport.
• Sale of agricultural products and personal items owned by citizens at designated counters in places of trade.
• Sale of agricultural products carried out by means of transport.
• If the vehicle is equipped with a taximeter (meter) and transportation by passenger taxis
• Organization of casinos and (or) games of chance.
• Sale of religious paraphernalia and (or) provision of religious ritual services by religious organizations registered under the procedure established by law.
• Issuance of state postal payment stamps (postal stamps) confirming payment for postal services (stamps and other signs) at face value, as well as postal and courier activities.

A cash register can be purchased from a store or through various organizations.

On the tax authority website, (use browser translation for English version) you can find:

• Lists of organizations that provide technical services for new-generation cash registers.
• Lists of organizations that have received a Conformity Conclusion.
• Cash register models approved for purchase and maintenance. Note that monthly maintenance fees may vary by organization.

The website also provides:

• The electronic cash register web service integration guide (use browser translation for English version).
• The certificate necessary for integration.

Electronic cash registers operate online and accept both cash and non-cash payments. Receipts can be printed or sent electronically to the citizen.

After purchasing a cash register, you must submit an application for device registration to the tax authority.

The cash register must be installed in the area of a commercial facility, point of sale, workplace, or service provision location where payments are made.

Cash register users are obliged to:

• To ensure that information on the total amount of monetary settlements made during the day by each cash register is sent to the tax authority via network communication. This is done by registering and integrating the device with the tax authority.

The Central Bank of the Republic of Armenia, in coordination with the tax authority, shall issue a permit for the use of a cash register, computer equipment containing the appropriate software, and a computer program used in the context of foreign exchange or foreign exchange dealer-brokerage purchase and sale activities.

All trade and service points, with the exception of kiosks, are required to provide the ability to accept payments via payment cards at the customer's request.

A POS terminal (Point of Sale) or electronic cash register is a device or software that enables non-cash payments, allowing sales to be made just as with a traditional cash register

It can be purchased and installed at the point of sale, or the software can be activated on an existing cash register. The software can be activated at multiple addresses simultaneously.

The POS terminal facilitates product searches, including information on price, expiration date, and description. It also ensures the issuance of a fiscal receipt by calculating the total amount due and providing change.

In addition to recording sales, the POS terminal can also accumulate other data for further analysis.

Both individual entrepreneurs and legal entities have the right to hire employees.

Attention:
The data of the executive directors of legal entities (LLC, JSC, etc.) must be provided during the state registration of the organization, after which they must also be registered with the tax authority as employees by the established procedure.

It is very important to organize the hiring process according to the requirements of the law.

Before hiring a new employee:

• Determine the salary you can pay and ensure it meets or exceeds the minimum wage set by the Republic of Armenia.
• Confirm the candidate's legal right to work in the Republic of Armenia. If necessary, a criminal background check should also be conducted.
• Prepare an employment contract (use browser translation for English version) that outlines the rights and obligations of both employer and employee. It is advisable to consult with a lawyer during this process.
• Ensure compliance with all tax obligations related to employee hiring.

If a new employee is hired, an application for registration must be submitted to the tax authority no later than the end of the business day preceding the day the employee actually starts work.

The application must be submitted online through the tax authority's Electronic Reporting System.

The application includes personal information about the person being hired (full name, place of residence (registration), public services number (social card number), and other information as prescribed by law).

Upon successfully submitting the registration application, you will immediately receive registration confirmation.

By conducting licensed activities, you will be able to:

• Ensure your activities comply with the law of the Republic of Armenia and the international obligations undertaken.
• Increase the quality of goods and services provided by your business.
• Protect the rights of your consumers.
• Conduct business in accordance with the correct procedure if it is dangerous from the point of view of life, health, property, state, and public interests, protection of nature, or cultural heritage.

Legal entities, individual entrepreneurs, and individuals have the right to engage in activities subject to licensing.

Having received a license, an individual may carry out entrepreneurial activities in a given field only as an individual entrepreneur, except for cases prescribed by law.

Licenses can be both simple and complex, depending on the issuance procedure.

Key differences between these license types include:

Issuance Process:

• Simple Licenses: Issued without a decision from a licensing commission.
• Complex Licenses: Issued only after a decision from a licensing commission.

Issuance Timeline:

• Simple Licenses: Issued within 5 working days of application submission.
• Complex Licenses: Can take up to 30 working days to be issued. It may be issued through a tender process conducted according to established procedures.

Both types of licenses are issued indefinitely unless specified otherwise by law. 

Licenses for importing, exporting, or transiting military products, and those for intermediary activities in the military product trade, are complex and issued for 3 years. The validity of existing licenses for these activities can be extended for a period of 5 years.

The necessary types of licenses are issued by state bodies regulating the relevant sectors of economic activity.

You can obtain information about licenses through the Unified Electronic Registry of Licenses of the Republic of Armenia.

You can find a list of state bodies issuing licenses by sector of activity on the e-gov.am website.

You can familiarize yourself with the list of permitting documents and the departments issuing them on the website of the State Revenue Committee of the Republic of Armenia (use browser translation for English version).

The most frequently requested permits are:

• Construction permit
• Environmental permit
• Food safety requirements, permits, and business entity guidelines (use browser translation for English version).