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ship, an Armenian citizen permanently residing outside of Armenia, or an inter-
national organization that invests in Armenia. “Foreign investment” is any form
of property, including financial assets and intellectual property, which is
invested by a foreign investor directly in the territory of Armenia, in any
economic or other venture.
INVESTMENT INCENTIVES
ACCESS TO CIS AND MIDDLE EAST MARKETS
NO EXPORT DUTY
FOREIGN EXCHANGE FREE CONVERSION
FREE REPATRIATION OF PROFIT
POLITICAL AND ECONOMIC STABILITY
FAVORABLE INVESTMENT LEGISLATION
INVESTMENT GUARANTEES
STRONG GOVERNMENT COMMITMENT TO ATTRACT FDIS
WELL EDUCATED, SKILLED AND EASILY TRAINABLE WORKFORCE
COST-EFFICIENT LABOR FORCE AND SCIENCE BASED SKILLS
NO RESTRICTIONS ON STAFF RECRUITMENT
CORPORATE TAX HOLIDAYS AVAILABLE FOR COMPANIES WITH 500 MILLION AMD FOREIGN
INVESTMENTS
PROFIT TAX EXEMPTIONS FOR COMPANIES IN AGRIBUSINESS
100 PER CENT OWNERSHIP BY FOREIGNERS PERMITTED
NO RESTRICTIONS ON REMITTANCES
STABLE LOCAL CURRENCY
COMPETITIVE ENERGY COST

Foreign investors can make investments in Armenia through establishment of fully
foreign-owned companies (including representations, affiliates, and branches),
purchase of existing companies and securities, or establishment of joint ven-
tures. The company registration process takes about a week.
Companies with foreign investments of over 500 million AMD (about 855,000 US$)
enjoy a corporate tax holiday for two years after making an investment (for
details see Taxation Section). In addition, there are a number of special tax
incentives in Gyumri Region.
There are also incentives for exporters - no export duty and VAT reimbursement on
goods and services exported.
There are no limitations on the volume and type of foreign ownership, number of
foreign employees and access to financial sources. Although foreigners can only
lease land, a company registered by a foreigner as an Armenian business entity
does have the right to buy land. Foreigners may obtain permission to use land
under long-term leases, and concessions for the use of Armenian natural resources
with the participation of an Armenian company.
DISTRIBUTION OF REGISTERED COMPANIES WITH FOREIGN CAPITAL PARTICIPATION IN
ARMENIA BY COUNTRIES
(as of 01.01.03)
CIS 29.6%
IRAN 20%
EU 15.7%
USA 15.5%
OTHERS 29.6%

To provide an effective mechanism for monitoring the improvement of investment
climate, the Business Support Council (BSC) was established according to a
Presidential Decree in early 2001, where the Armenian Development Agency was
appointed to be the Secretariat and to act as an intermediary for the business
community. Chaired by the Prime Minister, the evenly balanced private/state
membership (Chief Economic Adviser to the President, Ministers of Trade and
Economic Development, Finance and Economy, the Mayor of the City of Yerevan, the
Executive Director of ADA - as the Executive Secretary of the Council, and six
representatives from the business community on rotating basis) represents a
powerful and influential mechanism to improve the business and investment envi-
ronment and remove the administrative barriers to investment.

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