The foreign investment in Armenia
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The foreign investment in Armenia

Foreign investment in the RA is regulated by the Law ‘On Foreign Investments’, adopted in 1994.

1.The guarantees for foreign investments in Armenia:

The Law ‘On Foreign Investments’ was adopted to attract foreign investments into the country. It provides guarantees against expropriation which can be accessed uniquely by a court decision, which, if vindicated, will secure full compensation for the value of the investment.

Foreign investors are protected from possible damages caused by illicit or inappropriate activities of the Government. The law gives guarantees to the investors to freely repatriation of profits and equity.

In cases where the legislation on foreign investments has been modified after the investments are made, the investor will be entitled to enjoy exemption from any unfavourable principle of the law for a period of five years.

2.The types of foreign investments  in Armenia

Foreign investors can make investments in the territory of the RA in the following manner:

a)    in a foreign currency, or in the national currency of the Armenia;

b)    in movable estate and in real estate (i.e. buildings, facilities, equipment and other material values) while enjoying proprietary rights in connection with such;

c)    in stocks and shares, bonds and other securities defined by the legislation of the RA;

d)    by cession of claims; (the foreign investor is entitled to cede his/her rights of property);

e)    by engaging in economic activity stipulated as legal by the legislation of the RA or by a specific agreement, including the right of exploring natural resources, mining, processing or extracting;

f)    by engaging in paid services;

g)    by engaging in any type of investments that are not prohibited by the legislation of the RA.

The prohibition or restriction of foreign investments of the defined types can be done only in accordance with the terms and conditions of the legislation of the RA.

Foreign investors have the right to make monetary demands in fulfillment of a contract, and have the right to exercise intellectual property rights.

3.Ways of making foreign investments  in Armenia

Foreign investors are entitled to make investments in the following way:

a)    through creating or establishing enterprises fully belonging to foreign investors, as well as through establishing subdivisions, affiliations, branches, and representations belonging to foreign legal entities, or through purchasing as companies or enterprises already operational;

b)    through establishing new enterprises with the participation of legal entities of the RA or establishing companies with the participation of the citizens of the RA; or through purchasing divisions or shares in enterprises already operating;

c)    through acquiring or purchasing other securities and other stocks and bonds within the framework of the legislation of the RA.

d)    through acquiring the right to use land and acquiring concessions to use natural resources on the territory of the RA, either alone or with the participation of legal entities of the RA or via enterprises that do not have legal status in the RA;

e)    through acquiring other proprietary rights;

f)    through other forms that are not prohibited by the legislation of the RA, in particular through agreements signed with enterprises having the status of a legal entity or with enterprises that do not have a status of legal entity, or with citizens of the RA.

For more detailed information please send an e-mail to info@jurist.am They are always ready to help you.

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We express our gratitude to the law firm "Your Jurisconsult" for professional legal protection of the interests of our organization in relations with the tax authorities. High qualification and expertise help us to defend the rights of our company and prevent unwarranted use of economic sanctions.

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