Entrepreneurs, planning to conduct business in Armenia, will be interested to know, that Free Economic Zones have been created here. This article is a fact-finding and is recommended for reading to those, who want to establish a FEZ in Armenia.
At the moment, there are three active Free Zones in the state:
- “Alliance”: it was established in 2013. Having decided to open a company in the “Alliance” FZ, it should be borne in mind, that it is aimed at the production and export of innovative technologies and products, not manufactured in the Republic of Armenia.
- “Meridian” was established in 2015. For those, who are interested in setting up an enterprise in the Meridian Free Economic Zone, we want to note, that this is an industrial and production zone, specializing in the manufacture of gold products, jewelry and watch production.
- “Meghri” was founded in 2017. Those, who wish to establish a company in the Meghri FEZ should know, that they are mainly engaged in agriculture, processing industry, trade, electricity supply, transportation and tourism.
How are Free Economic Zones created?
If you are an investor, who wants to establish a Free Economic Zone in the Republic of Armenia, then you need to know, that economic zones can be created both at the initiative of the government and at the initiative of a private person.
Investors, who want to become the organizer of a FEZ in Armenia need to get permission from the government of the country and conclude an agreement with them. This will happen as follows:
- Initially, the authorities of the Republic of Armenia should adopt a decree on the registration of a new FZ in Armenia, then the relevant body must select the organizer of this FZ in the manner, prescribed by the legislation of Armenia “On Procurement”.
- The organizer is selected, based on the results of the evaluation of the application, during the verification of which the evaluation criteria specified in the legislation will be applied.
- Then the results are sent to government for approval.
- An agreement with an approved organization on the establishment of a Free Economic Zone in Armenia is concluded within thirty days after the approval of the organizer.
How to establish a Free Zone in Armenia on a private initiative?
In order to establish a FEZ in the Republic of Armenia on a private initiative, you need to familiarize yourself with the appropriate procedure:
- Initially, you need to apply for the registration of a FZ in Armenia on a private initiative. We want to note, that our company can assist in this matter.
- Next, a commission will be created, to which an application for opening a Free Zone in the Armenian Republic will be submitted. A review period is 3 days.
- Within 20 working days, according to the established criteria, the created commission will evaluate the submitted documents.
- After that, the government will consider how appropriate it is to establish a new FZ in the Republic of Armenia. A final decision is announced within 3 days after its adoption.
- If the decision is positive, then within 30 days an agreement is concluded between the authorized body and the initiator on the registration of a Free Economic Zone in Armenia.
Documents, included in the application
The application for opening a FZ in Armenia on a private initiative includes:
- a statement;
- a list of provided services and their prices;
- a statement of the purpose of establishment and principles of the FZ;
- a plan for the location of the planned new Free Economic Zone;
- a project, that meets all the necessary criteria.
YB Case specialists can assist in the preparation of the application and verify the correctness of the preparation of the necessary documents.
Required components of the application
An entrepreneur, who wants to establish a FEZ in Armenia, needs to know, that the application must:
- correspond to the type of activity of the future SZ;
- include the information on the amount of planned investments, as well as the timing of payment;
- comply with legal requirements and be presented in the form of a visual layout or architectural design;
- include the rationale for establishing a FEZ in Armenia.
In order to register a Free Economic Zone in Armenia, it is necessary to enlist legal support. We offer our services and provide professional support in establishing a new Free Zone in the Republic of Armenia, in registering a company in Armenia or opening a corporate account with an Armenian bank. To start cooperation with YB Case, contact us in any convenient way.