MB Legal

5 Important Issues to Consider When Registering a Company in Armenia. This article is an essential resource for those planning to register a company in Armenia, providing a detailed exploration of five critical aspects. It begins by discussing the various types of legal entities available for business formation, such as cooperatives, partnerships, and companies, highlighting their unique characteristics and differences. The article then shifts to an in-depth analysis of the Armenian tax system, distinguishing between general and special tax regimes, including VAT, profit tax, turnover tax, and the micro-entrepreneurship system. It also guides readers through the process of opening a bank account for the company, outlining necessary prerequisites and documentation. The piece further delves into the basic requirements of Armenian labor legislation, focusing on employment contracts, hiring foreigners, and ensuring a safe working environment. Finally, it advises on selecting appropriate legal and accounting firms, emphasizing their role in ensuring compliance with local laws and regulations. Overall, the article provides a comprehensive guide for successfully navigating the legal and administrative aspects of company registration in Armenia.

How to Register a Company in Armenia: LLC, CJSC or OJSC? This article serves as a guide for entrepreneurs planning to start a business in Armenia, focusing on the selection of the appropriate legal form. It discusses the differences between the most common types of legal entities in Armenia: Limited Liability Companies (LLCs), Closed Joint-Stock Companies (CJSCs), and Open Joint-Stock Companies (OJSCs). The article begins by explaining that LLCs are formed by one or more persons with a charter-defined capital divided into shares. In contrast, JSCs have their capital divided into shares, granting shareholders rights for management, dividends, and a portion in case of liquidation. The similarities between LLCs and JSCs are highlighted, including their foundation by a single individual, limited liability for participants, and the right to issue bonds. The article then addresses how participants can exit an LLC and contrasts this with the procedure in JSCs, where shareholders can leave by selling their shares.

Everything You Need to Know about Mergers and Acquisitions under Armenian Law. This extensive article serves as a detailed guide on the process, legalities, and considerations of mergers and acquisitions (M&A) under Armenian law. It begins by explaining the types of reorganization under the RA Civil Code, focusing on mergers and acquisitions. The piece outlines the decision-making process for M&A at the general meeting of involved companies, emphasizing the importance of the merger/acquisition agreement and the transfer act. The article further clarifies the role of joint meetings in deciding M&A specifics, the obligations towards creditors during these processes, and the necessary permissions from government bodies like the Commission for the Protection of Competition. It delves into the Commission's role in scrutinizing business entity concentrations and specifies when M&A won't be considered as concentration. Concluding with how MB Legal's team can assist in M&A transactions, the article serves as a comprehensive resource for understanding and navigating the complexities of M&A under Armenian legislation.

10 Key Issues for Employee Stock Options Under Armenian Law. This comprehensive article delves into the Employee Stock Ownership Plan (ESOP) within the context of Armenian corporate law, particularly highlighting the changes following the 2021 amendments. It begins by defining ESOP and its execution, discussing the benefits for both employees and employers, and detailing the essential elements an ESOP should contain. The article distinguishes between stock options and stocks, clarifying the concept of the vesting period. It further outlines various legal requirements for implementing ESOP, including limitations on stock alienation by employees, the company's rights in stock buyback, and the tax implications involved. Additionally, the article addresses the inheritance of stocks under ESOP and how MB Legal's team can assist in various aspects of ESOP implementation, from planning to legal support. This detailed overview provides a valuable resource for understanding the nuances of employee stock options under Armenian law.

Your Guide to Personal Data Protection in Armenia. This article serves as a comprehensive guide to the intricacies of personal data protection in Armenia, an increasingly critical issue in the digital age. It addresses various aspects of personal data protection, starting with the definition and purpose of personal data protection, emphasizing its importance in ensuring safety, security, and human rights. The piece then explores the concept of personal data processing and identifies the entities responsible for it, including state and local bodies, legal entities, and individuals.

Copyright Protection in Armenia. This article provides a thorough understanding of copyright protection in Armenia, emphasizing the significance of the uniqueness of the author's work. It starts by clarifying that copyright in Armenia is designed to safeguard the form of expression of ideas, applicable to both published and unpublished works across various domains like literature, science, art, and computer programs. The article further explains that the originality of the author's work is the primary criterion for copyright eligibility, while factors like value and usefulness are not mandatory.

What You Need to Know as a Foreign Investor in Armenia: Regulatory Framework Overview. This article offers a detailed overview of the regulatory framework for foreign investors in Armenia, highlighting Armenia's commitment to fostering a favorable investment climate. It outlines Armenia's investment policy strategy, which aims to enhance the investment and business environment and promote transparency in the legal field. The article elaborates on both international and national regulations governing foreign investments in Armenia, including over 40 bilateral investment treaties and 8 treaties with investment provisions. Key features of these treaties, such as national treatment, most-favored-nation treatment, and fair and equitable treatment, are discussed. The article also defines who qualifies as a foreign investor under Armenian law and the types of investments allowed. It assures investors of legal guarantees comparable to local entities and discusses the availability of tax benefits and privileges in certain economic areas. Additionally, it addresses dispute resolution methods, including the possibility of using international arbitration. The piece concludes by affirming Armenia's favorable conditions for foreign investment and the comprehensive support available for investors navigating this landscape.