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Armenia, formally the Republic of Armenia, is a landlocked republic in Western Asia's Armenian Highlands. It is part of the Caucasus area and is bounded on the west by Turkey, on the north by Georgia, on the east by Azerbaijan and the Lachin corridor, and on the south by Iran and the Azerbaijani exclave of Nakhchivan. The capital and biggest city is Yerevan.
Armenia is a unitary, multi-party, democratic nation-state with a long history. Urartu, the earliest Armenian state, was founded around 860 BC and was superseded by the Satrapy of Armenia by the 6th century BC. The Kingdom of Armenia reached its apex under Tigranes the Great in the first century BC, becoming the world's first kingdom to accept Christianity as its official religion in 301. Around the early fifth century, the old Armenian monarchy was divided between the Byzantine and Sasanian Empires. The Bagratid Kingdom of Armenia was revived in the 9th century by the Bagratuni dynasty. The kingdom collapsed in 1045 as a result of conflicts against the Byzantines, and Armenia was shortly conquered by the Seljuk Turks. Between the 11th and 14th centuries, Cilician Armenia was an Armenian principality and eventually a kingdom on the Mediterranean Sea's coast.
Between the 16th and 19th centuries, the historic Armenian heartland of Eastern and Western Armenia was dominated by the Ottoman and Persian empires, which alternated sovereignty throughout the ages. By the nineteenth century, the Russian Empire had overrun Eastern Armenia, while the majority of the western regions of the old Armenian territory remained under Ottoman control. The Armenian genocide occurred during World War I, when 1.5 million Armenians residing in their ancestral territories in the Ottoman Empire were methodically slaughtered. Following the Russian Revolution in 1918, all non-Russian nations proclaimed their independence, resulting in the foundation of the First Republic of Armenia. The state was absorbed into the Transcaucasian Socialist Federative Soviet Republic by 1920, and it became a founding member of the Soviet Union in 1922. Transcaucasia was dissolved in 1936, converting its component nations, notably the Armenian Soviet Socialist Republic, into complete Union republics. During the breakup of the Soviet Union in 1991, the current Republic of Armenia gained independence.
Armenia is a developing nation that ranks 81st on the Human Development Index (2018). Its economy is based mostly on industrial production and mineral exploitation. Despite its physical location in the South Caucasus, Armenia is widely seen as geopolitically European. Armenia is a member of various European organizations, including the Council of Europe, the Eastern Partnership, Eurocontrol, the Assembly of European Regions, and the European Bank for Reconstruction and Development, since it is geopolitically aligned with Europe in many ways. Armenia is also a member of many Eurasia-wide regional organizations, including the Asian Development Bank, the Collective Security Treaty Organization, the Eurasian Union, and the Eurasian Development Bank. Armenia backs Artsakh's de facto independence, which was declared in 1991. Armenia also recognizes the Armenian Apostolic Church, the world's oldest national church, as the fundamental religious institution of the country. Mesrop Mashtots invented the Armenian script in 405 AD.
For a five-day work week, the minimum annual leave is 20 days, while for a six-day work week, it is 24 days.
Employees in demanding or high-risk workplace environments are given extended paid leave of up to 25 working days for a five-day working week, or 30 working days for a six-day working week (in rare situations, 35 working days for a five-day working week, or 42 working days for a six-day working week).
There are twenty public holidays in Armenia. Fourteen of these holidays are non-working holidays.
Employees are entitled to compensated sick leave from the second to the fifth day. Employees are protected by unemployment security until the sixth year.
Employees who are pregnant are given 140 days (70 days of pregnancy, 70 days of childbirth), 155 days (70 days of pregnancy, 85 days of childbirth) if the delivery is difficult, and 180 days (70 days of pregnancy, 110 days) if they have more than one child at the same time. Unused maternity leave days are extended to the days of maternity leave in the event of a premature birth.
The regular value is equal to 100% of the insured's gross monthly earnings measured by 30.4 (regardless of the number of years of covered employment) (average number of days in a month).
Fathers in Armenia can take five days of paid leave within the first thirty days after the birth of his child.
Parents in Armenia are entitled to five days of paid leave within the first month of the child's birth.
Employers must have valid reasons and provide notice before terminating an employee.
The notice period is determined by the length of employment. If an employee is recruited for less than a year, they are entitled to at least fourteen days' notice. The employee will be given 35 days' notice after one to five years of employment. After five to ten years of service, an employee will receive notice in 42 days. Finally, the employee will given a 60-day notice after ten to fifteen years of continuous service.
Probationary periods are typically three months in length and are stipulated in the employment contract. Before the probationary period expires, the employment contract may be terminated by notifying the employer at least three days in advance.
Severance pay is calculated on the basis of the reason for termination. If the organization is liquidated, the number of employees is reduced, or the employee is rehired in a previous job, the severance pay will equal the employee's average monthly salary.
If the employee is terminated for non-compliance with the position held, long-term disability, old age, significant changes in working conditions, or employee is called up for compulsory military service, the severance pay will also be determined by the employee's employment length. If the employee has worked for the company for less than a year, they will receive ten times their average daily salary. If the employee has worked for the company for between one and five years, they will receive twenty-five times their average daily wage. If the employee has worked for the company for five to ten years, they will receive 30 times their average daily wage. If the employee's tenure is between ten and fifteen years, he or she receives 35 times their average daily wage. Severance pay is 44 times the employee's average daily salary if the employee has worked for the company for 15 years or more.
Armenians should work an eight-hour day and not more than forty hours per week.
Overtime is permissible, but no more than four hours per day, eight hours per week, or 120 hours per year.
Each hour of overtime work is compensated at 150 percent of the employee's regular hourly rate. Each hour of night work pays employees 130 percent of their normal hourly rate. On a public holiday, overtime is paid at double the standard rate or compensated with time off.
Employees are entitled to a minimum monthly wage that excludes bonuses, additional payments, and incentives. Divide the monthly salary by the total number of hours worked to arrive at the minimum hourly rate.
Those who work in hazardous environments earn a premium over their average salary. Bonuses are prevalent.
Currently, the minimum hourly wage is 406 Drams (1 USD) and the monthly minimum wage is 68,000 Drams (140.24).
Medical services are provided directly to patients by government health professionals. General and specialty care, hospitalization, laboratory services, dental care, maternity care, and transportation are all included in the benefits package.
Legal entities in Armenia are imposed a corporate tax rate of 18 percent.
The income tax rate in Armenia is currently set at 22 percent.
Armenia imposes a value-added tax (VAT) or a goods and sales tax (GST) of 20 percent.
Individuals entering Armenia on business must obtain a work permit sponsored by their employer in order to legally work in Armenia.
In general, an Armenian visa holder is not permitted to work in Armenia unless they also have a work permit. Some highly skilled foreign specialists, business owners, executives, and other employees, on the other hand, are exempt from the work permit requirement. Unless a foreign individual is exempt from the work permit requirement, the employer must first apply to the Ministry of Labor and Social Affairs (MLSA) for a work permit before the employee begins work.
The MLSA investigates the Armenian labor market to ensure that no qualified and available Armenian workers are available to fill the position internally. When a work permit is granted, the foreign national can begin working in Armenia; however, the permit has a fixed term and is renewable on request.
Following the receipt of the work permit, the foreign national must apply for a temporary residence permit at the Passport and Visa Department of the Armenian Police in Yerevan. The application must be accompanied by the required supporting documentation, which may include medical test results. If the application is accepted, the temporary residence card is issued within 30-45 days of the application date.
Specific individuals, such as those entering on a contractual basis, international students, journalists, and researchers, may be eligible for temporary residence in Armenia. Temporary residence is granted for one year and can be extended for up to one year.
The employment contract should be drafted in Armenian and should include the employee's pay, work description, yearly leave, extra leaves, and benefits. Employers may do background checks on employees to learn about their prior employment, credit score, and criminal history. There is no legislation that governs medical screening.
Fixed-term contracts must indicate an expiration date, and both parties must provide 10 days' written notice to cancel the contract. Indefinite contracts may be ended by mutual consent and must adhere to the above-mentioned notice period.
Armenia Dram (AMD)
Rather than immediately establishing your Armenia subsidiary, it's a good idea to look at potential sites and choose how you want to operate in the nation. Occasionally, various areas or localities within Armenia may have their own subsidiary laws dictating distinct pricing, availability, and ease of conducting business, among other things. If you are unfamiliar with the various sectors, we suggest consulting a consultant, lawyer, accountant, or other specialist to determine the optimal location for your subsidiary.
Following that, you should decide how involved you want to be in Armenia. You may incorporate as one of many distinct sorts of subsidiary, each with its own set of limitations on the types of commercial activity permitted in Armenia. Before forming a limited liability company (LLC), a joint-stock company, a branch office, or a representative office, ensure that the entity you choose provides you with the operating flexibility you want in Armenia.
Various businesses opt to organize as an LLC due to the numerous advantages associated with doing so. The following are the processes to incorporate your Armenia subsidiary as an LLC:
1. Making an application for registration
2. Assembling the founders' decision on the creation of the legal entity
3. Creating a legal entity's charter that is authorized by the founders
4. Providing evidence of payment of your state fees
5. Providing information about the director of the subsidiary and their passport
6. Creating a statement about the company's true benefactors
7. Submitting documentation establishing the legal entity's status, as well as the organization's foundation papers
8. Choosing an original name for the business
Additionally, the Armenia subsidiary formation procedure entails adhering to applicable legislation. To incorporate an LLC, one director and one shareholder of any nationality are required. Additionally, you must have a minimum paid-up capital of 1 EUR. Due to the fact that LLCs function similarly to residential businesses, you'll be required to file yearly audited financial statements with the country's commercial register.