Business Reforms in Armenia

Positive= Doing Business reform making it easier to do business. Negative= Doing Business reform making it more difficult to do business.

DB2013:

Positive Protecting Investors:

Armenia strengthened investor protections by introducing a requirement for shareholder approval of related-party transactions, requiring greater disclosure of such transactions in the annual report and making it easier to sue directors when such transactions are prejudicial.


Positive Getting Electricity:

Armenia made getting electricity easier by streamlining procedures and reducing connection fees.


DB2012:

Positive Starting a Business:

Armenia made starting a business easier by establishing a one-stop shop that merged the procedures for name reservation, business registration and obtaining a tax identification number and by allowing for online company registration.


Positive Dealing with Construction Permits:

Armenia made dealing with construction permits easier by eliminating the requirement to obtain an environmental impact assessment for small projects.


Positive Getting Credit:

Armenia improved its credit information system by introducing a requirement to collect and distribute information from utility companies.


Positive Paying Taxes:

Armenia made tax compliance easier for firms by reducing the number of payments for social security contributions and corporate income, property and land taxes and by introducing mandatory electronic filing and payment for major taxes.


Positive Resolving Insolvency:

Armenia amended its bankruptcy law to clarify procedures for appointing insolvency administrators, reduce the processing time for bankruptcy proceedings and regulate asset sales by auction.


DB2011:

Positive Trading Across Borders:

Armenia made trading easier by introducing self-declaration desks at customs houses and warehouses, investing in new equipment to improve border operations and introducing a risk management system.


DB2010:

Positive Starting a Business:

Armenia has eased business start up by removing minimum capital requirement and the need for obtaining an approval from the National Police Department to prepare the company seal, and making the registration forms available on-line.


Positive Getting Credit:

Armenia strengthened access to credit information with a new law establishing a legal framework for the activities of credit bureaus, as well as the regulation of credit information collection and the preparation of credit reports.


Positive Trading Across Borders:

Armenia has sped the process of trading across borders by encouraging greater competition in the banking, transportation sectors, customs brokerage service industry, as well as reducing the number of goods requiring inspection and streamlining the number of documents necessary to clear goods.


DB2009:

Positive Dealing with Construction Permits:

In May 2008, Mayor of Yerevan abolished ‘charitable contributions’ paid to obtain the right to design (APZ). This is a significant reduction AMD 3,000,000, especially given that it was not stipulated in any laws or normative acts, and served as severe impediment to obtaining a building permit.


Positive Enforcing Contracts:

Armenia reorganized its court system, introducing a dynamic threshold pegged to the minimum wage between lower and higher jurisdictions. Overhauling the procedural code and introducing rules to frontload evidence decreased procedural complexity.


DB2008:

Positive Getting Credit:

A private credit bureau started operating on February 1, 2007. It distributes credit information about firms and individuals, has no minimum loan requirement and guarantees all borrowers access to their credit reports.


Positive Trading Across Borders:

Armenia eased trade due to implementing an EDI system ( “Direct Trader Input") that enables customs brokers to submit customs declarations via electronic submission directly to the Customs offices.


Positive Resolving Insolvency:

Armenia adopted a new bankruptcy Law with the aim of improving its reorganization proceedings. It also set a time limit for judges to approve a reorganization plan.


Reform Summaries


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