How to start a business? Guide from A to Z

If you want to have something you've never had, start doing something you've never done.

How to start a business? Guide from A to Z

Owning your own business is attractive and rewarding  but how to start a business?

Not everyone knows what to do and who to turn to.

Evoca has prepared an A-to-Z guide to starting a business with real, actionable tips and step-by-step instructions. This will help you turn your business idea into reality.

Below you will find the list of documents for business registration, tax details and relevant links.

So, where to start a business?

First of all, you must have a clear business idea, that is, what you want and why. Always start your business idea with the question “WHY?”

Answer these questions:

  • What problem will your product or service solve?
  • How will you be different from your competitors?
  • Who is your target?
  • What is your income formula?
  • How will you promote and grow the business?
  • What do you need to take your first steps?

Conduct research and analysis both on the market as a whole and among specific competitors. Before you go to market, develop your brand and build a following that is willing to pay for your product.

An important step in starting and succeeding in a business is developing a business plan. A well-drafted business plan will help you prepare for the future challenges of your business.

How to register your business?

Another important issue of starting a business is the paperwork, which is time-consuming, sometimes confusing, and can prevent you from starting a business. If you decide to start your own business in Armenia, you will firstly need to choose a legal form of business, which can affect everything-  from taxes to liabilities. If you have trouble making a decision, consult a business advisor, lawyer or accountant. 

Decide whether you are registering as a sole proprietor (SP) or a legal entity (LE).

  • A sole proprietor is not a legal entity: an individual registers and acquires the right to engage in entrepreneurial activities.
  • A legal entity is an organization that owns separate property and is liable for its obligations with this property. A legal entity can be of several types: a limited liability company, closed joint-stock company, open joint-stock company, additional liability company.

After choosing the legal form, you should register your business.

A taxpayer identification number (TIN) is a business identification code. It is unique and cannot be changed. Each organization has its own TIN. It is required for paying taxes, opening bank accounts and implementing other important business operations.

To register your business as a sole proprietor or a legal entity, you must contact the Agency for state register of legal entities:

For state registration of a sole proprietor, you will need to submit a passport and a social card or identification (ID) card to the State register agency. After filling out an individual application for registration you will pay a state fee of AMD 3,000; if the application is submitted by your authorized representative, a power of attorney (it does not need to be notarized) will be required. After submitting the specified documents, the applicant will be registered and provided with a TIN.

Company founders, chief executive officer and the authorized representative will have the right to apply for registration of a legal entity. The applicant will submit to the Agency for state register of legal entities the following documents: 

  • application (to be filled out on the spot)
  • decision of the founders to start a legal entity
  • charter of the legal entity
  • document confirming payment of the state duty (the rate of the state duty depends on the type of legal entity)
  • passport details and social card number of the chief executive officer of the legal entity, or a statement on refusal to receive a social card, and the relevant statement number
  • E-mail address.

When registering a business, it is important to know what type of activity you will be engaged in. Activities with relevant codes can be found here.

Some activities may not be licensed.

State registration of legal entities and sole proprietors can also be implemented by visiting: (the necessary documents are presented in the “Guide” section).

When registering online, you must have:

Besides, online state registration may be implemented through your authorized representative.

To obtain an identification (ID) card, you should have a public service number, which is indicated on the social card. The public service number is provided to a Republic of Armenia citizen, a foreign citizen with the permanent residence permit, a permanent resident without being an RA citizen or a refugee.

To obtain a social card, you can apply to the Passport department of the relevant police division or the Passport and Visa department of the RA Police. Details can be found here:

You can also purchase an ID card reader on website. Find out more here.

Frequently asked questions about electronic signatures can be found here. To obtain an electronic signature, citizens of other countries should call +374 60 464 504 or write to [email protected]. or send the scanned versions of their passport and social card number. The annual fee for activating an electronic signature is AMD 3,000.

How to register with tax office?

Obtaining a taxpayer identification number means that you have already been registered with tax authorities.

In the Republic of Armenia, tax returns are filed electronically. After registration and obtaining your TIN, you should get registered in the electronic system of the tax authority:

Detailed registration information can be found here:

Within 20 calendar days after receiving the TIN, a legal entity or sole proprietor must submit an online application to the tax authority to choose a tax regime which is one of the most important stages of business activity. There are 3 tax regimes:

  • Micro-business (enterprises with a turnover of up to AMD 24 million are exempt from micro-business income tax)
  • Turnover tax (is calculated at a fixed rate, depending on the type of activity)
  • General taxation (20% VAT + 18% income tax).

Depending on the type of activity, excise tax, environmental tax or other fees may also be charged. When choosing a taxation regime, it is necessary to take into account the restrictions on types of activities as defined by the Republic of Armenia Tax Code.

Within 20 days of the state registration as a legal entity, or registration as a sole proprietor or appointment as a notary public, you should file an online declaration with tax authorities on tax treatment of a micro-business or taxable turnover. Failure to submit an online declaration within the specified period, will automatically entail taxation under the general tax regime. And depending on the taxation regime, the tax rates, the type of tax return and the reporting deadlines differ.

To prepare your financial statements and tax returns, you can hire an accountant to help you calculate, prepare and pay all taxes associated with your business.

Remember, it is your responsibility to meet your tax obligations and do so accurately. And depending on the type of business, it is also often important to have your business and personal assets insured.

How to open a bank account?

Right after your business registration, you should open a bank account. It is important to choose a bank that suits your business needs. This separate bank account will help you manage your business funds by keeping them separate from your personal funds. To open a bank account for an organization, you need an original certificate of state registration, as well as:

  • In the case of a sole proprietor - a passport and a social card or an identity card of a registered person.
  • In the case of a legal entity - the original copy of the charter, the director’s passport and social card or identity card, or copies of the founders’ passports and social cards or a copy of the identity card.

Let us remind you that opening a separate bank account for a sole proprietor is not mandatory, unlike for legal entities. Find out more about opening a bank account for the business.

After opening a bank account, you will need a business card to make payments and purchases for your business operations. By the way, additional offers for international business cards are often available in the Republic of Armenia and abroad. Business card details can be found here.

The next important step is to decide how your business will receive payments. To accept payments by bank cards or other modern options (Apple Pay, Google Pay),  you should have a POS terminal or mPOS - mobile POS service. You can familiarize yourself with the POS functionality here.

If your business implies selling goods and services online through a website or app, you will need to install a V-POS, a virtual payment system for fast, safe and convenient payments. Details are provided here.

Your business will also need a point-of-sale device that will issue a cash receipt for every purchase. By the way, at a point of sale you can install a single common device, which will perform the functions of both a cash register and a POS terminal.

To install a POS, V-POS or point-of-sale terminal, you can contact your bank or simply apply online here.

You'll also need financial software to handle financial aspects of your business. You can explore financial software here.

Today, the online business presence is of paramount importance for the success of your enterprise. Depending on the type of business and industry, you will need a business website, social pages, and other online platforms. To create a business website, you will also need to register a domain. When choosing a domain name, it is desirable that the name is easy to remember and contains the name of your company. Besides, you will need to check online whether it is free, after which you should pay an annual fee of about AMD 8000. The domain can be found and purchased at or .

Depending on your industry and services, use Facebook, Instagram, LinkedIn, Viber, WhatsApp and other platforms and applications.

How to raise funds?

Often in the course of business activities you will need to attract additional financial resources to cover mandatory, incidental expenses. Some of the best ways to get funding for your business are through investors, fundraising, and business loans.

Evocabank offers loans to small and medium-sized businesses. You can fill out an online application on our website here and our personal business consultant will contact you within 1 business day and answer all your questions.

You can explore Evoca business loans here, either calling at: 010605555, or you may write to us at 099605555: Viber, WhatsApp, Telegram.  

How to upgrade your business?

If you want to gain more in-depth knowledge about business, you can take online and offline business courses.

And remember, no matter how carefully you are prepared before opening a business, you may encounter uncertainties and contingencies. So, to succeed in business, you need to learn to be flexible and quickly respond to changing situations.

Believe in your abilities, believe in your idea, don't be afraid to experiment, don't be afraid to fail, try new solutions, new ways to achieve your goal. Do not listen to the subjective comments of outsiders, take an example from successful people with experience. Don't be afraid to ask for advice or help from industry leaders. Focus on the goal, gather your strength and just start.

And remember: the best way to predict the future is to create it.