How to Organize LLC Accounting in Armenia

Every year, an increasing number of entrepreneurs in Armenia choose the Limited Liability Company (LLC) structure for their business. Statistics show a steady rise in registered LLCs, and this is no coincidence. This legal structure offers significant advantages, particularly regarding financial management and accounting.

Why Choose an LLC? Key Accounting and Legal Benefits

The LLC structure combines distinct advantages that make it attractive for modern businesses:

• Asset Protection: Founders are not personally liable for the company’s debts. Liability is limited strictly to the funds invested in the company’s authorized capital.

• Operational Flexibility: Unlike Sole Proprietorships (IE), an LLC allows for a flexible structure with multiple shareholders and a director. (You can learn more about the differences on our website).

• Tax Optimization: You have the freedom to select different tax systems based on your specific business activities.

However, these benefits come with responsibility. To operate legally, you must organize your LLC accounting in strict compliance with the legislation of the Republic of Armenia (RA).

Requirements for LLC Accounting in Armenia

Any LLC must maintain clear, regular, and lawful accounting records. Inaccurate or irregular bookkeeping can lead to tax penalties and even jeopardize the company’s existence.

Accounting must align with the Law on Accounting and the RA Tax Code. Essential requirements include:

• VAT Reports (if you are a VAT payer).
• Profit Tax & Turnover Tax Reports.
• Payroll & Social Security Calculations.
• Annual Financial Statements.
• Audits (when required by law).

Alpha Accounting is ready to help simplify your LLC Accounting.

Contact with our experts today!

Step-by-Step Guide: How to Set Up LLC Accounting in Armenia Correctly?

1. Company Registration

Once you have decided on your legal structure, the first step is state registration. Our partners at MB Legal can assist you with this process. You can find more details [here].

2. Selecting a Tax Regime

After receiving your state registration, you have a strict 20-day window to select your tax regime. To operate legally, you must register on the Tax Service website via [this link].

Warning: Choosing a tax regime is one of the most critical steps when starting a business. Many entrepreneurs miss this deadline or assume that simply stating their activity in the state registry is enough. This oversight carries significant financial risks.

Current Tax Regimes in Armenia:

• General Taxation System: You pay 20% VAT and 18% Profit Tax.

• Turnover Tax: Tax is calculated as a fixed percentage of your turnover (revenue), depending on your industry.

• Micro-Entrepreneurship: Businesses with a turnover of up to 24 million AMD are exempt from Profit Tax, VAT, and Turnover Tax.

3. Opening a Corporate Bank Account

This is a mandatory step for proper bookkeeping. An LLC is a separate legal entity, meaning its financial flows must be strictly separated from the personal funds of the founders.

Trust Your Accounting to Professionals

If you want to avoid tax errors and maintain transparent, controllable accounting, trust the experts.

At Alpha Accounting, we support companies with comprehensive financial management, including:

• Full-cycle accounting setup.

• Company registration in the tax system.

• Preparation and filing of tax reports.

• Payroll and social contribution calculations.

• Financial consulting.