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Armenia


Financial Sector Enabling Environment in Armenia


 

Armenia
Ease of doing business (rank) 32
Starting a business (rank) 11
Starting a business - Cost (% of income per capita) 2.5
Starting a business - Procedures (number) 3
Starting a business - Time (days) 8
Starting a business - Minimum capital (% of income per capita) 0
Dealing with construction permits (rank) 46
Dealing with construction permits - Cost (% of income per capita) 50.1
Dealing with construction permits - Procedures (number) 17
Dealing with construction permits - Time (days) 77
Registering property (rank) 4
Cost (% of property value) 0.2
Procedures (number) 3
Time (days) 7
Protecting Investors (rank) 25
Getting credit (rank) 40
Trading across borders (rank) 107
Enforcing contracts (rank) 91
Enforcing Contracts - Cost (as % of claim) 19
Enforcing Contracts - Procedures (number) 49
Enforcing Contracts - Time (days) 440
Resolving insolvency (rank) 63

Source: World Bank Doing Business 2013 (RANK: Best=1; Worst=185)

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.
 
Dealing with construction permits

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

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

The enabling environment in Armenia is very much a mixed story. On one hand, the country compares well to others in the simplicity, speed, and the cost of registering property. On the other hand, the number of procedures and time required to enforce a contract are among the worst.
 
The most problematic factors for doing business in Armenia:
  • Corruption
  • Inefficient government bureaucracy
  • Access to financing
  • Tax regulations
  • Inadequately educated workforce
  • Tax rates
  • Inadequate supply of infrastructure
Detailed PFS Armenia High Level Financial Sector Overview Oct 2012 can be downloaded here.
Detailed PFS Regional Benchmarking Report Oct 2012 can be downloaded here.
 

 




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