On March 14, 1992 No. NS-0510-1-ZR-11
About the companies and business activity
This Law establishes bases of business activity, the right and obligation of entrepreneurs, organization-legal categories, bases of creation, activities of the companies and its termination.
Activities of the company and the entrepreneur are regulated by this Law, the Civil code of the Republic of Armenia, other legal acts, the charter and other constituent documents, and also agreements of the company.
If international treaties of the Republic of Armenia establish other rules, than containing in this Law rules of international treaties are applied.
The law This Law regulates activities of entrepreneurs and the companies of different organization-legal categories.
Do not treat coverage of the Law:
a) activities of bank institutions and financial institutions;
b) one-time paid work performed by citizens on civil agreements;
c) independent creative activities of citizens in the field of science, the equipment, cultures;
d) activities of state bodies.
The company is the organization unit which performs business activity by means of the property belonging to it or provided by the owner (founder), on its own behalf or on the basis of the power of attorney acquires the property and personal non-property rights and obligations and bears responsibility for accomplishment of undertaken obligations.
The Republic of Armenia and other states, legal entities, the companies which do not have the status of the legal entity, citizens, stateless persons of the Republic of Armenia and other states if other is not provided by this Law and the legislation of the Republic of Armenia on organization-legal categories of the companies can be the owner or the founder of the company in the Republic of Armenia on equal terms.
The companies having the status of the legal entity and not having the status of the legal entity differ depending on whether they are the person of law isolated from their owners (owners) and degrees of property responsibility.
The company having the status of the legal entity is independent person of law. The property, the rights and obligations of such company are isolated from other property, the rights and obligations of his owner (owners). According to obligations of the company having the status of the legal entity, responsibility is born by this legal entity. The owner (owners) does not bear responsibility other property.
The company which does not have the status of the legal entity is not considered the person of law, certain of the owner (owners). The owner (owners) of such company bears according to obligations of the company responsibility that property which is available for it on which in the procedure established by the legislation of the Republic of Armenia collection can be turned.
The companies having the status of the legal entity and not having the status of the legal entity in the field of economic activity have the same powers.
Subject of business activity (entrepreneur) are the individual entrepreneur, the owner (founder) of the company or the body (citizens of the Republic of Armenia and other states, stateless persons, legal entities and the companies which do not have the status of the legal entity) authorized by it in the procedure established by the legislation of the Republic of Armenia for implementation of business activity.
Business activity any economic activity which is not prohibited by the legislation of the Republic of Armenia performed by entrepreneurs is recognized.
The individual entrepreneur the physical person which on its own behalf as occupation regularly performs economic activity is recognized, renders services and performs work.
The individual entrepreneur receives from the state authorized bodies the certificate for occupations corresponding to business activity and performs the business activity on the basis of this certificate which is the document on its registration.
Lack of registration as the individual entrepreneur according to the procedure, established by the legislation of the Republic of Armenia, and the appropriate certificate does not exempt the entrepreneur from accomplishment of property and personal non-property obligations and execution of responsibility according to the concluded bargains.
Foreign citizens or stateless persons can be individual entrepreneurs in the Republic of Armenia according to the procedure, the established legislation of the Republic of Armenia on regulation of foreign investments.
The individual entrepreneur can be engaged in the activities which are not prohibited by the legislation of the Republic of Armenia for the last. The separate types of economic activity established by the legislation of the Republic of Armenia, the individual entrepreneur can be engaged only on the basis of special permission (license). It cannot have hired employees.
The individual entrepreneur has the right to participate in economic associations of the companies, to combine the means with enterprise assets of any organization-legal category for implementation of the activities which are not prohibited by the legislation of the Republic of Armenia for individual entrepreneurs.
The basic principle of business activity is the freedom of enterprise, including freedom of choice of partners within the legislation of the Republic of Armenia, the conclusion of contracts and agreements with partners, price fixation on products, the rendered services, the performed work, ownerships, uses or orders of property, hiring and dismissal of workers, determination of payment for their employment. The entrepreneur cannot violate the rights of partners of its business activity established by the legislation of the Republic of Armenia, other partners, workers, consumers of its products, state and regional authorities, and also other persons.
The entrepreneur as the individual entrepreneur or through the company belonging or transferred to it to ownership or use according to the procedure, established by this Law and other legal acts of the Republic of Armenia, can perform any economic activity which is not prohibited by the legislation of the Republic of Armenia.
Separate types of business activity can be established by the legislation of the Republic of Armenia as the state monopoly or be prohibited for different organization-legal categories of the companies.
The license which is granted according to the procedure, established by the legislation of the Republic of Armenia is necessary for occupation the separate types of economic activity established by the legislation of the Republic of Armenia.
In the Republic of Armenia the company is established:
a) according to the decision of the owner or the body authorized by it,
b) according to the decision of the owner, founder, guarantor if it is different persons and if participation of the founder and (or) guarantor is provided by this Law, and according to the procedure, the established legislation on organization of this organization-legal category of the company;
c) in case of the consent of the owner - according to the solution of labor collective.
The company can be founded:
as newly created if it is not legal successor of any other company;
on the basis of other company (companies), being his legal successor.
The organization of the company on the basis of other company (companies) can take place:
by department from operating plant of one or several divisions;
by consolidation or merge of several companies;
by transfer of the company to lease or confidential management;
in other forms which are not prohibited by the legislation of the Republic of Armenia.
The company (companies) can be created .na to basis of other company (companies) forcibly, proceeding from requirements of the antitrust law, the legislation on privatization, and also other legislation of the Republic of Armenia.
Pattern of ownership of the company (companies) created on the basis of other company (companies) is caused by pattern of ownership of the basic company (companies), except for privatizations, nationalization and other cases, stipulated by the legislation the Republic of Armenia.
Proceeding from organization-legal category of the company, its constituent documents can be: constitutive treaties, lease, confidential management, charter, regulations or protocol (act) of activities and other documents, stipulated by the legislation Republic of Armenia.
In constituent documents the name, the location, the purposes, tasks and fields of activity of the company, procedure for formation of property, origin and, income distributions, the organization of activities, control and management, condition of reconstruction and termination of activities of the company, and also other provisions which are not contradicting the legislation of the Republic of Armenia proceeding from features of this organization-legal category of the company are specified.
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The document ceased to be valid since January 1, 1999 according to the Law RA of June 17, 1998 No. ZR-229