Employer of Record in Armenia

A foreign company can employ someone in Armenia through a local provider that is the legal employer, with no entity of its own.

No provision found in the Labour Code regulates employer-of-record, staff-leasing or agency arrangements, or sets a licence, registry or maximum duration for them. The provider is an ordinary employer, so you check the provider's own paperwork.

Your statutory cost is the gross salary. The Tax Code lists no payroll tax, so employer contributions are 0%, while the employee bears 20% flat income tax and the pension fee, health premium and stamp duty withheld from pay.

The model suits a company with a few people in Armenia and no entity. Full salary and tax tables are in the Hiring in Armenia guide.

What an employer of record is, in Armenian terms

An employer of record is a company that is the legal employer of a worker on behalf of another company that directs the work. The glossary entry covers the model in general.

In Armenia the provider takes these roles:

• It is the party named on the written employment contract and the individual hiring act. Work without either is illegal employment.
• It registers the employee with the tax authority by the end of the day before work starts, or by 14:00 on the first day if work starts on the day of hiring, through application No. 79.
• It acts as tax agent: it withholds income tax and social fees from salary and files the monthly report.

You direct the work. The three-party arrangement rests on the service agreement, because the Labour Code has no provision on such a role.

Is an employer of record legal in Armenia

The employment in an employer-of-record arrangement is ordinary employment, with the provider as the employer.

No provision found in the Labour Code covers employer-of-record, staff-leasing, temporary-agency or outsourced-worker arrangements. It defines employment as a two-party relation between employee and employer, so the provider is the employer.

Because the provider is the employer, these rules apply to it:

• A written contract and an individual hiring act, without which work is illegal employment.
• The closed list of grounds on which an open-ended contract can be ended.
• Tax-agent duties: calculating, withholding and remitting income tax and social fees.

Because the Labour Code has no provision on the model, three things follow in practice:

• The Labour Code sets no licence or registry; the next section covers what to check instead.
• It sets no maximum duration for the arrangement.
• It has no rule dividing liability between provider and client.

The service agreement fills those gaps, so its clauses carry more weight than they would under a regulated model.

If a provider cites official recognition or a licence, ask which Armenian law and which regulator the claim refers to, and ask for the document.

Checking a provider: what to ask for instead of a licence

No provision found in the Labour Code sets an employer-of-record licence or registry, so a "licensed" claim needs a named law and regulator behind it. The check moves to the provider's own paperwork.

Check	Why it matters	What to ask for
Which Armenian legal entity signs as employer	The employer named on the contract holds the tax-agent duties, the dismissal rules and the fines	Entity name, state register extract, tax registration with the State Revenue Committee
Registered activity code and tax regime	Under HO-72-N, adopted 26 March 2025, staff-provision activities NACE 78.2 (temporary workforce) and 78.3 (other workforce provision) cannot use turnover tax or the micro-business regime, Tax Code Art. 254(3)(3.1) and 267(5)(2.1). A provider registered there is in the standard regime, with 18% profit tax	The activity code on the registration, and how the fee is invoiced
Tax-agent record	The provider files the monthly income tax and social report by the 20th and pays the health premium by the 20th	The last filed report, anonymised, or the tax authority's confirmation of filing
Paper contracts for people working abroad	Contracts with people who work from outside Armenia stay on paper, including after 1 July 2027	The paper contract template and how it is signed and stored
Readiness for digital contracts	Digital use is voluntary until 1 July 2027 and mandatory for people in Armenia from then; existing contracts are uploaded by 30 June 2028 under HO-39-N and HO-40-N	Whether the provider already uses the national digital system, and its upload plan
Who bears an undocumented-worker fine	AMD 250,000 per worker, imposed on the employer (the provider) when a hire is not documented in writing or not registered in time	The clause that says who funds a fine

The activity code shows which tax regime the provider sits in, so ask for it. The VAT treatment of a provider's fee is not established; ask how the fee is invoiced.

A membership badge, a "registered with" line on a website and a certificate are not a licence by themselves. Ask for the document behind the claim.

Who signs what

Seven documents or acts sit between you, the provider and the employee, and the service agreement is the only one you sign.

Document or act	Client	Provider (EOR)	Employee
Service agreement	Party	Party	Not a party
Written employment contract	Not a party	Employer; signs	Signs
Individual hiring act	Not a party	Issues it	Named in it
Employee tax registration, application No. 79	Not a party	Files it	Not involved
Pension and health enrolment and withholding (funded pension for staff born from 1 January 1974)	Not a party	Withholds and remits as tax agent	Bears the fees
Work instructions, confidentiality and IP clause	Drafts the text	Signs	Bound by it
Termination act, on a closed list of grounds	Not a party	Issues it	Receives notice

The form of the contract depends on where the person works. In Armenia it is on paper or digital, with digital mandatory from 1 July 2027; for a person abroad it is paper only.

The hiring act and tax registration follow in both cases. The provider is the employer named in each, and your link to the provider is the service agreement.

The employment contract names the provider, not you, because the Labour Code ties the contract, the hiring act and the dismissal grounds to the employer.

Your control over the work comes from the service agreement and the work instructions.

For probation and contract rules in detail, see the Hiring in Armenia guide.

Paper or digital

Digital execution has three dates and two exceptions:

• Until 1 July 2027 the national digital system is optional, and contracts executed through it have full legal force.
• From 1 July 2027 it is mandatory for people in Armenia.
• Existing contracts must be uploaded by 30 June 2028.
• Contracts with people who work from outside Armenia stay on paper, including after 1 July 2027.
• Foreigners present in Armenia may stay on paper if the contract is entered into the system within three months of the residence document.

Hiring through an employer of record, step by step

Once the service agreement is signed, the law sets one hard deadline for a local or EAEU hire: tax registration by the end of the day before work starts, or by 14:00 if work starts on the day of hiring.

A non-EAEU foreigner starts with ministry consent, up to 15 working days, before the contract. The residence card follows within 30 days.

Step	What happens	Takes	Source
Service agreement	You and the provider agree scope, fee and who funds fines, notice and severance	Not published	Contractual
Non-EAEU foreigner: consent and card	The provider applies online; the Ministry of Labour and Social Affairs consents before the contract, then the residence card is issued	Consent up to 15 working days; card within 30 days after the application	Hartak, work permit; Migration Service
EAEU citizen	No work permit; the provider applies online to confirm lawful residence	Not published	Migration Service
Contract and hiring act	The provider and the employee sign a written contract and the provider issues the hiring act; paper, or digital for people in Armenia	Before work starts	Labour Code; EY Armenia
Tax registration	The provider files application No. 79 on the State Revenue Committee platform, free of charge	Filed by the end of the day before work starts, or by 14:00 on the hiring day; up to 15 minutes	Tax Code; Hartak
Probation	Up to 3 months, if agreed; either side can end it with written notice	3 days' notice	Labour Code
First payroll	Salary in Armenian currency; income tax and social report and health premium	Salary by the 15th of the next month; report and premium by the 20th	Labour Code; Tax Code; SRC
Total, local or EAEU hire	Tax registration only	The only statutory lead time; registration can be done on the start day
Total, non-EAEU foreigner	Consent plus card	Up to 15 working days plus up to 30 days; the sum of two published maxima, so an upper bound

For an EAEU citizen there is no work permit, and the contract, hiring act and tax registration come first. For other foreigners, ministry consent comes before them and the residence card follows.

The timings are legal maxima, not provider promises. A provider's claim of onboarding in days is a commercial promise; the statute fixes only the registration deadline and the permit maxima.

An own entity registers in 1 business day with individual founders and 2 with a legal entity among the founders. The bank account time is not published.

An employer of record saves the bank account and payroll set-up; registration takes 1 to 2 business days either way.

Foreign hires

The residence card for a non-EAEU hire carries a state duty of AMD 105,000 for temporary residence status and card under the current Law on State Duty.

HO-215-N replaces it, from the tenth day after the platform launch is announced and not later than 1 November 2026. The costs section has the amounts.

The Law on Foreigners, HO-11-N, takes effect on 1 November 2026. EY Armenia lists the changes that matter to an employer:

• The work permit becomes a permit to stay or reside for employment.
• A Government quota limits the residence statuses granted each year. It has not been determined.
• The work-visa and employment-permit provisions start only once the new electronic entry-visa system is introduced.
• The law abolishes two exemptions: for employees of foreign companies working through a branch or representative office, and for founders and directors of companies with 50% or more foreign participation.

EY Armenia's alert of 17 February 2026 warns that employers may face challenges in hiring foreign workers because of the quota and the abolished exemptions.

With the quota unset, the permit timeline after 1 November 2026 is open. Make the permit the first task for a foreign hire, ahead of the contract date.

What an employer of record costs in Armenia, line by line

The legal cost to the employer is the gross salary and nothing else, because employer contributions are 0%. The rest is the provider's fee and the items for foreign hires.

Line	Amount	Who pays	Source
Gross salary	The agreed salary; employer cost equals it	Employer	Tax Code
Employer social contributions	0%: no payroll tax exists	No one	Tax Code; Law on Funded Pensions
Income tax	20% flat of gross, withheld	Employee	Tax Code
Funded pension fee	5% of salary up to AMD 500,000; above that 10% minus AMD 25,000; base ceiling AMD 1,125,000	Employee, withheld	Law on Funded Pensions; PwC
Health premium	AMD 4,800 for salary AMD 200,001 to 500,000; AMD 10,800 from AMD 500,001	Employee, withheld	SRC
Stamp duty	AMD 1,000 up to AMD 1,000,000; AMD 15,000 above	Employee, withheld	SRC
Pension amount during childcare leave	AMD 3,000 a month, until the child reaches two	Employer	Law on Funded Pensions
Sick pay, first five working days after the unpaid first day	Benefit; the State Budget pays the rest	Employer	Hartak, incapacity
Maternity benefit for an employed woman	Calculated from her average monthly salary for the leave period	Employer calculates and pays	Hartak, child benefits
Residence fee for a foreign hire	AMD 105,000 until HO-215-N takes effect; AMD 155,950 for temporary residence under HO-215-N	Set in the service agreement	Law on State Duty; HO-215-N
Provider fee	Contractual; no statutory amount	Client	Service agreement

You pay the gross salary, the childcare-leave pension amount, the five sick days and the provider's fee. The provider calculates and pays the maternity benefit. The employee pays the four withholdings, which come out of the gross.

The funded pension fee stops at the ceiling of AMD 1,125,000, which is 15 times the AMD 75,000 minimum wage.

A foreign hire adds a one-off state duty. Under HO-215-N it is AMD 150,000 for temporary or AMD 250,000 for permanent residence, plus AMD 5,950 for the card.

That makes AMD 155,950 and AMD 255,950. The Government may pay all or part of it for some groups.

Net pay at the pay steps

Net pay is gross minus four withholdings. The health premium and stamp duty are fixed amounts that step up at AMD 500,001 and AMD 1,000,001.

Income tax is taken on the full gross, as the State Revenue Committee's worked examples show. The table assumes an employee born in 1974 or later.

Gross (AMD / month)	Employer cost	Net pay	Withheld
75,000	75,000	55,250	19,750
303,140	303,140	221,555	81,585
500,000	500,000	369,200	130,800
500,001	500,001	363,201	136,800
1,000,000	1,000,000	713,200	286,800
1,000,001	1,000,001	699,201	300,800
1,010,668	1,010,668	706,668	304,000
2,000,000	2,000,000	1,486,700	513,300

Two steps cut net pay:

• Between AMD 500,000 and AMD 500,001 the health premium rises from AMD 4,800 to AMD 10,800, so net pay falls by about AMD 6,000.
• Between AMD 1,000,000 and AMD 1,000,001 stamp duty rises from AMD 1,000 to AMD 15,000, so net pay falls by about AMD 14,000.

Where you set the gross relative to a step decides what the employee takes home. Ask whether the provider's payroll applies both steps.

The full tax section is in the Hiring in Armenia guide.

What the provider's fee covers

The provider's fee is contractual, with no statutory amount. Price four elements separately:

• A monthly fee per employee, or a share of gross salary.
• Set-up, permit and termination items.
• Benefits passed through at cost.
• The invoicing currency. The employee is paid in Armenian currency by law, so any conversion sits in your invoice.

Ask for each element on its own line, and ask which of them change when the salary crosses AMD 500,000 or AMD 1,000,000.

Costs that arrive later

Phase 2 of universal health insurance starts on 1 January 2027, with coverage extended to employees earning up to AMD 200,000 gross.

A proposal of 12 August 2026 splits the AMD 10,800 premium for staff earning up to AMD 200,000: AMD 4,400 from the state, AMD 4,400 from the employer and AMD 2,000 from the employee (Armenpress).

Nothing is enacted, so leave it out of the service-agreement price.

Employers may pay employees' health premiums in full or in part under the Law on Universal Health Insurance, as amended by HO-135-N from 8 May 2026. No employer obligation exists.

The Tax Code treats employer-paid premiums of up to AMD 10,000 per employee-month as non-taxable income.

The 10% R&D rate

The 10% rate needs a listed high-technology occupation, qualifying R&D work and a positive opinion of the professional commission, and excludes foreigners without residence status.

Whether staff on a provider's payroll can qualify is not confirmed, so do not budget on it.

Ending an EOR employment: notice, severance and who funds it

The provider ends the contract, but only on the closed list of grounds in the Labour Code, so your decision to end the engagement is not by itself a ground. The cost then follows the service agreement.

Ground	Notice	Payment
Employee resigns	30 days	None stated
Redundancy or liquidation	Two months	One average monthly salary
Unsuitability or long-term incapacity	14, 35, 42, 49 or 60 days by service: up to 1 year, up to 5, 5 to 10, 10 to 15, over 15 years	10, 25, 30, 35 or 44 average daily salaries, by the same bands
Probation	3 days	None stated

Two cases show the scale. A dismissal for unsuitability after under one year of service takes 14 days' notice and a payment of 10 average daily salaries. Redundancy takes two months' notice and one average monthly salary.

Severance comes on top of notice, not in place of it, so a dismissal carries both costs. The Hiring in Armenia guide sets out the full tenure table.

If a court finds a dismissal unlawful, it can award compensation of one to twelve average monthly salaries instead of reinstatement.

Where the dismissed person takes a new job while the case runs, forced-idleness pay is capped at nine months of the previous salary.

Plans to dismiss more than 10% of staff and at least 10 employees within two months trigger a notice duty to the employment authority. The threshold counts the provider's own staff and dismissals, not your engagement.

Get the allocation of notice, severance and unlawful-dismissal cost in writing before the first hire.

Where the model runs out

Four limits apply to an employer-of-record arrangement in Armenia: permanent establishment, non-compete and IP, foreign workers and penalties. Duration, covered first, is not one of them.

Duration

No provision found in the Labour Code sets a time limit on the arrangement. Fixed-term contracts exist for foreigners who need residence status, for the period of the permission.

For citizens the contract is open-ended and ends only on the closed list of grounds.

An arrangement of "a year with the provider, then convert" therefore has no timer in the Labour Code provisions found. The exit is a commercial matter plus the dismissal rules.

No provision found in the Labour Code covers moving an employee from the provider to your own entity.

Permanent establishment

Three of the Tax Code's permanent establishment (PE) tests matter for an employer-of-record user, and an employer-of-record contract does not change the dependent-agent test:

• 183 days: the non-resident's staff perform works or services in Armenia for at least 183 calendar days in a tax year, across one or more related projects.
• Branch or representative office: a PE from day one, except a representative office doing only preparatory work.
• Dependent agent: a person in Armenia authorised to represent the non-resident and act on its behalf.
• Registration: a non-resident with a PE registers with the tax authority as a taxpayer, or the rules for non-residents without a PE apply to it.

A person on the provider's payroll who negotiates and signs for you has the authority the dependent-agent test looks at.

No source settles whether the provider's employees count towards the 183 days. Keep the role to delivery work and keep sign-off with your own company.

One safe harbour is gone: Art. 27(6) said a non-resident supplying foreign labour to an Armenian organisation, under the customer's direction and without answering for the result, created no PE.

HO-377-N of 13 November 2025 repealed that rule. The 183-day rule is unchanged, which matters to any provider that is a non-resident.

Non-compete, IP and the 13th salary

Non-competes after termination are not regulated in Armenia:

Armenian legislation does not explicitly regulate restrictions on a worker’s ability to work for competitors after termination.

— Shushan Stepanyan, author of the Armenia chapter, Concern Dialog (Chambers Employment 2026, Armenia)

No court case is reported either, so the effect of a clause is unpredictable. Put it in the contract and do not plan around enforcement. Chambers adds that non-solicitation is not regulated.

For IP, the assignment clause belongs in the employment contract, with your company as assignee. That is drafting advice, not a statement of Armenian IP law.

A 13th salary is not mandatory. Bonuses are at the employer's discretion and set in the contract or internal acts.

Foreign workers

The provider sponsors a foreign employee like any employer.

The amended Law on Foreigners abolishes the exemption for employees of foreign companies working through a branch or representative office. Once its permit provisions apply, posting through a branch no longer avoids the permit.

Penalties land on the legal employer

Three penalties fall on the legal employer, which is the provider:

• AMD 250,000 for each undocumented worker, imposed in a tax inspection when a hire is not documented in writing or not registered in time.
• A fine of 0.075% a day on late-paid tax, including withheld income tax, for up to 730 days. It stops at 54.75% of the unpaid amount: AMD 100,000 of income tax paid a year late carries a fine of AMD 27,375.
• Recognition by a court of illegal employment from the day the person actually started work, where there is no written contract or hiring act.

Whether you reimburse the provider, or the provider indemnifies you, is a question for the contract.

Dated changes that affect an EOR arrangement, 2025 to 2028

Eight dated changes affect an employer-of-record arrangement, from a 2025 tax rule on staff-provision providers to the upload deadline for digital contracts in June 2028.

• HO-72-N of 26 March 2025: staff-provision activities NACE 78.2 and 78.3 are excluded from turnover tax and the micro-business regime. Ask for the provider's activity code to see its tax position.
• HO-377-N of 13 November 2025: repeals Tax Code Art. 27(6), the no-PE rule for non-residents supplying foreign labour. If the provider is a non-resident, ask how it treats permanent-establishment risk.
• 8 May 2026: employers may pay employees' health premiums in full or in part (HO-135-N). Decide whether the benefit goes through the provider.
• 1 November 2026, at the latest: residence fees under HO-215-N become AMD 155,950 for temporary and AMD 255,950 for permanent residence, card included. Put the payer of the fee in the service agreement.
• 1 November 2026: the amended Law on Foreigners takes effect (HO-11-N). The permit becomes a permit to stay or reside for employment, and the permit and work-visa provisions wait for the new e-visa system. Start permit work before the contract date.
• 1 January 2027: phase 2 of universal health insurance covers employees earning up to AMD 200,000 gross. Check that the provider's payroll withholds the premium for staff in that band.
• 1 July 2027: digital employment contracts become mandatory for people in Armenia (HO-39-N, HO-40-N), while contracts with people abroad stay on paper. Ask the provider for its plan.
• 30 June 2028: the deadline to upload existing employment contracts to the digital system.

An employer share in the premium for employees earning up to AMD 200,000, floated on 12 August 2026, is a proposal and not law.

The full list of changes sits in the Hiring in Armenia guide.

When you do not need an employer of record in Armenia

You can skip an employer of record for a genuine independent professional, for a larger team, or where the work is not employment.

Can I hire directly without an entity?

A foreign company can have staff or an agent in Armenia, but permanent-establishment tests apply, among them 183 calendar days in a tax year, a branch or representative office, or a dependent agent authorised to act for you.

The labour-law position of a foreign employer with a person in Armenia is a separate question, and it is unsettled.

The Code's text reaches an employee who permanently resides in Armenia (Art. 7(4)). Whether a contract signed abroad counts as arisen in Armenia turns on Art. 14(1.1).

Your own entity is quick

Registration takes 1 business day when the founders are individuals and 2 when a legal entity is among them.

A foreign corporate founder needs its documents translated into Armenian and notarised, and foreign citizens register in person. The bank account time is not published.

A contractor instead

For an independent professional, the contractor route has no legal employer at all.

Labour law applies only where a court establishes that the relationship is in fact employment. The employment test turns on personal performance for remuneration under internal disciplinary rules.

Contractor cost is not always lower than an employer of record, so compare the whole package, not the headline rate.

A person working from outside Armenia

A contract with someone who works from outside Armenia is concluded on paper, outside the digital system, also after 1 July 2027. That holds whether the employer is you or a provider.

The questions come in order: where the person works, then branch, agent or 183 days, then the employment test. From abroad, the answer is a paper contract.

In Armenia, a branch, an agent or 183 days means a permanent establishment and registration as a taxpayer. Without one, the employment test decides between employee and independent professional.

Alternatives, and when each fits

Four routes compete with an employer of record in Armenia, and the choice turns on headcount, expected length, whether the person signs for you and whether a permit is needed.

Route	Legal employer	Fits when	Main limit
Own Armenian entity	Your Armenian company	Several hires or a lasting presence; registration takes 1 to 2 business days	Bank account time is not published; you file the monthly report by the 20th
Employer of record	The provider	One or a few people, a defined start, no entity	The provider's fee; no Labour Code provisions on duration or liability found, so the contract splits the risk
Independent contractor	None; civil-law contract	A genuine independent professional	Labour law applies if a court finds employment in fact
Direct hire without an entity	Your foreign company	A small, short presence you manage yourself	Permanent-establishment exposure at 183 days, with a branch or with a dependent agent; the labour-law position is unsettled
Staffing agency, outsourcing or PEO	The agency or provider	A supplier delivers a team or service under its own management	No separate regime found in the Labour Code; ordinary employment in each case, as for an employer of record

The PEO versus EOR and EOR versus staffing agency posts explain how those models differ in general. The employer of record versus contractor post covers the same choice outside Armenia.

Choose by four tests:

• Headcount: from several people, the entity's 1 to 2 business days of registration weigh less than the provider's fee.
• Length: an open-ended need points to an entity; a defined start and uncertain end points to a provider.
• Authority: a person who signs for you creates a permanent-establishment question whatever the route.
• Permit: a non-EAEU foreigner needs consent and a card on every employment route.

For an independent professional, a contractor platform is the honest answer, and 4dev.com is a global contractor platform, not an employer of record. The Hiring in Armenia guide compares the routes with figures.

How to choose a provider: questions to ask

Ask eleven questions before signing, each tied to an Armenian rule, and take the answers into the service agreement.

1. Which Armenian legal entity signs as employer, and what is its tax registration? The employer named on the contract holds the tax-agent duties and the fines.
2. Under which activity code is it registered, and how is the fee invoiced? Staff-provision codes NACE 78.2 and 78.3 are excluded from turnover tax and the micro-business regime.
3. Who files the monthly report by the 20th, and can you see the confirmation? The report and the health premium are both due by the 20th of the next month.
4. Does it issue paper contracts for people abroad and use the digital system for people in Armenia, and what is the plan for 1 July 2027? Digital use becomes mandatory then, and paper stays for staff abroad.
5. How are AMD 250,000 per-worker fines allocated? The fine lands on the legal employer.
6. Who funds notice and severance? Notice runs from 14 days to two months by ground; severance comes on top.
7. What does it charge for permits and residence cards, and what changes with the fee at 1 November 2026 at the latest? The residence fee is AMD 105,000 until HO-215-N takes effect and AMD 155,950 after.
8. Is the fee fixed or a share of gross, and how does payroll apply the steps at AMD 500,000 and AMD 1,000,000? The health premium and stamp duty change there.
9. Do employees get 20 working days of leave, 13 public holidays and the five employer-paid sick days, and how are they invoiced to you? These are the statutory minimums, so ask what the package adds.
10. Which law governs the service agreement, and who holds your confidential data? No provision found in the Labour Code splits these between provider and client.
11. What happens at exit? No provision found in the Labour Code covers moving an employee to your own entity, so the transfer terms must be written.

Questions people actually ask

Is it legal to use an employer of record in Armenia?

No provision found in the Labour Code prohibits it or regulates employer-of-record arrangements. The provider is an ordinary employer, with a written contract, a hiring act and tax-agent duties.

Is there a licence or registry for employer of record providers in Armenia, and how do I check one?

No provision found in the Labour Code sets a licence or registry. Check the provider's Armenian entity and tax registration, its activity code, its monthly filings, its paper contracts for staff abroad and who funds the AMD 250,000 per-worker fine.

How much does an employer of record cost in Armenia?

The statutory cost to the employer is the gross salary, with employer contributions of 0%. The provider's fee is contractual. A foreign hire adds a residence fee: AMD 105,000 until HO-215-N takes effect, then AMD 155,950.

How long does it take to hire someone through an employer of record in Armenia?

Tax registration is due by the end of the day before work starts and takes up to 15 minutes. A non-EAEU foreigner adds ministry consent of up to 15 working days and a residence card within 30 days.

Can I hire in Armenia without a local entity?

Yes, through an employer of record or a contractor. Hiring directly carries permanent-establishment exposure, for example from 183 calendar days in a tax year, a branch or representative office, or a dependent agent authorised to act for you.

What is the difference between an employer of record and setting up an entity in Armenia?

An entity registers in 1 business day with individual founders and 2 with a legal-entity founder. A provider saves the bank account and payroll set-up, not registration time. Statutory cost is the same; control, fee and exit differ.

Can an employer of record sponsor a work permit or visa in Armenia?

The provider applies as the employer. For a non-EAEU foreigner, ministry consent takes up to 15 working days until the amended Law on Foreigners applies on 1 November 2026; EAEU citizens need no work permit.

Does an employee hired through an employer of record get a 13th salary, and can I add a non-compete?

No 13th salary is mandatory. Post-termination non-competes are not explicitly regulated and no court cases are reported, so write the clause into the contract and do not plan around enforcing it.

Sources

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