Armenian parliament passes redomicilation bill

YEREVAN, November 15. /ARKA/. Armenia’s Parliament has passed today in the first reading a set of amendments to the Civil Code and several relating laws allowing redomicilation (relocation) of foreign companies. According to minister of economic development and investments Suren Karayan, the amendments are designed to attract new foreign investors.

Corporate re-domiciliation is the process by which a company moves its 'domicile' (or place of incorporation) from one jurisdiction to another by changing the country under whose laws it is registered or incorporated, whilst maintaining the same legal identity.

"Re-domiciliation of foreign companies is quite effective in many countries allowing to attract foreign investment ", - said Karayan.

According to the minister, this practice is applied in various EU countries, in particular Austria, Belgium, Ireland and Latvia. Now, if a company, operating abroad wants to move to Armenia it must get self-liquidated, sell its assets and  register in Armenia as legal entity.

"The current  system is quite complicated requiring additional costs, while the proposed amendments allow foreign-registered companies to move their offices to  Armenia without problems and the need to sell their assets and get self-liquidated," - Karayan said.

"The introduction of this law will secure additional inflow of foreign legal entities and capital in Armenia, and creation of highly skilled and highly paid jobs," - Karayan said. -0-