The legislation of the Republic of Armenia establishes multiple legal frameworks for the formation of business entities, ensuring flexibility for entrepreneurs in selecting the most appropriate structure for their operations. Among the primary forms are Limited Liability Companies (LLCs) and Joint-Stock Companies (JSCs). Joint-stock companies, in turn, are categorized into Open Joint-Stock Companies (OJSCs) and Closed Joint-Stock Companies (CJSCs), each governed by specific regulatory and operational principles.
Entrepreneurs intending to engage in economic activities in Armenia often face the challenge of choosing the most suitable organizational and legal form for their business, as this decision has significant implications for corporate governance, financial liability, investment opportunities, and regulatory compliance.
To provide a clearer understanding of these legal structures, we will examine the key characteristics, advantages, and disadvantages of each form. A well-informed choice at the outset of business development can facilitate efficient operations, risk mitigation, and long-term sustainability.