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LAW OF THE REPUBLIC OF ARMENIA

of April 25, 2001 No. ZR-167

About the individual entrepreneur

(as amended on 02-07-2016)

Accepted by National Assembly of the Republic of Armenia April 3, 2001

This Law establishes the rights, obligations and responsibility of the individual entrepreneur, guarantee of its activities and condition of the termination of activities.

Article 1. Individual entrepreneur

The individual entrepreneur is the physical person having the right without formation of legal entity, independently, on its own behalf and on the risk to perform activities which main objective is profit earning (income) from use of property, sales of goods, performance of works or rendering services.

Capable citizens of the Republic of Armenia and foreign citizens, and also those stateless persons whose right to be engaged in business activity is not limited to the law can be the individual entrepreneur.

As the individual entrepreneur the physical person recognized insolvent which at the time of filing of application did not fulfill the obligations which were the basis for recognition by its insolvent cannot be registered.

The rules regulating activities of the legal entities who are considered under the law as the commercial organizations are applied to business activity of the individual entrepreneur if from the law, other legal acts or essence of legal relationship other does not follow.

When implementing business activity the individual entrepreneur as physical person shall act as the individual entrepreneur.

Implementation by the individual entrepreneur as physical person of business activity is considered the activities performed by the individual entrepreneur.

Article 2. Legislation on the individual entrepreneur

Activities of the individual entrepreneur are regulated by the Civil code of the Republic of Armenia, this Law, other laws and legal acts.

If international treaties of the Republic of Armenia establish other regulations than those which are established by this Law then are applied agreement regulations.

Article 3. Legal capacity and capacity to act of the individual entrepreneur

Legal capacity and capacity to act of physical person as individual entrepreneur arise from the moment of its state accounting and stop from the moment of the termination of legal capacity and capacity to act of this physical person, and also in the cases provided by the law from the moment of recognition of the state accounting invalid or invalid.

Article 4. State accounting of the individual entrepreneur and its removal from accounting

The state accounting of the individual entrepreneur, its removal from accounting are performed in the procedure established by the law.

Paragraph two of Article 4 ceased to be valid according to the Law of the Republic of Armenia of 16.04.2012 No. ZR-145

To the individual entrepreneur the certificate which is the document certifying its right to be engaged in business activity is granted.

Article 5. Location of the individual entrepreneur

The location of the individual entrepreneur is the place of its state accounting.

Article 6. Rights of the individual entrepreneur

The individual entrepreneur has the civil laws necessary for implementation of the any kinds of activities which are not prohibited by the law.

The individual entrepreneur can be engaged in separate types of activity which list is established by the law only based on special permission (license).

The rights of the individual entrepreneur can be limited only in the cases provided by the law and in the procedure established by the law.

The individual entrepreneur has property on the property right and this property answers for the obligations. It can acquire and perform on its own behalf the property and personal non-property rights, perform duties, plead at the bar as the claimant or the defendant.

The individual entrepreneur has right of defense of the civil laws.

The individual entrepreneur has the right:

a) found the commercial organization in the cases provided by the law or become her participant;

b) have commercial representations;

c) be the trustee;

d) perform according to the agreement joint activities with other individual entrepreneurs or the commercial organizations;

e) have the settlement account in bank;

e) have hired employees;

g) have other rights established by the legislation.

Article 7. Financial indicator of activities of the individual entrepreneur

Financial indicator of activities of the individual entrepreneur is the profit got by it.

The individual entrepreneur in the procedure established by the law pays the corresponding taxes, duties and other obligatory payments.

The individual entrepreneur has no balance.

Article 8. Obligations of the individual entrepreneur

The individual entrepreneur shall:

a) comply during the activities with the conditions established by the legislation concerning safety of people, protection of their life and health, conservation and cultural values;

b) take in the cases established by the law and procedure legal action with the claim for the insolvency;

c) perform other duties in the procedure established by the law.

Article 9. Responsibility of the individual entrepreneur

The individual entrepreneur answers for the obligations the property belonging to him, except for property on which according to the law collection does not address.

The individual entrepreneur in the procedure established by the legislation bears responsibility for the harm done to them to other persons.

The physical person who is not the individual entrepreneur bears responsibility for accomplishment of the obligations as the individual entrepreneur.

The individual entrepreneur has the right before submission of the statement for exit from the state accounting to submit the application in tax authority for check of correctness of relations with the government budget.

If the physical person who is not the individual entrepreneur before removal from the state accounting of the individual entrepreneur, did not address to tax authority for check in the procedure for correctness of relations established by the law with the government budget, then the tax authority has the right in the procedure established by the law to perform check of correctness of relations with the government budget within three years after removal from the state accounting of the individual entrepreneur.

Article 10. Procedure for the introduction of the Law in force

This Law becomes effective from the moment of its official publication.

Provisions of this Law extend to the individual entrepreneurs registered in this quality to the introduction of this Law in force, and they shall not be re-registered.

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