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LAW OF THE REPUBLIC OF ARMENIA

of June 27, 2001 No. ZR-193

About licensing

(as amended on 12-06-2023)

Accepted by National Assembly of the Republic of Armenia on May 30, 2001

Chapter 1. General provisions

Article 1. Subject of regulation of the Law

This Law regulates the types of activity which are subject to licensing and governs the relations connected with licensing.

This Law does not extend to licenses for export and (or) commodity importation for the purpose of foreign trade activity, to permissions (licenses) of use of the subsoil and natural resources which are considered as property of the state, and also on license agreements, concluded in the civil relations.

Article 2. Legislation on licensing

The licensed relations in the Republic of Armenia are governed by the Civil code of the Republic of Armenia, this Law, international treaties and other legal acts of the Republic of Armenia.

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

Article 3. The basic concepts used in the Law

In this Law the following basic concepts are used:

the license - the formal permission confirming the right to be engaged in the type of activity which is subject to licensing and also the official document confirming this right;

the type of activity which is subject to licensing - type of activity which implementation under the law requires the license;

licensing - the process connected with issue of licenses, prolongation of term of their action, renewal, suspension and the termination of their action;

licensing authorities - the state bodies performing licensing in the procedure established by this Law;

the licensee - legal entity or physical person or the individual entrepreneur, and also the public or local government office which is not state body or local government body which obtained in the procedure established by the law the license for occupation the activities which are subject to licensing;

the job seeker (applicant) - legal entity or physical person or the individual entrepreneur, and also the public or local government office which are not state body or local government body, addressed to the licensing body for receipt of the license, prolongation of effective period of the license, renewal of the license, change of the place of implementation of activities or for occupation the same activities which are also subject to licensing in other place for receipt of the duplicate of the license or the insert;

the proper notice or departure of documents - the notification or departure of documents is considered made properly if they are sent by the registered mail with the assurance of receipt or with use of other means of communication providing the formulation of the message (including – sending the message on the telephone number specified by the applicant, and other means of electronic communication which are also established by the legislation, or by means of electronic system or are handed on receipt (further - properly);

gross violation - rough is considered violation owing to which:

- the damage in the amount of two hundredfold to the thousandfold size of minimum wage is caused to other persons;

- easy or less severe harm is done to health of person;

regular violation - regular is considered violation for which assumption the licensee within year received at least two written preventions and which failure to carry out could do easy or less severe harm;

malicious violation - malicious is considered violation which continued to be made after the written prevention of the licensing body and which failure to carry out could do severe harm;

the severe harm - heavy is considered harm:

- the done less severe harm to health of two or more persons,

- the done severe harm to health of person,

- entailed the death of the person,

- the damage which caused to other persons of more than the thousandfold size of minimum wage.

Article 4. Principles of licensing

The principles of licensing are:

1) protection of the rights, legitimate interests, morality and health of persons, ensuring protection and safety of the state;

2) providing in the territory of the Republic of Armenia of single policy in the field of economic activity and establishment of the single list of the types of activity which are subject to licensing;

3) establishment of single procedure and single principles of licensing;

4) publicity of licensing;

5) licensing law enforcement;

6) simplification of licensing and ensuring its transparency;

7) establishment of single criteria and types of responsibility for violation by licensees of requirements to the activities which are subject to licensing.

Article 5. Licensing purpose

The purposes of licensing of separate types of activity are:

1) consumer protection;

2) contribution to settlement of the developing market relations;

3) improvement of quality of goods and services;

4) control concerning persons who are engaged in the types of activity fraught with the increased threat of danger to life, health, property of faces, interests of the state and society, conservation, cultural heritage;

5) control over activities of licensed persons for providing the international obligations of the Republic of Armenia on ensuring the international security.

Article 6. Action of the license

1. The license is granted on each type of activity which is subject to licensing, provided only by this Law if other is not provided by the law.

2. Action of licenses extends to all territory of the Republic of Armenia if other is not provided by the law.

Chapter 2. Licensing implementation

Article 7. The subjects having the right to be engaged in the types of activity which are subject to licensing

1. Legal entities and physical persons, and also the individual entrepreneur have the right be engaged in the types of activity which are subject to licensing.

The physical person who obtained the license, having the right to be engaged in business activity in this area only as the individual entrepreneur, the cases except for established by the law.

2. The commercial organizations have the right to be engaged in all types of activity which are subject to licensing if it is not forbidden by the law or the charter of society.

3. Non-profit organizations have the right to be engaged in all types of activity which are subject to licensing if it is not forbidden by the law and if the right to be engaged in such type of activity is directly provided by their charter.

4. The individual entrepreneur has the right to be engaged in all types of activity which are subject to licensing if it is not forbidden by the law.

5. Capable physical persons can also obtain the license for the purpose of implementation of not business (non-commercial) business activity if other is not provided by the law.

6. Also public or local government offices which are not state body or local government body can be engaged in the activities which are subject to licensing if the right to be engaged in these activities is directly stipulated by the legislation the Republic of Armenia or their charter.

For legal entities licensing of the public or local government office is performed according to the procedure, provided by this Law.

6.1. Foreign legal entities the decision of the government of the Republic of Armenia, can perform the activities provided by this Law (except as specified, provided by part 6.2 of this Article) which are subject to licensing in case of availability of the corresponding license granted by foreign states.

6.2. Legal entities of state members of the Eurasian Economic Union, the European Union, and also the United States of America, Canada, South Korea, the Chinese Democratic Republic, Japan, the United Kingdom of Great Britain and Northern Ireland, the United Arab Emirates, Georgia, the Islamic Republic of Iran with the permission of the relevant licensing organ can perform in the Republic of Armenia the activities provided by this Law which are subject to licensing not providing the requirement about the place of implementation of activities (except as specified, 3 Items provided by subitems 8, of 9, of the 10th Item 1, subitems 1, of 2, 5, subitems 1, 3, 4, 5, 7, 8, 9, 10. 11. 12, the 13th Item 6, the subitem 5 Item 8, the subitem 2 Items 13, the subitem 1 of Item 15 of the table of part 2 of article 43 of this Law) in the presence of the document certifying the right to be engaged in the corresponding type of activity, by the legislation of this state. Permission is issued is termless or for a certain period of time.

6.3. In the permission provided by part 6.3 of this Article refuses on the bases established by Items 1, of 2, 4.1, 5 parts 1 of article 29 of this Law.

6.4. The approval procedure on implementation of the activities which are subject to licensing, not providing the requirement about the place of implementation of the activities provided by the law, legal entities of the countries established by part 6.2 of this Article affirms the order of the Government of the Republic of Armenia.

6.5. Person, the stipulated in Clause 27.2 or 35.1 Laws of the Republic of Armenia "About state registration of legal entities, the state accounting of the allocated divisions, organizations of legal entities and individual entrepreneurs", for recognition of the licenses registered on his name in the field of town planning represents to the licensing body:

1) statement;

2) the photocopy of the diploma of the responsible specialist included in the corresponding column of the license, the statement about participation in the previous works and also the additional documents confirming working experience of the responsible specialist can be provided.

7. Lack of the entry providing implementation of the corresponding types of activity, in the charter or the certificate on state registration of the commercial organization, and also in the certificate on the state accounting of the entrepreneur, addressed for receipt of the license, cannot form the basis for variation of the request for the license.

Lack of the entry providing the right to implementation of the specific activities which are subject to licensing, in the charter or the certificate on state registration of the commercial organization, and also in the certificate on the state accounting of the entrepreneur, obtained the license, cannot form the basis for involvement of these organizations to responsibility.

8. The license cannot be transferred to other persons to use, be alienated or be pledged, the cases except for provided by the law.

9. Action of the license does not extend to other persons performing activities, joint with the licensee (including on cooperation agreement), and also to the legal entities founded or acting with the assistance of the licensee.

10. The subjects having the right to be engaged in the types of activity which are subject to licensing can be engaged in the activities which are subject to licensing from coming into force of the license.

Article 8. Licensing authorities

1. Licenses are granted only by the state authorized bodies provided by this Article.

1.1. When licensing submission of documents and receipt outside the city of Yerevan can be performed by the principle of one window which procedure approves the Government of the Republic of Armenia.

2. For occupation the corresponding types of activity, the stipulated in Article 43 presents of the Law, licenses are granted by the Central bank of the Republic of Armenia, the Commission on regulation of public services of the Republic of Armenia, the National commission on television and radio of the Republic of Armenia authorized by the Government of the Republic of Armenia the ministries and departments (further - licensing authorities).

Licenses are drawn up by licensing authorities respectively resolutions of the Central bank of the Republic of Armenia, the Commission on regulation of power industry of the Republic of Armenia, the National commission on television and radio of the Republic of Armenia, and also the order of the minister or head of department (further - the decision).

Features of licensing in spheres of power, electronic communications and water supply are established according to the Laws of the Republic of Armenia "About power", "About electronic communications", the Water code of the Republic of Armenia and procedures for licensing, accepted according to them.

The license for banking activity, the stipulated in Article 43 presents of the Law, is issued only according to the laws of the Republic of Armenia "About banks and banking activity", "About the Central bank of the Republic of Armenia" and the provisions established on their basis by the Central bank of the Republic of Armenia.

The legal relationship connected with licensing in the field of broadcasting TV and broadcasts, are regulated by this Law so far as it does not contradict the Law of the Republic of Armenia "About audiovisual media" and regulate this area, and the relevant provisions about licensing accepted on their basis by the National commission on television and radio.

3. For the purpose of issue of the conclusions about licensing, suspension or cancellation of the license licensing authorities create the commissions (further - the licensing commissions), except as specified, when the actions provided by this Item are performed by decisions of collegiate licensing authorities.

4. Charters of the licensing commissions affirm licensing authorities.

5. Consider questions of prolongation of effective period of the license, renewal of the license, suspension or cancellation of the license and have the right to pass relevant decisions on them only the bodies which granted the license or their legal successors.

6. Licensing authorities shall keep in secret the information about job seekers or licensees which is the trade and other secret which is considered that under the law.

Article 9. Decisions of licensing authorities

1. In the cases provided by this Law, the licensing body makes the decisions based on the conclusion of the relevant commission. However in case of decision the licensing body has the right not to accept the conclusion of the commission for the basis. In this case it shall the decision to prove the reasons of rejection of the conclusion of the commission.

2. In the decision of the licensing body shall be specified:

1) the name of the licensing body, date of decision;

2) question (the request, protest, suspension of action of the license and (or) each insert etc.) on which the decision is passed;

3) name (name) of person who brought question;

4) motives or the bases on which the licensing body, referring to the laws and other legal acts, came to conclusions;

5) conclusion about case in point.

3. If the state fee for occupation in other place is paid by this type of activity which is subject to licensing for the license or issue of the duplicate, prolongation of effective period of the license and (or) each insert, renewal of the license and (or) each insert, licensing and (or) each insert after adoption of the relevant resolution, the license and (or) each insert, the duplicate of the license and (or) each insert, the license and (or) each insert with the extended validity, the renewed license and (or) each insert, the license and (or) each insert for occupation in other place this type of activity which is subject to licensing, and also relevant resolutions on them properly are transferred or go to licensed person not earlier, than in day of payment of the state fee established by the law.

Article 10. Regulations on licensing

1. Voided according to the Law of the Republic of Armenia of 24.11.2015 No. ZR-121

2. The licensed relations between the licenses provided by this Law are regulated only by the law and regulations on licensing.

3. Regulations on licensing according to the licenses issued by the Government of the Republic of Armenia, state bodies, authorized affirm the Government of the Republic of Armenia.

4. Regulations on licensing according to the licenses issued by the Central bank of the Republic of Armenia affirm the Central bank of the Republic of Armenia.

5. Procedures for licensing according to the licenses issued by the Commission on regulation of public services of the Republic of Armenia affirm the Commission on regulation of public services of the Republic of Armenia.

6. Ceased to be valid

7. Regulations on licensing according to the licenses issued by the National commission on television and radio of the Republic of Armenia affirm the National commission on television and radio of the Republic of Armenia.

8. Only such requirements which are necessary for protection of the state and public security, social order, health of society and public morals, the rights and freedoms, honor and reputation of other people, and also control over activities of licensed persons for providing the international obligations of the Republic of Armenia on ensuring the international security can be established by regulations on licensing.

In case of establishment in regulations on licensing of the requirements which are not provided by the law it is necessary to refer to the bases provided by this part surely. The requirement which is not containing such reference, and also the restrictions which are not provided by the law have no legal force.

Restrictions of the civil laws of job seekers or licensees cannot be provided in regulations on licensing.

9. In regulations on licensing requirements about submission of business plans, reasons, market research, data on the minimum size of the authorized capital (fund), and also on founder job seekers of the legal entity only in the cases provided by the law can be established.

10. The licensee cannot be forced by regulations on licensing to the conclusion of civil agreements with particular persons if the law does not provide other.

In regulations on licensing the fact of failure to carry out by the job seeker of obligations to other persons, including before the state cannot be established as the basis for variation of the request for receipt of the license if the law does not provide other.

Chapter 3. Licensed conditions and requirements

Article 11. Respect by the licensee of regulations and rules of ecological, hygienic and sanitary and epidemic safety, fire protection regulations and rules

1. When implementing the types of activity which are subject to licensing, licensees shall respect the rules and rules of ecological, hygienic and sanitary and epidemic safety, fire protection regulations and rules.

2. Lists of regulations and rules of ecological, hygienic and sanitary and epidemic safety, fire protection regulations and rules which requirements shall be observed on each type of activity which is subject to licensing are established by the state bodies authorized on that. In lists full names of the regulatory legal acts establishing the relevant standards and rules, year, month, number of their official publication, the name and number of official sheets are specified. The licensing body hands lists of regulations and rules, obligatory for observance, to the licensee together with the license. About the changes made to the specified lists, the licensing body shall tell all licensees not later than in the 15-day time following behind day of the introduction of these changes in force.

3. For licensing the documents confirming observance of regulations and rules of ecological, hygienic and sanitary and epidemic safety, fire protection regulations and rules cannot be requested if the law does not provide other.

4. For the purpose of implementation of supervision of observance of regulations and rules of ecological, hygienic and sanitary and epidemiologic safety, fire protection regulations and rules the licensing body reports about the granted licenses to relevant organs according to the procedure, established by the Government of the Republic of Armenia.

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