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LAW OF THE REPUBLIC OF ARMENIA

of June 27, 2001 No. ZR-193

About licensing

(as amended on 27-06-2019)

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 process law enforcement;

6) simplification of the procedure 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.

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 which are subject to licensing in case of availability of the corresponding license granted by foreign states.

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. In the course of 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.

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 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, renewal of the license, licensing after adoption of the relevant resolution, the license, the duplicate of the license, the license with the extended validity, the renewed license, the license 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.

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