Doing Business In... 2025

ARMENIA LAW AND PRACTICE Contributed by: Aram Orbelyan, Narine Beglaryan, Artur Hovhannisyan, Lilit Karapetyan, Sarkis Knyazyan and Shushanik Stepanyan, Concern Dialog

• prohibit completely or partially the processing of personal data; • recognise electronic systems for processing the personal data of legal persons as having an adequate level of protection and include them in the register; • ensure the protection of rights of the data subject; and • consider applications of natural persons regarding the processing of personal data and deliver decisions within the scope of its powers. 9. Looking Forward 9.1 Upcoming Legal Reforms Amendments of Corporate Legislation The RA Law on Limited Liability Companies and Joint Stock Companies, as well as related legislation, is undergoing active revision. A sig - nificant recent amendment to both the Law on Limited Liability Companies and Joint Stock Companies, which has passed two readings in the National Assembly, has established the pos - sibility of convertible loans. Currently, sharehold - ers cannot convert shareholder loans into shares of the company. Once the amendments enter into force, companies will be able to enter into convertible loan agreements, however several limitations shall still be applicable (in practice the loan shall be considered as convertible from the moment of conclusion of the agreement and debt-to-equity swap is still not allowed). Amendments of Bankruptcy legislation Armenia is introducing a series of reforms to its bankruptcy legislation, some already in force and others set to take effect in 2025. Key upcoming changes include the launch of electronic sys - tems for enforcement proceedings; updates to moratorium rules in threat-of-bankruptcy cases;

clarified timelines for financial recovery plans; stricter control over a debtor’s asset manage - ment during recovery, etc. Amendments to Consumer Protection and Competition Legislation Amendments to the Law on Consumer Protection and Competition Protection are currently under - way. The proposed changes aim to improve and tighten consumer protection legislation overall. They include an expanded definition of consumer deception, enhanced powers for the Commission for the Protection of Competition to supervise compliance, and stronger enforcement mecha - nisms to hold economic entities accountable for violations. These reforms reflect a broader effort to strengthen safeguards for consumers and ensure fair market practices. The Draft Law on Cybersecurity The draft law on cybersecurity and amendments to the relevant laws are at the public discussion stage. The intention is to establish requirements for companies as regards compliance with international cybersecurity standards, and also to establish the governmental and law enforce - ment authorities and powers thereof for prevent - ing and acting in case of cybersecurity incidents. Amendments to the Labour Code The RA Law HO-525-N, adopted on 4 December 2024, introduces a digital system for electroni - cally signing employment contracts, integrated into the State Revenue Committee’s platform. From 1 July 2025, use of this system will be voluntary, becoming mandatory by 1 January 2026, requiring all employment contracts to be signed, amended, or terminated digitally using an electronic digital signature. The system aims to enhance transparency, prevent illegal employ - ment practices, and strengthen employees’ abil - ity to monitor their rights.

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