ARMENIA Law and Practice Contributed by: Varoujan Avedikian, Tamara Martirosyan, Sofya Sargsyan and Larisa Gevorgyan, Andersen Legal
Andersen Legal Garegin Hovsepyan 180 Yerevan, 0011 Armenia Tel: +374 12 810 180 Email: info@am.andersen.com Web: Am.andersen.com
1. Legal System and Regulatory Framework 1.1 Legal System Applicable Legal System and Legal Structure The legal system in the Republic of Armenia (herein - after referred to as the RA or “Armenia”) is civil law. The source of law is written codes, which consist of the Constitution, constitutional laws and other laws. Based on the laws, secondary legislation may also be adopted by the state authorities to ensure the imple - mentation of the relevant laws. The judicial system in Armenia is a three-tier system comprising general and specialised courts. The Court of Cassation serves as the highest level in the judicial hierarchy. It: • ensures the consistent application of laws and other normative legal acts; and • eliminates fundamental violations of human rights and freedoms. Courts of general jurisdiction encompass the courts of first instance and the Court of Appeal, which reviews cases on appeal from lower courts. Additionally, spe - cialised administrative courts are responsible for adju - dicating disputes arising from public administration and the actions of state authorities. Separately, the Constitutional Court operates inde - pendently from the general judicial hierarchy and administers constitutional justice through reviewing the conformity of legal acts with the Constitution of the Republic of Armenia.
The regulatory structure includes several state author - ities, each responsible for enforcing compliance with different legislative requirements. Specifically, the fol - lowing regulatory bodies are the ones that businesses interact with most frequently: • the State Revenue Commission (SRC) – respon - sible for tax and customs administration and enforcement of fiscal legislation; • the Competition and Consumer Protection Com - mission (CCPC) – oversees fair competition, safeguards consumers’ interests and prevents monopolistic practices; • the Public Services Regulatory Commission (PSRC) – the regulatory body overseeing public utilities, including energy, water supply and tel - ecommunications; and • the Central Bank of Armenia (CBA) – the primary financial regulator, which ensures the country’s financial stability, overseeing sectors including banking, lending, insurance and payment systems. 1.2 Regulatory Framework for FDI Generally, foreign direct investment (FDI) in Armenia does not necessitate any specific authorisation. The Law of the RA “On Foreign Investments” delineates the categories of foreign investments and stipulates that the legal framework applicable to foreign inves - tors and their activities within Armenia shall not be less advantageous than that extending to citizens, enterprises and organisations of Armenia. Further - more, a new draft Investment Law is anticipated to be enacted by the end of 2025. This draft proposes certain distinctions between the regulatory regimes for foreign and domestic investors, whilst ensuring equal legal protections and guarantees for both.
15 CHAMBERS.COM
Powered by FlippingBook