Employer of Record Services in Armenia

The Employer of Record arrangement is the structure that lets a foreign company deploy staff to Armenia without forming a local Armenian entity. We hold the Armenian employment relationship on the client’s behalf, sponsor the work permit and Temporary Residence Card, run monthly payroll in AMD, withhold and remit all taxes, and absorb the full 2026 compliance load. The employee reports to the client and works on the client’s projects. The legal employment infrastructure that makes the deployment compliant under Armenian law is ours.

The parent context for the EOR is the EOR and Payroll hub. This page covers the specific mechanics of the EOR relationship — what we hold, what the client holds, and how the engagement scales across single-employee and multi-employee deployments.

What we hold

Under the EOR arrangement we are the legal employer in Armenia. That means:

• The Armenian-language employment contract is between us and the employee, on the unified electronic contract platform mandatory as of January 2026. The full contract mechanics are on the Armenian Employment Contracts page.
• The work permit and Temporary Residence Card are sponsored by us as the registered employer on workpermit.am. The Immigration and Work Authorization hub covers the permit mechanics.
• Monthly payroll in AMD is calculated, withheld, and disbursed by us. Personal income tax at 20% (10% for qualifying IT employees), social security, and the military stamp duty are remitted to the state budget by the 20th of the following month. Monthly personalized reports go to tax authorities. The Payroll Tax and Compliance page covers the full schedule.
• Benefits administration — health insurance, annual leave (minimum 20 working days under the Labor Code), sick leave, maternity and paternity leave compliance — is handled by us.
• Termination advisory and the legal exit process at the end of the engagement is ours.

What the client holds

The EOR is a legal employment structure, not an operational one. The client holds:

• Operational direction and project management of the employee
• Role definition, performance management, and compensation decisions
• Day-to-day work supervision and team integration
• Strategic decisions about deployment scope and timeline
• The commercial relationship with end customers and counterparties

The employee experience is closer to “this person reports to you and works for your company” than to a contractor relationship. The legal employer is us; the functional employer is the client. The distinction matters because Armenian labor law and tax law require a legal employer at the Armenian end, not because it changes how the employee operates day-to-day.

When the EOR is the cleanest answer

The EOR is the right answer in five scenarios.

Project-based deployments with a defined endpoint. When the work has a clear conclusion — typically 6–24 months — the EOR is materially easier to wind down than an LLC. The legal employment relationship ends with the engagement; there is no entity dissolution process to manage.

Single-employee or small-headcount deployments. Under five employees, the overhead of an LLC is often disproportionate to the operational footprint. The EOR scales cleanly to a small team.

Market-entry pilots. Where the client is evaluating Armenia as a base before committing to a permanent entity, the EOR allows the deployment to begin while the entity-versus-EOR decision is finalized. Transitions from EOR to an LLC can be planned at any point in the engagement.

TRIPP-related project deployments. For US companies staffing TRIPP infrastructure, construction, logistics, and energy work, the EOR is often the right structure for project teams that ramp up quickly and demobilize at project completion.

Cross-border deployments where the foreign-payroll exemption applies. For employees who remain on foreign payroll, the EOR provides the local compliance infrastructure even where the work permit itself is not required. The exemption framework is documented on the Work Permit Exemptions page.

How the EOR scales

The EOR works for one employee or for a multi-employee team. The economics shift in two directions as headcount grows. Per-employee monthly fees decline with volume. The case for transitioning from an EOR to a full LLC becomes stronger above 10–15 employees, where the LLC overhead is absorbed across a headcount large enough to justify the entity structure. The LLC page and the Company Formation hub cover the structural alternative.

For clients running ongoing EOR engagements with growing headcount, we assess the transition decision at quarterly reviews rather than reactively. Moving from EOR to LLC at the right time captures the cost benefit of the entity; doing it too early adds overhead that the headcount cannot yet absorb.

Indicative pricing

EOR services run at indicative monthly fees of $300–$600 per employee, depending on salary scale, benefits configuration, and additional compliance scope. Volume discounts apply for deployments of 10 or more employees. Pricing is indicative and subject to custom quoting based on your requirements.

Frequently asked questions

Do we maintain operational control of our employee under an EOR?

Yes. The employee reports to you, works on your projects, and integrates with your team. The EOR is a legal employment structure, not an operational one. Role, performance, compensation, scope, and termination decisions remain with the client; our role is the underlying compliance and payroll mechanics.

Is there a minimum headcount?

No. The EOR works for single-employee deployments as cleanly as for multi-employee teams. For project-based work, market-entry pilots, and small regional teams, the EOR is often the right answer specifically because the headcount is low enough that an LLC would be premature.

How quickly can the EOR onboard an employee?

Once the engagement is scoped, we move quickly. The Armenian-language employment contract on the unified e-contract platform can be issued within days. The work permit and Temporary Residence Card take approximately 30 business days through workpermit.am. Practical onboarding — soft-landing, banking, housing — runs in parallel.

Can the EOR sponsor work permits for foreign employees?

Yes. As the Armenian employer of record, we register on workpermit.am as the sponsoring employer and run the full work permit application: labor market test with the Ministry of Labor and Social Affairs, document preparation, submission, and Temporary Residence Card issuance at the Joint Office of Public Services in Yerevan.

What happens at the end of the EOR engagement?

We handle termination advisory and the exit process. The Armenian employment relationship is unwound under the Armenian Labor Code with the final payroll, separation documentation, and any benefits administration handled by us. The client does not need to manage Armenian-side wind-down separately.

Ready to deploy your team to Armenia?

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