Type of Sole Proprietor Activity in Armenia in 2026: How to Choose a Code from the Classifier and What It Affects

When registering as a sole proprietor, you must indicate the main (primary) type of activity using the TEA classifier and select the one that actually reflects your business. This type is entered into the register (Art. 25(1)(9) of the Law on Registration), and your activity type impacts the tax regime, license requirements, and statistics. The data can be updated at any time for a fee of 1,500 drams. Verified as of 11.11.2026.

What is the classifier

The classifier of economic activities (TEA, ՏԳՏԴ in Armenia) defines the names and codes of all activity types in the country. It is used for statistics, taxation, and accounting, and applies when registering legal entities and sole proprietors (registry service page). The Russian version of the registry site notes that the classifier ensures comparability of data, company registration, and economic policy. The English version adds selection of tax regime, licensing, and statistics. The classifier and search tool are published by the Statistical Committee.

The structure can be seen in the Tax Code: codes are grouped into sections (for example, Section M "Professional, Scientific and Technical Activities" and Section N "Administrative and Support Service Activities"). Within sections, codes are numbered "69" or "78.2", etc.

How to choose a code: step by step

1. Describe in your own words what you sell or do, and who your client is.
2. Find in the classifier the activity that most accurately matches your description. Do not select the code based on a competitor’s name.
3. Check the restricted lists for tax regimes (see below). If your activity is on the list, some regimes will be unavailable.
4. Check if a license is required for this activity: see Licenses.
5. Indicate the main activity in your application. The online form offers a selection of the preferred "Type of Activity" (service page).

The general procedure for registration is described in Sole Proprietor Registration.

What the code affects

Code restrictions apply from July 1, 2025 (see Law HO-72-N). Read more about regimes and rates in the articles Tax Regimes and Microbusiness.

Important points

• The regime is chosen based on all activities together. Legal entities and sole proprietors are considered turnover tax payers "in relation to all activities" (Art. 254(4)). A single prohibited activity can exclude the regime for the entire sole proprietor.
• The turnover tax rate depends on the type of income, not the registry code. For instance, trading is taxed at 10%, production at 7%, catering at 12%, other activity at 10%, and a 1% rate applies to high-tech activities as determined by the Government (Art. 258(1)).
• There are special rules for catering: a sole proprietor can choose turnover tax for catering by a separate application (Art. 254(6) and Art. 258(8)).
• Trading excludes the microbusiness regime, regardless of how you describe it (Art. 267(5)(1)).

Multiple activities and expense allocation

If a sole proprietor paying turnover tax carries out several types of activity, expenses must be accounted for separately for each. Turnover tax for trade, production, catering, and other activities is calculated separately, as each type has its own rate, expense deduction, and minimum (Art. 258 and 260):

If it is impossible to allocate administrative and selling expenses separately, they should be distributed proportionally to the share of each activity in total turnover (Art. 260(3)). This is another reason why you should only specify actual activities.

Examples

These are guidelines and not final conclusions: your outcome depends on the exact wording of your activity and contracts. For more on freelancing and IT, see IT Certificate and Benefits.

What to check before applying

• Whether the description of the activity in the classifier matches what you state in contracts and invoices. The real scope of work and the registry entry should coincide to ease regime choice.
• Whether your service falls under "similar" ones from the list in Art. 267(5): the law also excludes microbusiness for services that are analogous to the listed ones.
• Whether your activity requires a specific license or permit.
• If you plan to claim the 1% rate for high-tech activities: the list is set by the Government, not by you. Details in IT Certificate and Benefits.
• That the regime is chosen for all activities together; one restricted type affects the entire sole proprietor. The register reflects only the main activity, but restrictions apply to everything you do.

How to change your activity type

Changes are made based on an application from the sole proprietor or their representative (Art. 29(3) of the Law on Registration). The change is recorded upon submission (Art. 29(5)). Online, use the e-register.moj.am service: select your entry, enter the changes, sign the application, and pay the fee. The fee is 1,500 drams, which is 150% of the base fee (Art. 16(2.1) of the Law on State Duty). Changes are processed within a minute.

If you start a type of activity that excludes your tax regime, your turnover tax payer status is revoked from the day it occurred and remains so until year-end (Art. 255(1)(3)). Check the consequences before you apply.

Codes and tax applications

The tax regime is not automatically tied to the code. You must submit an application for turnover tax or microbusiness to the tax authority: a new sole proprietor within 20 days of registration, existing ones by February 20 (Art. 254(1) and Art. 267(1)). If you miss the deadline, the regime usually is not applied for that year (separate deadlines exist for reopening business, re-registration, and ending microbusiness). So the order is: first choose the codes, then check the restriction lists to see which regimes you qualify for, and only then submit your application. The procedure for regime selection is described in Tax Regimes, turnover limits in Sole Proprietor Turnover Limits.

Common mistakes

• Choosing a code "by analogy" without checking the actual activity description.
• Starting work in an activity that excludes your regime, without recalculating taxes.
• Overlooking licenses: the activity code does not replace a license.
• Attempting to operate as a microbusiness in an excluded type of activity.
• Changing activity type without reassessing tax consequences.

What to do

1. Describe your activity.
2. Find the codes in the classifier.
3. Check the restriction lists for regimes.
4. Check for licensing requirements.
5. Indicate the main activity in your registration or change application.