Operating across various sectors, MB Legal has a particular focus on IT law. Over the past year or two, the firm has provided services to more than 100 IT companies. MB Legal’s clients include both major industry players and promising startups, with whom the firm works with a special toolkit.

In a conversation with Banks.am, Mesrop Manukyan, founding partner of MB Legal, spoke about what IT law entails and why Armenia is attractive to technology companies.

Protect the company’s know-how

MB Legal Company provides services in nearly all areas, with the exception of criminal law. Why do we single out the IT sector in particular? Over time, we have realized that our knowledge and expertise in IT law are highly sought after by both local and foreign companies. Here we have a number of competitive advantages.

We can talk about the legal requirements of the IT sector by looking at the “entire lifecycle” of the company, from registration to liquidation.

The choice of country for registering an IT company is crucial. The process should be straightforward and cost-effective. In case of startups, founders prefer to invest funds towards the company’s growth and reduce additional expenses.

The second important aspect is financing and the associated legal nuances. IT companies often attract venture funding, and all this must be legally regulated.

Armenia is a very favorable country for registering an IT company. Additionally, in some cases, we offer to register the company in Armenia and simultaneously in the United States, Singapore, the Cayman Islands, and a number of other countries.

After registration, throughout the company’s lifecycle, we focus on two main areas relating to the company’s innovations and relations with employees. The latter implies the conclusion of employment contracts and addressing all related matters.

Our primary focus, however, is to legally protect know-how, the knowledge, inventions, and technologies the company creates.

Recently, we registered one client’s invention not only in Armenia but also in the United Kingdom.

MB Legal helps individuals and companies protect their technologies and innovations they create. In my opinion, this is the most important aspect of our work.

Unfortunately, a company’s lifecycle can end in liquidation. In such cases, it is crucial to ensure that accumulated knowledge and created technologies are properly licensed and commercialized. MB Legal drafts commercialization contracts for various technologies and software. This ensures that if the company decides to transfer or sell its technology, all financial flows will be secured for the creators of the technology.

A “window” to the world

MB Legal serves both Armenian and foreign IT companies. Some of the largest firms of Armenian origin cooperate with us. Recently, we facilitated an employee share ownership process for one of our clients, implementing the new law in Armenia. We are among the first to apply this legislation.

Among our clients is one of the leading Armenian cybersecurity companies, to which we provide services both in Armenia and abroad.

In general, MB Legal has partners and representatives worldwide. Thanks to this, we are able to support Armenian companies in international markets as well.

If for foreign companies we are a point of attraction to Armenia, for Armenian companies MB Legal can be a “window” to the world and international markets.

It is important to note that MB Legal is always open to cooperation with startup companies as well. In this case, we employ a special tool. We have had experience when startup companies did not pay for our services from the beginning and we charged money only after the startup secured its first round of funding. We are quite flexible if we believe in the idea of the startup.

As to cooperation with foreign IT companies, we recently experienced an influx of interest in registering companies in Armenia. In a single day, we received registration requests from four different countries: Italy, India, China, and a country within the CIS region.

Armenia is attractive for IT companies

Armenia is highly favorable for foreign investors. The company registration process is straightforward, with no restrictions on foreign shareholders.

After registration, founders can easily obtain residence status in Armenia and relocate employees based on employment contracts.

As for IT companies, Armenia offers state programs supporting the IT sector, which provide for tax benefits. As a law firm, we can say that these state programs are effective and make Armenia really more attractive.

For MB Legal, it is essential to be more than just legal consultants; we aim to understand our clients’ visions, and upcoming goals. By taking these into account, we can offer the optimal solutions for establishing a presence in Armenia.

Armenia - an oasis for IT companies

Legislative changes in Armenia concerning the IT sector primarily focus on investment tools for startups. The possibility of using “safe” tools used in the United States is discussed. This is the simplest and fastest tool to invest in startups, without legal complexities, prolonged negotiations, and paperwork - by simply signing one document. This will ensure the swift entry of funding to the startup, which is very important.

Hopefully, this trend will continue, leading to a constructive and long-term strategy supporting the sector.

Armenia has a real opportunity to become an oasis in the region for IT and high-tech companies.

Yana Shakhramanyan

Photos by Emin Aristakesyan