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Doing business in Armenia

The Republic of Armenia has its Constitution, which establishes the following political structure. The President of the country is elected by the general, equal and direct election right for 5 year period. The President of the Republic of Armenia on the basis of the distribution of the seats in the National Assembly and consultations held with the parliamentary factions, appoints as Prime Minister the person enjoying confidence of the majority of the Deputies and in some cases the person enjoying confidence of the maximum number of the Deputies; and with the suggestion of the Prime Minister appoints the ministers forming the government. The last presidential elections took place in February 2008. The amendments to the Constitution, which were adopted by the referendum in November 2005, introduce a certain balance between the powers in favour of the Prime Minister and the National Assembly (Parliament). The incumbent President of the Republic of Armenia is Serzh Sargsyan. The Legislative power is exercised by the National Assembly, which is comprised of 131 members of parliament being elected once every five years in general, equal and direct elections. The representatives of the National Assembly represent various political parties. The Judicial power is exercised by the three-leveled court system and by the Constitutional Court (only for matters of constitutional justice). Armenia has established diplomatic relations with more than 180 countries worldwide. Armenia is a member of the United Nations Organization (UNO), International Monetary Fund (IMF), The World Bank (WB), European Bank for Š 2012 Grant Thornton CJSC. All rights reserved. 5