Acquisition the residency of the High Technology Park, Joining to HTP (Belarus)
- Does our company have successful experience in HTP?
- What services do we offer as part of joining HTP?
- What is the cost of the services and the minimum period of registration?
- What influences the successful entry into HTP?
- What if you doubt your success?
- What order of work?
- Taxation after entering the HTP
- Costs for salaries of employees of the HTP resident
Here is our procedure for providing legal services for the acquisition the residency of the High Technology Park (hereinafter - HTP).
The main question is: can a foreign legal entity become a resident of an HTP?
Only a Belarusian legal entity can become a resident of the HTP, with the founders of foreign legal entities or individuals. By experience, we can say that the composition of the founders is carefully consider by the administration of HTP and accordingly it can become a plus or a minus depending on the reputation of the establishing company, its position on the market.
1. Does our company have successful experience in facilitating registration in HTP?
Yes we have experience, we have several successful projects. At the moment, we support joining the HTP of five companies, in three of which (non-residents) we act as a managing organization with full responsibility for administrative, legal and accounting functions, as well as with the help of recruiting highly qualified specialists.
2. What services do we offer as part of joining HTP?
We provide services for entry into HTP residents which consist in the following:
- support of registration of a legal entity in accordance with the law of the Republic of Belarus (you can read the review on registration);
- preparation of a business project that meets the requirements;
- support of the protection of the business project in the administrative structures of the HTP;
- consultation on work in HTP and conducting business in Belarus.
3. What is the cost of the services and the minimum period of registration?
The cost of services is 3 000 Euro. The price in the process of long negotiations can increase, as the demand for this service increases, as well as costs.
At the moment (as of May 15, 2018), the turn for consideration of applications in HTP at least 4 months.
4. What influences the successful entry into HTP?
We know about informal requirements and the practice of successful projects:
- Well-structured White Paper, accurate baseline data for compiling a business plan;
- The revenue of the established Belarusian company from $ 300,000 planned in the business plan based on the results of the first year of the resident in the HTP; below this figure is not recommended to specify in the business plan, at the same time, exaggeration and, accordingly, then not achieving such indicators, except for objective reasons (global demand decline, industry crisis) may turn out to be an exception from the HTP;
- Location of data processing servers in Belarus;
- The net reputation of the founders. Before submitting the business plan, we arrange a meeting of the founder with the head of the registration department in HTP, they record and study the information of founders;
- Competent and correct functioning of the firm in legal, accounting, personnel aspects. Since all data, the workflow will be checked when joining the HTP. This is also necessary, since after joining the HTP every year it will be necessary to pass a mandatory audit of all the activities of the enterprise.
We recommend that we conclude an agreement with us on the provision of management services in the head of the organization (this is stated in the overview of registration) so that we can independently represent your interests in the HTP without the permanent participation of the founders for discussion with the HTP administration. Or, to attract a director who can join us in joining the HTP on your behalf, in this case we recommend that you conclude an agreement on the legal service of your legal entity so that we can prepare all internal documents of the company by the time the business plan is considered in the HTP.
5. What if you doubt your success?
Firstly, the number of opportunities to correct business plans is unlimited, any process can be delayed up to 1 year, even if your enterprise does not comply with our recommendations on these or those points. During the period of preliminary approval of the business plan, it is held informally through a permanent dialogue with the HTA administration. Already after approval at the expert level before the official part to 1 month in the form of final protection of the business plan before the supervisory board of up to 20 people.
Secondly, the same business plan can be submitted to the techpark, the scientific and technological association, the entry into which is simpler and unlikely to be rejected, although the benefits for them are somewhat lower than in the HTP. In extreme cases, there is the possibility of locating equipment and offices in small towns, in rural areas, where there are also good benefits (0% on profits for seven years). However, these opportunities are not available for all new types of activity with mining, turnover of tokens or crypto currency by a legal entity without the status of an HTP response. In any case, this issue for legal entities outside the HTP should be cleared by March 28, when the by-laws will be issued (the government, the national bank, the Ministry of Economy, etc.) regulating in detail what is fixed in Decree No. 8.
6. What order of work?
Preferably and faster will be for you if you immediately conclude a contract for the registration of a legal entity and for joining the HTP. After receipt of funds in the account, we will send you a questionnaire, after filling in, we will immediately begin to develop a business plan and work on joining the HTP.
7. Taxation after entering the HTP
After acquiring the status of an HTP resident, the company gets the right to apply the following tax rates and benefits, but only for IT activities:
- 1% tax on revenue in favor of HTP administration instead of income tax;
- no need to pay VAT;
- no need to pay import customs duties for equipment used by the Belarusian company - a resident of the HTP;
- 5% tax on dividends irrespective of the country of residence of the founders, incl. offshore companies;
- Various benefits for real estate tax and land tax and other taxes.
8. Costs for salaries of employees of the HTP resident
The employer - a resident of the HTP pays the following contributions in excess of his salary:
- 28% for pension insurance and 6% for social insurance from the size of the salary, but with a maximum contribution of 117 euros with a salary starting from 346 euros, for example, if an employee receives a salary of 2000 euros, then he will be paid only 117 Euro. It is also worth noting that for a foreign worker pension and social insurance may not be paid, with his consent.
From the paid salary, the employer with the employee retains the following contributions:
- 1% for pension and social insurance;
- 9% income tax.
We are a Belarusian company,
Borius Consulting LLC, operating since 2015.
License for the provision of legal services №02240 / 2262.
Addres: Minsk, st. Karl Liebknecht 66, office 401, Zip code: 220036.
Director of Borius Consulting LLC
Senior lawyer in Homel
Senior lawyer in Minsk
Senior lawyer in Brest